TC Ord. No. 1986-02•
TOWN OF AVON
ORDINANCE NO. 86-2
SERIES OF 1986
AN ORDINANCE AMENDING THE REVENUE AND
FINANCE CODE OF THE TOWN OF AVON AS
IT PERTAINS TO THE EXEMPTION FROM
SALES TAX, COLLECTION OF SALES TAX
AND APPEALS OF FINAL DECISIONS.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,
COLORADO as follows:
Section 1. Amendment. Paragraph G of Section
3.08.040, Title 3, of the Town of Avon Municipal Code is
amended to read as follows:
G. For transactions consummated on or after
January 1, 1986, the following is exempt from the Town's
sales tax: the sale of construction and building materials,
as the term is used in X29-2-109, C.R.S., if such materials
are picked up by the purchaser and if the purchaser of such
materials presents to the retailer a building permit or
other documentation acceptable to the Town evidencing that a
local use tax has been paid or is required to be paid.
Section 2. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.320, which is to read as follows:
3.08.320. Sales Tax - Credit for Sales or Use Taxes
Previously Paid to Another Municipality. 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 purchaser or user by another statutory or home rule
municipality equal to or in excess of that provided for in
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 tax imposed pursuant to 3.08.030.
Section 3. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.330, which is to read as follows:
3.08.330. Sales Tax - Collection - Limitation of
Actions. For transactions consummated on or after January
1, 1986:
(a) no sales tax, or interest thereon or penalties
with respect thereto, shall be assessed, nor shall any
notice of lien be filed, or distraint warrant issued, or
suit for collection be instituted, nor any other action to
collect the same be commenced, more than three years after
the date on which the tax was or is payable; nor shall any
lien continue after such period, except for taxes assessed
before the expiration of such period, notice of lien with
respect to which has been filed prior to the expiration of
such period, in which cases such lien shall continue only
for one year after the filing of notice thereof. In the
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case of a false or fraudulent return with intent to evade
tax, the tax together with interest and penalties thereon,
may be assessed, or proceedings for the collection of such
taxes may be begun at any time. Before the expiration of
such period of limitation, the taxpayer and the Director of
Finance may agree in writing to an extension thereof, and
the period so agreed on may be extended by subsequent
agreements in writing.
(b) In the case of failure to file a return, the sales
tax may be assessed and collected at any time.
Section 4. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.340, which is to read as follows:
3.08.340. Sales Tax - Refunds - Limitation of Actions.
For transactions consummated on or after January 1, 1986:
(a) an application for refund of sales tax paid under
dispute by a purchaser or user who has an exemption pursuant
to 3.08.040 shall be made within sixty days after the
purchase of the goods or services whereon an exemption is
claimed.
(b) an application for refund of tax monies paid in
error or by mistake shall be made within three years after
the date of purchase of the goods for which the refund is
claimed.
Section 5. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.343, which is to read as follows:
3.08.343. Sales Tax - Interest on Underpayment,
Nonpayment, or Extensions of Time for Payment of Tax.
(a) If any amount of sales tax is not paid on or
before the last date prescribed for payment, interest on
such amount at the rate imposed under section 3.08.353 shall
be paid for the period from such last date to the date paid.
The last date prescribed for payment shall be determined
without regard to any extension of time for payment and
shall be determined without regard to any notice and demand
for payment issued, by reason of jeopardy, prior to the last
date otherwise prescribed for such payment. In the case of
a tax in which the last date for payment is not otherwise
prescribed, the last date for payment shall be deemed to be
the date the liability for the tax arises, and in no event
shall it be later than the date notice and demand for the
tax is made by the Director of Finance.
(b) Interest prescribed under sections 3.08.343
through 3.08.350 shall be paid upon notice and demand and
shall be assessed, collected, and paid in the same manner as
the tax to which it is applicable.
(c) If any portion of a tax is satisfied by credit of
an overpayment, then no interest shall be imposed under this
section on the portion of the tax so satisfied for any
period during which, if the credit had not been made,
interest would have been allowed with respect to such
overpayment.
