ORDINANCE NO. 2014-01
ORDINANCE OF THE TOWN OF KEENESBURG, COLORADO, PROVIDING FOR AN INCREASE IN THE RATE OF SALES AND USE TAX FROM 2% TO 3%; PROPOSING THE ISSUANCE OF DEBT OR FINANCIAL OBLIGATIONS FOR CERTAIN STREET IMPROVEMENTS OF THE TOWN; PLEDGING A PORTION OF SALES TAX TO PAY DEBT SERVICE ON BONDS OR OTHER OBLIGATIONS OF THE TOWN ISSUED TO PROVIDE CAPITAL IMPROVEMENTS; PROVIDING FOR THE SUBMISSION OF THIS ORDINANCE FOR APPROVAL AT THE REGULAR ELECTION OF THE TOWN ON APRIL 1, 2014; AND DECLARING AN EMERGENCY.
WHEREAS, the Town of Keenesburg, Colorado, (the “Town”), is a statutory town organized and governed by the laws of the State of Colorado (the “State”), in particular Title 31 of the Colorado Revised Statutes (“C.R.S.”); and
WHEREAS, the members of the Board of Trustees of the Town (the “Board”) have been duly elected and qualified; and
WHEREAS, the Town currently imposes a sales tax at the rate of 2% pursuant to Ordinance No. 93 adopted February 13, 1978, and Ordinance No. 108 adopted on March 12, 1984 (the “Sales Tax”), and a use tax at a rate of 2% pursuant to Ordinance No. 2-01 adopted on August 20, 2001 (the “Use Tax”); and
WHEREAS Board has determined that there is a need to fund the maintenance and improvements of streets within the Town and to provide additional Town services; and
WHEREAS, the Town does not have the funds in its treasury sufficient to finance street improvements without curtailing to an unacceptable level other services which the Town is obligated to provide; and
WHEREAS, pursuant to Section 29-2-102, Colorado Revised Statutes (“C.R.S.”), the Town is authorized by law to impose the Sales Tax and the Use Tax; and
WHEREAS, the Board has determined that it is in the interest of the residents of the Town to increase the Sales Tax and the Use Tax (the “Sales and Use Tax”) by one percent (1%) each (for a total Sales Tax of 3% and a total Use Tax of 3%), subject to the provisions of this Ordinance and applicable law, beginning July 1, 2014, the receipts from which will be utilized for general expenses of the Town and, with respect to the Sales Tax, also utilized to finance certain capital improvements of the Town, including street improvements, as set forth more fully herein; and
WHEREAS, the Board has determined that a question regarding the increase of the Sales and Use Tax for the purposes enunciated herein and a question regarding the incurring of debt of the Town to finance street improvements should be submitted by the Board to the registered electors of the Town; and
WHEREAS, Article X, Section 20 of the Colorado Constitution, known as the Taxpayer’s Bill of Rights (“TABOR”) requires voter approval in advance for any new tax; and
WHEREAS, April 1, 2014, is the Town’s regular election date and is one of the dates upon which TABOR allows ballot issues to be submitted to the registered electors of the Town; and
WHEREAS, in connection therewith, and if approved by the electors of the Town, Chapter 4, Articles IV and V of the Town’s Municipal Code are hereby amended and restated as provided herein.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF KEENESBURG, COLORADO AS FOLLOWS:
Section 1. Article IV – Sales Tax. Article IV of the Municipal Code is hereby restated and amended to read as follows (words to be deleted shown in
A. Section 4-4-10. Purpose. The purpose of this Article is to impose a sales tax on the sale of the tangible personal property at retail, or the furnishing of services as provided in Section 29-2-105(1)(d), C.R.S., upon every retailer in the Town.
B. Section 4-4-20. Statutory Definitions Incorporated. For the purposes of this Article, the definitions of words herein contained shall be as defined in Section 39-26-102, C.R.S., and said definitions are incorporated herein by this reference.
