HomeMy WebLinkAbout2019-02 Amending Portions of Title 4, Chapter 3, related to Sales Tax to Adopt Certain Statewide Standardized Definitions and to Make Revenue-Nuetral Amendments Needed to Implement those Definitions ORDINANCE NO. 2
SERIES 2019
AN ORDINANCE AMENDING PORTIONS OF TITLE 4, CHAPTER 3, OF
THE VAIL TOWN CODE RELATED TO SALES TAX TO ADOPT
CERTAIN STATEWIDE STANDARDIZED DEFINITIONS AND TO MAKE
REVENUE-NEUTRAL AMENDMENTS NEEDED TO IMPLEMENT
THOSE DEFINITIONS
WHEREAS, in Senate Joint Resolution 14-038 the General Assembly asked the
Colorado Municipal League to revive the tax simplification project from the 1990s to address
current systemic problems associated with local tax collection;
WHEREAS, the Town Council has determined that the standard tax definitions project
is a major collaborative sales tax simplification initiative by Colorado's home rule
municipalities that locally collect their sales tax and the retail business community;
WHEREAS, the Town Council has determined that the Town will cooperate in
furtherance of a statewide goal to have all locally collecting municipalities agree to use
standard definitions in their sales and use tax codes;
WHEREAS, the Town Council has determined that maintaining the local collection of
sales and use taxes for the Town is of paramount importance to the continued financial
strength of the Town;
WHEREAS, the Town Council has determined that the retail business community
desires better uniformity and simplicity when operating in the Town;
WHEREAS, the Town Council has determined that sales tax revenue is directly tied to
how well the Town's retail business community is faring, Council and staff have generally
supported the idea that the Town should simplify the tax code, without sacrificing revenue;
WHEREAS, the Town Council has determined that revenue-neutral tax simplification is
generally construed as good for business and good for the community as a whole;
WHEREAS, the Town Council has determined that, as part of the adoption of certain
standard definitions, minor modifications of the Town's sales and use tax code's substantive
provisions are required to ensure compliance with the Taxpayer Bill of Rights ("TABOR") by
remaining revenue neutral, and that this is also an appropriate time to make minor
housekeeping revisions to the sales and use tax code, which was first adopted in 1991 and
has not been comprehensively revised since;
WHEREAS, as part of modernizing the tax code, the Town Council has determined it is
necessary to adopt the standard definition of tangible personal property to reflect the current
economy that involves the transfer of digital goods and services;
WHEREAS, notwithstanding the change in definitions, Town has historically and
consistently taxed discreet items within this broad category of digital goods and services;
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WHEREAS, in particular, the inclusion of digital products and internet subscription
services as tangible personal property is consistent with prior practice, does not amount to a
new tax, does not require voter approval under TABOR, and will be revenue neutral; and
WHEREAS, the Town Council has also determined more generally, following careful
review and recommendation by staff, that none of the changes proposed by this ordinance
constitute a change in tax policy requiring voter approval under TABOR and that all of the
proposed changes are revenue neutral.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF VAIL, COLORADO, THAT:
Section 1. Section 4-3-1-2 of the Vail Town Code is repealed and reenacted
as follows:
4-3-1-2: DEFINITIONS:
As used in this chapter, unless the context otherwise requires, the following
terms shall have the following meanings:
ACQUISITION CHARGES OR COSTS: Includes "purchase price" as defined in
this Section.
APARTMENT HOTEL: A building containing apartments that may be rented to
paying guests.
AUCTION: Any sale where tangible personal property is sold by an auctioneer
who is either the agent for the owner of such property or is in fact the owner
thereof.
AUTOMOTIVE VEHICLE: Any vehicle or device in, upon, or by which any person
or property is or may be transported or drawn upon a public highway, or any
device used or designed for aviation or flight in the air. Automotive vehicle
includes, but is not limited to, motor vehicles, trailers, semi-trailers, or mobile
homes. Automotive vehicle shall not include devices moved by human power or
used exclusively upon stationary rails or tracks.
