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TC Ord. No. 19-10 Emergency Ordinance Amending Sections 3.08 and 3.10 of the Avon Municipal CodeTOWN OF AVON, COLORADO ORDINANCE 19-10 AN EMERGENCY ORDINANCE AMENDING SECTIONS 3.08 AND 3.10 OF THE AVON MUNICIPAL CODE TO PROVIDE MORE EFFICIENT COLLECTION OF THE TOBACCO SALES TAX AND CIGARETTE EXCISE TAX RECITALS WHEREAS, the Town of Avon, Colorado (the "Town"") is a home rule municipality and political subdivision of the State of Colorado (the "State") organized and existing under a home rule charter (the "Charter") pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town, the Avon Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Avon Town Council referred a ballot measure entitled "Tax Increase on the Sale of Tobacco and Nicotine Products" to the November 6, 2018 election by Resolution No. 18-12, which was passed by the Avon voters; and WHEREAS, Avon Town Council adopted Ordinance 19-02, pursuant to which it, in part, established a 40% sales tax on all tobacco products, established an excise tax on the sale of cigarettes and instituted certain related administrative requirements; and WHEREAS, Avon Town Council finds that amendments to the Avon Municipal Code would clarify the applicability of the sales tax on tobacco products and the excise tax on cigarettes as well as the administrative requirements related thereto; and WHEREAS, Section 6.6 of the Charter permits the adoption of ordinances on one reading with the concurring vote of five (5) Council members after posting notice of a public hearing and conducting a public hearing; and, WHEREAS, Avon Town Council finds that amendments to the Avon Municipal Code will more effectively implement the sales tax on tobacco products and the excise tax on cigarettes and will thereby promote the health, safety and general welfare of the Avon community. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Avon Town Council. Section 2. Amendment to Section 3.08.030(a). Section 3.08(a) of the Avon Municipal Code is hereby amended to read as follows with underline indicating language to be adopted: (a) There is imposed upon all sales of all items specified in Section 3.08.020 within the boundaries of the Town a tax equal to four percent (4%) of gross receipts derived from sales of tangible personal property and services pursuant to_ this Chapter except that the sales tax imposed on tobacco products shall be forty percent (40%). Notwithstanding the foregoing, cigarettes shall not be subject to the sales tax imposed hereunder, but shall be subject to the cigarette excise tax imposed pursuant to Section 3.10.020. Section 3. Amendment to Section 3.10.020. Section 3.10.020 of the Avon Municipal Code is hereby amended to read as follows with underline indicating language to be adopted: (a) There is imposed upon all sales of all cigarettes a cigarette excise tax in the amount of fifteen cents per cigarette or three dollars per pack of twenty (20) cigarettes. (b,) Any retailer that sells a cigarette shall add the applicable cigarette excise tax imposed thereto to the sale or charge of the cigarette sold, showing such cigarette excise 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. Section 4. Codification of Amendments. The codifier of the Town's Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 5. Interpretation. This Ordinance shall be interpreted and applied to comply in all respects with Article X, Section 20, of the Colorado Constitution, in its application to any person or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax policy change that would require voter approval. Section 6. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Avon Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 7. Effective Date. This Ordinance shall take effect immediately upon adoption in accordance with Section 6.6 of the Charter. Section 8. Safety Clause. The Avon Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town, 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 Avon Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 9. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 10. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Section 11. INTRODUCED AND ADOPTED ON FIRST AND FINAL READING on October 10, 2019. BY: ATTEST: Sarah Smith Hymes, Mayor APPROVED AS TO FORM: Paul Wisor, Town Attorney Brenda Torres, Town Cl AL