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ORDINANCE NO. 01-07
V
SERIES OF 2001
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
AVON, COLORADO:
Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows:
(a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX."
(b) 43.08.020. Taxable items. A new subpart D. is added to state as follows:
"D. Upon the purchase price paid for or the acquisition costs of
construction materials brought within the boundaries of the town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real
property in the town."
(c) &3.08.030. Sales tax levy.
(i) The title of §3.08.030 is changed to state "Sales and use tax levy."
(ii) Section 3.08.030C is repealed and reenacted to state as follow:
"The retailer shall add the sales 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."
(iii) A new subpart E. is added to state as follows:
"E. (1) A tax of four percent is imposed upon the purchase price paid for or
the acquisition costs of construction materials brought within the boundaries
of the town for the purpose of being used to build, construct, reconstruct, alter,
expand, modify or improve any building, dwelling or other structure or
improvement to real property in the town.
(2) Any person who shall build or improve any dwelling or other structure
or improvement to realty within the town, including underground
improvements, and who shall purchase the necessary construction materials
needed therefore from any source inside or outside of the town, shall keep all
invoices and statements regarding such materials from both the general and
subcontractors, along with a summary sheet showing such purchases, and
shall, on or before the tenth day of each succeeding month following the start
of construction, file a return with the Finance Director, to which he shall
attach such invoices, statements and summary for the construction materials
purchased the previous month, and shall thereupon pay to the Finance
Director the full amount of the use tax due thereon for the preceding month or
months. Any failure to preserve such statements and invoices, and to make
such return and payment of such use tax, shall be deemed a violation of this
chapter. The full amount of any use tax due and not paid for construction
materials shall be a lien upon the real property benefited by such
improvements, and the Finance Director is authorized to file a notice of such
lien with the County Clerk and Recorder.
(3)(a) Any person who shall build or improve any dwelling or other
structure or improvement to realty within the town, including underground
improvements, and who shall purchase the necessary construction materials
needed therefore from any source inside or outside of the town, may, at such
person's option, remit a deposit to the Finance Director prior to the issuance
of any building permit for such improvement, such deposit to insure and
indemnify the town for the amount of use tax due. The amount of the deposit
shall be based upon an estimate of the use tax to be payable on the
construction materials used for the improvement. Such estimate shall be
made, and such deposit shall be paid, at the time that the applicable building
permit is issued. The estimate of the cost of the construction materials shall
be determined by the Town Building Official, and the estimate shall be
subject to adjustment if the actual cost of the construction materials needed for
the improvement is either less than or greater than such estimate. If the
taxpayer elects the deposit procedure set forth in this subsection (3), then the
provisions of subsection (2) hereof shall be waived. Upon payment of the
deposit as set forth herein, the Finance Director shall issue the taxpayer a
receipt identifying the property that is the subject of the deposit and the
building permit number.
(b) For the purpose of calculating the amount of the deposit as
provided for herein, the value of the construction materials in the
improvement shall be estimated to be equal to fifty percent of the total value
of the improvement as determined by the Building Official for building permit
purposes. The deposit shall be in the amount of four percent of such estimated
value of the construction materials.
(c) If it is determined by the Finance Director that the actual cost of
the construction materials for the improvement is greater than the estimate
therefore, and that the amount of the use tax deposit is not sufficient to
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provide for full payment of the use tax, then the Finance Director shall make a
demand to the taxpayer for the additional use tax owed; provided, in no case
may the Finance Director make a claim for amounts due over and above the
amount of the deposit more than three years after a certificate of occupancy or
final inspection approval has been issued by the town for the improvement. A
taxpayer's failure to honor the Finance Director's claim for additional tax due,
as set forth in this paragraph, shall constitute a violation of this chapter.
(d) If it is determined by the Finance Director that the deposit is
sufficient to provide for full payment of the use tax, then the deposit shall be
used to pay the amount of the use tax due. If the Finance Director determines
that the amount of the deposit is in excess of the use tax owned, then he shall
return any excess amount of the deposit to the person who made the deposit
within thirty days of such determination.