BUSINESS: All activities engaged in or caused to be engaged in with the object
of gain, benefit, or advantage, direct or indirect.
CHARITABLE ORGANIZATION: Any entity that (1) has been certified as a
nonprofit organization under Section 501(c)(3) of the Internal Revenue Code, and
(2) is an organization which exclusively, and in a manner consistent with existing
laws and for the benefit of an indefinite number of persons or animals, freely and
voluntarily ministers to the physical, mental, or spiritual needs of persons or
animals, and thereby lessens the burden of government.
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COMMERCIAL PACKAGING MATERIALS: Containers, labels, and/or cases,
that become part of the finished product to the purchaser, used by or sold to a
person engaged in manufacturing, compounding, wholesaling, jobbing, retailing,
packaging, distributing or bottling for sale, profit or use, and is not returnable to
said person for reuse. Commercial Packaging Materials does not include
Commercial Shipping Materials.
COMMERCIAL SHIPPING MATERIALS: Materials that do not become part of
the finished product to the purchaser which are used exclusively in the shipping
process. Commercial Shipping Materials include but are not limited to containers,
labels, pallets, banding material and fasteners, shipping cases, shrink wrap,
bubble wrap or other forms of binding, padding or protection.
CONSTRUCTION AND BUILDING MATERIALS: Tangible personal property
which, when combined with other tangible personal property, loses its identity to
become an integral and inseparable part of a completed structure or project.
Construction materials include, but are not limited to, such things as: asphalt,
bricks, builders' hardware, caulking material, cement, concrete, conduit, electric
wiring and connections, fireplace inserts, electrical heating and cooling
equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam,
millwork, mortar, oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing
fixtures, putty, reinforcing mesh, road base, roofing, sand, sanitary sewer pipe,
sheet metal, site lighting, steel, stone, stucco, tile, trees, shrubs and other
landscaping materials, wallboard, wall coping, wallpaper, weather stripping, wire
netting and screen, water mains and meters, and wood preserver. The above
materials, when used for forms, or other items which do not remain as an integral
or inseparable part of a complete structure or project, are not construction and
building materials.
CONSUMER: Any person in the Town who purchases, uses, stores, distributes
or otherwise consumes tangible personal property or taxable services, purchased
from sources inside or outside the Town.
CONTRACTOR: Any person who shall build, construct, reconstruct, alter,
expand, modify, or improve any building, dwelling, structure, infrastructure, or
other improvement to real property for another party pursuant to an agreement.
For purposes of this definition, Contractor also includes subcontractor.
COUNTY: Eagle County, Colorado.
COUNTY CLERK AND RECORDER: The county clerk and recorder for the
county.
COVER CHARGE: A charge paid to a club or similar entertainment
establishment which may, or may not, entitle the patron paying such charge to
receive tangible personal property, such as food and/or beverages.
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DEPARTMENT OF REVENUE: The department of revenue of the state.
DIGITAL PRODUCT: An electronic product including without limitation: (1)
"digital images" which means works that include, but are not limited to, the
following that are generally recognized in the ordinary and usual sense as
"photographs," "logos," "cartoons," or "drawings"; (2) "digital audio-visual works"
which means a series of related images which, when shown in succession,
impart an impression of motion, together with accompanying sounds, if any; and
(3) "digital audio works" which means works that result from the fixation of a
series of musical, spoken, or other sounds, including ringtones. For purposes of
the definition of "digital audio works," "ringtones" means digitized sound files that
are downloaded onto a device and that may be used to alert the customer with
respect to a communication; and (4) "digital books" which means works that are
generally recognized in the ordinary and usual sense as "books."
DISTRICT COURT: The district court in and for Eagle County, Colorado.
DRUGS DISPENSED IN ACCORDANCE WITH A PRESCRIPTION: Drugs
dispensed in accordance with any order in writing, dated and signed by a
licensed practitioner of the healing arts, or given orally by a practitioner, and
immediately reduced to writing by the pharmacist, assistant pharmacist, or
pharmacy intern, specifying the name and address of the person for whom the
medicine or drug is offered and directions, if any, to be placed on the label.