(d) Interest prescribed under sections 3.08.343
through 3.08.350 on any sales tax may be assessed and
collected at any time during the period within which the tax
to which such interest relates may be assessed and
collected.
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Section 6. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.347, which is to read as follows:
3.08.347. Sales Tax - Deficiency Due to Negligence.
If any part of the deficiency in payment of the sales tax is
due to negligence or intentional disregard of the ordinances
or of authorized rules and regulations of the Town with
knowledge thereof, but without intent to defraud, there
shall be added ten percent of the total amount of the
deficiency, and interest in such case shall be collected at
the rate imposed under section 3.08.353, in addition to the
interest provided by section 3.08.343, on the amount of such
deficiency from the time the return was due, from the person
required to file the return, which interest and addition
shall become due and payable ten days after written notice
and demand to him by the Director of Finance. If any part
of the deficiency is due to fraud with the intent to evade
the tax, then there shall be added one hundred percent of
the total amount of the deficiency and in such case, the
whole amount of the tax unpaid, including the additions,
shall become due and payable ten days after written notice
and demand by the Director of Finance and an additional
three percent per month on said amount shall be added from
the date the return was due until paid.
Section 7. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.350, which is to read as follows:
3.08.350. Sales Tax -_Neglect or Refusal to Make
Return or to Pay. If a person neglects or refuses to make a
return in payment of the sales tax or to pay any sales tax
as required, the Director of Finance shall make an estimate,
based upon such information as may be available, of the
amount of taxes due for the period for which the taxpayer is
delinquent and shall add thereto a penalty equal to the sum
of fifteen dollars for such failure or ten percent thereof
and interest on such delinquent taxes at the rate imposed
under section 3.08.353 plus one-half percent per month from
the date when due, not exceeding eighteen percent in the
aggregate.
Section 8. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.353, which is to read as follows:
3.08.353. Rate of Interest. When interest is required
or permitted to be charged under any provisions of sections
3.08.343 through 3.08.350, the annual rate of interest shall
be that established by the state commissioner of banking
pursuant to X39-21-110.5, C.R.S.
Section 9. There is hereby added to the Municipal Code
of the Town of Avon a new section identified as Section
3.08.357, which is to read as follows:
3.08.357. Other Remedies. Nothing in sections
3.08.343 through 3.08.353 shall preclude the Town from
utilizing any other applicable penalities or remedies for
the collection or enforcement of sales taxes.
Section 10. There is hereby added to the Municipal
Code of the Town of Avon a new section identified as Section
3.08.360, which is to read as follows:
3.08.360. Sales Tax - Final Decision of Town - Appeals
- Posting of Bonds. For transactions consummated on or
after January 1, 1986:
(a) within fifteen days after filing a notice of
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appeal as provided in section 3.08.130, the taxpayer shall
file with the district court a surety bond in twice the
amount of the taxes, interest, and other charges stated in
the final decision by the Director of Finance which are
contested on appeal. The taxpayer may, at his option,
satisfy the surety bond requirement by a savings account or
deposit in or a certificate of deposit issued by a state or
national bank or by a state or federal savings and loan
association, in accordance with the provisions of section
11-35-101(1), C.R.S., equal to twice the amount of the
taxes, interest, and other charges stated in the final
decision by the Director of Finance.
(b) the taxpayer may, at his option, deposit the
disputed amount with the Director of Finance in lieu of
posting a surety bond. If such amount is so deposited, no
further interest shall accrue on the deficiency contested
during the pendency of the action. At the conclusion of the
action, after appeal to the supreme court or the court of
appeals or after the time for such appeal has expired, the
funds deposited shall be, at the direction of the court,
either retained by Director of Finance and applied against
the deficiency or returned in whole or in part to the
taxpayer with interest at the rate imposed pursuant to
section 3.08.353. No claim for refund of amounts deposited
with the Director of Finance need be made by the taxpayer in
order for such amounts to be repaid in accordance with the
direction of the court.
