HomeMy WebLinkAbout1987-09-08 Support Documentation Town Council Work Session S Jill-
VAIL TOWN COUNCIL
WORK SESSION
TUESDAY, SEPTEMBER 8, 1987
2:00 p.m.
AGENDA
1. Discussion of Marketing of Vail through Business Licenses
2. Discussion of Proposed Ordinance No. 31, Series of 1987, an
ordinance repealing and reenacting Chapter 3.40 Sales Tax of the
Municipal Code of the Town of Vail, Colorado to provide for the
self collection by the Town of Vail of the Town of Vail
municipal sales tax and setting forth details in regard thereto.
3. Discussion of Colorado Association of Ski Towns (CAST)
Questionnaire
4. Information Update
5. Other
6. Executive Session - Personnel Matter
WORK SESSION CONTINUED UNTIL 7:00 P.M.
7. ERA Report on the Congress Hall
8. Adjournment
VAIL TOWN COUNCIL
WORK SESSION
TUESDAY, SEPTEMBER 8, 1987
2:00 p.m.
EXPANDED AGENDA
2:00 1. Discussion of Marketing of Vail through Business Licenses
Charlie Wick
Action Requested of Council: Provide direction to Town
staff.
Background Rationale: This is the staff follow-up to the
marketing of Vail concept as presented by VRA. At the
meeting, financial staff will present preliminary data and
other information regarding potential funding structures for
marketing through the business license method.
Staff Recommendation: Staff recommendations will be given,
if any, at the conclusion of staff's presentation.
2:30 2. Discussion of Proposed Ordinance No. 31 for Local Collection
Charlie Wick of Sales Tax
Steve Barwick
Larry Eskwith Action Requested of Council: Discussion of local sales tax
collection program and review/discussion of Ordinance No. 31
prior to consideration for first reading at the September 15
Evening meeting.
Background Rationale: The Town staff had presented to
Council the concept of local sales tax collections and
requested authorization which was approved to prepare an
ordinance for discussion and review. Town Council will
receive this ordinance at the Work Session and Town
financial staff will discuss the major areas of the
ordinance with the Council.
Staff Recommendation: Proceed with the first reading of
Ordinance No. 31 at the September 15 Evening meeting.
3:00 3. Discussion of Colorado Association of Ski Towns (CAST)
Ron Phillips Questionnaire
" Action Requested of Council: Go over questionnaire and give
consensus responses.
Background Rationale: Alan Barbee, a member of the
Steamboat Springs City Council, wants CAST to take a
position on encouraging all ski towns to institute a lift
ticket tax. There is much disagreement over the issue, so
it was suggested that Steamboat Springs do a survey.
Staff Recommendation: Staff recommends that the Council
take a strong stand against CAST making this an issue. This
is a local concern which should be decided in each community
and CAST getting involved can only hurt our relationship
with our own ski area and with Colorado Ski Country USA.
Besides, we already have the 4% agreement with VA and have
everything to lose and nothing to gain.
3:30 4. Information Update
3:35 5. Other
3:45 6. Executive Session - Personnel Matter
4:00 Work Session Continued Until 7:00 P.M.
7:00 7. ERA Report on the Congress Hall
Jill McCarthy
Tom Braun Action Requested of Council: Listen to report and ask any
questions you may have.
Background Rationale: (A copy of the report will be Federal
Expressed to each Council member's home on Saturday, 9/5.)
9:00 8. Adjourn
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a
MEMORANDUM
TO: Mayor Johnston, Town Council Members
FROM: Charlie Wick cie-A
DATE: September 3, 1987
RE: Funding for Marketing
Pages 1-3 are for background, reference and information
purposes.
Page 1: Marketing of Vail
Page 2: Small Group Responses
Page 3: Preliminary Funding Sources from
Town Council Meeting
Pages 4-5: A summary schedule showing the existing VRA
Business Categories/Investment Schedule and the business
license fee structure for marketing from the Town of
Breckenridge.
Page 6 Business License Analysis
Pages 7& 8 Town of Vail Business License Fee Options
Page 9 Funding for Marketing-Cost By Category/Method
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PREPARED ORIGINALLY FOR
COMMUNITY CAPITAL PROJECTS
MEETING FEBRUARY 10, 1987
TOWN OF VAIL
MARKETING OF VAIL,
DESCRIPTInN:
Increase in the marketing of Vail as a year-round destination
through improved and stabilized funding for the Vail Resort
Association.
PURPOSE:
To increase destination stays in Vail, thereby improving the
year-round health and stability of the local economy.
BENEFITS:
Increased sales tax revenue for Town of Vail.
More shoulder season and summer business.
Spreading of responsibility for marketing Vail to a broader
base.
Greater business prosperity.
OTHER PROJECT INTERDEPENDENCY:
Special events, information centers, trade shows, Congress
Hall.
PROJECT COSTS:
Depending upon desired market penetration, an annual range of
$500,000 to $1,000,000 is projected.
OTHER INFORMATION:
VRA CONTACT DAVID KANALLY 476-1000
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1
SMALL GROUP RESPONSES
• COMMUNITY CAPITAL PROJECTS MEETING FEBRUARY 17, 1987
PRIORIIY RATIN6 +f NUhBER +E ft AV6 RATING ff
" kf CF ff AVEFA6E ff LESS I Of ff AVERA6E COHPOSITE
PRUJECT „ 1; 2; 3; 4 t S~ 6; 7; 8; 4++RESPQNSES RAhk f} RAT1H6 RpNK ft RESPONSES RAKK it RANt: RAIIY.
nARKETIN6 Or' YAIL „ 2; 4; 1; q~ ; 3; ; ; ef 14 1 ff 3.36 6 ff -10.64 1IF 2.67 1
AQUATIC CENTER 2; 2; 1; 1~ ip 3{+ 2,70 2{} -7,30 3 f~ 2.b1 1
VISITOR CEN.lIiUNICiFRI 6LD6!,' 4; 3; ; 1 f 21 1~ 1; ~ }f 12 Z ff 3.08 S fE -8,72 2 f{ 3.00 3
COh6RE5S HALL 2~ ~ 1 t ~ 2o 5 1 fE 3.00 3+f -2.00 5+t 5.00 4
ft f~
ff
STREET I1IPRGV. - TOV S!iARE 1~ 2; 1 1 1~ ~ 1~ ~ }f 6 5{} 4.00 8 ff -2.00 5 t} 6.00 S
FORD PARK 21 1 ; 211 ; 1~ ; 1 0 +f 6 5 ff 4.00 8 ff -2.00 S+t 6.00 5
i i i i i i ~f 41
RECREATIOtiAL PATHS 1~ ; 4; 2; y~ ~ ; }f 10 3 ff 4.10 22 ft -5.90 4 ff 6.33 7
ff ft ff~
COlri'ENTIOH FACILITY If 1~ 1~ 1: 3 ll ff 2.00 ! ft -1.00 4 ff 7.00 8
fE fF {f
OGBSON ARENA PHASE II 2~ ~ i~ 1; ~ ; t 1~ tt 5 7 f+ 3.40 7ff -I.60 8 ff 7.33 4 ff f} ft N
ALPINE 6AROEN 1~ 1 t { ~ 7 tt 2 14 {f 3.00 3 ft 1.00 11 IE 4.33 10
VAIL VILLA6E It1FRJVEKEhTS 1~ 1~ 2~ 1~ ff S 1 ff 5.40 15 ff ,40 14 }f 10.67 il
fEOr^Lc' IfOVER 1~ i! 2 ld 4.00 8#f 2.00 13 {f I1.67 12
TP.ANSPORTATION ALTERNATiVE „ 0 1 1~ 1 1~ 2 14 ff 4.00 8 f~ 2.04 13 11.67 12
i i i ft ff ft
DGHOVAN PFRK 1t 2~ ~ ~ t{ 3 I! {t 4.33 13 1.33 12 +f
12.00 14
PARKiti6 STRUCTURE ADOITION f 1~ ~ 1 tf 4 IQ *f 6.25 17 f# 2.15 15 +t 14.00 15
ff {f fF
CEt1ETERY 2; 1; ; }f 3 I1 f+ 6.33 18 ffi 3.33 16 ft 15.00 16
ff ft
SGFTBALL f[ELOS ; ; 1~ 1~ ff 2 14 ft 6.00 16 f* 4.00 17 ft 15.67 11
f# ff
PARk;IN6 IHPROVEHENTS ; 1 ~ ~ 1 18 5.40 14 ft 4.00 17 I6.33 18
i i }f ff f}
GOLF CAPACITY EXPANSION 1~ ~ +t 1 18 +E 1.00 19 6.00 19 +f 18.67 19
COt1RINED CON6RE5S HAII, 5' 1; 3; t; 2 2; ff 14 l#+ 3.24 6*1 -10.11 1 +1 2.67 1
DOBSON ARENA I CONVENTION
FFCILiTY (Jf these alternatives Nere cosbined, they Mould be tied for the highest ranked project.l
TOWN OF VAIL
PRELIMINARY FUNDING SOURCES
Town Council Meeting of 3-10-87
FUNDING SOURCES1
PROJECT N0. OF SECOND N0. OF THIRD N0. OF
RATING PROJECT " PREFERRED RESPONSES PREFERENCE RESPONSES PREFERENCE RESPONSES
'1 Marketing of Vail Bus. Lic. Fee 6 Sales Tax 4 Mill Levy 2
2 Congress Hall
Capital Private. Part. 5~ Sales Tax(2,3) 5 -Bed Tax(2,1) 3
Operating Bed Tax 3
3 Unfinished Projects R.E.T.T. 7
(Does not include cemetery, streets or village improvements)
4 Visitors Center Sales Tax 6 Bed Tax(4,1) 5 Mill Levy 4
(Four responses of sales tax for reallocation of sales tax with mill levy replacement to general fund)
5 Golf Capacity UMRD--Request Preliminary Design of Katsos Property as a Golf Course
6 Parking Solution Dependent on Location and Financing of Convention Center
7 Aquatic Center Dependent upon final studies and scale of project
8 Village Improvements Village Improvement District most likely
1 Direct Private Participation in Funding would be the overriding funding source on all projects.
2 Combination of Answers for Direct Private Participation and Private Participation through a Special District
for Commerical areas.
_ 3-20-87
Current VRA Business Categories/Investment Schedule
Lodges and Property Management Professional
Food and Beverage Real Estate Sales & Management
Retail Real Estate Development
Financial Institution Utility Company
Service Individual Supporter
Allied Honorary Membership
LODGES AND PROPERTY MANAGEMENT
Annual: 39.65 each rental unit - minimum 10 units.
FOOD AND BEVERAGE
CORE/MIN. NON-CORE/MIN.
Restaurant Seat with Lqr. 19.11 $12.50
Restaurant Set without Lqr. 13.10/330.27 9.92/264.22
Lounge 9.28/330.27 6.55/264.22
RETAIL
0-1500 1501-2500 2501-3500 3501-5000 5001-10,000
Core/Sq. Ft. .93 .79 .73 .67 .67
Non-Core/Sq. Ft. .48 .36 .31 .24 0
Core Maximum: $7,210 Non-Core Maximum: $2,060
Actual Square Footage = Total Square Footage Less 15% (storage)
Actual Grocery Sq. Ft. = Total Grocery Footage Less 60% (min. 330.27)
UTILITY: Annual = $726.59
FINANCIAL: Annual Deposits Formula $180-$5,150
4
SERVICE: Annual Business Volume Formula $330-$1,123
PROFESSIONAL: $145.21/member Minimum of $330.27
REAL ESTATE SALES: $142.21/salesperson and broker Minimum of $330.27
REAL ESTATE DEVELOPMENT: Annual $726.59
ALLIED: Annual $545.90
CURRENT BRECKENRIDGE ORDINANCE
Annual Business License Fees For Marketing
Accommodation (Rental)
Studio $ 75
1 bedroom $100
2 bedroom $125
3 bedroom $150
4 or more $175
In-Home Business: Annual $50
Lodge: $100 per rental unit or $50 per bedroom whichever is less.
Lodges with six or more employees also pay by employee.
~
All Other Businesses: Fee based on number of employees.
# Emp. Fee Employee = Any person or
combination of persons working 20
1-5 $100 or more hours each week.
6-10 200
11-20 300
21-30 500
30 or more 600
5-26-87
5
BUSINESS LICENSE ANALYSIS
DESCRIPTION: A license set annually on any business within the
Town of Vail in order to legally conduct business
in the Town.
YIELD: Fees could be set to equal amount of dollars
necessary for marketing.
LEGALITY: Legal for home rule cities. Vote by electorate not
necessary.
ELASTICITY: Strongly inelastic.
INCIDENCE: A business license fee is regressive to business
income. However, if a flat rate is imposed on type
and size of business, it would tend to neutralize
regressivity.
CONTROL: Excellent local control.
MARKET SIDE
EFFECTS: Market side effects appear to be insignificant.
CERTAINTY/PRE-
DICTABILITY: Excellent predictability.
ADMINISTRATIVE
COST: Very low additional administrative cost to Town of
Vail, $17,000 to $21,000 a year.