ENGAGED IN BUSINESS IN THE TOWN: Performing or providing services or
selling, leasing, renting, delivering or installing tangible personal property for
storage, use or consumption within the town. Engaged in business in the town
includes, but is not limited to, any one of the following activities by a person:
A. Directly, indirectly, or by a subsidiary maintains a building, store, office,
salesroom, warehouse, or other place of business within the taxing jurisdiction;
B. Sends one or more employees, agents or commissioned salespersons into
the taxing jurisdiction to solicit business or to install, assemble, repair, service, or
assist in the use of its products, or for demonstration or other reasons;
C. Maintains one or more employees, agents or commissioned salespersons
on duty at a location within the taxing jurisdiction;
D. Owns, leases, rents or otherwise exercises control over real or personal
property within the taxing jurisdiction; or
E. Makes more than one delivery into the taxing jurisdiction within a twelve
(12) month period.
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EXEMPT COMMERCIAL PACKAGING MATERIALS: Containers, labels and
shipping cases sold to a person engaged in manufacturing, compounding,
wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit or
use that meets all of the following conditions:
A. Is used by the manufacturer, compounder, wholesaler, jobber, retailer,
packager, distributor or bottler to contain or label the finished product;
B. Is transferred by said person along with and as a part of the finished
product to the purchaser; and
C. Is not returnable to said person for reuse.
FINANCE DEPARTMENT: The finance department of the Town.
FINANCE DIRECTOR: The Finance Director of the Town of Vail or such other
person designated by the town; Finance Director shall also include such person's
designee.
GARAGE SALES: Sales of tangible personal property, except automotive
vehicles, occurring at the residence of the seller, where the property to be sold
was originally purchased for use by members of the household where such sale
is being conducted. The term includes, but is not limited to, yard sales, estate
sales, and block sales.
GROSS SALES: The total amount received in money, credit, property or other
consideration valued in money for all sales, leases, or rentals of tangible
personal property or services.
GROSS TAXABLE SALES: 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 the
Town and embraced within the provisions of this chapter. The taxpayer may take
credit in his/her 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 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 as
has actually been received in cash by the taxpayer during the period for which
the tax imposed by this chapter is due and payable.
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GUEST RANCH: A resort patterned after a western ranch, where overnight
accommodations are offered to paying guests.
GUESTHOUSE: A private single-family home, townhome or condominium that
may be rented in its entirety to paying guests.
INTERNET SUBSCRIPTION SERVICE: Software programs, systems, data and
applications available online through rental, lease or subscription, that provide
information and services including, but not limited to, data linking, data research,
data analysis, data filtering or record compiling.
LICENSE: A sales tax license.
LINEN SERVICES: Services involving the provision and cleaning of linens,
including but not limited to rags, uniforms, coveralls and diapers.
MANUFACTURING: the operation or performance of an integrated series of
operations which places a product, article, substance, commodity, or other
tangible personal property in a form, composition or character different from that
in which it was acquired whether for sale or for use by a manufacturer. The
change in form, composition or character must result in a different product having
a distinctive name, character or use from the raw or prepared materials.
LODGING HOUSE: A private single-family home, townhome or condominium
with individual rooms that may be rented to paying guests.
LODGING SERVICES: The furnishing of rooms or accommodations by any
person, partnership, association, corporation, estate, representative capacity or
any other combination of individuals by 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, motor hotel, guesthouse, guest ranch,
trailer coach, mobile home, auto camp, or trailer court and park, for a period of
less than thirty (30) consecutive days under any concession, permit, right of
access, license to use, or other agreement, or otherwise.
MAYOR: The mayor of the Town.
MODIFIED COMPUTER SOFTWARE PROGRAMS: One of the following
elements must be present:
A. The preparation or selection of the program for the customer's uses
requires an analysis of the customer's requirement by the vendor, or
B. The program requires adaptation by the vendor to be used in a specific
output device.
