Ordinance Number 305

An ordinance establishing upon voter approval of one and three quarter {1.75%) sales and use tax, upon the favorable vote of a majority of the registered voters of the Town of Deer Trail at is April 2, 2024, regular election.

Whereas, the Board of Trustees of the Town of Deer Trail (the "Town") has determined that it requires additional revenue to fund general municipal infrastructure and operations and better serve its citizens.

Whereas, the Town currently does not impose or collect a sale or use tax.

Whereas, revenue from a sales and use tax would significantly assist the Town.

Whereas, Article 2 of title 29, C.R.S. authorizes the Town to adopt a local sales and use tax subject to approval by the Town's registered electors.

Whereas, the registered electors of the Town will be asked to approve the imposition of a one- and three-quarter percent (1.75%) sales and use tax at the Town's next regular election on April 2, 2024.

Whereas, should the registered electors of the Town approve this measure, all revenues derived from such sales and use tax shall be used as follows: seventy-five percent (75%) of such revenues to pay for Town infrastructure for a period of 20 years, and thereafter such funds shall go to the Town's general fund, and twenty-five percent (25%) shall go to the Town's general fund, notwithstanding any revenue or expenditure limitation contained in Article X, Section 20, of the Colorado Constitution;

Whereas, if approved by the voters, the Town's sales and use tax will be effective on July I, 2024; and

Whereas, the Town intends that its enactment of a sales and use tax as set forth herein shall comply and be interpreted to comply with the requirements of Section 20, Article X of the Constitution of the State of Colorado; Article 2, Title 29, C.R.S.; Article 10, Title 31, C.R.S.; and all other applicable provisions of law.

Be it ordained by the Board of Trustees for the Town of Deer Trail, Colorado that:

Section 1. Definitions.

All terms used in this ordinance shall have the same meaning as provided for in C.R.S. §§ 39-26-102 and 39-26-20 I.

Section 2. Application of Sales and Use Tax.

Unless otherwise provided in this ordinance, any amendments thereto, or Article 2, Title 29, C.R.S., the provisions of Article 29, Title 39, C.R.S., shall govern the collection, administration, and enforcement of sales and use tax within the Town.

Section 3. Imposition of Sales and Use Tax.

There is hereby imposed and there shall be collected a tax on all sales of tangible personal property and services occurring within the Town and a use tax for the privilege of storing, using or consuming in the Town, any construction materials, construction equipment located within the boundaries of the Town, and on motor and other vehicles on which registration is required. The sales and use tax shall be at a rate of one and three quarter percent (1.75%) of the amount of each sale. The taxable amount shall not include the amount of any sales or use tax imposed by article 26, Title 39, C.R.S.

Section 4. Property and Services Taxed.

The sales of tangible personal property and services under this ordinance shall be the same as the sales of tangible personal property and services taxable pursuant to C.R.S. § 39-26-l 04 and shall be considered to be sourced as specified in C.R.S. § 39-26-l 04(3), subject to the exceptions set forth in this Ordinance.

Section 5. General Sales Tax Exemptions.

Except as otherwise provided herein or in C.R.S. § 29-2-105(l)(d), the sales of tangible personal property and services taxable under this ordinance shall be subject to the same exemptions as those specified in part 7, article 26, title 39, C.R.S.

Section 6. Sales Tax Exemptions.

In no event shall the sales tax imposed by this ordinance extent or apply to the following:

Mobile Telecommunication Services. Without limiting the broad application of this Section and recognizing that mobile telecommunication services are subject to particular legal requirements, this sales tax shall apply to mobile telecommunications services to the greatest extent permitted by C.R.S. § 29-2-l 05(1.5).
Specific Sales Tax Exemptions Permitted by Section, C.R.S. § 29-2- 105(l)(d). As permitted by state law, the Town hereby creates the following exemptions from the sales tax created by this ordinance:
1. The exemption for sales by a charitable organization specified in C.R.S. § 39-26-718(l)(b).
2. The exemption for sales that benefit a Colorado school specified in C.R.S. § 39-26-725.
Certain Construction and Building Materials. This sales tax shall not apply to the sale of 11construction and building materials," as the term is used in C.R.S. § 29-2-109 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 on the materials.
Cigarettes. This sales tax shall not apply to sale of cigarettes.
Sales Subject to Prior Ownership Tax. Sales of personal property on which a specific ownership tax has been paid or is payable are exempt from this sales tax when the sale meets both of the following conditions:
1. the purchaser is a nonresident of the Town or has his principal place of business outside the Town; and
2. the personal property sold is registered or required to be registered outside the Town's limits under the law of the State of Colorado.
Sales Subject to Prior Payment of Sales or Use Tax. This sales tax shall not apply to the sale of tangible personal property or 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 city and county, city, or town equal to or in excess of that sought to be imposed by this sales tax. A credit shall be granted against this 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 city and county, city, or town. The amount of the credit shall not exceed the sales tax imposed herein.