BUSINESS
ACCEPTANCE: Business opposition appears to be less than the
support for this concept.
POLITICAL: Would take ordinance adoption of Town of Vail.
Voter approval not necessary.
EQUITY: Fees would be collected from all business. This
might be perceived as more equitable because 100%
would participate as opposed to 60%.
~
9-04-87
6
TOV BUSINESS LICENSE FEE OPTIONS
CATEGORY OPTIONS
Lodges and Property Management 1. By Rental Unit
2. By Rental Unit or
bedroom, whichever is
less
3. Separate accommodation
unit fees and lodge
unit fees
In Home Business 1. Flat Fee(s)
2. Handle in other
categories
3. Number of employees
4. Square footage
Food and Beverage l. Similar or same
methodology as current
VRA
2. Square footage
3. Number of employees
4. Set fee
Retail 1. Similar or same
methodology as current
VRA
2. Square footage only
3. Number of employees
4. Set fee
Financial l. Square footage
2. Number of employees
3. Set fee
Service 1. Square footage
2. Number of employees
,3. Set fee
Professional 1. Fee per professional _
member
2. Number of employees
3. Square footage
4. Set fee
7
Real Estate Sales and Management 1. Fee for sales persons
and brokers
2. Number of employees
3. Square footage
4. Set fee
Real Estate Development 1. Set fee
2. Number of employees
3. Square footage
Utility 1. Set fee
Ski Company l. Set fee
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8
T(]VMARf::"f
FUNI)INC FOF; I`1AF:KFTIh,a(3-COST BY CATECDFY/I"ILTWOri
NUt°1BER TOTAI_ COSI" DOLLARS
CryTEGC:IF:Y/hlett-iod EiUa. fiY METHOD F'ER RiiISEU
FOOD EsEvE:F:NGE 74
by seat or- 5768 #•1 . 00 $5, 768. c;fci
by accuGancy seat $10. 00 $J/ y 00O. 00
e:;r_1udcs Vra Faaij St3r-vice
LODC-;E F'ROF'ERTY MraGh11V"I" bb
b y uri i t or 4436 $1. s it,> $4 , 4.:'b .00
by bEci urii t $10, rtci $44,360, 00
FiETAI i_ 191
by sq. Tt, * 300000 $0. 10 $30100i>, iaC,
b Y r:= mp e 910 $1 .c_> 0 ::F 91. c i. c:j t i
Wrori TDv Retai l. Inv. f;E:,r-t.
FI111ANGIAL b
by sqe+te 27230 $0. ii; $:.?q7^=v0ir
bY emp. ' 82 -a-1 , 00 $820 Oi)
S E F:VI CE 141
tJ y S y. f`. 155135 $0. 10 :"F• 1.J a J 1.- i. 0I 1
by cmp. 931 $1 . t+0 $931. ti0
F'FiQFF:Si:[OP1A1_ 75
by sqa ft. 54717 $0. 10 $JyY/ 1. t;0
by emw. 285 -1-1 , 00 $285. c_j0
FiEFiL E ST e SAI_E=S, MI`dGMP,aT 29 .
by sq. ft. 3150P $tl. 1(;l 1..."i1 . t?ii
by ernp. 1SO $1.00 $180„ 00
RrF',L FSTF'i'TE DVLF'MNT 7
by sq.ft. 3500 $0.10 $350.00
by emp. 121 $1 . ir0 $1~.?1 . iy0
CJTILITY CO. 1
by f 1 at feE? $720 . 50 $726 e 5i j
Sk:: I CORF'CJRAT I nN 1
by flat +ee-includes $148,000.00 $14S,000,00
Vai 1 fiuaci SE~_r-vi ce
59o
Home oc_c. e;;clucied
9
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C = T Y O F Citv Hall
Accounts Payable 879-8552
City Attorney 879-8551
~0~~ City Manager/City Clerk 879-2060
Community Development 879-7150
(Planning/Buiiding)
~ ~ Finance 879$550
Public Works 879-1805
Utilities Billing 879-6993
Parks and Recreation 879-4300
Box 775088, Steamboat Springs, CO 80477 Police 879-1144
Transit 879-5585
RECP~~~ r 4
,
August 11, 1987
Mayor Paul Johnston
Town of Vai 1
75 South Frontage Road
Vail, Colorado 81657
Dear Paul:
Enclosed please find a copy of a draft resolution concerning the
taxation of ski lift tickets that I presented at the July 24,
1987, meeting of the Colorado Association of Ski Towns. Those
members who were present, asked me to survey all CAST members and
gather information regarding current tax revenues paid, municipal
services provided and/or public purpose capital investments made
by private ski industry corporations to the Cities and Towns they
impact. Hopefully, I'll be able to present the summary data at
the next meeting of CAST (and circulate the data by mail to those
members who are unable to attend).
Please complete the enclosed informational survey and return it
to me by August 31, 1987 (I've enclosed a stamped, self-addressed
envelope for your convenience). I'd be happy to include any
comments you may have on the subject of lift ticket tax with the
summary data.
Thank you for your time and attention.
Cordially,
6~ ~
~
. Alan Barbee, Member
Steamboat Springs City Council
cc: Ron Phillips, Manager ~
Town of Vail
A RESOLUTION OF THE COLORADO ASSOCIATION OF SKI TOWNS
A RESOLUTION ENDORSING THE ADDITION OF SKI LIFT TICKETS TO THE
LIST OF PRODUCTS AND SERVICES NOW COVERED BY COLORADO SALES TAX
WHEREAS, Colorado Ski resorts sold 9.4 million lift tickets
during the 1986-87 season generating $112.8 million in gross
revenues for the ski industry (assuming $12 per lift ticket
sold); and
WHEREAS, winter tourism is a major industry in Colorado and
further, the State of Colorado is interested in promotion and
expansion of tourism in the State; and
WHEREAS, winter tourism is a great burden on cities and
.counties in which ski resorts operate a great burden to
provide the infrastructure and maintain a clean environment for a
peak population far in excess of the year-round, resident
population of those cities and counties.
NOW, THEREFORE, BE IT RESOLVED BY A MAJORITY OF THE MEMBERS
PRESENT AT THE JULY 25, 1987, MEETING OF THE COLORADO ASSOCIATION
OF SKI TOWNS, AS FOLLOWS=
l. That appropriate Colorado State statutes and codes be
modified to include ski lift tickets among those products and
services covered by the Colorado Sales Tax, thereby
generating in excess of $3.3 million annually in new sales
tax revenues.
2. -That ski lift ticket sales tax revenues be isolated and
identified as Ski Tourism Impact Funds and distributed
according to the following formula:
20% State of Colorado Tourism Board for year-round
promotion of Colorado ski areas.
20% County governments on a point-of-collection basis
for improvement of roads and other facilities used
by winter tourists and for improvements in the environment.
, 60% Incorporated cities and towns on a point-of-
collection basis for improvement of streets,
utilities and other facilities used by winter
tourists and for improvements in the environment.
3. That copies of this resolution be distributed to Governor
Roy Romer; the members of the Colorado General Assembly; the
Colorado Municipal League; Colorado Counties, Inc.; the
members of the Colorado Association of Ski Towns; and
appropriate media.
PASSED, ADOPTED AND APPROVED THIS 25TH DAY OF JULY, 1987.
x
President
Colorado Association of Ski Towns
ATTEST:
x
Secretary
Colorado Association of Ski Towns
August, 1987
COLORADO ASSOCIATION OF SRI TOWNS
LIFT TICKET TAX SURVEY
1. Does any or all of the property owned/controlled by a private
ski industry corporation lie within your City/Town boundaries?
Describe that portion of the property that is within
your City/Town (i.e. base and ticket sales only, all ski
runs, etc.).
2. If the ski corporation's property does not lie within the
City/Town boundaries, does the ski corporation conduct business
within the City/Town?
Describe the business conducted within the City/Town
(i.e, lift ticket sales, operation of hotel or retail
businesses, etc.).
3. Does your City/Town currently tax lift tickets?
Describe the nature and amount of tax.
What was the total tax revenue from this source in 1986?
4. Does your City/Town levy any other tax(es) on the ski
corporation's activities or properties?
Describe the nature and amount of tax.
What was the total tax revenue from this source in 1986?
Page 1 of 3
COLORADC) ASSOCIATION OF SKI TOWNS; LIFT TICKET TAX SIIRYEY
5. Does the ski corporation make a voluntary cash contribution
to your City/Town? Is this a regular, periodic contribution?
What is the formula for calculating this contribution?
What stipulations, if any, are made for the expenditure
of these funds?
6. Does the ski corporation make a cash contribution to your
county government?
Is this a regular, periodic contribution?
What is the formula for calculating this contribution?
What stipulations, if any are made for the expenditure
of these funds?
7. Does the ski corporation in part or in total pay for
and operate any municipal services (i.e, bus service, utilities
systems, etc.)?
Describe the service(s) and the extent of the ski
corporation's participation.
~
To whom is this service provided (i.e. tourists only,
tourists and City/Town residents, etc.)?
Page 2 of 3
.
COLORADO ASSOCIATION OF SKI TOWNS; LIFT TICKET TAX SDRVEY
8. Has the ski corporation made any public purpose, capital
investments in your region during the last 5 years (i.e. airport,
City or County roads/streets, utility treatment plant, etc.)?
List these investments:
AMOtINT OF
YEAR PROJECT CORPORATE INVESTMENT
9. Describe any other fiscal relationship between the ski
corporation and local government that has not been touched on
above.
Completed by:
Name
Title `
City/Town -
Page 3 af 3
PROCLAMATION OF THE MAYOR
Town of Vail, Colorado
AN ORDER PROCLAIMING SEPTEMBER 16, 1987 AS
A CELEBRATION OF CITIZENSHIP DAY
On September 16, 1987, Americans will have the unique opportunity to honor the
Constitution of the United States in "A Celebration of Citizenship." In this year
of the Bicentennial of the signing of the Constitution, it is fitting that we
celebrate our heritage of freedom under law that was granted by this national
charter.
In 1787, the United States was a nation of 13 sovereign states, independent of
each other, aligned along the eastern seaboard, from New Hampshire to Georgia.
They were the United States in name only, barely held together by the Articles of
Confederation. Only six years after the War of Independence, the new experiment in
democracy was in danger of collapse. Most of the states had their own armies,
printed their own currencies, and charged tariffs to other states for using their
ports and roads.
A Convention was called in Philadelphia, for the sole purpose of making
revisions to the Articles. But national leaders like Madison, Hamilton and
Franklin feared that unless a strong central government was created, the country
would fall apart, forming independent republics, or coming under the control of
foreign powers once again. Despite the odds against success, the writers of the
Constitution were able to reach compromise after compromise, until they fashioned a
blueprint for a new government - a government of the people. In the 200 years
since that Convention, WE THE PEOPLE have been fine tuning that concept of
republican government. Today, our Constitution is the oldest written instrument of
national government in the world.
We will be celebrating the Bicentennial of the Constitution's signing on
September 17, 1987, and the establishment of the new government under the
Constitution in later years, through the commemoration of the ratification of.the
Bill of Rights in 1991. All Americans can participate in this celebration on
September 16, during A CELEBRATION OF CITIZENSHIP. On this day, millions of
students, across the country and in American schools abroad, will learn about the -
blessings of liberty bestowed by our Constitution. All Americans can join our
youth in recognizing and honoring the rights and responsibilities of citizenship.
At 1:00 p.m., E.D.T., a live national radio and television broadcast from the west
front steps of the U.S. Capitol will enable all Americans to join in the Pledge of
Allegiance, as well as to hear the words of the Preamble to the Constitution.
While our Town of Vail government is significant, it is the words of the
Constitution that guarantee our freedoms and liberties. Through the reading of
these powerful words, it is my hope that all Americans will. join in paying tribute
to the treasured concepts of our governing document.
NOW, THEREFORE, I, Paul R. Johnston, Mayor of Vail, do hereby proclaim
September 16, 1987 as A CELEBRATION OF CITIZENSHIP DAY in Vail, and urge all
citizens to take part in this once-in-a-lifetime celebration of our heritage.
IN WITNESS WHEREOF, I have hereunto set my hand this day of
, 1987.