(4) If a taxpayer purchases construction materials subject to the use tax
imposed herein from a vendor possessing a valid Town of Avon retail sales
tax license, and if he pays the town's sales tax at the time of purchase of such
construction materials, then he shall be entitled to a credit, to the extent of
such sales tax paid, to be applied to the amount of use tax owed.
(5) Construction materials subjected at the time of purchase to a sales or use
tax lawfully imposed on the purchaser by another statutory or home rule
municipality in the State of Colorado, if taxed at a rate equal to or greater than
the four percent rate provided for herein, are exempted from the Town of
Avon's use tax. If the rate of the sales or use tax imposed by such other
Colorado statutory or home rule municipality is less than four percent, the
difference between the tax due under this chapter and the tax paid by the
purchaser shall be due to the Town of Avon, and shall be remitted to the
Finance Director.
(6) All use tax funds collected in accordance with the provisions of this
chapter shall be appropriated and spent solely for transportation and recreation
capital projects and services."
(d) & 3.08.320. Sales tax - Credit for sales or use taxes previously paid to
another municipality.
(i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit
for sales or use taxes previously paid to another municipality."
(ii) Section 3.08.320 is repealed and reenacted to state as follow:
"For transactions consummated on or after January 1, 1986, the town's sales tax shall
not apply to the sale of tangible property at retail or the furnishing of services if the
transaction was previously subjected to a sales or use tax lawfully imposed on the
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purchaser or user by another statutory or home rule municipality equal to or in excess
of that provided for in Section 3.08.030. A credit shall be granted against the town's
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 the town's sales or use tax imposed pursuant to Section 3.08.030."
Section 2. Election and Effective Date.
Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax
increase provided in this ordinance to the qualified electors of the Town for approval at the
special Town election now scheduled for November 6, 2001. If the tax increase is approved
by a majority of the electors voting thereon, this ordinance shall become effective when the
Town Clerk or other designated election official duly files the required certificate of election,
or on January 1, 2002, whichever occurs last.
Section 3. Ballot Title and Question.
The ballot title and question submitted to the electors shall be as
follows:
SHALL TOWN OF AVON TAXES BE INCREASED $1.6
MILLION ($1,600,000) ANNUALLY IN 2002, AND BY
WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A
FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF
USING OR CONSUMING IN THE TOWN ANY
CONSTRUCTION MATERIALS, SUCH USE TAX
REVENUES TO BE APPROPRIATED AND SPENT
SOLELY FOR TRANSPORTATION AND RECREATION
CAPITAL PROJECTS AND SERVICES, ALL IN
ACCORDANCE WITH ORDINANCE NO. 01-07 ADOPTED
BY THE TOWN COUNCIL; AND SHALL THE REVENUES
COLLECTED FROM SUCH TAX AND ANY EARNINGS
FROM THE INVESTMENT OF SUCH REVENUES BE
COLLECTED AND SPENT AS A VOTER APPROVED
REVENUE CHANGE AND AN EXCEPTION TO THE
LIMITS WHICH WOULD OTHERWISE APPLY UNDER
ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW?
YES
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NO
Section 4. Repealer.
If the electors approve this ordinance, then on the effective date specified above, all
ordinances or parts of ordinances in conflict herewith are hereby repealed, but only to the extent
of such inconsistency.
Section 5. Severability.
The provisions of this ordinance are severable, and invalidity of any part shall not affect the
validity or effectiveness of the rest of this ordinance.
INTRODUCED, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED IN FULL AND POSTED, this day of , 2001, and a
public hearing on this ordinance shall be held at the regular meeting of the Town Council of
the Town of Avon, Colorado on the _ day of 2001, at 5:30 p.m. in the
Municipal Building of the Town of Avon, Colorado.
TOWN OF AVON, COLORADO:
ATTEST:
Town Clerk
Mayor
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INTRODUCED, APPROVED ON SECOND READING, AND ORDERED
PUBLISHED AND POSTED this _ day of , 2001.
TOWN OF AVON, COLORADO:
Mayor
ATTEST:
Town Clerk
APPROVED AS TO FORM:
Town Attorney
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