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NEWSPAPER: A publication, printed on newsprint, intended for general
circulation, and published regularly at short intervals, containing information and
editorials on current events and news of general interest. The term Newspaper
does not include: magazines, trade publications or journals, credit bulletins,
advertising inserts, circulars, directories, maps, racing programs, reprints,
newspaper clipping and mailing services or listings, publications that include an
updating or revision service, or books or pocket editions of books.
PAY TELEVISION: Shall include, but not be limited to, cable, microwave or other
television service for which a charge is imposed, except for cable or subscription
television fees which are not charged on a pay per view basis.
PERSON: Any individual, firm, partnership, joint venture, corporation, limited
liability company, estate or trust, receiver, trustee, assignee, lessee or any
person acting in a fiduciary or representative capacity, whether appointed by
court or otherwise, or any group or combination acting as a unit.
PRESCRIPTION DRUGS FOR ANIMALS: A drug which, prior to being
dispensed or delivered, is required by the federal Food, Drug, and Cosmetic Act,
21 U.S.C. Sec. 301, et. seq., as amended, to state at a minimum the symbol "Rx
Only," and is dispensed in accordance with any order in writing, dated and signed
by a licensed veterinarian specifying the animal for which the medicine or drug is
offered and directions, if any, to be placed on the label.
PRESCRIPTION DRUGS FOR HUMANS: A drug which, prior to being
dispensed or delivered, is required by the federal Food, Drug, and Cosmetic Act,
21 U.S.C. Sec. 301, et. seq., as amended, to state at a minimum the symbol "Rx
Only," and is dispensed in accordance with any written or electronic order dated
and signed by a licensed practitioner of the healing arts, or given orally by a
practitioner and immediately reduced to writing by the pharmacist, assistant
pharmacist, or pharmacy intern, specifying the name and any required
information of the patient for whom the medicine, drug or poison is offered and
directions, if any, to be placed on the label.
PRICE OR PURCHASE PRICE:
A. "Price" or "purchase price" includes:
1. The amount of money received or due in cash and credits.
2. Property at fair market value taken in exchange but not for resale in the
usual course of the retailer's business.
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3. Any consideration valued in money, such as trading stamps or coupons
whereby the manufacturer or someone else reimburses the retailer for part
of the purchase price and other media of exchange.
4. The total price charged on credit sales including finance charges which
are not separately stated. An amount charged as interest on the unpaid
balance of the purchase price is not part of the purchase price unless the
amount added to the purchase price is included in the principal amount of
a promissory note; except the interest or carrying charge set out
separately from the unpaid balance of the purchase price on the face of
the note is not part of the purchase price. An amount charged for
insurance on the property sold and separately stated is not part of the
purchase price.
5. Installation, delivery and wheeling in charges included in the purchase
price and not separately stated.
6. Transportation and other charges to effect delivery of tangible personal
property to the purchaser.
7. Indirect federal manufacturers' excise taxes, such as taxes on
automobiles, tires and floor stock.
8. The gross purchase price of articles sold after manufacturing or after
having been made to order, including the gross value of all the materials
used, labor and service performed and profit thereon.
B. "Price" or "purchase price" shall not include:
1. Any sales or use tax imposed by the state of Colorado or by any
political subdivision thereof.
2. The fair market value of property exchanged if such property is to be
sold thereafter in the retailers' usual course of business. This is not limited
to exchanges in Colorado. Out of state trade-ins are an allowable
adjustment to the purchase price.
3. Discounts from the original price if such discount and the corresponding
decrease in sales tax due is actually passed on to the purchaser. An
anticipated discount to be allowed for payment on or before a given date is
not an allowable adjustment to the price in reporting gross sales.
PROSTHETIC DEVICES FOR HUMANS: Any artificial limb, part, device or
appliance for human use which replaces a body part or aids or replaces a bodily
function; is designed, manufactured, altered or adjusted to fit a particular patient;
and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices
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include, but are not limited to, prescribed auditory, ophthalmic or ocular, cardiac,
dental, or orthopedic devices or appliances, and oxygen concentrators with
related accessories.
