CHAPTER 4

Revenue and Finance

Article I Fiscal Year

Sec. 4-1-10 Fiscal year established

Article II Funds Generally

Sec. 4-2-10 Custody and management of funds

Article III General and Special Funds

Sec. 4-3-10 General Fund created

Sec. 4-3-20 Street Capital Improvement Fund and Street Maintenance Fund created

Sec. 4-3-30 Conservation Trust Fund created

Sec. 4-3-40 Special Revenue Sharing Trust Fund created

Sec. 4-3-50 Water System Fund

Sec. 4-3-60 Municipal Capital Improvement Fund created

Article IV Reserve Funds

Sec. 4-4-10 Definitions

Sec. 4-4-20 Emergency Reserve established

Sec. 4-4-30 General Reserve established

Sec. 4-4-40 Calculation of increase in reserves

Sec. 4-4-50 Pro rata reductions in reserves

Sec. 4-4-60 Expenditures from General Reserve

Article V Enhanced Sales Tax Incentive Program

Sec. 4-5-10 Established

Sec. 4-5-20 General purpose of ESTIP

Sec. 4-5-30 Definitions

Sec. 4-5-40 Application requirements

Sec. 4-5-50 Sharing of sales tax

Sec. 4-5-60 Sales tax uses

Sec. 4-5-70 Sales tax increments

Sec. 4-5-80 Effect on other taxes

Sec. 4-5-90 Application criteria

Sec. 4-5-100 Agreement contents

Sec. 4-5-110 Purpose; Town nonliability

Article VI Sales and Use Tax

Sec. 4-6-10 Purpose

Sec. 4-6-20 Definitions

Sec. 4-6-30 Sales tax rate

Sec. 4-6-40 Sales defined

Sec. 4-6-50 Sales tax exclusions

Sec. 4-6-60 Sales levy; exemptions

Sec. 4-6-70 Personal property

Sec. 4-6-80 Sales tax administration

Sec. 4-6-90 Sales tax brackets

Sec. 4-6-100 Collection agency

Sec. 4-6-110 Building and motor vehicle use tax

Sec. 4-6-120 Use tax exclusions

Sec. 4-6-130 Use tax brackets

Sec. 4-6-140 Use tax administration

Sec. 4-6-150 Use of revenues

Sec. 4-6-160 Effective date

Article VII Telecommunications Company Tax

Sec. 4-7-10 Definitions

Sec. 4-7-20 Levy of tax

Sec. 4-7-30 Effective date

Sec. 4-7-40 Filing statements

Sec. 4-7-50 Failure to pay

Sec. 4-7-60 Inspection of records

Sec. 4-7-70 Local purpose

Sec. 4-7-80 Tax in lieu of other taxes

Sec. 4-7-90 Liabilities to continue

ARTICLE I

Fiscal Year

Sec. 4-1-10. Fiscal year established.

The fiscal year of the Town shall commence on January 1 of each year and shall extend through December 31 of the same year. (Ord. 01-20)

ARTICLE II

Funds Generally

Sec. 4-2-10. Custody and management of funds.

Moneys in the funds created in this Chapter shall be in the custody of and managed by the Town Treasurer. The Town Treasurer shall maintain accounting records and account for all of said moneys as provided by law. Moneys in the funds of the Town shall be invested or deposited by the Town Treasurer in accordance with the provisions of law. All income from the assets of any fund shall become a part of the fund from which derived and shall be used for the purpose for which such fund was created; provided that, except as otherwise provided in this Code or by other ordinances or laws, the Board of Trustees may transfer out of any fund any amount at any time to be used for such purpose as the Board of Trustees may direct. (Ord. 01-20)

ARTICLE III

General and Special Funds

Sec. 4-3-10. General Fund created.

There is hereby created a fund, to be known as the General Fund, which shall consist of the following:

(1) All cash balances of the Town not specifically belonging to any existing special fund of the Town.

(2) All fixed assets of the Town (to be separately designated in an account known as the General Fund Fixed Assets) not specifically belonging to any existing special fund of the Town. (Ord. 01-20)

Sec. 4-3-20. Street Capital Improvement Fund and Street Maintenance Fund created.