C. Section 4-4-30. Vendor’s fee. The vendor (retailer) shall be entitled as collection agent for the Town to withhold a collection fee in the amount of three and one-third percent (31/3%) from the total amount remitted by the vendor to the Town each month. If any vendor is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the Executive Director, the vendor shall not be allowed to retain any amounts to cover his or her expense in collecting and remitting said tax, and an amount equivalent to the full three and one-third percent (31/3%) shall be remitted to the Executive Director by any such delinquent vendor.
D. Section 4-4-40. General Provisions and Exemptions from Taxation.
(a) For the purpose of collection, administration and enforcement of this Article by the Executive Director of Revenue, the provisions of Section 29-2-106, C.R.S., shall be deemed applicable and incorporated into this Article.
(b) The amount subject to tax under this Article shall not include the State sales and use tax imposed by Article 26, Chapter 39, C.R.S.
(c) The exemptions set forth in
(d) In addition to items set forth in paragraph (c), 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 is exempt from tax. The term includes 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. The term does not include food or drink served in restaurants; chewing gum; spirituous, malt or vinous liquors; cocktail mixes; proprietary medicines; nostrums; lozenges; tonics; vitamins and other dietary supplements; water, mineral water and carbonated water marketed in containers; ice; pet foods; food or drink furnished, prepared or served for consumption at tables, chairs or counters, or from trays, glasses, dishes or other tableware provided by the retailer; prepared food or drink sold by retailers who regularly sell for consumption on or near the premises of the retailer even though such food or drink is sold on a “take out” or “to go” order and is bagged, packaged or wrapped and taken from the premises of the retailer; and food or drink vended by or through machines on behalf of a vendor.
(e) For the purpose of this Article, all retail sales shall be considered consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his or her agent to a destination outside the limits of the Town.
(f) The gross receipts from sales shall include delivery charges, when such charges are subject to the State sales and use tax imposed by Article 26 of Chapter 39, C.R.S., regardless of the places to which delivery is made.
(g) In the event a retailer has no permanent place of business in the Town, or more than one (1) place of business, the place or places at which the retail sales are consummated for the purpose of this sales tax shall be determined by the provisions of Article 26 of Chapter 39, C.R.S., and by the rules and regulations promulgated by the Department of Revenue.
(h) All sales of personal property on which a specific ownership tax has been paid or is payable shall be exempt from the Town sales tax when such sales meet both of the following conditions:
(1) The purchaser is a nonresident of or has his or her principal place of business outside of the Town; and
(2) Such personal property is registered or required to be registered outside the limits of the Town under state law.
(i) Town Sales Tax Capital Improvement Fund.
(1) For so long as the Town’s Sales Tax Revenue Bonds, Series 1999 (the “1999 Bonds”) remain outstanding, eighty-seven
(2) For so long as the 1999 Bonds remain outstanding, the
(3) For so long as the 1999 Bonds remain outstanding, immediately
(4) Revenues received by the Town as a result of the 1% increase in the sales tax, and, after the 1999 Bonds are no longer outstanding, revenues received from the entire 3% sales tax, may be (1) deposited into the Town’s General Fund for use as directed by the Board of Trustees, or (2) deposited into the Capital Improvement Fund at the discretion of the Board to provide funds for capital improvements pursuant to Section 29-2-111, C.R.S., or pledged to pay the principal and or interest on sales tax revenue bonds if such bonds are approved by the voters of the Town.
E. Section 4-4-50. Schedule of sales tax.
(a) There is hereby imposed on the sale of tangible personal property at retail or the furnishing of services as provided in Section
(b) The collection, administration and enforcement of this sales tax shall be performed by the Director of Revenue in the same manner as the collection, administration and enforcement of the State sales tax. The provisions of Section 29-2-106 and Article 26 of Title 39, C.R.S., and all rules and regulations for the administration and enforcement of the sales tax imposed by this Article.
F. Section . 4-4-60. Amendments. Except as to the sales tax rate of
G. Section . 4-4-70. Penalty. Any person convicted of violating any of the provisions of this Article shall be punished as set forth in Section 1-4-20 of this Code.
H. Section 4-4-80. Effective date. This Article shall take effect July 1, 1978, and shall apply to all retail sales unless exemption is made on or after that date.