Paul R. Johnston
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SALESTAX
TOWN OF VAIL
SALES TAX ESTIMATION WORRSHEET
; 1987 1987
___MONTH______1980_______1981_______1982_______1983_______1984_______1985_______1986____;_ BUDGET ACTUAL Variance
December 549,000 590,242 820,762 737,506 853,100 906,758 905,955 ; 1,131,000 1,167,280 36,280
January 626,448 514,102 675,186 696,752 742,262 881,304 890,585 ; 1,011,000 1,063,196 52,196
February 624,040 594,292 687,792 751,856 824,650 918,154 946,552 ; 1,062,000 1,135,786 73,786
March 683,000 697,464 853,648 977,828 1,084,814 1,187,520 1,316,652 ; 1,310,000 1,378,782 68,782
April 246,820 308,436 355,300 319,546 481,204 531,668 430,877 ; 539,000 425,961 (113,039)
May 89,180 135,774 147,378 156,588 166,200 162,912 244,987 ; 224,000 212,127 ( 11,873)
June 176,044 245,204 247,326 257,744 262,696 280,828 361,627 ; 361,000 331,948 ( 29,052)
July 281,846 339,418 349,116 407,474 406,462 447,815 479,507__,___534,000 481,858 ( 52,142)
_SUBTOTAL 3,276,378 3,424,932 4,136,508 4,305,294 4,821,388 5,316,959 5,576,742 ; 6,1-~2,000 6,196,938 24,938
ugust 268,052 332,724 348,756 384,338 402,792 386,985 512,513 ; 518,000
September 176,090 285,918 268,598 324,670 384,864 340,102 374,060 ; 435,000
October 137,376 225,024 223,830 198,614 206,248 209,282 237,504 ; 266,000
November_____140,630 210,254 245,894 281;704 310,588 229,083 376,657 ; 366,000
TOTAL 3,998,526 4,478,852 5,223,586 5,494,620 6,125,880 6,482,411 7,077,476 ; 7,757,000 6,196,938 24,938
_ . _ I
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RETT
RFviePd: 9/ 4/1987
TOWN OF VAIL
REAL ESTATE TRANSFER TAX
History and Budget
1986
1980 1981 1982 1983 1984 1985 1986 ; 1987 1987 BU
DGET
___MONTH______-__ACTUAL ACTOAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ; BUDGET ACTUAL VARIANCE
anuary 63,999 98,089 106,981 119,972 78,053 80,733 101,374 ; 83,191 130,231 47,040
February 40,595 69,018 105,024 132,220 86,289 170,052 64,906 ; 81,801 43,980 ( 37,821)
March 69,886 126,935 109,533 137,820 62,693 63,831 92,557 ; 82,747 38,791 ( 43,956)
April 76,855 94,653 65,900 103,526 173,321 90,396 182,743 ; 96,338 95,554 ( 784)
May 42,738 84,324 54,663 90,599 96,006 228,673
June 98,651 ; 75,862 120,984 45,122
62,239 125,433 54,488 140,638 76,467 49,513 79,915 ; 71,266 73,782 2,516
July 49,367 186,110 104,262 68,539 157,598 88,528 70,441 ; 87,508 47,523 ( 39,985)
August 79,859 115,499 71,282 97,806 58,937 32,860 100,182______72,969 61,137 ( 11,832)
___ubtotal_______485,538_ 900,061 672,133 891,120 789,364 804,586 790,769 ; 651,684 611,982 ( 39,702)
eptember 59,800 113,992 49,332 96,746 64,671 48,516 108,167 ; 67,721
October 108,510 154,000 42,498 122,546 88,732 109,633 93,860 ; 93,572
November 102,623 107,768 81,698 91,385 105,109 74,909 89,047 ; 84,020
December ________142,662 13.3,867 110,911 56,533 81,890 333,139 106,695 ; 103,004
OTAL 899,133 1,409,688 956,572 1,258,330 1,129,766 1,370,783 1,188,538 ; 1,000,000 611,982 ( 39,702)
Andrew W. Armstrong
P. 0. Box 3422
Vail, Colorado 81658
August 25, 1987
Hon. Paul Johnston, Mayor
Town of Vail
75 South Frontage Road
Vail, Colorado 81657
Dear Yaul:
As a Vai.l business owner, a member of the Vail Kesort Association and as one who
has the opportunity through my profession to discuss various business issues with
other Vail business owners, I am writing to ask that you vote against any
permanent funding for the Vail Resort Association.
There are several reasons why I believe that permanent funding is undesirable;
however, one stands out above all others. I believe that we should retain our
_ right of choice. If the Vail Resort Association believes that all businesses
should belong, then it becomes manifest on that organization to market itself.
If Vail business owners perceive benefit from membership in the Vail Resort
Association, then they will join.
Regardless of the rhetoric, what is proposed would result in involuntary payment
and abrogation of accountability and control.
Thank you for your consideration of this request. '
Ver truly your ~
l~~.l
Andrew W. Armstrong'
AWA/bd
:F
ctJl°pOPat1oi1
MARRIOTT HOTELS 2420 Camino Ramon David H. Rolston
& RESORTS Suite 212 Vice President
San Ramon, CA 94583 415/830-1031
August 11, 1987
Mr. Paul Johnston
Mayor
1184 Cabin Circle Street
Vail, Colorado 81657
Dear Mayor Johnston,
Mike Robinson, our General Manager of the Mark Resort, told
me that Vail has tentatively approved the concept of build-
ing a publicly funded convention center, a facility which
would directly compete with the existing private sector
convention hotels.
Eight years ago Marriott came to Vail to manage The Mark for
Kaiser Morcus. At that time no publicly operated facility
existed nor did we have any knowledge that one was being
contemplated. Marriott encouraged Kaiser to expand The Mark
- and to invest in a major ballroom. We think in the long
term this is a good decision for not only The Mark but for
the community, particularly as it relates to bringing valu-
able group customers to the area during non-ski periods.
However, the expansion of The Mark has not yet proven to be
a profitable venture.
For the community to support a publicly funded competitive
convention facility substantially discourages additional
investment.
We would hope reconsideration would be given to public
funding of this convention facility and the responsibility
for any future convention facilities be left to the "risk"
of private enterprise.
rdially y , -
,
cc: Mike Robinson
Kaiser Morcus
i
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CHAMBER FORUM LUNCHEON
Date: september 1987 RE(;'p AUG 3 1 198
~
Time: Cash Bar 11:30 a.m. Lunch at Noon Cost: $7.50 V.R.A. members $8.50 for Non-members
Location: Westin Hotel
Vail Associates President, Mike Shannon will be speaking
on Vail Associates plans (marketing, up-grading, e tc.)
for this upcoming season, as well as any long term plans
underway.
Please contact Stella Cruz at 476-1000 ext. 13, by
September 4, 1987.
~
VAIL RESORT ASSOCIATION, 241 E. Meadow Drive, Vail, Colorado 81657
fi.~_1=1
LREVISED CALENDAR, 9-1-87 ELECTION CALENDAR - REGULAR MUNICIPAL ELECTION
TOWN OF VAIL, TUESDAY, NOVEMBER 17, 1987, FOR
FOUR EXPIRING TERMS (PAUL JUHNSTON, KENT ROSE,
HERMANN STAUFER, GAIL WAHRLICH-LOWENTHAL)
Invo of uail.
75 south irontage road offiCe of the town manager
vail, colorado 81657
(303) 476-7000
AUGUST 19, 1987 FIRST DAY 70 ACCEPT APPLICATIONS FOR ABSENTEE BALLOTS.
SEPTEMBER 28, 1987 FIRST DAY TO CIRCULATE NOMINATION PETITIONS - TEN
SIGNATURES OF REGISTERED ELECTORS OF THE TOWN OF VAIL
REQUIRED.
~~QD•~S~YY'V'~,~ OCTOBER 19 , 1987 , LAST DAY TO CIRCULATE NOMINATZON PETITIONS. PETITION
MUST BE TURNED IN T(i THE TOWN CLERK BY 5:00 P.M. (CLOSE
OF BUSINESS). MUST BE SIGNED BY CIRCULATOR AND CANDIDATE.
OCTOBER 16, 1987 DEADLINE TO ESTABLISH RESIDENCY WITHIN THE TOWN OF VAIL
TO QUALZFY AS REGISTERED ELECTION FOR THIS ELECTION.
OCTOBER 20, 1987 COUNCIL TO APPpINT ELECTIOPl JUDGES/CLERKS AT EVENING
MEETING.
OCTOBER 23, 1987 DEADLINE TO REGISTER TO VOTE AT NOVEMBER 17, 1987,
REGULAR MUNICIPAL ELECTION.
OCTOBER 26, 1987 LAST DAY TO WITHDRAW NOMINATION PETITION.
NOVEMBER 2,,1987 PUBLICATION ELECTION NO'fICE TO BE SENT 1'0 THE VAIL
TRAIL FOR.PUBLICATION NOVEMBER 6 and 13, 1987.
NOVEMBER 6, 1987 POST NOTICE OF ELECTION AT MUNICIPAL BUILDING.
NOVEMBER 6, 1987 BALLOTS MUST BE IN HANDS OF THE TOWN CLERK.
NOVEMBER 6, 1987 CANDIDATE EXPENSE STATEMENTS DUE.
NOVEMBER 12, 1987 CERTIFIED LIST FROM COUNTY CLERK DUE 70 VAIL MUNICIPAL =
CLERK.
NOVEMBER 12, 1987 LAST DAY TO APPLY FOR ABSENTEE BALLOT.
NOVEMBER 16, 1987 DELIVER ELECTION SUPPLIES TO THE JUDGES.
NOVEMBER 17, 1987 ELECTION DAY.
DECEMBER 17, 1987 CANDIDATE EXPENSE STATEMENTS DUE.
.
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KEYSTONE RESORT
C0NVENTION ~
CEleTTER -
. L
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The Setting
Keystone is managed Uy,Keystone
Resorts Management, Inc., awholly owned
subsidiary of the Ralston I'urina Companv
and has been developed with special care
to preserve the natural Ueauty of Arapaho
National Forest.
Keystone's long-term commitment to
quality and service has earned the resort the
prestigious ArW Five-Diamond Award and
Mobil Travel Guide's Four-Star rating since
Opportunity is the best 1977 Both honors reflect superiority of The Benefits
facilities, senice and accommodations. Keystone's goal is to continue our
way to describe the position In addition, Keystone, for the last two
positive momentum and assert our position
of Keystone Resort. }'ears, has received the Pinnacle Award from as one of the premier resorts in North
For the third eonseeutiue SuccessfirlrYleetings magazine, whose read- America.
ership selects the 150 top facilities in the The new Keystone Convention Center
year, Keystone is the third United States. should f:ivorably impact the walue of the
most popular ski destination resort by impro«ng the financial perform-
The Need ance for its lodging base and its revenue
in North America. The highest potential for additional
centers'
Ke stane ex erienced room nights lies in the groNving demand for
y p Esisting Keystone meeting facilities
an 11% inerease in skiers conferences, which is presentlv the second are now fullv utilized during the period
largest business segment at Keystone. when most_national meetings are held
this past season, the largest A lack of ineeting space has resulted (April to 1Vovember). The availability of
inerease of any Colorado in an average yearly turn-down of S3.3 new meeting facilities during that period
. nullion in lodging rental revenue for the can substantially improve the resort at a
resort. And, eondominium last four years' Past groups have outgrown time when improvement is most needed'
rental nights improued by the meeting facilities while new business Lodging revenue forecasts from con-
30% ouer last year~S p@I~OCfII- attracted by Keystone's arrienities ancl repu- ference attendees indicate that Keystone
tation cannot be accommodated. conclominiunz owners will receive appro?1 i
ance, with a 23% inerease in Keystone's meeting facilities must be
mutely $28 mi[lion in additiaTal net rcmtal
gross rental revenues.' competitive in the national meetings mar- revenues (projected revenues less manage-
ket or millions of dollars in potential revenue ment fees and all ro ected surchar es
The addition of the Key- p i m
~
will continue to be lost, and the resort's the eight years following the completion of
stone Musie Festiual, featur- reputanon, rather than maintaining a growth the Keystone Convention Center'
ing the National Repertory curve, will stagnate. Market research indicates that up
Orchestra, has been success- co 80°~> of Keystone conference attendees
The Opportunity anticipate returning to Keystone for
ful beyond all expeetations. 1'he destination resort segment of the «cations' Rettirning gLiests substantially
This is a most exeiting time national meetings market is a $6 billion-per- increase room rentals in the lucrative
}ear business, and fgowing. Yet, with all ihat destination vacation market' T1iese incre- '
for the resort. Keystone is Keystone has to offer, it is not getting its mental revenues from mturning guesu are
on a threshold that ean open share of this business. in aeldition to the net rental revenue pro-
Keystone's conference facilities are ection t<>r conference ou s cited abo~~e.
more doors of opportunity. not of sufFicient size to host national meet- ~ ~ p
Adclitional benefits:'
The keyis lhe Keystone ings. The current facilities at the Keystone . Improves resort guest nux
C011/BI'EIICE CBOtBC Lodge can accommoclate only 400 persons . Improves facilities/guest senice levels
in a meeting/banquet setting, wtule the . perniits gceater flexibilihy to market
national meetings avercrge is over 1,000 resorC in economically ad%ant:iged
persons for such events. regicros/markets
With a major convention center • Enhances national recognition
likely to open in Derner in the nest three . Imprcves overall resort Valur and image
years, KeNIstone can benetit from the nation- . Opens new ~,*uest/visitor mar6ets
wide effort to attract Nisitors to the state. (inducling real estate)
Keystone's location in the heart of the Colo-
rado Itocl:ies, just 75 nules from Denver's
Stapleton rtirport, gives it a significant edge in the fast-growing conterence market for
resort locations.