(a) There is hereby created a special fund, to be known as the Street Capital Improvement Fund. Said fund shall be considered a capital improvement fund within the meaning of Section 29-2-111, C.R.S. Ninety percent (90%) of the revenues, net of the costs of collection and administration, generated from a sales and use tax imposed by the Town at a rate of one and one-half percent (1.5%) shall be deposited into the Street Capital Improvement Fund and used solely for the purpose of designing, engineering, paving and constructing street and road, street light, storm water, drainage, pedestrian and landscaping improvements, and necessary and incidental modifications to and extensions of utilities; provided that however, such improvements shall have a useful life of not less than three (3) years, as determined by the Board. Further, moneys in the Street Capital Improvement Fund may be used for the payment of revenue bonds issued solely for the purpose of financing capital improvements described in the preceding sentence. Finally, with the exception of the revenues deposited in the Street Maintenance Fund, the Board may, in its discretion, pledge additional moneys to the Street Capital Improvement Fund to the extent necessary to secure the payment of revenue bonds issued pursuant to Section 29-2-112, C.R.S. Moneys deposited into the Street Capital Improvement Fund shall not be available to be pledged or expended for any general municipal purpose.

(b) There is hereby created a special fund, to be known as the Street Maintenance Fund. Ten percent (10%) of the revenues, net of the costs of collection and administration, generated from a sales and use tax imposed by the Town at a rate of one and one-half percent (1.5%) shall be deposited into the Street Maintenance Fund and used solely for the purpose of necessary maintenance of streets and roads for the Town. Moneys deposited into the Street Maintenance Fund shall not be available to be pledged or expended for any general municipal purpose. (Ord. 01-20; Ord. 02-07 §4)

Sec. 4-3-30. Conservation Trust Fund created.

There is hereby created a special fund, to be known as the Conservation Trust Fund, and the funds therein shall be used only for the purposes allowed by law. (Ord. 01-20)

Sec. 4-3-40. Special Revenue Sharing Trust Fund created.

(a) The State and Local Fiscal Assistance Act of 1972 requires that a separate fund be established and maintained for all special revenue sharing monies and any interest earned thereon.

(b) Sufficient unappropriated monies will be available in the Special Revenue Sharing Trust Fund to cover said contingencies, being legitimate objects of expenditures under said Assistance Act.

(c) A Special Revenue Sharing Trust Fund is hereby established to account for all monies received from distributions by the federal government under authority and by direction of the State and Local Fiscal Assistance Act of 1972, including any and all earnings, or prorated share of earnings, on said distributions.

(d) An appropriation is made yearly from the Special Revenue Sharing Trust Fund for payment of the contingencies described above. (Prior code 2-4.1, 2-4.2, 2-4.3, 2-4.4)

Sec. 4-3-50. Water System Fund created.

There is hereby created a special fund, to be known as the Water System Fund, and the funds therein shall be used only for the purposes allowed by law. (Ord. 01-20)

Sec. 4-3-60. Municipal Capital Improvement Fund created.

There is hereby created a special fund, to be known as the Municipal Capital Improvement Fund. Said fund shall be considered a capital improvement fund within the meaning of Section 29-2-111, C.R.S. One hundred percent (100%) of the revenues, net of the costs of collection and administration, generated from the portion of the sales and use tax imposed by the Town, from January 1, 2008, through and including December 31, 2033, at a rate of one and one-half percent (1.5%) shall be deposited into the Municipal Capital Improvement Fund and used solely for the purpose of designing, constructing, acquiring and improving capital improvements and land, including, without limitation, water and wastewater capital improvements and land. Further, moneys in the Municipal Capital Improvement Fund may be used for the payment of revenue bonds issued solely for the purpose of financing capital improvements described in the preceding sentence. Finally, the Board may, in its discretion, pledge additional moneys to the Municipal Capital Improvement Fund to the extent necessary to secure the payment of revenue bonds issued pursuant to Section 29-2-112, C.R.S. (Ord. 07-16 §1)

ARTICLE IV

Reserve Funds

Sec. 4-4-10. Definitions.

As used in this Article, the following terms shall have the meanings indicated:

Amendment shall mean the amendment to Article X, Section 20 of the Colorado Constitution, as approved by the electors of the State on November 3, 1992, and identified as Amendment One on the 1992 General Election ballot.

Emergency shall be as defined in the Amendment.

Emergency Reserve shall mean that reserve established for the purpose of defraying expenses of declared emergencies.

General Reserve shall mean all available cash in the Town's governmental and proprietary fund types as of December 31, 1992, less all cash in the Emergency Reserve and the Special Reserves as of December 31, 1992.

Increase in reserves shall mean the net increase in cash in all reserves combined as of December 31 of any given year, as compared to December 31 of the previous year. (Prior code 2-6.1; Ord. 01-20)

Sec. 4-4-20. Emergency Reserve established.

There is hereby established an Emergency Reserve. The Town Clerk is hereby authorized and directed to fund the Emergency Reserve as required by the Amendment. (Prior code 2-6.2)

Sec. 4-4-30. General Reserve established.