PURCHASE OR SALE: The acquisition for any consideration by any person of
tangible personal property or taxable services that are purchased, leased, rented,
sold, used, stored, distributed, or consumed, but excludes a bona fide gift of
property or services. These terms include capital leases, installment and credit
sales, and property and services acquired by:
A. Transfer, either conditionally or absolutely, of title or possession or both to
tangible personal property;
B. A lease, lease purchase agreement, rental or grant of a license, including
royalty agreements, to use tangible personal property or taxable services; the
utilization of coin operated devices, except coin operated telephones, which do
not vend articles of tangible personal property shall be considered short term
rentals of tangible personal property;
C. Performance of taxable services; or
D. Barter or exchange for other property or services including coupons.
E. "Sale" or "sale and purchase" excludes:
1. A division of partnership assets among the partners according to their
interests in the partnership;
2. 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 assets contributed;
3. The transfer of assets of shareholders in the formation or dissolution of
professional corporations;
4. The dissolution and the pro rata distribution of the corporation's assets
to its stockholders;
5. 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;
6. The transfer of assets from a subsidiary corporation or corporations
which are owned at least eighty percent (80%) by the parent corporation
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to a parent corporation, which transfer is solely in exchange for stock or ,
securities of the parent corporation or the subsidiary which received the
assets;
7. A transfer of a partnership interest;
8. The transfer in a reorganization qualifying under Section 368(a)(1) of
the Internal Revenue Code of 1954, as amended;
9. 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;
10. The repossession of personal property by a chattel mortgage holder or
foreclosure by a lien holder; and
11. 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
was paid by the transferor corporation at the time it acquired such assets,
except to the extent that there is an increase in the fair market value of
such assets resulting from the manufacturing, fabricating, or physical
changing of the assets by the transferor corporation. To such an extent .1)
any transfer referred to in this definition shall constitute a sale provided by
subsection 4-3-3-3A of this chapter. For the purposes of this definition, a
closely held subsidiary corporation is one in which the parent corporation
owns stock possessing at least eighty percent (80%) of the total combined
voting power of all classes of stock entitled to vote and owns at least
eighty percent (80%) of the total number of shares of all other classes of
stock.
PURCHASE PRICE: The price to the consumer, exclusive of any direct tax
imposed by the federal or state government or by this chapter 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:
A. Such exchanged property is to be sold thereafter in the usual course of the
retailer's business.
B. Such exchanged property is an automotive vehicle and is exchanged for
another automotive vehicle and both vehicles are subject to licensing,
registration, or certification under the laws of this state, including, but not limited
to, automotive vehicles operating upon public highways, off highway recreation
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vehicles, watercraft and aircraft. Any money or other consideration paid over and
above the value of exchanged property is subject to tax.
RETAIL SALES: All sales except wholesale sales.
RETAILER: Any person selling, leasing, renting, or granting a license to use
tangible personal property or services at retail. Retailer shall include, but is not
limited to, any: (1) Auctioneer; (2) Salesperson, representative, peddler or
canvasser, who makes sales as a direct or indirect agent of or obtains such
property or services sold from a dealer, distributor, supervisor or employer; (3)
Charitable organization or governmental entity which makes sales of tangible
personal property to the public, notwithstanding the fact that the merchandise
sold may have been acquired by gift or donation or that the proceeds are to be
used for charitable or governmental purposes; (4) Retailer-Contractor, when
acting in the capacity of a seller of building supplies, construction materials, and
other tangible personal property.
RETAILER-CONTRACTOR: A contractor who is also a retailer of building
supplies, construction materials, or other tangible personal property, and
purchases, manufactures, or fabricates such property for sale (which may include
installation), repair work, time and materials jobs, and/or lump sum contracts.
RETURN: Any form prescribed by Town administration for computing and
reporting a total tax liability.
SALES TAX: The tax that is collected or required to be collected and remitted by
a retailer on sales taxed under this Code.
