3-3 Liquor and Beer Dispenser’s Occupational Tax

A.    Definitions

As used in this Chapter, the words below shall have the following meanings:

Alcohol beverage means any fermented malt beverage as defined by the State beer code and all malt, vinous, or spirituous liquors as defined by the State liquor code, including, but not limited to, beverages commonly known as liquor, wine and beer with an alcoholic content of more or less than three and two-tenths (3.2) percent by weight.

Business means all activities engaged in or caused to be engaged in with the object of gain, benefit or advantage, direct or indirect.

Engaged in Business means to carry on or take a part in the operation of a business as owner, operator or agent.

Employee means a person working for remuneration under the control and directions of an employer.

Fermented Malt Beverage or 3.2 Beer means any beverage defined as such by the State beer code including, but not limited to, beverages commonly referred to as three and two-tenths (3.2) percent beer or beer containing not more than three and two-tenths (3.2) percent alcohol by weight.

Malt, Vinous or Spirituous Liquors as defined by the State liquor code, shall include, but not be limited to, liquor, wine and beer having more than three and two-tenths (3.2) percent alcoholic content by weight.

Medicinal Liquors means any liquor sold by a duly licensed pharmacist or drugstore solely upon a bona fide doctor’s prescription.

Operator means any person licensed by law to sell malt, vinous and spirituous liquors other than medicinal liquors, for beverage purposes at retail and who is engaged at any time during the calendar year in such operation within the city.

B.    Declaration of Policy and Purpose

The City Council hereby finds, determines and declares that considering the relationship of businesses and occupations being conducted in the City and the nature of the business of selling at retail 3.2 percent beer, malt, vinous, and spirituous liquors for beverage purposes, and the relation of such businesses to the welfare of the people of the City, as well as the relation thereof to the expenditures required of the City, and a proper, just and equitable distribution of tax burdens within the City, and all other matters proper to be considered in relation thereto, that the tax imposed herein on each business is reasonable, proper, uniform and nondiscriminatory and necessary for a just and proper distribution of the tax burdens within the City.

C.    Business Classifications

The business of selling at retail 3.2 percent beer, malt, vinous or spirituous liquor, other than medicinal liquors for beverage purposes, is hereby defined and separately classified as such occupation for the purpose of this Section, as follows:

1.    Class "A" Liquor Operators: All operators who are licensed to sell malt, wine and spirituous liquors for consumption on the premises, either as hotels, restaurants, taverns or brew pubs, shall be Class "A" operators.

2.    Class "B" Liquor Operators: All operators licensed to sell malt or vinous liquors only by the drink for consumption on the premises shall be class "B" operators.

3.    Class "C" Liquor Operators: All operators licensed as retail liquor stores to sell, in original containers, malt, vinous or spirituous liquors for consumption off the premises, shall be Class "C" Operators.

4.    Class "D" Liquor Operators: All operators licensed as drug stores to sell malt, vinous or spirituous liquors in original containers for consumption off the premises shall be Class "D" Operators.

5.    Class "E" Liquor Operators: All operators licensed to sell malt, vinous or spirituous liquors as clubs shall be Class "E" Operators.

6.    Class "F" Liquor Operators: All operators licensed to sell only 3.2 percent beer, either by the drink, for consumption on the premises, or in the original containers for consumption off the premises, shall be Class "F" Operators.

7.    Class "G" Liquor Operators: All operators licensed to sell only the operator’s manufactured beer, either by the drink, for consumption on the premises in the sales room, or in the original containers for consumption off the premises shall be Class "G" Operators.

Every person doing business in more than one store, stand or other place of business, shall pay a separate tax for each place of business, unless such places of business are contiguous to each other, communicate directly with and open to each other, and are operated as a unit. The business may be transferred from one location to another with payment of additional tax.

D.    Occupation Tax Levied

There is hereby levied and assessed each year, annual occupation tax upon every business.

For all Class "A" Liquor Operators, the Sum of $125.00

For all Class "B" Liquor Operators, the Sum of $125.00

For all Class "C" Liquor Operators, the Sum of $100.00

For all Class "D" Liquor Operators, the Sum of $100.00

For all Class "E" Liquor Operators, the Sum of $75.00

For all Class "F" Liquor Operators, the Sum of $75.00

For all Class "G" Liquor Operators, the Sum of $75.00

E.    When Tax Due and Payable; Receipt

Such tax shall be due and payable to the Treasurer or the City Clerk of the City of Ouray on January 1 of each Year, and the total tax shall become delinquent on February 1 of the same year. Prepayment of said tax may be made in and during the month of January of the year in which the tax is due, and if said prepayment of said tax is made, a five percent (5%) discount on total amount of the tax shall be allowed.