There is hereby established a General Reserve. The General Reserve shall be automatically funded initially as of December 31, 1992, with all appropriate funds as defined in Section 4-4-10(4) above. (Prior code 2-6.3)

Sec. 4-4-40. Calculation of increase in reserves.

The Town Clerk is hereby authorized and directed to calculate annually the amount of increase in the Town's reserves. (Prior code 2-6.4)

Sec. 4-4-50. Pro rata reductions in reserves.

If at any time compliance with the Amendment requires the Town to make reductions in its fiscal year spending or refunds to the taxpayers, pro rata adjustments may be made to all funds, including any reserves established by this Article, with the exception of the Emergency Reserve, to avoid distortion of spending limits by virtue of the dedications of funds set forth herein. (Prior code 2-6.5)

Sec. 4-4-60. Expenditures from General Reserve.

Expenditures from the General Reserve shall be governed by the budget resolution and appropriation ordinances. (Prior code 2-6.6)

ARTICLE V

Enhanced Sales Tax Incentive Program

Sec. 4-5-10. Established.

There is hereby established within the Town an Enhanced Sales Tax Incentive Program ("ESTIP"). (Prior code 2-7.1)

Sec. 4-5-20. General purpose of ESTIP.

The purpose of the ESTIP is to encourage the establishment and/or substantial expansion of retail sales tax generating businesses within the Town, thereby stimulating the economy of and within the Town, providing employment for residents of the Town and others, further expanding the goods available for purchase and consumption by residents of the Town, and further increasing the sales tax collected by the Town, which increased sales tax collections will enable the Town to provide expanded and improved municipal services to and for the benefit of the residents of the Town, while at the same time providing public or public-related improvements at no cost, or at deferred cost, to the Town and its taxpayers and residents. (Prior code 2-7.2; Ord. 01-20)

Sec. 4-5-30. Definitions.

As used in this Article, the following phrases shall have the following meanings:

Enhanced sales tax shall mean the amount of sales tax collected by the Town over and above a base amount negotiated by, and agreed upon by, the applicant and the Town, and which amount is approved by the Board of Trustees, which base amount shall never be lower than the amount of sales tax collected by the Town at the property in question in the previous twelve (12) months plus a reasonable and agreed upon percentage of anticipated increase in sales tax, or, in the case of a newly established business, an amount of sales tax which could be generated from the new business without the participation by the applicant in the ESTIP created hereunder.

Owner or proprietor shall mean the record owner or operator of an individual business, or, in the case of a shopping center, the owner of the real property upon which more than one (1) business is operated, provided that said owner (whether an individual, corporation, partnership or other entity) is the owner or lessor of the individual businesses operated thereon. (Prior code 2-7.3)

Sec. 4-5-40. Application requirements.

Participation in ESTIP shall be based upon approval by the Town, exercising its administrative discretion in good faith. Any owner or proprietor of a newly established or proposed retail sales tax generating business location, or the owner or proprietor of an existing retail sales tax generating business or location which wished to expand substantially, may apply to the Town for inclusion within the ESTIP provided that the new or expanded business is reasonably likely to generate enhanced sales tax of at least twenty thousand dollars ($20,000.00) in the first year of operation. (Prior code 2-7.4)

Sec. 4-5-50. Sharing of sales tax.

Approval by the Town of an agreement implementing the ESTIP shall entitle the successful applicant to share in enhanced sales tax derived from the applicant’s property or business in an amount which shall not in any event exceed fifty percent (50%) of the enhanced sales taxes; provided, however, that the applicant may use said amounts only for public/or public-related purposes such as those specified herein and which are expressly approved by the Town at the time of consideration of the application. The time period in which said enhanced sales taxes may be shared shall not commence until all public or public-related improvements are completed, and shall be limited by the Town, in its discretion, to a specified time, or until a specified amount is reached. (Prior code 2-7.5)

Sec. 4-5-60. Sales tax uses.

The uses to which said shared enhanced sales tax may be put by an applicant shall be strictly limited to those which are public or public-related in nature. For the purpose of this Article, public or public-related purposes shall mean public improvements, including but not limited to streets, sidewalks, curbs, gutters, pedestrian malls, street lights, drainage facilities, landscaping, statuaries, fountains, identification signs, traffic safety devices, bicycle paths, off-street parking facilities, benches, off-site sewer lines, lift stations, and all necessary incidental and appurtenant structures and improvements, together with the relocation and improvement of existing utility lines, and any other improvements of a similar nature which are specifically approved by the Town upon the Town’s findings that said improvement are public or public-related improvements, and that such improvements shall benefit the economic health of the Town. (Prior code 2-7.6)

Sec. 4-5-70. Sales tax increments.

