HomeMy WebLinkAbout2023 Ordinance No. 0101
BY AUTHORITY
ORDINANCE NO. 10 COUNCIL BILL NO. 07
SERIES OF 2023 INTRODUCED BY COUNCIL
MEMBER RUSSELL
AN ORDINANCE AMENDING ENGLEWOOD MUNICIPAL CODE
SECTIONS TO REFLECT CURRENT SALES AND USE TAX RATE
WHEREAS, in the November, 2022 election, Englewood voters increased the City sales
and use tax by .3 percent, to fund City alternate policing efforts and street maintenance and
improvements; and
WHEREAS, this increased the City sales and use tax rate from 3.5 percent to 3.8 percent;
and
WHEREAS, various sections of Englewood Municipal Code contain the rate of the sales
and use tax, and must be amended to reflect the current rate effective January 1, 2023.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. Amendment of Englewood Municipal Code
Title 4, Chapter 4, Section 4-4-4-2 of Englewood Municipal Code is hereby amended to read as
follows (deleted provisions struck through; new provisions underlined):
4-4-4-2: Sales Tax Levy.
A. There is hereby imposed upon all sales of all items specified in EMC §Section 4-4-4-1 above,
within the boundaries of the City, a sales tax. Effective January 1, 2023, the amount of such
sales tax shall be three and four-fifths percent (3.8%) of the sales price. The tax imposed by
this section shall be calculated to the nearest penny, but all tax of a fraction of a penny of fifty
percent (50%) or more shall be rounded up and all tax of a fraction of a penny or less than
fifty percent (50%) shall be rounded down. , to become effective January 1, 1988, in
accordance with the following schedule:
Amount of Sale Tax
$0.01 including $0.14 No Tax
$0.15 including $0.42 $0.01
$0.43 including $0.71 $0.02
$0.72 including $0.99 $0.03
$1.00 including $1.28 $0.04
$1.29 including $1.57 $0.05
$1.58 including $1.85 $0.06
$1.86 including $2.00 $0.07
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On sales in excess of two dollars ($2.00) the tax shall be seven cents ($0.07) on each two dollars
($2.00) of the sales price, plus the tax shown in the above schedule for the applicable fractional
part of a dollar of each such sales price.
B. The following taxes are hereby levied upon the rental fee, price, or other consideration paid
or received, upon the rental or lease of any room, rooms or mobile homes for lodging purposes
in any hotel, motel, lodge, resort, club, rooming house, apartment building or other
establishment, making such rooms available to the public, where the period of lodging for
which such rental fee, price or other consideration is paid or received shall be less than thirty
(30) days. Those taxes hereby levied are:
1. The sales tax imposed by set forth in the preceding subsection A of this Section; and
hereof levied in accordance with the schedule as is set forth therein.
2. Two percent (2%) of the cost of the rental fee, price, or other consideration paid or
received for the lodging on each full dollar of said rental fee.
The person, partnership, corporation, or other entity making such rooms available shall, for all
purposes of this Chapter, be deemed to be a "retailer" as defined in EMC §Section 4-4-2 of this
Chapter.
C. The retailer shall add the tax imposed hereto to the sale or charge of the item sold, showing
such tax as a separate and distinct item, and, when added, such tax shall constitute a part of
such price or charge, shall be a debt from the purchaser to the retailer until paid, and shall be
recoverable at law in the same manner as other debts.
D. Any commercial enterprise, whether sole proprietorship, partnership or corporation, who
shall enter into any agreement with a charitable organization or government entity with the
sole purpose of providing tangible personal property to be sold to the general public by agents
of said organization or entity for the purposes of fundraising for the organization or entity
shall be deemed to be the retailer. The retailer shall calculate into the final sales price any
applicable sales tax which may result from the sale and shall be wholly responsible for the
remittance of such sales tax without reducing the benefit to the charitable organization or
government entity.
E. For transactions consummated on or after January 1, 20231986, the City's sales tax shall not
apply to the sale of tangible personal property at retail or the furnishing of services if the
transaction was previously subjected to a sales or use tax properly and proportionately
imposed on the purchaser or user by another statutory or home rule municipality equal to or
in excess of three and four-fifths one-half percent (3.53.8%). A credit shall be granted against
the City's sales tax with respect to such transaction equal in amount to the lawfully imposed
local sales or use tax previously paid by the purchaser or user to the previous statutory or
home rule municipality. The amount of the credit shall not exceed three and four-fifths one-
half percent (3.53.8%).