The Economic Facts Funding Surcharges
Keystone management's aggressive For the past seven yezrs, the primary The conference room surcharge will
and innovative marketing program is reason the Keystone Convention Center has apply only to conference rti€;hts acttiall}expected to generate 100,000 room nights not been built is the fact that it is an attrac- generated and zvrll not apply until the Con-
for the 775 Keystone-managed condomini- tion that creates opportunities for lodging ference Center is completed in the summer
ums this fiscal year' and other protit centers but does notgeizer- of 1989.
Of these room nights, about 25,000 ate income in and of itself. Keystone will adjust the surcharges
(25% of total room nights) will be from Aspects of the plan to fund the builcl- following the amortization of the (febt obli-
conference business generated through ing, purchase and operation of the Keystone gation upon the Ke}lstone Com•ention
etisting meeting facilities' T'he Keystone conference facilities which affect condo- Center at a level necessary to support con-
Lodge will also receive a comparable rnim- minium rentals are: tinued management, operations, marketing,
ber of room nights' a) A guest-paid facilities surcharge repair and maintenance, and if appropriate,
111e neAv Keystone Convention Center (3.9% based on projected funding require- eYpansion of the conference tacilities.
is projected to generate 30,000 additional ments) added to all resort sales on mer-
conference room nights in its first year of chandise, goods aund serNices on which a Future Keystone Growth
operation, increasing to 65>000 additional 51 % Colorado state sales tax is preseiltly heystone managenlent believes that
conference room nights in the fourth year paid. T1us surcharge may be increased to a strong performance of the resort and its
of operation' maXimum of 7.9% if conference f:icilihy lodging operations is the key to Keystone's
elpenses exceed projections. Keystone's fiiture s,nownh. 'I11e Tendertbot Ciunpground
The Facility total sales ta.ties and surcharges are com- was selected as the best available land to
Keystone's new state-of-the-art parable to the total sales taxes and/or sur- effectivelv meet this goaL Keystone is com-
Convention Center will Ue second in size charges leNied in competitive resorts" mitted to a resort business plan to improve
only to the Broadmoor in Colorado Springs b) A 10% conference room sur- the overall «lue of the resort.
in Colorado°s resort locations. charge applied to all conference room
The Convention Center will add nights at Keystone Resort. rlfter tlus sur-
nearly 30,000 sq. ft. of ineeting space (in a charge (similar, in effect, to a travel .igent's
total facility of approacimatel), 50,000 sq. fr.), commission) is deducted from the gross
to the 14,000 sq. ft. of ineeting space pres- room revenue, Keystone Property Manage-
ently utilized at the Keystone core confer- ment and the condonunium owner will
ence facilities. split the remaining hinds in accordance
The Convention Center Mll be located with Keystone's rental management
northeast of Keystone Lodge in the Tender- agreement.
foot Campground site. Included in tlus plan
is a new Keystone registration desk/ • . TEN,,,, TowxxoosE:
.f•• : ~ ~
hospitality center which may be located at ~
the west entrance to the Kevstone Resort. _ ~ ~ / ~ \ ~ `,i ~ ~ ~ ~
-
OuicKSUr¢nT~ fnnl ~rooiA~ s '
Re~sfone - • Keystone Lod9e Conference FacilitY ~Pafk109 L1111EEIOE NILLOWS '
FlroSUtlon Taanfs Cemer ladoor IENRWEE
1 ~ couns roNTUura
' +¢oNE
heySTOlle I17afl:If;elllLtl[ 1S CO17ti1C~C:CItIg ra• °.i ~ f '
incorporating the purchase of the esisting ~ .j r`E ~Op6E •~~=~`_--e~ ~ ~
OEC4NR
coiiterence tacilities in Keystone Lcxis;e into r ~o . Pocill
.1 SIIUSId1.7IN' COIPOCatIOll 1Vt11Ci] wlll OwI] all
- - ~Poal ' .
c
. `I~-•~Ba -
' ~
of the resort:5 conference facilities. MI
~,~oa~~•` ~r
~I ~ seve
he}'$tnl7C'. I.OUgCR,1ll ~)l' CeC~U1CCU tn ' pool~ 0 'P~ EDfiEWATER - 6ronnES jna+.
/ . _ _ pR6ENTINE Ah~r
pay tbr use of all Kcystone cotifercnce t.iCII- LoosEraLe I, itics on the sam1e basis iis Keystone-lnanagecl BOYESiEAD WILD IRISXYIIM ~Poo, - ~
~r+eon. ea,e
COndOIIIICIIUTIl pPOpCCUCS. ROMINISTRATION. ea. eo•~ . , , • ' .
. PERSONNEL.i ~ aies
CONOOMINUM 1~fnm.p~'d ~1,
IOX
RFfiISTRAT EOOA 4~ - - . " ' .
_ . Pool. SPRINB . . ' . _ . ' , . -
Keystone Commitment Rental Agreement Rider
Keystone is committing to surcharges A Rider to Keystone's rental manage-
on its state t.UYable income streams for the ment agreement authorizing the surcharges
entire life of the Conuention Ccmter debt. is needed bNl November 1,1987, in order to
Keystone's conferuwcefacilitl; inclatd- meet the implementation schedule.
ing larul cmd rewenues, will cilso be conamit- If a sufticient nuinber of Itiders is not
tecl as colkatercrl to secuy e the Convention received by the November 1 date, the
Center debt. Comrention Center will be delayed for a
Keystone management Nvill address minimum of one year, with a high probabil-
all aspects of the business plan needed to ity that the oppornuuty for the facility in the
iuacc; the new Keystone Convention Center Keystone Village area will be lost entirely.
a re:ality~ The key aspecu include: rUry Keystone-managed rental prop- Summary
• Financing erty owner executing the Rider for his/her Keystone Resort needs to be compet-
• Convention Center design, engineering property by the November 1 date will itive in the national meetings marl:et and
and constniction receive ct guciranteett cap on the confer- can only achieve this goal bNbuilding the
• Resort and conference marketing ence facilin~ surcharge of 10% during the Ke~~stone Convention Center.
and sales entire period he/she oNvns the property, pro- Asa Keystone properh- o~vner, you
• Integrated resort-wide transportation viding the property remains on the rental «n realize the opporni?tity to improve the
system program. numher ot rental niomts and revenue Nlour
• Central resenations and telephone Any owner Nvho returns an executecl condonvnium receives' 1'our acceptance of
systems Rider by the November 1 date zuill be able a. market-competitive, gtrestpard f icilities
• On-site conference coordination and to transfer the rap to a new owner of the 5urcharge applied November 1,1987, and
services property iY the unit is sold prior to the open- yoLlr acceptance of the conference room
• Securihy ing of the Conterence Center. surcharge to be applied in the sununer of
• Conference food and beverage heystone can nla:e no assurances 1989 (which accnies solely on acnial
• rVl other resort support facilities about the availability of its rental manage- conference rental tughts vou receive) is the
• Managemetu and aclequate statf necessary ment senices, inclucling accessibilitv to single contribution needed from }-ou to
to properly generate and ser~ice the its conference facilities, to properties not develop a high-quality com~ention center at
business. included in its rental program by November hev5tone.
1,1987. . NN'e can continue heystone's positive
Implementation Schedule' momenttim and improve the performance
Property management agreement Limited Availability of the resort and the overall value of our
rider signed. 3.9% guest paid facilities In order to ensure thaC participating
properties' An informational hot line has
surcharge starts November,1987 condonuiuum owners receive the entire
been established to help ans,%ver aclditional
Secure local goverrunent approvals; benetit of the cot-derence facilities fiom
both coi~terence attendees and ~~ication 9Llestions ~~ou ma}r have.
complete architectural and engineering To ensure ~our ~?rtici ~tion in this
,vork; start construction Spring,1988 gL1ests, Keystone Property Management can y p`
esciting opportunit}~, please rehirn your
CONVENTION CENTER OPEIVS; only manage uruts (other than maintenance 5igned Ricier to tl~e rental management
10% conference room surcharge units) subject to the 3.9% guest-paid facili- ,l~.eement to Ke}~stone Resort Propert}~
starts . . . . . . . . . . . . . . . . . . . . . Fall, 1989 ties surcharge and the 10% conference Nlanagement Company ofYices as soon as
room surcharge.
Property Owner Commitment possible, but no later than November 1,1987
The business and financing plan for 'Based on information and t'mancial
the Keystone conference facilities requires projections prepared by Keystone
management, which are not assured
no enczrmbrccnce upon an owner's property. and cannot be guat-anteed.
A property oNviier mwry tc"ninate lus/
her rental managemen[ agreement at any Surcharge Surcharge Projection
timc upon siS m~~ntliS'taotlce. Typical Rental Property' Present noadded room nites(b) (first year) (c)
A property owner's pocencial d<>wn- Conference Room Revenue (a) $4,000 $4,000 . $ 9,000
sidc is nunimal, even if no adclitional room Other Room Revenue 12,000 12,000 12,000
nights are generatecl by the Conference
Centcr' Total Room Revenue 16,000 16,000 21,000
The rsample to the ri_Q It illus[rates Conference Room Surchage 0 -400 _ -900
the effect on Net 12oom Revcnues fox a Adjusted Room Revenue 16,000 15,600 20,100
npical rental property basecl on Kcystone's Rental Management Fee -8,000 -7,800 -10,050
first }lear projection. Net Room Revenue $8,000 $7,800 $10,050
(a) Assumes 25%of Total Room Revenue is generated by conference business.
(b) Assumes no additional rental nights generated by Keystone Conference Center.
(c) Management projections based on equal distribution of 28,300 additional condominium conference room nights to the 775
Keystone-managed condominium units in first year of operation' Projections do not include potential additional business from
conferees returning for vacation.
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ORDINANCE N0. 31
Series of 1987
AN ORDINANCE REPEALING AND REENACTING CHAPTER 3.40 SALES TAX
OF THE MUNICIPAL CODE OF THE TOWN OF VAIL, COLORADO TO PROVIDE
FOR THE SELF COLLECTION BY THE TOWN OF VAIL OF THE TOWN OF VAIL
MUNICIPAL SALES TAX AND SETTING FORTH DETAILS IN REGARD THERETO.
WHEREAS, the Town Council has determined that the Town of Vail will realize
economic benefits if the Town itself rather than the state of Colorado becomes the
collecting agency for the Town of Vail Municipal Sales tax.
NOW THEREFORE, be it ordained by the Town Council of the Town of Vail Colorado
as follows:
1. Chapter 3.40 Sales Tax is hereby repealed and re-enacted to read as
follows:
1. GENERAL PROVISIONS
3.40.010 Short Title. The ordinance codified in this Chapter 3.01 shall be
known as the Town Sales and Use Tax Ordinance.
3.40.020 Definitions. As used in this Chapter 3.40, unless the context
otherwise requires, the following terms shall have the following meanings:
(1) "Access services" means any charge by local telephone exchange companies
to providers of telecommunication services or to their customers for use in
providing the telecommunication services of such providers.
(2) "Acquisition charges or costs" includes "purchase price," as defined in
Section 3.01.020(27).
(3) "Auction sale" means any sale conducted or transacted at a permanent
place of business operated by an auctioneer or a sale conducted and transacted.at
any location where tangible personal property is sold by an auctioneer when such
auctioneer is acting as agent for the owner of such personal property or is in fact
the owner thereof. The auctioneer at any sale defined in subsection (30) of this
Section, except when acting as an agent for a duly licensed retailer or vendor or
when selling only tangible personal property which is exempt under the provisions of
Section 3.01.180, is a retailer or vendor as defined in subsection (28) of this
Section, and the sale made by him is a retail sale, as defined in subsection (29) of
this Section, and the business conducted by said auctioneer in accomplishing such
sale is the transaction of a business as defined by subsection (4) of this Section.
.
(4) "Business" includes all activities engaged in or caused to be engaged in
with the object of gain, benefit, or advantage, direct or indirect.
(5) "Charitable organization" means any entity organized and operated
exclusively for religious, charitable, scientific, testing for public safety,
literary, or educational purposes, or to foster national or international amateur
sports competition (but only if no part of its activities involve the provision of
athletic facilities or equipment), or for the prevention of cruelty to children or
animals, no part of the net earnings of which inures to the benefit of any private
shareholder or individual, no substantial part of the activities of which is
carrying on propaganda, or otherwise attempting, to influence legislation, and which
does not participate in, or intervene in any political campaign on behalf of any
candidate for public office (including the publishing or distributing of
statements).
(6) "Town Attorney" means the attorney or attorneys for the Town.
(7) "Town Clerk" means the clerk of the Town.
(8) "Town Council" means the council of the Town.
(9) "Town Manager" means the manager of the Town.
(10) "County" means Eagle County, Colorado.
(11) "County Clerk and Recorder" means the county clerk and recorder for the
County.
(12) "Department of Revenue" means the department of revenue of the State.