Section 2. Article V. – Use Tax. Article V of the Municipal Code is hereby restated and amended to read as follows (words to be deleted shown in
A. Section. 4-5-10. Use tax levy on building materials. There is hereby levied, and there shall be collected and paid, a use tax on the privilege of using or consuming within the Town any construction or materials purchased to be used for construction, equal to
B. Section 4-5-20. Use tax definitions. For purposes of this Article, definitions of words contained herein shall have the meanings set forth in Section 39-26-201, C.R.S., as it currently exists or may hereafter be amended, and all definitions therein set forth are incorporated herein by this reference.
C. Section 4-5-30. Use tax exemptions. In no event shall the use tax imposed by this Article extend or apply:
(1) To the storage, use or consumption of any tangible .personal property the sale of which is subject to a retail sales tax imposed by the Town;
(2) To the storage, use or consumption of any tangible personal property purchased for resale in the Town, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business;
(3) To the storage, use or consumption of tangible personal property brought into the Town by a nonresident thereof for his or her own use or consumption while temporarily within the Town; however, this exemption does not apply to the storage, use or consumption of tangible personal property brought into the State by a nonresident to be used in the conduct of a business in the State.
(4) To the storage, use or consumption of tangible personal property by the United States government or the State, or its institutions or political subdivision, in their governmental capacities only, or by religious or charitable corporations in the conduct of their religious or charitable functions;
(5) To the storage, use or consumption of tangible personal property by a person engaged in the business of manufacturing or compounding for sale, profit or use of, 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 furnished shipping case thereof;
(6) To the storage, use or consumption of any article of tangible personal property the sale or use of which has already been subjected to a sales or use tax of another town, city or county equal to or in excess of that imposed by this Article. A credit shall be granted against the use tax imposed by this Article with respect to a person's storage, use or consumption within the Town of tangible personal property purchased by him or her elsewhere. The amount of the credit shall be equal to the tax paid by him or her by reason of the imposition of a sales or use tax of another town, city or county on his or her purchase or use of the property. The amount of the credit shall not exceed the use tax imposed by this Article;
(7) To the storage, use or consumption of tangible personal property and household effects acquired outside of the Town and brought into it by a nonresident acquiring residency;
(8) To the storage, use or consumption of any construction and building materials if a written contract for the purchase thereof was entered into prior to the effective date of this use tax.
(9) To the storage, use or consumption of any construction and building materials required or made necessary in the performance of any construction contract bid, let or entered into at any time prior to the effective date of the use tax.
D. Section 4-5-40. Administration of construction and building materials use tax. Except as is otherwise provided herein, the collection, administration and enforcement of the construction and building materials use tax shall be performed by the Board of Trustees or its authorized administrative authority. Collection and administration of the tax imposed by this Article shall be performed in substantially the same manner as the collection, administration and enforcement of the State use tax. The Town may promulgate rules and regulations as may be appropriate for the proper collection, administration and enforcement of the tax herein imposed. No building permits shall be issued until all applicable use taxes on the construction and building materials have been paid in full.
Section 3. Effective Date. Upon approval by a majority of the registered electors in the Town voting thereon at the election on April 1, 2014, the Sales and Use Tax provided herein shall become effective and be imposed beginning at 12:00 a.m. on July 1, 2014.
Section 4. Statute of Limitations. The statute of limitations applicable to the enforcement of the Sales and Use Tax shall be the statute of limitations applicable to the enforcement of state sales and use tax collections, the statute of limitations applicable to refunds of state sales and use taxes, the amount of penalties and interest payable on delinquent remittances of state sales and use taxes, and the posting of bonds pursuant to Section 39-21-105 (4), C.R.S.
Section 5. Necessity for Election. The Sales and Use Tax shall not become effective until and unless a majority of the registered electors voting thereon, pursuant to Sections 29-2-102(1) C.R.S., approve the ballot issue at the election to be held within the Town on April 1, 2014.
