Chapter 3.15
USE TAX

Sections:

3.15.010    Purpose.

3.15.020    Definitions.

3.15.030    Exemptions.

3.15.040    Motor vehicle use tax.

3.15.050    Building and construction use tax.

3.15.060    Revenues derived – Disposition.

3.15.010 Purpose.

The purpose of this chapter is to raise revenue and provide a companion tax to the town sales tax. The tax imposed herein is a use tax imposed on building and construction materials which are purchased outside the town for use, storage or consumption within the town, and a similar use tax imposed on motor vehicles purchased for use, storage or consumption within the town of Granby. The legal authority for this chapter is contained in Article 2, Title 29, C.R.S., as amended. [Code 1999 § 7-4-1].

3.15.020 Definitions.

For the purpose of this chapter, the definitions of the words herein contained shall be as defined in Section 39-26-102, C.R.S., as amended. [Code 1999 § 7-4-2].

3.15.030 Exemptions.

In no event shall the use tax imposed by this chapter extend or apply:

(a) 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;

(b) 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;

(c) To the storage, use, or consumption of tangible personal property brought into the town by a nonresident thereof for his or her own storage, 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 this state by a nonresident to be used in the conduct of a business in this state;

(d) To 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;

(e) 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 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;

(f) 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 chapter. A credit shall be granted against the use tax imposed by this chapter with respect to a person’s storage, use, or consumption in the town, city, or county of tangible personal property purchased by him elsewhere. 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 another town, city, or county on his purchase or use of the property. The amount of the credit shall not exceed the tax imposed by this chapter;

(g) 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;

(h) To 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 so 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;

(i) To 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;

(j) 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 such use tax ordinance, resolution, or proposal;

(k) To the storage, use or consumption of building and construction materials that are purchased for the purpose of reconstructing buildings or structures that were damaged as a result of a natural or manmade disaster;

(l) To motor vehicles purchased to replace motor vehicles that were destroyed as a result of a natural or manmade disaster. [Ord. 619 § 1, 2004; Ord. 616 § 1, 2004. Code 1999 § 7-4-3].

3.15.040 Motor vehicle use tax.

(a) There is hereby imposed on the privilege of using, storing or utilizing every motor vehicle purchased outside this town by any resident of this town for the purpose of use, storage, or utilization within the town a use tax in the amount of four percent of the retail purchase price of said motor vehicle.

(b) Said use tax shall be applicable to every motor vehicle for which registration is required by the laws of the state of Colorado.

(c) No registration shall be made of any motor vehicle for which registration is required, and no certificate of title shall be issued for such vehicle by the Department of Revenue or its authorized agents, until any tax due upon the use, storage, or consumption thereof pursuant to this chapter has been paid.

(d) The use tax imposed by this section shall be collected by the authorized agent of the Department of Revenue in the county in which the purchaser resides.

(e) The proceeds of said use tax shall be paid to the town periodically in accordance with an agreement entered into by and between the town and the authorized county agent of the Department of Revenue.

(f) The town treasurer and the mayor are hereby empowered to enter into and execute on behalf of the town any agreements necessary for the administration and enforcement of this section in accordance with the provisions of Section 106(3)(b), Article 2, Title 29, C.R.S., as amended. [Code 1999 § 7-4-4].

3.15.050 Building and construction use tax.

(a) There is imposed on the privilege of storing, using or utilizing any construction or building materials of every kind and form purchased outside the town for use, storage or utilization within the town a use tax of four percent of the retail purchase price of the construction or building materials.

(b) Collection or administration of the use tax shall be performed by the treasurer in substantially the same manner as the collection, administration and enforcement of the Colorado sales and use tax as provided in Article 2, Title 29, C.R.S., as amended. The board of trustees is authorized to promulgate such additional rules and regulations as may be necessary for the proper administration or enforcement of this chapter. [Code 1999 § 7-4-5].

3.15.060 Revenues derived – Disposition.

All funds received pursuant to this chapter shall be disposed of in the same manner as provided in GMC 3.10.100, including the pledge and deposit of funds to the sales and use tax capital improvement fund. [Code 1999 § 7-4-6].