Section 11. There is hereby added to the Municipal
Code of the Town of Avon a new section identified as Section
3.08.370, which is to read as follows:
3.08.370. Sales Tax - Standard Reporting Form. The
Town shall use the standard municipal sales tax reporting
form and any subsequent revisions thereto adopted by the
executive director of the department of revenue by the first
full month commencing one hundred twenty days after the
effective date of the regulation adopting or revising such
standard form, or in the discretion of the Director of
Finance, commencing with any prior full month subsequent to
the effective date of the regulation.
Section 12. There is hereby added to the Municipal
Code of the Town of Avon a new section identified as Section
3.08.380, which is to read as follows:
3.08.380. Sales Tax - Collection - Map of Municipal
Boundaries. The Town Director of Finance shall make avail-
able to any requesting vendor a map showing the boundaries
of the Town. For transactions consummated on or after
January 1, 1986, the requesting vendor may rely on such map
and any update thereof made available to such vendor in
determining whether to collect a sales tax. No penalty
shall be imposed or action for deficiency maintained against
such a vendor who in good faith complies with the most
recent map available to it.
Section 13. There is hereby added to the Municipal
Code of the Town of Avon a new section identified as Section
3.08.390, which is to read as follows:
3.08.390. Sales Tax - Alternative Dispute Resolution
Procedure - Deficiency Notice or Claim for Refund. For
transactions consummated on or after January 1, 1986, in
lieu of the procedure provided for in section 3.08.360, the
taxpayer may elect a hearing on the Town's Director of
Finance's final decision on a deficiency notice or claim for
refund pursuant to procedure set forth in this section.
(a) As used in this section, "state hearing" means a
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hearing before the executive director of the department of
revenue or delegate thereof as provided in §29-2-106.1(3),
C.R.S.
(b) When the Town asserts that sales or use taxes are
due in an amount greater than the amount paid by a taxpayer,
the Town shall mail a deficiency notice to the taxpayer by
certified mail. The deficiency notice shall state the
additional sales and use taxes due. The deficiency notice
shall contain notification, in clear and conspicuous type,
that the taxpayer has the right to elect a state hearing on
the deficiency pursuant to X29-2-106.1(3), C.R.S. The
taxpayer shall also have the right to elect a state hearing
on the Town's denial of such taxpayer's claim for a refund
of sales tax paid.
(c) The taxpayer shall request the state hearing
within thirty days after the taxpayer's exhaustion of local
remedies. The taxpayer shall have no right to such hearing
if he has not exhausted local remedies or if he fails to
request such hearing within the time period provided for in
this subsection (c). For purposes of this subsection (c),
"exhaustion of local remedies" means:
(1) The taxpayer has timely requested in writing
a hearing before the Town and such Town has
held such hearing and issued a final decision
thereon. Such hearing shall be informal
and no transcript, rules of evidence, or
filing of briefs shall be required; but the
taxpayer may elect to submit a brief, in
which case the Town may submit a brief. The
Town shall hold such hearing and issue the
final decision thereon within ninety days
after the Town's receipt of the taxpayer's
written request therefor, except the Town may
extend such period if the delay in holding
the hearing or issuing the decision thereon
was occasioned by the taxpayer, but, in any
such event, the Town shall hold such hearing
and issue the decision thereon within one
hundred eighty days of the taxpayer's request
in writing therefor; or
(2) the taxpayer has timely requested in writing
a hearing before the Town and the Town has
failed to hold such hearing or has failed to
issue a final decision thereon within the
time periods provided in subparagraph (1)
above.
(d) If a taxpayer has exhausted his local remedies as
provided in subsection (c) above, the taxpayer may request a
state hearing on such deficiency notice or claim for refund,
and such request shall be made and such hearing shall be
conducted in the same manner as provided in §29-2-106.1 (3)
through (7), C.R.S.
(e) If the deficiency notice or claim for refund
involves only the Town, in lieu of requesting a state
hearing, the taxpayer may appeal such deficiency or denial
of a claim for refund to the district court of the county of
Eagle as provided in X29-2-106.1(8), C.R.S., provided the
taxpayer complies with the procedures set forth in sub-
section (c) of this section.
(f) Nothing in this section shall prohibit the
taxpayer from pursuing judicial review of a final decision
of the Town as otherwise provided in section 3.08.360.