(13) "District Court" means the district court in and for Eagle County,
Colorado. ,
(14) "Doing business in this Town" means the selling, leasing, installing, or
delivering in this Town, or any activity in this Town in connection with the selling, leasing, installing, or delivering in this Town, of tangible personal
property by a retail sale as defined in subsection (27) of this Section, for use,
storage, distribution, or consumption within this Town. This term includes, but
shall not be limited to, the following acts or methods of transacting business:
(a) The maintaining within the Town, directly or indirectly or by a
subsidiary, or an office, distributing house, saleroom or house, warehouse, or other
place of business; and
(b) The soliciting, either by direct representatives, indirect representatives,
manufacturers' agents, or by distribution of catalogs or other advertising, or by
use of any communication media, or by use of .the newspaper, radio, or television
-2-
advertising media, or by any other means whatsoever, of business from persons
residing in this Town and by reason thereof receiving orders from, or selling or
leasing tangible person property to, persons residing in this Town for use,
consumption, distribution, and storage in this Town.
(15) "Finance Department" means the finance department of the Town.
(16) "Finance Director" means the Administrative Services Director of the
Town.
(17) "Food" means food which is advertised or marketed for human consumption
and is sold in the same form, condition, quantities, and packaging as is commonly
sold by grocers. The term includes, but is not limited to, cereals and cereal
products; milk and milk products; meats and meat products; fish and fish products;
eggs and egg products; vegetables and vegetable products; fruits and fruit products;
sugars, sugar products, and sugar substitutes; coffees and coffee substitutes; teas,
cocoa, and cocoa products; spices, condiments, salt, and oleo margarine.
(18) "Gross taxable sales" means the total amount received in money, credits,
or property, excluding the fair market value of exchanged property which is to be
sold thereafter in the usual course of the retailer's business, or other
consideration valued in money from sales and purchases at retail within this Town ,
and embraced within the provisions of this Chapter 3.40. The Taxpayer may take
credit in his report of gross sales for an amount equal to the sale price of
property returned by the purchaser when the full sale price thereof is refunded
whether in cash or by credit. The fair market value of any exchanged property which
is to be sold thereafter in the usual course of the retailer's business, if included
included in the full price of a new article, shall be excluded from the gross sales.
On all sales at retail that are valued in money, when such sales are made under
conditional sales contract, or under other forms of sale where the payment of the
principal sum thereunder is extended over a period longer than sixty (60) days from
the date of sale thereof, only such portion of the sale amount thereof may be
counted for the purpose of imposition of the tax imposed by this Chapter 3.40 as has
actually been received in cash by the Taxpayer during the period for which the tax
imposed by this Chapter 3.40 is due and payable.
(19) "Mayor" means the mayor of the Town.
(20) "Modified computer software program" means that one of the following
elements must be present: (i) the preparation or selection of the program for the
customer's uses requires an analysis of the customer's requirement by the vendor;
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or (ii) the program requires adaptation by the vendor to be used in a specific
output device.
(21) "Motor vehicle" means any motor vehicle, trailer, semi-trailer vehicle,
trailer coach or mobile home which is primarily designed to be operated or drawn
upon any highway. This definition shall not apply to vehicles owned and operated by
any department of the federal government or State government or any other agency or
political subdivision thereof, fire-fighting vehicles, Town vehicles and farm
tractors, farm trailers, hay balers, combines and other heavy movable farm equipment
primarily used on farms and not on highways, and road rollers and road machinery
temporarily operated or moved upon the highways. ~
(22) "Person" includes any individual, firm, partnership, joint venture,
association, corporation, estate, trust, receiver, or any group or combination
acting as a unit, and includes the plural as well as the singular number.
(23) "Purchase price" means the price to the consumer, exclusive of any
direct tax imposed by the federal or State government or by this Chapter 3.40, and,
in the case of all retail sales involving the exchange of property, also exclusive
of the fair market value of the property exchanged at the same time and place of the
exchange if such exchanged property is to be sold thereafter in the usual course of
the retailer's business.
(24) "Retailer" or "vendor" means a person doing a retail business known to
the trade and public as such, and selling to the user or consumer, and not for
resale.
(25) "Retail sale" or "purchased at retail" or "selling at retail" includes
all sales, except wholesale sales, made within the Town and all sales resulting in
delivery to users or consumers within the Town by retailers and vendors located
outside the Town.
(26) "Sale" or "sale and purchase" includes installment and credit sales and
the exchange of property as well as the sale thereof for money, every such
transaction, conditional or otherwise, for a consideration, constituting a sale, and
the sale or lease of those services specifically enumerated in this Chapter 3.40 as
taxable, including: (i) gas, electric and steam services; (ii) modified computer
software services; and (iii) the leasing of tangible personal property, the
transaction of furnishing rooms or accommodations by any person, partnership,
association, corporation, estate, receiver, trustee, assignee, lessee, or person
acting in a representative capacity or any other combination of individuals by
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. ,
whatever name known to a person who for a consideration uses, possesses, or has the
right to use or possess any room in a hotel, apartment hotel, lodging house, motel,
condominium, townhouse, hotel, guest house, guest ranch, trailer coach, mobile home,
auto camp, or trailer court and park, under any concession, permit, right of access,
license to use, or other agreement, or otherwise.
"Sale" or "sale and purchase" excludes:
(a) A division of partnership assets among the partners according to
their interests in the partnership;
(b) The formation of a corporation by the owners of a business and the
transfer of their business assets to the corporation in exchange for all of the
corporation's outstanding stock, except qualifying shares, in proportion to the 1
assets contributed;
(c) The transfer of assets of shareholders in the formation or
dissolution of professional corporations;
(d) The dissolution and the pro rata distribution of the corporation 's
assets to its stockholders;
(e) The transfer of assets from a parent corporation to a subsidiary
corporation or corporations which are owned at least eighty percent (80%) by the
parent corporation, which transfer is solely in exchange for stock or securities of
the subsidiary corporation;
(f) The transfer of assets from a subsidiary corporation or
corporations which are owned at least eighty percent (80%) by the parent corporation
to a parent corporation or to another subsidiary which is owned at least eighty
percent (80%) by the parent corporation, which transfer is solely in exchange for
stock or securities of the parent corporation or the subsidiary which received the assets;
(g) A transfer of a partnership interest;
(h) The transfer in a reorganization qualifying under Section 368(a)(1)
of the Internal Revenue Code of 1954, as amended;
(i) The formation of a partnership by the transfer of assets to the
partnership or transfers to a partnership in exchange for proportionate interests in
the partnership;
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(j) The repossession of personal property by a chattel mortgage holder
or foreclosure by a lien holder; and
(k) The transfer of assets between parent and closely held subsidiary
corporations, or between subsidiary corporations closely held by the same parent
corporation, or between corporations which are owned by the same shareholders in
identical percentage of stock ownership amounts, computed on a share-by-share basis,
when a tax imposed by this Chapter 3.40 was paid by the transferor corporation at
the time it acquired such assets, except to the extent provided by Section
3.40.140(1) . For the purposes of this paragraph (k), a closely held subsidiary
corporation is one in which the parent corporation owns stock possessing at lease
eighty percent (80%) of the total combined voting power of all classes of stock
entitled to vote and owns at lease eighty percent (80%) of the total number of
shares of all other classes of stock.
(27) "School" means an educational institution having a curriculum comparable
to grade, grammar, junior high, high school, or college, or any combination thereof,
requiring daily attendance and charging a tuition fee.
(28) "State" means the State of Colorado.
(29) "Tangible personal property" means corporeal personal property.
(30) "Tax" means either the tax payable by the purchaser of a commodity or
service subject to tax, or the aggregate amount of taxes due from the vendor of such
commodities or services during the period for which he is required to report his
collections, as the context may require.
(31) "Taxpayer" means any person obligated to account to the Finance Director
for tax collected or to be collected under the terms of this Chapter 3.40.
(32) "Wholesaler" means a person doing a regularly organized wholesale or jobbing business and known to the trade as such and selling to retail merchants,
jobbers, dealers, or other wholesalers for the purpose of resale.
(33) "Wholesale sale" means a sale by wholesalers to retail merchants,
jobbers, dealers, or other wholesalers for resale and does not include a sale by
wholesalers to users or consumers not for resale; the latter types of sales shall be
deemed to be retail sales and shall be subject to the provisions of this Chapter
3.40.
3.40.030 Confidential Nature of Returns.
(1) Except in accordance with judicial order or as otherwise provided
herein, the Town Manager, the Finance Director, and their agents, clerks and
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employees shall not divulge any information gained from any return filed under the
provisions of this Chapter 3.40.
(2) The Town officials charged with the custody of returns filed pursuant to
this Chapter 3.40 shall not be required to produce such returns or evidence of any
matters contained therein in any action or proceeding in any court, except on behalf
of the Finance Director in an action under the provisions of this Chapter 3.40 to
which the Finance Director is a party, or on behalf of any party to an action or
proceeding under the provisions of this Chapter 3.40 or to punish a violator thereof
or pursuant to any judicial order in which event the court may require the
production of and may admit in evidence so much of such returns or of the facts
shown thereby as are pertinent to the action or proceeding and no more.
(3) No provision of this Section 3.40.030 shall be construed to prohibit the
delivery to a Taxpayer or to his duly authorized representative of a copy of any
return'or report filed in connection with his tax, nor to prohibit the publication
of statistics so classified as to prevent the identification of particular reports
or returns and the information contained therein, nor to prohibit the inspection of
the Town Attorney or any other legal representative of the Town of the report-or
return of any Taxpayer who shall bring an action to set aside or review the tax
based thereon or against whom an action or proceeding is contemplated or has been
instituted under this Chapter 3.40.
(4) The provisions of this Section 3.40.030 shall not preclude the Town
Manager, the Finance Director, and their agents, clerks, and employees from
divulging any information gained from any return or audit to the federal government,
the State, the Department of Revenue, the Town or any other municipality, the Town
Attorney, the Town Manager, or the Finance Director, nor shall the Town Manager, theFinance Director, and their agents, clerks, or employees be liable to any person,
firm or corporation for such disclosure made for the purpose of computing or
collecting the tax due and owing from any person, firm or corporation, or for the
purpose of verifying compliance with this Chapter 3.40 or for the purpose of
investigating any criminal or illegal activity.
(5) Any Town officer or employee, or any agent thereof, who shall divulge
any information classified by this Chapter 3.40 as confidential in any manner except
in accordance with proper judicial order or as otherwise provided herein or by other
law shall be guilty of a violation of this Chapter 3.40 and shall be punished in the
manner provided by State law.
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3.40.040 Tax Cannot be Absorbed. It is unlawful for any retailer to
advertise or hold out or state to the public or to any customer, directly or
indirectly, that the tax or any part thereof imposed by this Chapter 3.40 shall be
assumed or absorbed by the retailer or that it shall not be added to the selling
price of the property sold or the services tendered, or, if added, that it or any
part thereof shall be refunded.
3.40.050 Excess Tax; Remittance. If any vendor, during any reporting
period, collects as a tax an amount in excess of four percent (4%) of his total
taxable sales, then he shall remit to the Finance director the full net amount of
the tax imposed in this Chapter 3.40 and also such excess amount. The retention by
the retailer or vendor of any excess amount of tax collections over the four percent
(4%) of the total taxable sales of such retailer or vendor or the intentional
failure to remit punctually to the Finance Director the full amount required to be
remitted by the provisions of this Chapter 3.40 is declared to be a violation of
this Chapter 3.40 and shall be recovered, together with interest, penalties and
costs, a provided in Section 3.40.
3.40.060 License and Tax Additional. The license and tax imposed by this
Chapter 3.01 shall be in addition to all other licenses and taxes imposed by law,
except as otherwise provided in this Chapter 3.40.
3.40.065 Duty to Keep Records. It is the duty of every Taxpayer to keep and
preserve suitable records and such other books or accounts as may be necessary to
determine the amount of tax for the collection of which he is liable under this
Chapter 3.40. It is the duty of every such Taxpayer to keep and preserve for a
period of three (3) years all invoices of goods and merchandise purchased. All such
books, invoices, and other records shall be open for examination and audit at any time by the Finance Director or his duly authorized agent.
3.40.070 Administration. The Town Manager may adopt rules and regulations
in conformity with this Chapter 3.40 for the proper administration and enforcement
of this Chapter 3.40. The administration of this Chapter 3.40 is vested in and
shall be exercised by the Town Manager. The Finance Director shall assist the Town
Manager in the administration of this Chapter 3.40 to the extent provided herein and
in the rules and regulations promulgated hereunder.
3.40.080 Receipts; Disposition. The monies received by the Finance
Director from the tax imposed and collected pursuant to this Chapter 3.40 shall be
deposited in the general fund of the Town.
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3.40.090 Applicability to Banks. The provisions of this Chapter 3.40 shall
apply to national banking associations and to banks organized and chartered under
State law.
3.40.100 Statute of Limitations. The taxes for any period, together with
interest thereon and penalties with respect thereto, imposed by this Chapter 3.40
shall not 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 (3) 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 (1) year after the filing of notice thereof. The statute of
limitations period as set forth herein above in this Section 3.40.100 shall not
apply if: (i) a Taxpayer files a false or fraudulent return with the intent to evade
the tax imposed by this Chapter 3.40; or (ii) if a Taxpayer fails to file a return
as required by Section 3.40.130. In the case of a false or fraudulent return with
the intent to evade the tax imposed by this Chapter 3.40, 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. In the case of failure to file a return,
the tax, together with interest and penalties thereon, may be assessed and collected
at any time. Before the expiration of such period of limitation, the taxpayer and
the Finance Director may agree in writing to an extension thereof, and the period so
agreed on may be extended by subsequent agreements in writing.