Section 2. Amendment of Englewood Municipal Code
Title 4, Chapter 4, Section 4-4-4-7 of Englewood Municipal Code is hereby amended to read as
follows (deleted provisions struck through; new provisions underlined):
4-4-4-7: Sales Tax Returns.
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A. Every person required to obtain a Sales and Use Tax License pursuant EMC § to the
provisions of Section 4-4-1 shall file a sales tax return, with payment of tax owed, if any,
upon the standard Municipal sales and use tax reporting form as adopted by the Executive
Director of the Colorado Department of Revenue, not later than the twentieth (20th ) day of
each month for the preceding calendar month; provided, however, that if the accounting
methods regularly employed by the licensed retailer in the transaction of his/her business, or
other conditions, are such that reports of sales made on a calendar monthly basis will impose
unnecessary hardship, the Director may, upon request of said retailer, accept reports at such
intervals as will, in his/her opinion, better suit the convenience of the taxpayer, and will not
jeopardize the collection of the tax.
B. The returns so filed shall contain such information as may enable the Director to accurately
determine the amount of tax collected by the person filing the return, but in all cases shall
contain the following information:
1. The amount of gross taxable sales made by the retailer during the period for which
the return is filed;
2. The total sales price of all property returned by the purchaser as a result of a return
of goods sold by the retailer; provided, the original sale was a taxable transaction;
3. The total fair market value of any property received by the retailer as a result of an
exchange of property; provided the property so received is held by the retailer to be
sold or leased to a user or consumer in the regular course of his/her business;
4. The total amount of retail sales which are exempt from the tax imposed by EMC §
Section 4-4-4-2 by reason of the provisions of EMC § Section 4-4-4-3;
5. The total amount of sales made on credit, the obligation for which is not secured by
a conditional sales contract, chattel mortgage or other security instrument entitling
the retailer to repossess the item sold, which are found to be worthless and which
may be deducted as bad debts on the retailer's Federal income tax return.
C. The return shall be accompanied by an amount equal to the sales tax required to be collected
by the retailer but which, in no case, shall be less than the amount actually collected, nor less
than three and four-fifths one-half percent (3.53.8%) of the figure derived by subtracting from
the gross taxable sales, as reflected on the return, the total sales described in subsections B.2.,
3., 4. and 5. above, as reflected on the return.
D. All other persons shall pay to the Director the amount of any tax due under the provisions of
EMC §this Section 4-4-4-7, not later than fifteen (15) days after the date that said tax becomes
due.
E. Beginning January 1, 2016; all license applications, returns and payments required under this
chapter received in paper format and requiring in-office processing shall be assessed an
administrative fee to be set by Resolution of the City Council within its Fee and Rate
Schedule.
Section 3. Amendment of Englewood Municipal Code
Title 4, Chapter 4, Section 4-4-5-1 of Englewood Municipal Code is hereby amended to read as
follows (deleted provisions struck through; new provisions underlined):
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4-4-5-1: Tax on Storage, Consumption and Use.
There is hereby levied and there shall be collected from every person in the City, a use tax
upon the initial privilege of storing, using or consuming within the boundaries of the City any
articles of tangible personal property purchased at retail from sources outside the corporate limits
of the City. Effective January 1, 2023, the amount of such use tax shall be three and four-fifths
percent (3.8%) of storage or acquisition charges or costs, to be payable to and collected by the
Director of Finance. The tax imposed by this section shall be calculated to the nearest penny, but
all tax of a fraction of a penny of fifty percent (50%) or more shall be rounded up and all tax of a
fraction of a penny or less than fifty percent (50%) shall be rounded down. Such tax, to become
effective January 1, 1988, shall be payable to, and shall be collected by, the Director of Financial
Services in accordance with the following schedule:
On Storage or Acquisition
Charges or Cost
Tax
$0.01 including $0.14 No Tax
$0.15 including $0.42 $0.01
$0.43 including $0.71 $0.02
$0.72 including $0.99 $0.03
$1.00 including $1.28 $0.04
$1.29 including $1.57 $0.05
$1.58 including $1.85 $0.06
$1.86 including $2.00 $0.07
On storage or acquisition charges or costs, in excess of two dollars ($2.00), the tax shall be
seven cents ($0.07) on each two dollars ($2.00) of such storage or acquisition charges or cost, plus
the tax shown in the above schedule for the applicable fractional part of a dollar of each such
charges or cost.