A. Ballot Title and Submission Clause. The ballot titles and submission clauses for the increase in the Sales and Use Tax, shall be, in substantially the following form:
SALES AND USE TAX INCREASE QUESTION:
AND SHALL TOWN OF KEENESBURG, COLORADO, SALES TAX BE INCREASED ANNUALLY BEGINNING JULY 1, 2014 AND BY $120,000 IN 2015 (FIRST FULL FISCAL YEAR), AND BY SUCH AMOUNTS AS ARE RECEIVED IN ANY YEAR THEREAFTER BY THE IMPOSITION OF AN ADDITIONAL 1% SALES TAX TO BE USED, ALONG WITH THE TOWN’S EXISTING 2% SALES TAX REVENUE, FOR (1) DEPOSIT INTO THE CAPITAL IMPROVEMENT FUND TO FINANCE CAPTIAL IMPROVEMENTS OF THE TOWN, (2) THE REPAYMENT OF DEBT INCURRED FOR SUCH CAPITAL IMPROVEMENTS, OR (3) OTHER GENERAL FUND PURPOSES OF THE TOWN, AS SUCH MAY BE DETERMINED BY THE BOARD OF TRUSTEES; AND SHALL TOWN USE TAXES BE INCREASED ANNUALLY BEGINNING JULY 1, 2014, AND BY $100,000 IN 2015 (FIRST FULL FISCAL YEAR), AND BY SUCH AMOUNTS AS ARE RECEIVED IN ANY YEAR THEREAFTER BY THE IMPOSITION OF AN ADDITIONAL 1% USE TAX TO BE USED FOR GENERAL FUND PURPOSES OF THE TOWN; AND SHALL THE REVENUES FROM SUCH SALES TAX INCREASE AND SUCH USE TAX INCREASE, AND ANY INVESTMENT EARNINGS THEREON, BE COLLECTED AND SPENT BY THE TOWN FOR THE ABOVE STATED PURPOSES WITHOUT REGARD TO ANY SPENDING, REVENUE RAISING OR OTHER LIMITATION CONTAINED WITHIN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION, ALL IN ACCORDANCE WITH THE ORDINANCE ADOPTED BY THE BOARD OF TRUSTEES OF THE TOWN AND SET FORTH IN ORDINANCE NO. 2014-01?
SHALL THE TOWN OF KEENESBURG DEBT BE INCREASED $960,000, WITH A REPAYMENT COST OF NOT TO EXCEED $1,900,000; WITHOUT INCREASING ANY TAXES OF THE TOWN; SUCH DEBT TO CONSIST OF SALES TAX REVENUE BONDS OR OTHER MULTIPLE FISCAL YEAR FINANCIAL OBLIGATIONS ISSUED OR INCURRED FOR THE PURPOSE OF FINANCING ALL OR ANY PART OF THE COSTS OF CONSTRUCTING, ACQUIRING, INSTALLING, COMPLETING AND OTHERWISE PROVIDING STREET IMPROVEMENTS OF THE TOWN; SUCH DEBT TO BE PAYABLE FROM ALL OR ANY PORTION OF THE TOWN’S SALES TAX REVENUE AS DETERMINED BY THE TOWN BOARD; SUCH DEBT TO BEAR INTEREST AT A NET EFFECTIVE INTEREST RATE NOT IN EXCESS OF 7.00% PER ANNUM, SUCH INTEREST TO BE PAYABLE AT SUCH TIME OR TIMES AS MAY BE DETERMINED BY THE TOWN BOARD, SUCH DEBT TO BE SOLD IN ONE SERIES OR MORE AT A PRICE ABOVE, BELOW, OR EQUAL TO THE PRINCIPAL AMOUNT OF SUCH DEBT AND ON SUCH TERMS AND CONDITIONS AS THE TOWN MAY DETERMINE, INCLUDING PROVISIONS FOR REDEMPTION OF THE DEBT PRIOR TO MATURITY WITH OR WITHOUT PAYMENT OF PREMIUM IN AN AMOUNT NOT IN EXCESS OF 3% OF THE PRINCIPAL AMOUNT BEING REDEEMED; AND SHALL THE TOWN BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE TOWN PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION; AND SHALL THE REVENUES FROM SUCH DEBT, AND ANY INVESTMENT EARNINGS THEREON, BE COLLECTED AND SPENT BY THE TOWN FOR THE ABOVE STATED PURPOSES WITHOUT REGARD TO ANY SPENDING, REVENUE RAISING OR OTHER LIMITATION CONTAINED WITHIN ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION, AND ANY OTHER LAW?