The base figure for sales taxes shall be divided into twelve (12) monthly increments, which increments are subject to agreement between the parties, and approval by the Town, and which increments shall be reasonably related to the average monthly performance of the business or property in question, or similar businesses in the area (i.e. adjust for seasonal variations). If in any month the agreed-upon figure is not met by the applicant for said month, no increment shall be shared until that deficit, and any other cumulative deficit, has been met, so that at the end of any twelve-month cycle, funds in excess of those "enhanced sales tax" funds agreed to be shared shall not have been shared with any applicant. (Prior code 2-7.7)

Sec. 4-5-80. Effect on other taxes.

It is an overriding consideration and determination of the Town that existing sources of Town sales tax revenues shall not be used, impaired or otherwise affected by this ESTIP. Therefore, it is hereby conclusively determined that only enhanced sales taxes generated by the property described in an application shall be subject to division under this ESTIP. It shall be the affirmative duty of the Town Treasurer to collect and hold all such enhanced sales taxes in a separate account apart from the sales taxes generated by and collected from the Town, and to provide an accounting system which accomplishes the overriding purpose of this Section. It is conclusively stated by the Town that this Article would not be adopted or implemented but for the provision of this Section. (Prior code 2-7.8; Ord. 01-20)

Sec. 4-5-90. Application criteria.

Approval of an application for inclusion in this ESTIP shall be given by the Town, at a public hearing held as a portion of a regularly scheduled Town meeting, based upon the following criteria:

(1) The amount of enhanced sales tax which are reasonably to be anticipated to be derived by the Town through the expanded or new retail sales tax generating business;

(2) The public benefits which are provided by the applicant through public works, public improvements, additional employment for Town residents, etc.;

(3) The amount of expenditures which may be deferred by the Town based upon public improvements to be completed by the applicant;

(4) The conformance of the applicant’s property or project with the comprehensive plan and zoning ordinances of the Town;

(5) The agreement required by Section 4-5-100 having been reached, which agreement shall contain and conform to all requirements of said Section 4-5-100. (Prior code 2-7.9)

Sec. 4-5-100. Agreement contents.

Each applicant for approval submitted to the Town shall be subject to approval by the Town solely on its own merits. Approval of an application shall require that an agreement be executed by the owner and the Town, which agreement shall, at a minimum, contain:

(1) A list of those public or public-related improvements which justify the applicant’s approval, and the amount which shall be spent on said improvements;

(2) The maximum amount of enhanced sales taxes to be shared, and the maximum time during which said agreement shall continue, it being expressly understood that any such agreement shall expire and be of no further force and affect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired);

(3) A statement that this is a personal agreement which is not transferable and which does not run with the land;

(4) That this agreement shall never constitute a debt or obligation of the Town within any constitutional or statutory provision;

(5) The base amount which is agreed upon by month, and the fact that if, in any month as specified, sales taxes received from the property do not at least equal said amount, that there shall be no sharing of funds for said month;

(6) The base amount shall be agreed upon which shall consider the historic level of sales at the property in question, or a similar property within the area in the event of a new business, and a reasonable allowance for increased sales due to the improvements and upgrades completed as a result of inclusion within this ESTIP;

(7) A provision that any enhanced sales taxes subject to sharing shall be escrowed in the event there is a legal challenge to this ESTIP or the approval of any application therefor;

(8) An affirmative statement that the obligations, benefits and/or provisions of this agreement may not be assigned in whole or in any part without the expressed authorization of the Town, and further that no third party shall be entitled to rely upon or enforce any provision hereof;

(9) Any other provisions agreed upon by the parties and approved by the Town. (Prior code 2-7.10)

Sec. 4-5-110. Purpose; Town nonliability.

(a) The Town has enacted this ESTIP for the purpose of:

(1) Providing the Town with increased sales tax revenues generated upon and by properties as a result of this ESTIP; and

(2) Public improvements being completed by the private owners through no debt obligation being incurred on the part of the Town.

(b) The Town specifically finds and determines that creation of this ESTIP is consistent with the Town’s powers as a municipal corporation, and that exercise of said powers in the manner set forth herein is in furtherance of the public health, safety and welfare. Notwithstanding any provision hereof, the Town shall never be a joint venturer in any private entity or activity which participates in this ESTIP, and the Town shall never be liable or responsible for any debt or obligation of any participant in ESTIP. (Prior code 2-7.11)

ARTICLE VI

Sales and Use Tax

Sec. 4-6-10. Purpose.