II. LICENSING
3.40.110 Licenses, Fees, Revocation. (1)(a) A sales tax license shall be required for any person to engage in the business of selling at retail in the Town
tangible personal property or services that are taxable hereunder which are
purchased in the Town and are subject to sales tax pursuant to this Chapter 3.40. A
tax license shall be granted and issued by the Finance Director and shall be in
force and effect until the earlier of: (i) revocation of such license; or (ii) sale
or termination of the business, if any, relating to such license. Such licenses
shall be granted only upon application stating the name and address of the person
desiring such license, the name of such business, if any, and the location,
including the street number of such business, if any, and such other facts as the
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Finance Director may require. No license issued pursuant to this Section 3.40.110
shall be transferable.
(2) In case business is transacted at two (2) or more separate places by one
(1) person, a separate license for each place of business shall be required.
(3) Each license shall be numbered and shall show the name of the licensee
and the place of business of the licensee and shall be posted in a conspicuous place
at the place of business for which it is issued. If the licensee does not have a
place of business, then the license shall show the mailing address of such
licensee.
(4) The Finance Director, after reasonable notice and a full hearing, may
revoke the license of any person found by him to have violated any provision of this
Chapter 3.40.
(5) Any findings and order of the Finance Director revoking the license of
any person shall be subject to review by the District Court upon application of the
aggrieved party. The procedure for review shall be, as nearly as possible, the same
as provided for the review of findings as provided by proceedings in the nature of
certiorari. '
(6) No license shall be required for any person engaged exclusively in the
business of selling commodities which are exempt from taxation under this Chapter
3.40.
III. SALES TAX
3.40.120. Property and Services Taxed. There is levied, and there shall be
collected and paid a sales tax in the amount stated in Section 3.40.140 as follows:
(1) On the purchase price paid or charged upon all sales, purchases, rentals
and leases of tangible personal property at retail.
(2) In the case of retail sales involving the exchange of property, on the
purchase price paid or charged, including the fair market value of the property
exchanged at the time and place of the exchange, excluding, however, from the
consideration of the purchase price, the fair market value of the exchanged
property, provided that such exchanged property is to be sold thereafter in the
usual course of the retailer's business.
(3) Upon telephone and telegraph services, whether furnished by public or
private corporations or enterprises, for all intrastate telecommunication services
originating from or received on telecommunication equipment in the Town if the
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charge for the service is billed to a person in the Town or billed to an affiliate
or division of such person in the Town on behalf of a person in the Town.
(4) For gas and electric service, whether furnished by municipal, public, or
private corporations or enterprises, for gas and electricity furnished and sold for
commercial consumption and not for resale, upon steam when consumed or used by the
purchaser and not resold in original form whether furnished or sold by municipal,
public or private corporations or enterprises.
(5) (a) Upon all sales of food.
(b) Upon the amount paid for food or drink served or furnished in or by
restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs,
nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like
places of business at which prepared food or drink is regularly sold, including
sales from pushcarts, motor vehicles, and other mobile facilities. Cover charges
shall be included as part of the amount paid for such food or drink.
(6) On the entire amount charged to any person for rooms or accommodations
as designated in Section 3.40.020(28).
(7) On the price paid to gain admission or access to a performance of a
motion picture.
3.40.130. Collection of Sales Tax. (1)(a) Every retailer, also in this
Chapter 3.40 called "vendor", shall, irrespective of the provisions of Section
3.40.140, be liable and responsible for the payment of an amount equa'l to four
percent (4%) of all sales made by him of commodities or services as specified in
Section 3.40.120 and shall before the twentieth (20) day of each month make a return
to the Finance Director for the preceding calendar month and remit an amount equal
to said four percent (4%) on such sales to said Finance Director. Such returns of
the Taxpayer or his duly authorized agent shall be furnished by the Finance
Department. The Town shall use the standard municipal sales and use 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 and twenty
(120) days after the effective date of the regulation adopting or revising such
standard form.
(b) If the accounting methods regularly employed by the vendor in the
transaction of his business or other conditions are such that returns of sales made
on a calendar month basis shall impose unnecessary hardship, the Finance Director,
upon written request of the vendor, may accept returns at such intervals as shall,
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in his opinion, better suit the convenience of the Taxpayer and shall not jeopardize
the collection of the tax. The Finance Director may permit Taxpayers whose monthly
collected tax is less than three hundred dollars ($300) to make returns and pay
taxes at intervals not greater than three (3) months.
(c) The Finance Director may extend the date for making a return and paying
the taxes due under such reasonable rules and regulations as may be prescribed
therefor, but no such extension shall be for a greater period than as provided in
Section 3.40.130(1)(b).
(d) The burden of proving that any retailer is exempt from collecting the
tax on any goods or services sold and paying the same to the Finance Director, or
from making such returns, shall be on the retailer or vendor under such reasonable
requirements of proof as set forth in the rules and regulations prescribed therefor.
(e) If a dispute arises between the purchaser and seller as to whether or
not any sale, service, or commodity is exempt from taxation under Section 3.40.180,
nevertheless the seller shall collect, and the purchaser shall pay the tax, and the
seller shall thereupon issue to the purchaser a receipt or certification, on forms
furnished by the Finance Department, showing the names of the seller and the
purchaser, the items purchased, the date, price, amount of tax paid, and a brief
statement of the claim of exemption. The purchaser thereafter may apply to the
Finance Director for a refund of such taxes, and it is then the duty of the Finance
Director to determine the question of exemption. The purchaser may request a
hearing pursuant to Section 3.40, and the final determination of the Finance
Director may either be appealed to the District Court pursuant to Section 3.40 or
the Department of Revenue pursuant to Section 3.40.
(f) The Town'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 lawfully imposed on the purchaser or user by another
statutory or home rule municipality equal to or in excess of the sales tax required
to be paid pursuant to Section 3.40.140. A credit shall be granted against the
Town'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 the amount of the sales tax required to be paid pursuant to Section 3.40.140.
3.01.140. Sales Tax Base; Schedule of Sales Tax. (1) Except as otherwise
provided in this subsection (1), the sales tax is imposed on the full purchase price
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of articles sold after manufacture or after having been made to order and includes
the full purchase price for material used and the service performed in connection
therewith, excluding, however, such articles as are otherwise exempted in this
Chapter 3.40. In connection with the transaction referred to in Section
3.40.020(28)(k), the sales tax is imposed only on the amount of any increase in the
fair market value of such assets resulting from the manufacturing, fabricating, or
physical changing of the assets by the transferor corporation. Except as otherwise
provided in this subsection (1), the sales price is the gross value of all
materials, labor, and service, and the profit thereon, included in the price charged
to the user or consumer.
(2) There is imposed upon all sales of commodities and services specified in
Section 3.40.120 a tax at the rate of four percent (4%) of the amount of the sale,
to be computed in accordance with the schedules or systems set forth in the rules
and regulations prescribed therefor. Said schedules or systems shall be designed so
that no such tax is charged on any sale of twenty-four cents ($.24) or less.
(3) (a) Except as provided in paragraph (b) of this subsection (3),
retailers shall add the tax imposed, or the average equivalent thereof, to the sale
price or charge, showing such tax as a separate and distinct item, and when added,
such tax shall constitute a part of such price or charge and shall be a debt from
the consumer or user to the retailer until paid and shall be recoverable at law in
the same manner as other debts.
(b) Any retailer selling malt, vinous, or spirituous liquors by the drink
may include in his sales price the tax levied under this Chapter 3.40, except that
no retailer shall advertise or hold out to the public in any manner, directly or
indirectly, that such tax is not included as a part of the sales price to the
consumer. The schedule referred to in subsection (2) of this Section shall be used
by such retailer in determining amounts to be included in such sales price. No such
retailer shall gain any benefit from the collection or payment of such tax, nor
shall the use of the schedule referred to in subsection (2) of this Section relieve
such retailer from liability for payment of the full amount of the tax imposed
pursuant to Section 3.40.120.
3.40.150. Credit Sales.
(1) In the case of a sale upon credit, or a contract for sale where the
price is paid in installments, and title does not pass until a future date, or a
sale secured by a chattel mortgage or a conditional sale, there shall be paid upon
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each payment that portion of the total tax which the amount paid bears in relation
to the total purchase price.
(2) If the retailer transfers, sells, assigns, or otherwise disposes of an
account receivable, then he shall be deemed to have received the full balance of the
consideration for the original sale and shall be liable for the remittance of the
sales tax on the balance of the total sale price not previously reported, except
that such transfer, sale, assignment, or other disposition of an account receivable
by a retailer to a closely held subsidiary, as defined in Section 3.40.020 (28)(k),
shall not be deemed to require the retailer to pay the sales tax on the credit sale
represented by the account transferred prior to the time that the customer makes
payment on said account.
3.40.160. Bad Debt Charge-Offs. Taxes paid on gross taxable sales
represented by accounts found to be worthless and actually charged off for income
tax purposes may be credited upon a subsequent payment of the tax provided in this
Chapter 3.40, but if any such accounts are thereafter collected by the Taxpayer,
then a tax shall be paid upon the amounts so collected.
3.40.170. Exemptions. The following goods and services shall be exempt from
sales tax under the provisions of this Chapter 3.40:
(1) All sales to the United States government and to the State, its
departments and institutions and the political subdivisions thereof in their
governmental capacities only.
(2) All sales made to charitable organizations in the conduct of their
regular charitable functions and activities.
(3) All sales which the Town is prohibited from taxing under the
constitution or laws of the United States, the State, or the Town's charter.
(4) All sales of drugs dispensed in accordance with a prescription; all
sales of insulin in all its forms dispensed pursuant to the direction of a licensed
physician; all sales of glucose usable for treatment of insulin reactions; all sales
of urine and blood testing kits and materials; all sales of insulin measuring and
injecting devices, including hypodermic syringes and needles; all sales of
prosthetic devices; all sales of wheelchairs and hospital beds; all sales of
colostomy bags; all sales of drugs when furnished by a doctor as part of
professional services provided to a patient; and sales of corrective eyeglasses,
contact lenses or hearing aids.
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(5) All sales and purchases of commodities and services under the
provisions of Section 3.40.020(28) to any occupant who is a permanent resident of
any hotel, apartment hotel, lodging house, motor hotel, guest house, guest ranch,
condominium, townhouse, trailer court, mobile home, auto camp, or trailer court or
park, and who enters into or has entered into a written agreement for occupancy of a
room or accommodations for a period of at least sixty (60) consecutive days during
the calendar year or preceding year.
(6) All sales made to schools, other than schools held or conducted for
private or corporate profit.
(7) All Sales of construction and building materials, as such term is
used in Section 29-2-109 of the Colorado Revised Statutes, 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.
(8) The transfer of tangible personal property without consideration
(other than the purchase, sale, or promotion of the transferor's product) to a
vendee located outside the Town for use outside the Town in selling products
normally sold at wholesale by the transferor.
(9) All commodities which are taxed under the provisions of Article 27,
Title 39 of the Colorado Revised Statutes, and all commodities which are taxed under
such provisions and for which the tax is refunded, and the sale of special fuel, as
defined in Section 39-27-201(8) of the Colorado Revised Statutes, used for the
operation of farm vehicles are being used on farms and ranches.
(10) Any sale of any article to a retailer or vendor of food, meals, or
beverages, which article is to be furnished to a consumer or user, together with the
food, meals, or beverages purchased, and if a tax is paid on the retail sale as
required by Section 3.40.120(1) or (5).
(11) Any sale of any container or bag to a retailer or vendor of food,
meals, or beverages, which container or bag is to be furnished to a consumer or user
for the purpose of packaging or bagging articles of tangible personal property
purchased at retail, if a separate charge is not made for the container or bag to
the consumer or user, if such container or bag becomes the property of the consumer
or user, together with the food, meals, or beverages purchased, and if a tax is paid
on the retail sale as required by Section 3.40.120(1) or (5).
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(12) (a) All sales of construction and building materials to
contractors and subcontractors for use in the building, erection, alteration, or
repair of structures, highways, roads, streets, and other public works owned or used
by:
(i) The United States government, the State, its departments and
institutions, and the political subdivisions thereof in their governmental
capacities only;
(ii) Charitable organizations in the conduct of their regular
charitable functions and activities; or,
(iii) Schools, other than schools held or conducted for private or
corporate profit.
(b) On application by a purchaser or seller, the Finance Director
shall issue to a contractor or subcontractor a certificate or certificates of
exemption indicating that the contractor's or subcontractor's purchase of
construction or building materials is for a purpose stated in paragraph (a) of this
subsection (18) and is, therefore, free from sales tax. The Finance Director shall
provide forms for such application and for such certificate and shall have the
authority to verify that the contractor or subcontractor is, in fact, entitled to
the issuance of such certificate prior to such issuance.