Section 7. Use Tax Exemptions.

In no event shall the use tax imposed by this ordinance extend or apply to the following:

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.
Construction and building materials taxable under this ordinance shall not be exempted from the use tax if utilized in the fabrication, construction, assembly, or installation of passenger tramways, as defined in section 12-150-103 (5), by any ski area operator, as defined in section 33-44-103(7), or any person fabricating, constructing, assembling, or installing a passenger tramway for a ski area operator.
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.
The storage, use, or consumption of tangible personal property brought into the town, city, or county by a nonresident thereof for his own storage, use, or consumption while temporarily within the town, city, or county; however, this exemption does not apply to the storage, use, or consumption of tangible personal property brought into this state by a nonresident to be used in the conduct of a business in this state.
The storage, use, or consumption of tangible personal property by the United States government, or the state of Colorado, or its institutions, or its political subdivisions in their governmental capacities only or by religious or charitable corporations in the conduct of their regular religious or charitable functions.
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 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
The storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a legally imposed sales or use tax of another statutory or home rule town, city, or city and county equal to or more than that imposed by this ordinance. A credit shall be granted against the use tax imposed by this ordinance with respect to a person's storage, use, or consumption in the Town of tangible personal property purchased by him in a previous statutory or home rule town, city, or city and county. The amount of the credit shall be equal to the tax paid by him by reason of the imposition of a sales or use tax of the previous statutory or home rule town, city, or city and county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by this article.
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.
The storage or use of a motor vehicle if the owner is or was, at the time of purchase, a nonresident of the Town and he purchased the vehicle outside of the Town for use outside the Town and actually used it for a substantial and primary purpose for which it was acquired and he registered, titled, and licensed said motor vehicle outside of the Town.
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 such use tax ordinance, resolution, or proposal
The storage, use, or consumption of any construction and building materials and motor and other vehicles on which registration is required if a written contract for the purchase thereof was entered into prior to the effective date of such use tax.
The use or consumption of taxable tangible personal property within the Town that occurs more than three years after the most recent sale of the property if, within the three years following such sale, the property has been significantly used within the state for the principal purpose for which it was purchased.
The storage of construction and building materials.

Section 8. Food purchased with government assistance. No sales or use tax shall not apply to:

Sales of food purchased with food stamps. For the purposes of this subsection (a), "food" has the same meaning as provided in 7 U.S.C. § 20 I 2(g), as currently in effect and subsequently amended.
Sales of food purchased with funds provided by the special supplemental food program for women, infants, and children, 42 U.S.C. § 1786. For the purposes of this subsection (b), "food" has the same meaning as provided in 42 U.S.C. § 1786, as currently in effect and subsequently amended.

Section 9. Collection.

The collection, administration and enforcement of the sales tax imposed by this Article shall be performed by the Executive Director of the Department of Revenue of the State of Colorado in the same manner as the collection, administration and enforcement of the Colorado State Sales Tax. Accordingly, the provisions of Colorado Revised Statutes Title 39, Articles 26 and 21 and Title 29, Article 2, 1998, as amended, and all rules and regulations promulgated by the Executive Director of the Colorado Department of Revenue pertaining to such collection, administration and enforcement, are incorporated herein by this reference.

Section 10. Submission to Registered Electors.

The question of imposition of these sales and use tax will be submitted to a vote of the Town's registered electors on April 2, 2024. The election shall be conducted in accordance with Section 20, Article X of the Constitution of the State of Colorado; Article 2, Title 29, C.R.S.; Article 10, Title 31, C.R.S.; and all other applicable provisions of law.

Section 11. Effective Date.

This Ordinance shall become effective thirty (30) days after final publication; provided however, it is and shall be contingent upon approval by the registered electors of the Town, and if approved, the Town's sales and use tax shall become effective on July I, 2024.

Section 12. Duration.

If approved by the Town's registered electors, these sales and use tax shall continue until repealed.

Section 13. Amendment.

This ordinance and the use tax adopted herein may be amended by subsequent ordinance, unless otherwise prohibited by law.

Section 14. Severability.

If any portion of this ordinance or the use tax adopted herein is declared to be void or ineffective by a court of competent jurisdiction, it shall be deemed severed from this ordinance. The remaining portions shall remain valid and in full force and effect.

Section 15. Authority Vested in Town Officials.

The Town's officials are authorized and directed to take all action necessary and appropriate to effectuate the provisions of this ordinance and the use tax adopted herein.

Section 16. References to Colorado Law.

References to Colorado law are to the versions of those laws in effect at the time this ordinance was adopted as well as any subsequent amendments thereto.

Adopted and approved this 13th Day of February 2024.

Judd Behrens, Mayor
Town of Deer Traill Colorado

Attest: Kimberly Sullivan, Town Clerk