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(g) If the Town reasonably finds that the collection
of sales tax will be jeopardized by delay, the Town may
utilize the procedures set forth in 539-21-111, C.R.S.
Section 14. Section 3.08.130 of the Municipal Code of
the Town of Avon shall be and hereby is amended to read as
follows:
3.08.130. Examinations of Returns - Refunds -
Deficiencies - Notice of Appeal.
(a) As soon as practicable after any sales tax return
is filed, the Director of Finance shall examine it, and if
it then appears that the correct amount of tax to be
remitted is greater or less than that shown in the return,
the tax shall be recomputed.
(b) If the amount paid exceeds that which is due, the
excess shall be refunded or credited against any subsequent
remittance from the same taxpayer.
(c) If the amount paid is less than the amount due, or
if the Director of Finance determines that any amount of
sales tax is due and unpaid, for any reason, the difference
between the amount paid and the amount owed to the Town,
together with interest thereon at the rate of one and
one-half percent per month from the time the return was due
(unless provided otherwise herein), shall be paid by the
vendor within fifteen days after written notice and demand
to him from the Director of Finance.
(d) In the event a taxpayer or person receiving demand
desires to appeal the decision of the Director of Finance,
written notice of appeal shall be delivered to the Director
within fifteen (15) days of the date of the demand.
Section 15. Severability Clause. It is hereby
declared to the intention of the Town Council that each and
every part of this ordinance is severable, and if any term,
phrase, clause, sentence, paragraph or section of this
ordinance shall be declared unconstitutional or invalid by
the valid judgment or decree of any court of competent
jurisdiction, such unconstitutionality or invalidity shall
not affect any of the remaining phrases, clauses, sentences,
paragraphs and sections of this ordinance since the same
would have been enacted by the Town Council without the
incorporation in this ordinance of any such unconstitutional
or invalid term, phrase, clause, sentence, paragraph or
section.
Section 16. Savings Clause. Nothing in this ordinance
shall be construed to affect any right, duty, or liability
under any ordinances in effect prior to the effective date
of this ordinance, and the same shall be continued and
concluded under such prior ordinances.
Section 17. Effective Date. This ordinance shall take
effect January 1, 1986, and shall apply to transactions
consummated on or after said date.
INTRODUCED, PASSED ON FIRST READING, APPROVED AND
ORDERED POSTED, THIS 14th DAY OF January , 1986
and a public hearing on this Ordinance shall be held at the
regular Town meeting of the Town Council of the Town of
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Avon, Colorado, on the 28th day of January , 1986, at
7:30 P.M., in the Municipal Building of the Town of Avon,
Colorado.
Allan R. ottingha
Mayor
N SECOND READING, APPROVED AND
January , 1986.
A lan R. ottingham
Mayor
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ATTEST:
2CtIC14
1katricia J. 46vle /
i
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO, AT 7:30 P.M. ON THE 28TH DAY OF
JANUARY, 1986, AT THE MUNICIPAL BUILDING, 400 BENCHMARK ROAD, AVON,
COLORADO, FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF
ORDINANCE NO. 86-2, SERIES OF 1986:
AN ORDINANCE AMENDING THE REVENUE AND FINANCE CODE OF THE TOWN
OF AVON AS IT PERTAINS TO THE EXEMPTION TO SALES TAX; COLLECTION
OF SALES TAX AND APPEALS OF FINAL DECISIONS.
A copy of said Ordinance is attached hereto and is also on file
at the office of the Town Clerk and may be inspected during
regular business hours.
Following this hearing, the Council may consider final passage
of the Ordinance.
This notice given and passed by order of the Town Council of the
Town of Avon, Colorado.
Dated this14 th day of January, 1986.
TO OF VON, COLORADO
i
BY: P ricia J. Doy , Town C1
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON
ON JANUARY 14 , 1986:
THE MAIN ENTRANCE OF THE POST OFFICE
THE MAIN ENTRANCE TO CITY MARKET
THE PESTER GAS STATION; AND
THE MUNICIPAL BUILDING IN THE MAIN LOBBY