(13) (a) Sales to and purchases 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 enters
into the processing of or becomes an ingredient or component part of the product or
service which is manufactured, compounded or furnished, and the container, label or
the furnished shipping case thereof, shall be deemed to be wholesale sales and shall
be exempt from taxation under this Chapter 3.40.
(b) As used in paragraph (a) of this subsection (20) with regard
to food products, tangible personal property enters into the processing of such
products and, therefore, is exempt from taxation when:
(i) It is intended that such property become an integral or
constituent part of a food product which is intended to be sold ultimately at retail
for human consumption; or
(ii) Such property, whether or not it becomes an integral or
constituent part of a food product, is a chemical, solvent, agent, mold skin casing,
or other material, is used for the purpose of producing or inducing a chemical or
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physical change in a food product or is used for the purpose of placing a food
product in a more marketable condition and is directly utilized and consumed,
dissipated, or destroyed, to the extent it is rendered unfit for further use, in the
processing of a food product which is intended to be sold ultimately at retail for
human consumption.
(14) All sales and purchases of electricity, coal, gas, fuel oil, coke,
or nuclear fuel, for use in mining, refining, irrigation, construction, telecommun-
ication services and street and railroad transportation services.
(15) In any case in which a sales tax has been imposed under this
Chapter 3.40 on lubricating oil used other than in motor vehicles, the purchaser
thereof shall be entitled to a refund equal to the amount of the sales tax paid on
that portion of the sales price thereof which is attributable to the federal excise
tax imposed on the sale of such lubricating oil. The refund allowed under this
subsection (28) shall be paid by the Finance Director upon receiving under Section
6425 of the Internal Revenue Code of 1954, as amended, a refund of the federal
excise tax paid on the sale of such lubricating oil. The claim for a refund shall
be made upon forms furnished by the Finance Department.
(16) All sales and purchases of refactory materials and carbon
electrodes used by a person manufacturing iron and steel for sale or profit and all
sales and purchases of inorganic chemicals used in the processing of vanadium-
uranium ores.
(17) All sales and purchases of newsprint and printer's ink for use by
publishers of newspapers and commercial printers and all sales and purchasers of
newspapers, as such term is defined in Section 24-70-102 of the Colorado Revised
Statutes.
(18) All sales of tangible personal property purchased or sold within
the Town if delivered outside the Town to the purchaser.
3.40.180. Map or Location Guide of Town Boundaries. The Finance Department
shall make available to any requesting vendor a map or location guide showing the
boundaries of the Town. The requesting vendor may rely on such map or location
guide and any update thereof available to such vendor in determining whether to
collect a sales or use tax or both. No penalty shall be imposed or action for
deficiency maintained against a vendor who in good faith complies with the most
recent map or location guide available to such vendor.
s
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IV. REFUNDS
3.40.190. Refunds.
(1) A refund shall be made, or credit allowed, for the sales or use tax so
paid under dispute by any purchaser or user who claims an exemption pursuant to
Section 3.40.170. Such refund shall be made by the Finance Director after
compliance with the following conditions precedent: Applications for refund shall
be made within sixty (60) days after the purchase of the goods or services whereon
an exemption is claimed and must be supported by the affidavit of the purchaser
accompanied by the original paid invoice or sales receipt and certificate issued by
the seller and shall be made upon such forms as shall be prescribed therefor.
(2) Upon receipt of an application, the Finance Director shall examine the
same with due speed and shall give notice to the applicant by order in writing of
his decision thereon. Aggrieved applicants, within thirty (30) days after such
decision is mailed to them, may petition the Finance Director for a hearing on the
claim in the manner provided in Section 3.40.270 and may either appeal to the
District Court in the manner provided in Section 3.40.280 or to the Department of
Revenue in the manner provided in Section 3.40.290. The right of any person to a
refund under this Chapter 3.40 shall not be assignable, and except as provided in
subsection (4) of this Section, such application for refund must be made by the same
person who purchased the goods or services and paid the tax thereon as shown in the
invoice of the sale thereof.
(3) A refund shall be made or a credit allowed by the Finance Director to any
person entitled to an exemption where such person establishes that :(i) a tax was
paid by another person, the purchaser, on a purchase made on behalf of the person
entitled to an exemption; (ii) a refund has not been granted to such purchaser; and
(iii) the person entitled to the exemption paid or reimbursed such purchaser for
such tax. The burden of proving that sales, services, and commodities on which tax
refunds are claimed are exempt from taxation under this Chapter 3.40 or were not at
retail shall be on the person making such claim under such reasonable requirements
of proof as set forth in the rules and regulations prescribed therefor. No such
refund shall be made or credit allowed in an amount greater than the tax paid.
(4) Such application for refund under subsection (3) of this Section shall be
made on forms furnished by the Finance Department. Upon receipt of such application
and proof of the matters contained therein, the Finance Director shall give notice
to the applicant by order in writing of his decision thereon. Aggrieved applicants,
-18-
within thirty (30) days after such decision is mailed to them, may petition the
Finance Director for a hearing on the claim in the manner provided in Section
3.40.270 and may either appeal to the District Court in the manner provided in
Section 3.40.280 or to the Department of Revenue in the manner provided in Section
3.40.290. Any applicant for a refund under the provisions of this subsection (4),
or any other person, who makes any false statements in connection with an
application for a refund of any taxes is guilty of a violation of this Chapter 3.40
and shall be punished in the manner provided by State law.
(5) Claims for tax moneys paid in error or by mistake shall be made within
three (3) years after the date of purchase, storage, use or consumption of the goods
or services for which the refund is claimed and shall be processed for refund in
accordance with the rules and regulations prescribed therefor under subsection (4)
of this Section, except that the proceeds of any such claim for a refund shall first
be applied by the Finance Department to any tax deficiencies or liabilities existing
against the claimant before allowance of such claim by the Finance Department, and
further except that if such excess payment of tax moneys in any period is discovered
as a result of an audit by the Finance Department, and deficiencies are discovered
and assessed against the Taxpayer as a result of such audit, then such excess monies
shall be first applied against any deficiencies outstanding to the date of the
assessment but shall not be applied to any future tax liabilities.
(6) If any person is convicted under the provisions of this Section, such
conviction shall be prima facie evidence that all refunds received by such person
during the current year were obtained unlawfully, and the Finance Director is
empowered to bring appropriate action for recovery of such refunds. A brief summary
statement of the above-described penalties shall be printed on each form for a
refund.
U. ENFORCEMENT
3.40.200. Recovery of Taxes, Penalty and Interest.
(1) All sums of money paid by the purchaser to the retailer as taxes imposed
by this Chapter 3.40 shall be and remain public money, the property of the Town, in
the hands of such retailer, and he shall hold the same in trust for the sole use and
benefit of the Town until paid to the Finance Director, and for failure to so pay to
the Finance Director, such retailer shall be punished as provided herein.
(2) (a) If a person neglects or refuses to make a return in payment of the
sales tax or to pay any sales tax as required by this Chapter 3.40, then the Finance
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Director 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 ($15) for such
failure or ten percent (10%) thereof and interest on such delinquent taxes at the
rate imposed under Section 3.40.230 plus one-half percent (112%) per month from the
date when due, not exceeding eighteen percent (18%) in the aggregate.
(b) Promptly thereafter, the Finance Director shall give to the
delinquent Taxpayer written notice of such estimated taxes, penalty, and interest,
which notice shall be sent by first-class mail directed to the last address of such
person on file with the Finance Department. Such estimate shall thereupon become a
notice of deficiency. Within thirty (30) days after the notice of deficiency is
mailed, the Taxpayer may petition the Finance Director for a hearing in the manner
provided in Section 3.40.270 and either may appeal the the District Court as
provided in Section 3.40.280 or to the Department of Revenue as provided in Section
3.40.290.
(3) (a) If any taxes, penalty, or interest imposed by this Chapter 3.40 and
shown due by returns filed by the Taxpayer or as shown by assessments duly made as
provided in this Section are not paid within five (5) days after the same are due,
then the Finance Director shall issue a notice, setting forth the name of the
Taxpayer, the amount of the tax, penalties and interest, the date of the accrual
thereof, and that the Town claims a first and prior lien therefor on the real and
tangible personal property of the Taxpayer except as to preexisting claims or liens
of a bona fide mortgagee, pledgee, judgement creditor, or purchaser whose rights
have attached prior to the filing of the notice as provided in this Section on
property of the Taxpayer, other than the goods, stock in trade, and business
fixtures of such Taxpayer.
(b) Said notice shall be on forms furnished by the Finance Department
and shall be verified by the Town Manager or by the Finance Director or any duly
qualified agent of the Town Manager or the Finance Director, whose duties are the
collection of such tax, and may filed in the office of the county clerk and recorder
in which the Taxpayer owns real or tangible personal property, and the filing of
such notice shall create a lien on such property in that county and constitute
notice thereof. After said notice has been filed, or concurrently therewith, or at
any time when taxes due are unpaid, whether such notice shall have been filed or
not, the Finance Director may issue a warrant directed to any duly authorized
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revenue collector, or the the sheriff of the county commanding him to levy upon,
seize, and sell sufficient of the real and personal property of the amount due
together with interest, penalties, and costs, as may be provided by law, subject to
valid pre-existing claims or liens.
(4) Such revenue collector or the sheriff shall forthwith levy upon
sufficient of the property of the Taxpayer or any property used by such Taxpayer in
conducting his retail business, except property made exempt from the tax lien
pursuant to the provisions of Section 3.40.210(1)(b), and said property so levied
upon shall be sold in all respects with like effect and in the same manner as is
prescribed by law with respect to executions against property upon judgement of a
court of record, and the remedies of garnishment shall apply. The sheriff shall be
entitled to such fee in executing such warrants as are allowed by law for similar
services.
(5) Any lien for taxes as shown on the records of the county clerks and
recorders as provided in this Section, upon payment of all taxes, penalties, and
interest covered thereby shall be released by the Finance Director in the same
manner as mortgages and judgements are released. ,
(6) (a) The Finance Director may also treat any such taxes, penalties, or
interest due and unpaid as a debt due to the Town from the vendor. The return of
the Taxpayer or the assessment made by the Finance Director, as provided in this
Chapter 3.40 shall be prima facie proof of the amount due.
(b) To recover such taxes, penalties or interest due, the Finance
Director may bring an action in attachment, and a writ of attachment may be issued
to the sheriff. In any such proceedings, no bond shall be required of the Finance
Director, nor shall any sheriff require of the Finance Director an indemnifying bond
for executing the writ of attachment or writ of execution upon any judgement entered
in such proceedings. The Finance Director may prosecute appeals in such cases
without the necessity of providing bond thereof. It.is the duty of the Town
Attorney, when requested by the Finance Director, to commence action for the
recovery of taxes due under this Chapter 3.40, and this remedy shall be in addition
to all other existing remedies or remedies provided in this Chapter 3.40.
(7) In any action affecting the title to real estate or the ownership or
rights to possession of personal property, the Town may be made a party defendant
for the purpose of obtaining an adjudication or determination of its lien upon the
property involved therein. In any such action, service of summons upon the Finance
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Director or any person of the office of the Finance Director shall be sufficient
service and shall be binding upon the Town.
(8) The Finance Director is authorized to waive, for good cause shown, any
penalty assessed as provided in this Chapter 3.40, and any interest imposed in
excess of the rate determined pursuant to subsection (2) of this Section shall be
deemed a penalty.
(9) If a Taxpayer pays for any tax imposed pursuant to this Chapter 3.40 by
check for which there are insufficient funds to cover such check, then the Finance
Director may assess a penalty against such Taxpayer as follows: (i) fifteen dollars
($15.00) for the first violation; (ii) thirty dollars ($30.00) for the second
violation; and seventy-five dollars ($75.00) for each additional violation. If a
penalty of thirty-five dollars ($35.00) or more has been assessed against a Taxpayer
by the Finance Director, then the Finance Director may require such Taxpayer to pay
all tax payments, whether due or to be due in the future, by certified funds,
cashier's check or cash. The penalty imposed by this Section 3.40.260(9) is in
addition to all other penalties imposed pursuant to this Chapter 3.40.
3.40.210. Tax Lien.
(1) (a) The sales tax imposed pursuant to Section 3.40.210 shall be a first
and prior lien upon the tangible personal property and business fixtures of or used
by any retailer under lease, title retaining contract, or other contract
arrangement, excepting stock of goods sold or for sale in the other liens or claims
of whatsoever kind or nature.
(b) Any retailer who sells out his business or stock of goods, or quits
business, shall be required to make out the return as provided in this Chapter 3.40,
within ten (10) days after the date he sold his business or stock of goods, or quit
business, and his successor in business shall be required to withhold sufficient
purchase money to cover the amount of said taxes due and unpaid until such time as
the former owner produces a receipt from the Finance Director showing that the taxes
have been paid or a certificate that no taxes are due.
(c) If the purchaser of a business or stock of goods fails to withhold
the purchase money as provided in paragraph (b) of subsection (1) and the taxes are
due and unpaid after the ten (10) day period allowed, he, as well as the vendor,
shall be personally liable for the payment of the taxes unpaid by the former owner.
