3-2 Sales Tax

A.    Purpose

The purpose of this Section is to impose a sales tax on the sale of tangible personal property at retail, or the furnishing of services as provided in C.R.S. §29-2-101 et seq, as may be amended.

B.    Definitions

For purposes of this Section, the definitions of the words herein contained shall be as defined in C.R.S. §39-26-102, as may be amended, and the definitions in said statute are incorporated herein by this reference.

C.    Licenses for Retailers

1.    It shall be unlawful for any person to engage in the business of selling tangible personal property or providing taxable services without first having obtained a license therefor. Such license shall be granted and issued by the State of Colorado and shall be in force and effect until expired or revoked.

2.    Any person engaging in the business of selling tangible personal property or providing taxable services shall post the sales tax license in a conspicuous place in the place of business for which it is issued.

3.    Any person engaged in the business of selling at retail or providing taxable services in the City without having secured a license therefor shall be guilty of a violation of this Section.

4.    No license shall be required for any person engaged exclusively in selling commodities that are exempt from taxation under this Section.

5.    It shall be the duty of each licensee on or before January 1 biennially to obtain a renewal thereof if the licensee remains in the retail business or liable to account for the tax herein provided.

D.    General Provisions

1.    For the purpose of this Section, 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 agent to a destination outside the limits of the City, or to a common carrier for delivery to a destination outside the limits of the City.

2.    The amount subject to tax under this section shall not include the County sales tax or State sales and use tax imposed by C.R.S. §39-26-101 et seq.

3.    The gross receipts from sales shall include delivery charges, when such charges are subject to State sales and use tax imposed by C.R.S. §39-26-101 et seq.

4.    In the event the retailer has no permanent place of business in the City or more than one place of business, the place or places at which the retail sales are consummated for the purpose of sales tax shall be determined by the provisions of C.R.S. §39-26-101 et seq.

E.    Exemptions from Taxation

1.    All sales of personal property on which a specific ownership tax has been paid or is payable, shall be exempt from tax herein imposed when such sales meet both of the following conditions:

a.    The purchaser is a non-resident of or has his principal place of residence outside the City; and

b.    Such personal property is registered or required to be registered outside the limits of the City.

2.    For transactions consummated on or after January 1, 1986, the City’s sales tax shall not apply to the sale of construction 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 City evidencing that local use tax has been paid or is required to be paid.

3.    For transactions consummated on or after January 1, 1986, the City’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 four percent (4%). A credit shall be granted against the City’s sales tax with respect to such transactions equal in amount to the lawfully imposed local sales and 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 four percent (4%).

F.    Levy of Sales Tax

1.    There is hereby levied on all sales of tangible personal property at retail or furnishing of services, a tax equal to four percent (4%) of the gross receipts. The tangible personal property and services taxable by this Section shall be the same as the tangible personal property and services taxable pursuant to C.R.S. §39-26-104, as may be amended. The levy of the tax on individual sales shall be in the same manner and according to the same amount of sale brackets that are established in schedules for the imposition of the State sales tax, or by separate ordinance of the City of Ouray. If any vendor, during any reporting period, shall collect as a tax amount in excess of four percent (4%) of his total taxable sales, he shall remit to the Director of Revenue the full amount of the tax herein imposed and also such excess.

2.    Each year up to one-third (1/3) of the net revenues derived from the sales tax hereby levied may be paid into the City Water fund for operation, maintenance and debt service as required, or such revenues may be used for other lawful purposes in the general fund or other funds. Provided, however, the pledge of said one-third (1/3) of sales tax revenues included in the Loan Agreement with the Colorado Water Resources and Power Development Authority dated December 19, 2003, shall remain in effect until such pledge is released by the lender, the loan paid in full or defeased.

G.    Collection, Administration, and Enforcement

1.    The collection, administration, and enforcement of sales tax shall be performed by the Director of Revenue of the State of Colorado in the same manner as the collection, administration and enforcement of the State sales tax. The provisions of C.R.S. §39-26-101 et seq., and all rules and regulations promulgated by the Director of Revenue of the State of Colorado shall govern the collection, administration and enforcement of the sales tax imposed by this section and are incorporated into this Chapter.

2.    The retailer shall be entitled, as Collection Agent for the City of Ouray, to withhold a collection fee in the amount of three and one-third percent (3-1/3%) from the total due by retailer to the City each month.

(Annotator’s Note: This original sales tax ordinance received the approval of a majority of the qualified electors of the City of Ouray, Colorado, at a special election held on January 21, 1969. The additional one percent (1%) sales tax, earmarked for water systems, received the approval of the majority of the qualified electors voting at a special election held on May 8, 1979. The one percent (1%) sales tax was further amended by a special election held on May 2, 2006 removing the earmarking of those revenues for water systems, and allowing those revenues to be used for other legal purposes.)

(Source: Ordinance No. 8, 2015)