B. Cost of Election. The entire cost of the election shall be paid from the general fund of the Town.
C. Notice by Publication. The Town Clerk shall publish the text of this Ordinance in the official newspaper of the Town as provided by law.
D. Designated Election Official. The Board hereby appoints the Town Clerk as the designated election official for purposes of performing acts required or permitted by law in connection with the Election. All powers and authority granted to the Board may be exercised by the designated election official including but not limited to the power to appoint election judges. The designated election official shall undertake all measures necessary to comply with the election provisions of TABOR, including, but not limited to, the mailing of required election notices and ballot issue summaries.
E. Conduct of Election. The election shall be conducted as an independent polling place election pursuant to Article 10 of Title 31, C.R.S. (the “Municipal Election Code”).
F. Contests. Pursuant to Section 31-10-1308(2), C.R.S., any election contest arising out of a ballot issue election concerning the order of the ballot or the form or content of the ballot title shall be commenced within five days after the title of the ballot issue is set or the order of the ballot is set.
Section 6. Repeal and Amendment
A. If this Ordinance is approved by a majority of the registered electors of the Town voting thereon at the election to be held on April 1, 2014, its provisions shall become immediately effective.
B. If this Ordinance is not approved by a majority of the registered electors of the Town voting thereon at the election to be held on April 1, 2014, this Ordinance and all of its provisions shall be of no further effect.
Section 7. Severability. If any section, paragraph, clause, or provision of this Ordinance, or the ballot issue submitted to the registered electors at the election provided in Section V above, shall be adjudged to be invalid or unenforceable, the invalidity or enforceability of such section, paragraph, clause or provision shall not affect any of the remaining sections, paragraphs, clauses, or provisions of this Ordinance or said ballot issue. It is the intention of the Board of Trustees that the various parts of this Ordinance and said ballot issue are severable.
Section 8. Declaration of Emergency. It is hereby found and determined by the Board of Trustees that in order to meet certain statutory deadlines with respect to the conduct of the election to be conducted on April 1, 2014, it is necessary for the Board to an ordinance calling such election to be adopted and approved at an expedited rate. As a result of the foregoing, the Board of Trustees hereby declares that an emergency exists, and that this Ordinance is necessary to the immediate preservation of the public health and safety, all in accordance with §31-16-105, C.R.S.
Section 9. Effective Date. This Ordinance shall take effect upon adoption by the affirmative vote of three-fourths (3/4) of the members of the Board of Trustees pursuant to §31-16-105, C.R.S.
PASSED, ADOPTED AND APPROVED AS AN EMERGENCY ORDINANCE at the regular meeting of the Board of Trustees of the Town of Keenesburg, this 21st day of January, 2014.
STATE OF COLORADO )
COUNTY OF WELD ) SS.
TOWN OF KEENESBURG )
I, Debra Chumley, the Town Clerk of the Town of Keenesburg, Colorado, do hereby certify:
1. That the foregoing pages are a true, correct, and complete copy of an ordinance (the “Ordinance”) adopted by the Board of Trustees (the “Board”) of the Town at a regular meeting of the Board held at the Town Hall on January 21, 2014.
2. The Ordinance was adopted at an open, regular meeting of the Board on January 21, 2014, by an affirmative vote of three fourths (3/4) of the members of the Board as follows:
3. The Ordinance has been signed by the Mayor, sealed with the corporate seal of the Town, attested by me as Town Clerk, and duly recorded in the books of the Town; and that the same remains of record in the book of records of the Town.
4. That notice of the regular meeting of January 21, 2014, attached hereto as Exhibit A was posted within the Town at least 24 hours before such meeting as required by law.
5. That the Ordinance was published in full in the Greeley Tribune, a newspaper of general circulation within the Town, on January 31, 2014. The affidavit of publication is attached hereto as Exhibit B.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Town this 22nd day of January, 2014.
(SEAL) Town Clerk