For transactions consummated on or after January 1, 1986, the City use tax shall not apply to
the storage of construction and building materials.
Section 4. Amendment of Englewood Municipal Code
Title 4, Chapter 4, Section 4-4-5-2 of Englewood Municipal Code is hereby amended to read as
follows (deleted provisions struck through; new provisions underlined):
4-4-5-2: Exemptions to Use Tax.
A. The tax or excise levied by EMC §Section 4-4-5-1 is hereby declared to be supplementary to
the tax levied by EMC §Section 4-4-4 hereof, and for this reason, the following transactions
shall be exempt therefrom:
1. The storage, use or consumption of personal property, the sale of which is subject to
the tax levied by EMC §Section 4-4-4.
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2. The storage, use or consumption of any tangible personal property purchased for
resale to this City, either in its original form or as an ingredient of a manufactured or
compounded product, in the regular course of a business.
3. The storage, use or consumption of motor fuel upon which there has accrued, or has
been paid, the motor fuel tax prescribed by the Colorado Motor Fuel Tax Law of
1933, or any amendments thereto.1
4. The storage, use or consumption of tangible personal property which was acquired at
a time when the user or consumer thereof was a nonresident of the City; provided its
use or consumption is for the benefit of said user or consumer.
5. The storage, use or consumption of tangible personal property of the United States
government, or the State of Colorado, or its institutions, or its political subdivisions,
in their governmental capacities only; or by religious, charitable or eleemosynary
institutions in the conduct of their regular religious or charitable functions; provided,
however, that no commercial, industrial or other banking institutions, organized or
chartered by the United States government, any agency or department thereof, or by
the State of Colorado, shall be considered a governmental institution for the purpose
of this exemption.
6. The storage, use or consumption of tangible personal property by a person engaged
in the business of manufacturing, compounding for sale, profit or use, any article,
substance or commodity, which tangible personal property meets all of the following
conditions.
a. Is actually and factually transformed by the process of manufacture;
b. Becomes by the manufacturing process a necessary and recognizable ingredient,
component or constituent part of the finished product; and
c. Its physical presence in the finished product is essential to the use thereof in the
hands of the ultimate consumer.
7.All exemptions set forth within EMC §Section 4-4-4-3, Exemptions to Sales Tax.
B. For transactions consummated on or after January 1, 1986, the City's use tax shall not apply
to the storage, use, or consumption of any article of tangible personal property, the sale or use
of which has already been subjected to a sales or use tax of another statutory or home rule
municipality properly and proportionally imposed on the purchaser or user equal to or in
excess of three and four-fifths one-half percent (3.53.8%). A credit shall be granted against
the City's use tax with respect to the person's storage, use or consumption in the City of
tangible personal property, the amount of the credit to equal the tax paid by him/her by reason
of the imposition of a sales or use tax of the previous statutory or home rule municipality on
the his/her purchase or use of the property. The amount of the credit shall not exceed three
and four-fifths one-half percent (3.53.8%).
C. For transactions consummated on or after January 1, 1986, the City's use tax shall not be
imposed with respect to the use or consumption of tangible personal property within the City
which occurs more than three (3) years after the most recent sale of the property if, within the
three (3) years following such sale, the property has been significantly used within the State
for the principal purposes for which it was purchased.
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D. Nothing herein contained shall be deemed to exempt from the tax levied by Subsection 4-4-
5-3(B) on the storage, use or consumption of any tangible personal property to be used by a
contractor for the construction of an improvement for any of the institutions or agencies
enumerated in subsection A.5 above, except any tangible personal property to be used by a
contractor for construction projects associated with any capital improvement project of any
public school district, for which bond financing has been approved by majority vote of the
applicable electors of such public school district, shall be deemed exempt. All costs associated
with municipal infrastructure projects connected to such school district construction project(s)
will be the responsibility of the public school district, and will be completed in conformance
with City regulations, including but not limited to crosswalks, lighting, curb and guttering,
utilities, and roadway access.