Upon receipt of said tax, the City Treasurer or Clerk shall issue a receipt showing the name of the person paying the same, the annual, or in case of monthly payment, the monthly period for which the tax is paid, and the location of the place of business for which the same is paid. The person operating said business shall, at all times during said year, keep the receipt or receipts posted in a conspicuous place on said premises. If such occupation is newly undertaken or commenced subsequent to January of any year, the tax shall be pro-rated for the remaining portion of the year. However, no refund shall be made to any person who discontinues said business during the year, regardless of whether the discontinuance is temporary or permanent. All pro-rated taxes herein provided for shall be due and payable upon beginning of business and shall become delinquent ten (10) days thereafter. Interest shall accrue on all delinquent taxes from and after the date of delinquency until paid or collected, at the rate of one and one-half percent (1 1/2 %) per month or portion of month.

F.    Delinquency of Taxes Not to Affect License

No delinquency in payment of the tax herein provided for shall be grounds for the suspension of any licenses granted to any such operator by any licensing authority, pursuant to the statutes enacted by the General Assembly of Colorado, and in the performance of any duties imposed upon the City Council as a licensing authority by such statutes, the City Council shall exclude from consideration any delinquency in the payment of the tax herein provided for.

G.    Lien for Delinquent Taxes

The City shall have a lien upon the goods, fixtures, stock and accounts of every operator, used and employed in the connection with the occupation classified and taxed by this Section, from the time said tax is due and payable and until the same is paid or collected, and said lien shall extend to and constitute a charge upon any stock or merchandise held by the person or operator liable for said tax, whether or not said stock of merchandise is the identical stock that existed at the time of the accrual of said lien.

If said tax becomes delinquent, the City Clerk or Treasurer shall collect the same, together with interest and costs, by distraint and sale of any of the personal property of the operator used in connection with said occupation. When the City Clerk or Treasurer distrains any such property, he or she may keep said property at the expense of the owner thereof and said City Clerk or Treasurer shall give notice of the time of the sale that shall be by publication for not less than three (3) successive issues of the weekly newspaper published in the City, and a copy of the notice of sale shall be mailed by registered mail to the operator holding said property at the time said property was seized, said notice to be mailed at the last address of said operator as stated in his last tax receipt, or as the same shall be otherwise ascertained by the City Clerk. The time of sale shall not be more than ten (10) days from the date of the last publication of said notice and shall give the time and place of said sale, the amount of tax due, a general description of the property to be offered for sale, and the name and last known address of the operator.

The City Clerk or Treasurer may adjourn said sale from time to time but not for the period exceeding ten (10) days in the aggregate. In case of any such adjournment of sale, a notice thereof shall be posted at the place of sale. The City Clerk or Treasurer shall render an account in writing of said sale and charges and shall return any surplus remaining above taxes, and interest and costs of sale, to the owner of said property. The City Clerk or Treasurer shall be allowed a fee of ten percent (10 %) of the sale price, which fee shall be taxed as a part of the costs of sale and paid into the City Treasury.

In addition to any other remedy provided by this ordinance, the City shall have the right to recover all sums due by the terms of this Section by the obtaining of a judgment and execution thereon in a civil action in any court of competent jurisdiction, and as such remedy shall be cumulative with all other remedies provided herein for the enforcement of this Section. For the collection of amounts up to and including one thousand dollars ($1,000.00), the Municipal Court of the City of Ouray is hereby declared to be a Court of competent jurisdiction, and any court of record in the County of Ouray is also hereby declared to be a court of competent jurisdiction for the bringing thereof any such actions for the collection of delinquent taxes, interests and costs, due under this Section.

H.    Unlawful Acts and Penalties

1.    It shall be unlawful for any person or person’s agent to engage in or carry on any business within the City for which an occupational tax is required until payment in full of all taxes imposed by this ordinance is received by the City and a revenue receipt obtained as herein provided.

2.    Any person convicted of violation of any provision of this Section may be sentenced to a fine not to exceed one thousand ($1,000.00) dollars or imprisonment in jail not to exceed ninety (90) days, or by both such fine and imprisonment; provided, however, no person under the age of eighteen may be sentenced to any term of imprisonment. Each twenty-four (24) hour period during which said business is conducted without such payment shall constitute a separate offense and violation of this ordinance. For the purpose of this Section, the opening of a place of business, or offering to sell, followed by a single sale or the doing of any act or thing in furtherance of the business shall be construed as to be engaging in carrying on such business.