SCHOOL: A public or nonpublic school for students in kindergarten through 12th
grade or any portion thereof.
SPECIAL FUEL: Kerosene oil, kerosene distillate, diesel fuel, all liquefied
petroleum gases, and all combustible gases and liquids for use in the generation
of power for propulsion of automotive vehicles upon the public highways. The
term does not include fuel used for the propulsion or drawing of aircraft, railroad
cars or railroad locomotives.
SPECIAL SALES EVENT: Any sales event which includes more than three (3)
Vendors taking place at a single location for a limited period of time not to exceed
seven (7) consecutive days.
STATE: The state of Colorado.
STORAGE: Any keeping or retention of, or exercise dominion or control over, or
possession of, for any length of time, tangible personal property not while in
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transit but on a stand still basis for future use when leased, rented or purchased
at retail from sources either within or without the City from any person or vendor.
TANGIBLE PERSONAL PROPERTY: Personal property that can be one or
more of the following: seen, weighed, measured, felt, touched, stored,
transported, exchanged, or that is in any other manner perceptible to the senses.
TAX DEFICIENCY or DEFICIENCY: any amount of tax, penalty, interest, or other
fee that is not reported and/or not paid on or before the date that any return or
payment of the tax is required under the terms of this Code.
TAXABLE SALES: Gross sales less any exemptions and deductions specified in
this Code.
TAXPAYER: Any person obligated to collect and/or pay tax under the terms of
this Code.
TELECOMMUNICATION SERVICE: Service of which the object is the
transmission of any two-way interactive electronic or electromagnetic
communications including but not limited to voice, image, data and any other
information, by the use of any means but not limited to wire, cable, fiber optical
cable, microwave, radio wave, Voice over Internet Protocol (VoIP), or any
combinations of such media, including any form of mobile two-way
communication.
TOWN: The municipality of Town of Vail.
TOWN CLERK: The clerk of the Town.
TOWN COUNCIL: The council of the Town.
TOWN MANAGER: The manager of the Town.
TEMPORARY SALE: A sale by any person who engages in a temporary
business of selling and delivering goods within the Town for a period of no more
than seven (7) consecutive days.
TEMPORARY VENDOR: Any person who engages in the business of Temporary
Sales.
WHOLESALE SALES: A sale by wholesalers to retailers, jobbers, dealers, or
other wholesalers for resale and does not include a sale by Wholesalers to users
or consumers not for resale; latter types of sales shall be deemed to be Retail
Sales and shall be subject to the provisions of this chapter.
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WHOLESALER: Any person selling to retailers, jobbers, dealers, or other
wholesalers, for resale, and not for storage, use, consumption, or distribution.
Section 2. Section 4-3-2 of the Vail Town Code, subsection (C), is amended to
read as follows:
C. Contents; Posting: Each license shall be numbered with a town Town of Vail
sales tax account number 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. Effective July 1, 2015, any licensee that advertises apartment hotels,
lodging houses, guesthouses or guest ranch lodging services on the internet
shall include the licensee's town of Vail sales tax account number in all such
advertisements.
Section 3. Section 4-3-3-1 of the Vail Town Code is amended as follows:
There is levied, and there shall be collected and paid a sales tax in the amount
stated in section 4-3-3-3 of this chapter as follows:
A. Tangible Personal Property: On the purchase price paid or charged upon all
sales, purchases, rentals and leases of tangible personal property at retail,
including without limitation, on the purchase price paid or charged for "digital
products" and "internet subscription services" as those terms are defined in
Section 4-3-1-2 of this chapter.
C. Telephone, Telegraph, Telecommunications: 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 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. As used herein, "telecommunication service"
does not include separately stated non-transmission services which constitute
computer processing applications used to act on the information to be
transmitted.
E. Food And Drink:
2. 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
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regularly sold, including sales from pushcarts, meter automotive vehicles,
and other mobile facilities. Cover charges shall be included taxable only
when the amount includes as part of the amount paid for such food or
drink. The amount paid for sales of meals by any of the employees of the
above listed establishments, whether at full price or at reduced price, shall
be included herein.