Section 5. Amendment of Englewood Municipal Code
Title 4, Chapter 4, Section 4-4-5-3 of Englewood Municipal Code is hereby amended to read as
follows (deleted provisions struck through; new provisions underlined):
4-4-5-3: Payment and Collection of Use Tax.
A. Payment of Tax:
1. All persons who are required to obtain a Sales and Use Tax License pursuant to the
provisions of EMC §Section 4-4-1 shall include within the return required to be filed,
pursuant to the provisions of EMC §Section 4-4-4-7, such information as may be required
by the City as may enable it accurately to compute the amount of use tax due from said
retailer for purchases made by such retailer for which a use tax is due during the period
for which such return is filed.
2. All other persons shall pay to the City the amount of any tax due under the provisions of
EMC §Section 4-4-5-3, not later than fifteen (15) days after the date that said tax becomes
due.
B. Payment and Collection on Specific Items: The following special provisions shall apply to
the payment of any use tax due on the use, consumption or storage of the following items:
1. Motor Vehicles and Trailers: Any persons who shall purchase any motor vehicle,
trailer or semi-trailer, whether new or used, outside the City, with the intent to register
the same at an address inside the City, shall immediately, and prior to registering and
obtaining license plates therefor, make a return showing such transaction to the City
and pay to the City the use tax applicable thereto as provided in subsection A hereof.
2. Building and Construction Materials and Supplies: Any person who shall build,
construct or improve any building, dwelling or other structure or improvement to
realty whatsoever (including but not limited to structures, and site work such as
landscaping, utility infrastructure, curb/gutter installation, parking lot resurfacing,
etc.) within the City shall, upon application for a permit for improvement to realty,
pay as a deposit for payment of the tax levied by EMC §Section 4-4-5-1 an amount
equal to three and four-fifths one-half percent (3.53.8%) of fifty percent (50%) of the
estimated cost or total contract price of the structure improvement or three and four-
fifths one-half percent (3.53.8%) of forty percent (40%) of the estimated cost of the
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improvement other than to the structure. If the estimated cost or the total contract
price of the improvement to realty is in excess of three million dollars
($3,000,000.00) or as set by City Council Resolution, the City Manager or designee,
at his/her discretion and upon application to it, may authorize a waiver of said deposit
and accept the payment of said tax on a monthly, quarterly or other basis, based upon
actual purchases of materials, supplies and equipment for such tax may be due,
subject to such rules and regulations as the said City may adopt. In all cases where
the deposit required by the provisions of this Section is made, if it is determined at
the time of the completion of the building, dwelling or other structure of improvement
from the invoices and statements reflecting the purchase therefor, that the deposit
made as herein required, together with the actual payments to the City as a sales tax,
is in excess of the actual tax due therefor, the person making said deposit or paying
said tax may make application to the City for refund of any amount paid in excess of
the actual taxes due, in which event it shall be the duty of the person making such
application to furnish all necessary bills and invoices evidencing overpayment of the
tax, and, if the said City is satisfied that there has been such overpayment, it shall
refund such overpayment to the taxpayer.
C. Construction equipment which is located within the boundaries of the City for a period of
more than thirty (30) consecutive days shall be subjected to the full applicable use tax of the
City.
D. Construction equipment which is located within the boundaries of the City for a period of
thirty (30) consecutive days or less shall be subjected to the City's use tax in an amount which
does not exceed the amount calculated as follows: the purchase price of the equipment shall
be multiplied by a fraction, the numerator of which is one and the denominator of which is
twelve ( 1/12), and the result shall be multiplied by three and four-fifths one-half percent
(3.53.8%).
E. Where the provisions of Subsection D of this Section are utilized, the credit provisions of
Subsection 4-4-5-2B shall apply at such time as the aggregate sales and use taxes legally
imposed by and paid to other statutory and home rule municipalities on any such equipment
equal three and four-fifths one-half percent (3.53.8%).