Likewise, anyone who takes any stock of goods or business fixtures of or used by any
retailer under lease, title retaining contract, or other contract arrangement, by
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purchase, foreclosure sale, or otherwise, takes the same subject to the lien for any
delinquent sales taxes owned by such retailer and shall be liable for the payment of
all delinquent sales taxes of such prior owner; not, however, exceeding the value of
property so taken or acquired.
(2) Whenever the business or property of any Taxpayer subject to this Chapter
3.40 shall be placed.in receivership, bankruptcy, or assignment for the benefit of
creditors, or seized under distraint for property taxes, all taxes, penalties, and
interest imposed by this Chapter 3.40 and for which said retailer is in any way
liable under the terms of this Chapter 3.40 shall be a prior and preferred claim
against all the property of said Taxpayer, except as to preexisting claims or liens
of a bona fide mortgagee, pledgee, judgement creditor, or purchaser whose rights
shall have attached prior to the filing of the notice as provided in Section
3.40.200(3)(b) on the property of the Taxpayer, other than the goods, stock in
trade, and business fixtures of such Taxpayer. No sheriff, receiver, assignee, or
other officer shall sell the property of any person subject to this Chapter 3.40
under process or order of any court without first ascertaining from the Finance
Director the amount of any taxes due and payable under this Chapter 3.40, and if
there are any such taxes due, owing, or unpaid, it is the duty of such officer to
first pay the amount of said taxes out of the proceeds of said sale before making
payment of any moneys to any judgement creditor or other claims of whatsoever kind
or nature, except the costs of the proceedings and other preexisting claims or liens
as provided in this Section. For the purposes of this subsection (2), "Taxpayer"
includes "retailer".
3.40.220. Negligent or Intentional Tax Deficiency. If any part of the
deficiency in payment of the sales or use tax is due to negligence or intentional
disregard of authorized rules and regulations of the Town with knowledge thereof,
but without intent to defraud, there shall be added ten percent (10%) of the total
amount of the deficiency, and interest in such case shall be collected at the rate
imposed under Section 3.40.230 in addition to the interest provided by Section
3.40.240 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 (10) days after written notice and demand to such person by the Finance
Director. 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 (100%) of the total amount of
the deficiency, and in such case, the whole amount of the tax unpaid, including the
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additions, shall become due and payable ten (10) days after written notice and
demand by the Finance Director, and an additional three percent (3%) per month on
said amount shall be added from the date that the return was due until paid.
3.40.230. Interest Rate on Delinquent Taxes. When interest is required or
permitted to be charged under Sections 3.40.200(2), 3.40.220, 3.40.240(1), the
annual rate of interest shall be that rate of interest established by the State
commissioner of banking pursuant to Section 39-21-110.5 of the Colorado Revised
Statutes.
3.40.240. Interest on Underpayment, Overpayment, Nonpayment or Extensions of
Time for Payment of Tax.
(1) If any amount of sales or use tax is not paid on or before the last date
prescribed for payment, then interest on such amount at the rate imposed under
Section 3.40.230 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 shall be deemed to be the date that the liability for the tax arises,
and in no event shall such date be later than the date that notice and demand for
the tax is made by the Finance Director.
(2) Interest prescribed under this Section and Sections 3.40.200(2), 3.40.220
and 3.40.250 shall be paid upon notice and demand and shall be assessed, collected,
and paid in the same manner as the tax to which such interest is applicable.
(3) 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. .
(4) Interest prescribed under this Section and Sections 3.40.200(2), 3.40.220
and 3.40.250 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.
3.40.250. Other Remedies. No provision of this Chapter 3.40 shall preclude
the Town from utilizing any other lawful penalties or other remedies applicable to
the collection of sales taxes.
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VI. HEARINGS AND APPEALS
3.40.260. Hearings by Finance Director.
(1) If any person contests any deficiency notice received from the Finance
Director, then he may apply to the Finance Director by petition in writing within
ten (10) days after such deficiency notice is mailed to him for a hearing and a
correction of the amount of the tax so assessed, in which petition he shall set
forth the reasons why such hearing should be granted and the amount by which such
tax should be reduced. The Finance Director shall notify the petitioner in writing
of the time and place fixed by him for such hearing. After such hearing, the
Finance Director shall make such order in the matter as is just and lawful and shall
furnish a copy of such order to the petitioner.
(2) Every decision of the Finance Director shall be in writing, and notice
thereof shall be mailed to the petitioner within ten (10) days, and all such
decisions shall become final and all amounts due shall be paid upon the expiration
of thirty (30) days after notice of such decision shall have been mailed to the
petitioner, unless proceedings are begun within such time for review thereof as
provided in Section 3.40.280 or Section 3.40.290.
3.40.280. Review by District Court.
(1) If the petitioner or if an applicant for a refund is aggrieved at the
final decision of the Finance Director, then he may proceed to have same reviewed by
the District Court. The procedure of review shall be in accordance with Rule
106(a)(4) of the Colorado Rules of Civil Procedure.
(2) Within fifteen (15) days after filing a notice of appeal as provided in
this Section, the Taxpayer shall file with the District Court a surety bond in twice
the amount of the taxes, and other charges stated in the final decision by the
Finance Director that 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) of the Colorado Revised Statutes, equal to twice the amount of the
taxes, interest, and other charges stated in the final decision by the Finance
Director. The Taxpayer may, at his option, deposit the disputed amount with the
Finance Director 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
-25-
the Court of Appeals of the State or after the time for such appeal has expired, the
funds deposited shall be, at the direction of the District Court, either retained by
the Finance Director and applied against the deficiency or returned in whole or part
to the Taxpayer with interest at the rate imposed pursuant to Section 3.40.230. No
claim for refund of amounts deposited with the Finance Director need be made by the
Taxpayer in order for such amounts to be repaid in accordance with the direction of
the District Court.
(3) The District Court shall have original jurisdiction in proceedings to
review all questions of law and fact determined by the Finance Director in
administering the provisions of this Chapter 3.40 by writ under Rule 106(a)(4) of
the Colorado Rules of Civil Procedure. Any writ issued pursuant to this subsection
(3) shall be issued by the clerk of the District Court upon a verified petition of
the Taxpayer filed within twenty (20) days after notice of the decision of the
Finance Director in any such matter. Such writ shall be served within five (5) days
after its issuance and shall be returnable at such time as the District Court may
determine, not less than ten (10) days nor more than twenty (20) days after the date
of issuance of such writ. The Finance Director shall certify the record of his
proceedings to the District Court.
(4) The decision of the District Court may be reviewed in the Supreme Court
of the State upon writ of error by any party thereto.
3.40.290 Alternate Review by Department of Revenue. In lieu of the procedure
provided for in Section 3.40.280, the Taxpayer may elect a hearing on the Finance
Director's final decision on a deficiency notice or claim for refund pursuant to
procedure set forth in this Section 3.40.190.
(1) As used in this Section 3.40.290, "State hearing" means a hearing before
the executive director of the Department of Revenue or a delegate thereof as
provided in Section 29-2-106.1(3) of the Colorado Revised Statutes.
(2) When the Finance Director asserts that sales or use taxes are due in an
amount greater than the amount paid by a Taxpayer, then the Finance Director shall
mail a deficiency notice to the Taxpayer by certified mail. The deficiency notice
shall state the additional sales or 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 Section 29-2-106.1(3) of the
Colorado Revised Statutes. The Taxpayer shall also have the right to elect a State
-26-
hearing on the Finance Director's denial of such Taxpayer's claim for a refund of
sales or use tax paid.
(3) The Taxpayer shall request the State hearing within thirty (30) 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 (3). For
purposes of this subsection (3), "exhaustion of local remedies" means:
(a) The Taxpayer has timely requested in writing a hearing before the
Finance Director, and the Finance Director 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 Finance Director may submit a brief. The Finance
Director shall hold such hearing and issue the final decision thereon within ninety
(90) days after the Finance Director's receipt of the Taxpayer's written request
therefor, except that 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 Finance Director shall hold such hearing and issue the decision
thereon within one hundred and eighty (180) days of the Taxpayer's request in
writing therefor; or
(b) The Taxpayer has timely requested in writing a hearing before the
Finance Director, and the Finance Director has failed to hold such hearing or has
failed to issue a final decision thereon within the time periods prescribed in
subsection (3)(a) of this Section.
(4) If a Taxpayer has exhausted his local remedies as provided in subsection
(3)(a) of this Section, then 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 set forth in Section 29-2-106.1 (3)
through (7), inclusive, of the Colorado Revised Statutes.
(5) If the deficiency notice or claim for refund involves only the Finance
Director, then in lieu of requesting a State hearing, the Taxpayer may appeal such
deficiency or denial of a claim for refund to the District Court as provided in
Section 29-2-106.1(8) of the Colorado Revised Statutes, if the Taxpayer complies with the procedures set forth in subsection (3) of this Section.
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(6) No provision of this Section shall prohibit the Taxpayer from pursuing
judicial review of a final decision of the Finance Director as otherwise provided in
Section 3.40.280.
2. If any part, section, subsection, sentence, clause or phrase of this
Ordinance is for any reason held to be invalid, such decision shall not affect the
validity of the remaining portions of this Ordinance; and the Town Council hereby
declares it would have passed this Ordinance, and each part, section, subsection,
sentence, clause or phrase thereof, regardless of the fact that any one or more
parts, sections, subsections, sentences, clauses or phrases be declared invalid.
3. The Town Council hereby finds, determines and declares that this
Ordinance is necessary and proper for the health, safety and welfare of the Town of
Vail and the inhabitants thereof.
4. The repeal or the repeal and reenactment of any provision of the Vail
Municipal Code as provided in this Ordinance shall not affect any right which has
accrued, any duty imposed, any violation that occurred prior to the effective date
hereof, any prosecution commenced, nor any other action or proceedings as commenced
under or by virtue of the provision repealed or repealed and reenacted. The repeal
of any provision hereby shall not revive any provision or any ordinance previously
repealed or superseded unless expressly stated herein.
INTRODUCED, READ AND APPROVED ON FIRST READING THIS day of ,
1987, and a public hearing shall be held on this ordinance on the day of
, 1987, at 7:30 p.m. in the Council Chambers of the Vail Municipal
Building, Vail, Colorado.
Ordered published in full this day of , 1987.
Paul R. Johnston, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
-28-
INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED
this day of , 1987.
Paul R. Johnston, Mayor
ATTEST:
Pamela A. Brandmeyer, Town Clerk
-29-
`y,y
10WHI of uail ~
75 south irontage road office of the town manager
vail, colorado 81657
(303) 476-7000
September 2, 1987
Board of Directors
Upper Eagle Valley Consolidated Water District
846 Forest Road
Vail, Colorado 81657
Dear Board of Directors:
At the August 26th Upper Eagle Valley Consolidated Sanitation
District meeting, members expressed an interest in formalizing
a cooperative policy between the Town of Vail and the District
in respect to permit fees. The Town of Vail is interested in
working out a cooperative arrangement with the Board. I would
like to invite Dave Mott and members of the Board to attend a
Town Council work session on September 15th at 2:00 P.M. I
will be calling Dave to confirm this date and to discuss in
more detail what the proposal should include.
Thank you for your interest in this matter. I feel confident
that we can develop an intergovernmental arrangement which will
be beneficial to both groups.
Sin ely,
.
Rondall V. Phill ps
Town Manager ~
RVP:bpr
4M11
75 south irontage road office of the town manager
vail, colorado 81657
(303) 476-7000
September 4, 1987
Board of Directors
Vail Valley Consolidated Water District
846 Forest Road
Vail, Colorado 81657
Dear Board of Directors:
On behalf of the Town of Vail, I would like to thank you for
waiving water tap fees for Buffehr Creek Park, Bighorn Park,
and Sandstone Park. The irrigation tap fee for Buffehr Creek
park would have cost the Town $14,500. Both Sandstone and
_ Bighorn Parks required a 3/4" water service line at $5,760 per
line. In total, the Board saved the Town of Vail a total of
$26,020 for water tap fees. This considerable amount of
savings will enable the Town to spend additional money on
landscaping and facility improvements which will be greatly
appreciated by the general public.
The Town of Vail would like to continue to work in a
cooperative manner with the Vail Valley Consolidated Water
Board. The Board has expressed an interest in formalizing a
cooperative policy between the Town of Vail and the Vail Valley
Consolidated Water District. I believe that the best approach
is to schedule a discussion with the Town Council at an
upcoming work session. I would like to invite Dave Mott and
the members of the Board to attend a Town Council work session
on September 15th. I will be calling Dave to confirm this
date.
In addition, the Board expressed interest in discussing the
Gore Creek treatment plant and Lionsridge treatment plant
sites. Kristan Pritz will contact Dave Mott to arrange a
meeting between the Water District and Planning Department. We
are interested in working with you on alternative public uses
for the two sites.
,
Vail Vallley Consolidated Water District
August 31, 1987
Page Two
Once again, we would like to thank the Board for their
cooperation on the tap fees. Your efforts are greatly
appreciated.
Sinc qeyr
Rondall V. Philli s
Town Manager
RVP:bpr