Section 4. Section 4-3-3-3 of the Vail Town Code, subsection (D), is amended to
read as follows:
D. Nonprofit Charitable Organization Exempted: Special accounting sales
by qualified ►er efit charitable organizations. Nonprofit Charitable organizations
selling taxable "tangible personal property" or services as defined by this code
must collect sales tax and purchasers must pay sales tax on such sales, subject
to the conditions set forth below. It is the desire of the town council that the taxes
collected by charitable organizations be retained by that
organization as a contribution of additional funds to be used in the course of that
organization's charitable service to the community. Therefore, organizations are
not required to remit or report sales tax collections to the town provided that the
organization meets the following criteria:
Section 5. Section 4-3-3-6 of the Vail Town Code is amended to read as follows:
The following goods and services shall be exempt from sales tax under the
provisions of this chapter:
E. - -- - -- - " - - - ' - - - - - - -
. Prescription
drugs for humans; glucose usable for treatment of insulin reactions; urine and
blood testing kits and materials; insulin measuring and injecting devices,
including hypodermic syringes and needles; oxygen, oxygen concentrators and
oxygen-related accessories for medical use; prosthetic devices; wheelchairs and
hospital beds; drugs or materials when furnished by a doctor as part of
professional services provided to a patient; and corrective eyeglasses, contact
lenses, or hearing aids.
F. All sales made to schools, including post-secondary schools, other than
schools or post-secondary schools held or conducted for private or corporate
profit. For purposes of this exemption, post-secondary schools are schools for
enrollment after 121 grade.
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H. The transfer of tangible personal property without consideration (other than
the purchase, sales 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 by wholesale sales by the transferor.
I. All commodities which are taxed under the provisions of Colorado Revised
Statutes title 39, article 27, and all commodities which are taxed under such
provisions and for which the tax is refunded, an4 the sale of special fuel, as
defined in Colorado Revised Statutes section 39 27 201(8), and the sale of
fuel used for the operation of farm vehicles are being used on farms and
ranches.
L. 1. Sales to and purchases of tangible personal property, including without
limitation sales and purchases of commercial packaging materials, commercial
shipping materials, containers, labels, or the furnished shipping cases thereof, by
a person engaged in the business of manufacturing, compounding for sale, profit
or use, any article, substance, or commodity, which when the tangible personal
property enters into the processing of or becomes an ingredient or component
part of the product or service which that is manufactured, compounded or
furnished, and the container, label, or the furnished shipping case thereof, shall
be exempt from taxation under this chapter.
N. In any case in which a sales tax has been imposed under this chapter on
lubricating oil used other than in motor automotive 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 tax price thereof which is attributable to the federal
excise tax imposed on the sale of such lubricating oil. The refund allowed under
this subsection 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.
P. All sales and purchases of newsprint and printer's ink for use by
publishers of newspapers and commercial printers and all sales and purchases
of newspapers", as such term is defined in Colorado Revised Statutes section
24 70 102.
T. Garage or yard sales but only when the sales are conducted in a
residential area; the sales do not exceed a consecutive three (3) day period nor a
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total of six (6) days per calendar year; the sales are not conducted by a
professional or compensated agent of the owner of the items to be sold; and 3)
the items for sale are not also held out for sale in a commercial establishment.
Section 6. If any part, section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid, such decision shall not effect 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.
Section 7. 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.
Section 8. All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are repealed to the extent only of such inconsistency. This
repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or
part thereof, theretofore repealed.
INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED
PUBLISHED ONCE IN FULL ON FIRST READING this 19th day of February, 2019 and
a public hearing for second reading of this Ordinance set for the 5th d.y of March, 2019,
in the Council Chambers of the Vail Municipal Building, Vail, Colorad•
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READ AND APPROVED ON SECON#1`JA► G AND ORDERED PUBLI•HED IN FULL this
5th day of March 2019.
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Dave Chapin, Mayor W i
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