F. To utilize In order to avail himself of the provisions of Subsection D of this Section, the
taxpayer shall comply with the following procedure:
1. Prior to or on the date the equipment is located within the boundaries of the City, the
taxpayer shall file with the City an equipment declaration on a form provided by the
City. Such declaration shall state the dates on which the taxpayer anticipates the
equipment will be located within and removed from the boundaries of the City, shall
include a description of each such anticipated piece of equipment, shall state the
actual or anticipated purchase price of each such anticipated piece of equipment, and
shall include such other information as reasonably deemed necessary by the City.
2. The taxpayer shall file with the City an amended equipment declaration reflecting
any changes in the information contained in any previous equipment declaration no
less than once every ninety (90) days after the equipment is brought into the
boundaries of the City or, for equipment which is brought into the boundaries of the
City for a project of less than ninety (90) days' duration, no later than ten (10) days
after substantial completion of the project.
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3. The taxpayer need not report on any equipment declaration any equipment for which
the purchase price was under two thousand five hundred dollars ($2,500.00).
G. If the equipment declaration is given as provided in subsection F of this Section, then as to
any item of construction equipment for which the customary purchase price is under two
thousand five hundred dollars ($2,500.00) which was brought into the boundaries of the City
temporarily for use on a construction project, it shall be presumed that the item was purchased
in a jurisdiction having a local sales or use taxes as high as three and four-fifths one-half
percent (3.53.8%) and that such local sales or use tax was previously paid. In such case the
burden of proof in any proceeding before the City, the Executive Director of the Department
of Revenue, or the District Court, shall be on the City to prove such local sales or use tax was
not paid.
H. If the taxpayer fails to comply with the provisions of Subsection F of this Section, the taxpayer
may not utilizeavail himself of the provisions of Subsection D of this Section and shall be
subject to the provisions of Subsection C of this Section. However, substantial compliance
with the provisions of subsection F of this Section shall allow the taxpayer to avail himself of
the provisions of subsection D of this Section.
SECTION 6. General Provisions Applicable to this Ordinance
The following general provisions and findings are applicable to the interpretation and application
of this Ordinance:
A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application
thereof to any person or circumstances shall for any reason be adjudged by a court of competent
jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this
Ordinance or its application to other persons or circumstances.
B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or
conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such
inconsistency or conflict.
C. Effect of repeal or modification. The repeal or modification of any provision of the Code
of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change
in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have
been incurred under such provision, and each provision shall be treated and held as still remaining
in force for the purposes of sustaining any and all proper actions, suits, proceedings, and
prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose
of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in
such actions, suits, proceedings, or prosecutions.
D. Safety Clauses. The City Council hereby finds, determines, and declares that this
Ordinance is promulgated under the general police power of the City of Englewood, that it is
promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and welfare.
The City Council further determines that the Ordinance bears a rational relation to the proper
legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right
to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47.
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E. Publication. Publication of this Ordinance may be in the City’s official newspaper, the
City’s official website, or both. Publication shall be effective upon the first publication by either
authorized method.
F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and
directed to execute all documents necessary to effectuate the approval authorized by this
Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the
Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to
execute the above-referenced documents. The execution of any documents by said officials shall
be conclusive evidence of the approval by the City of such documents in accordance with the terms
thereof and this Ordinance. City staff is further authorized to take additional actions as may be
necessary to implement the provisions of this Ordinance.
G. Enforcement. To the extent this ordinance establishes a required or prohibited action
punishable by law, unless otherwise specifically provided in Englewood Municipal Code or
applicable law, violations shall be subject to the General Penalty provisions contained within EMC
§ 1-4-1.
Introduced, read in full, and passed on first reading on the 6TH day of February, 2023.
Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 9TH
day of February, 2023.
Published as a Bill for an Ordinance on the City’s official website beginning on the 8TH
day of February, 2023 for thirty (30) days.
Read by Title and passed on final reading on the 21st day of February, 2023.
Published by Title in the City’s official newspaper as Ordinance No. 10, Series of 2023, on
the 23rd day of February, 2023.
Published by title on the City’s official website beginning on the 22nd day of February, 2023
for thirty (30) days.
This Ordinance shall take effect thirty (30) days after publication following final passage.
Othoniel Sierra, Mayor
ATTEST:
Stephanie Carlile, City Clerk
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I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that
the above and foregoing is a true copy of the Ordinance passed on final reading and published by
Title as Ordinance No. 10, Series of 2023.
Stephanie Carlile
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