The purpose of this Article is to impose a sales tax on the sale of tangible personal property at retail and the furnishing of certain services upon every retailer in the Town, pursuant to Title 29, Article 2, C.R.S., and to provide for the collection and expenditure of the revenues generated by such tax. The revenues derived from this tax are to be used for the expenses of the Town and shall, to the extent not otherwise provided in Article III of this Chapter, be placed in the General Fund for accounting purposes of the Town. This Article shall not be amended unless said amendment is approved by a vote of registered electors of the Town. (Ord. 07-16 §2)

Sec. 4-6-20. Definitions.

For the purpose of this Article, the definitions of the words herein contained shall be defined in Section 39-26-102, C.R.S., and said definitions are incorporated herein by this reference. Specifically, the following shall apply:

(1) The term prepared food or food for immediate consumption shall exclude any food for domestic home consumption.

(2) No sales or use tax shall apply to the sale of food purchased with food stamps. For the purposes of this Subsection, food shall have the same meaning as provided in 7 U.S.C. § 2012(g), as such section exists on October 1, 1987, or is thereafter amended.

(3) No sales or use tax shall apply to the sale 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, food shall have the same meaning as provided in 42 U.S.C. § 1786, as such section exists on October 1, 1987, or is thereafter amended. (Prior code 6-3.2)

Sec. 4-6-30. Sales tax rate.

This Article hereby imposes, at the rates set forth below, a tax on the sale of tangible personal property at retail or the furnishing of taxable services as provided in Section 39-26-104, C.R.S. Revenues generated from such tax shall be distributed as provided in Section 4-6-10 above and Article III of this Chapter.

(1) Commencing January 1, 2008, through and including December 31, 2033, the sales tax rate shall be four percent (4%).

(2) Commencing January 1, 2034, and perpetually thereafter, the sales tax rate shall be two and one-half percent (2.5%). (Ord. 07-16 §3)

Sec. 4-6-40. Sales defined.

For the purpose of this Article, all retail sales are 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 or to a common carrier for delivery to a destination outside the Town. The gross receipts from such sales shall include delivery charges when such charges are subject to the state sales and use tax imposed by Article 26 of Title 39, C.R.S., and by rules and regulations promulgated by the State Department of Revenue. Notwithstanding any other provision of this Article, the value of construction and building materials on which a use tax has previously been collected by an incorporated town, city or county shall be exempt from this sales tax if the materials are delivered by the retailer or his or her agent to a site within the limits of the Town. (Prior code 6-3.4)

Sec. 4-6-50. Sales tax exclusions.

The amounts subject to this sales tax Article shall not include the amount of any sales or use tax imposed by Article 26 of Title 39, C.R.S. (Prior code 6-3.5)

Sec. 4-6-60. Sales levy; exemptions.

(a) There is hereby levied and there shall be collected and paid a sales tax in the amount as in this Article provided in addition to those amounts already being collected pursuant to Ordinance No. 204, upon the sale at retail of such tangible personal property and the furnishing of such certain services, as are set forth in Article 26 of Title 39, C.R.S., which provisions are incorporated herein by this reference, and upon the sale at retail of tangible personal property, on sales of food and purchases of machinery or machine tools, and the furnishing of services on sales and purchases of electricity, coal, gas, fuel oil and coke for domestic and commercial consumption.

(b) There shall be exempt from taxation under the provisions of this Article all of the tangible personal property and services which are exempt under the provisions of Article 26, Title 39, C.R.S., which exemptions are incorporated herein by this reference, except that the exemptions allowed by Section 39-26-709(1), C.R.S., for the sale of machinery or machine tools; Section 39-26-715, C.R.S., for the sale of electricity and other fuels; and Section 39-26-707(1)(e), C.R.S., for the sale of food, as those exemptions may be amended, are expressly not adopted herein and those items, therefore, shall not be exempt from taxation under the provisions of this Article. (Prior code 6-3.6; Ord. 01-20, Ord. 06-08)

Sec. 4-6-70. Personal property.

All sales of personal property on which a specific ownership tax has been paid or is payable shall be exempt from the tax imposed by this Article 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.

(2) Such personal property is registered or required to be registered outside the limits of the Town under the laws of the State. (Prior code 6-3.7)

Sec. 4-6-80. Sales tax administration.

The collection, administration and enforcement of the sales tax imposed by this Article shall be performed by the Executive Director of the State Department of Revenue in the same manner as the collection, administration and enforcement of the state sales tax and in conformity with Section 29-2-106, C.R.S. (Prior code 6-3.8)

Sec. 4-6-90. Sales tax brackets.

The exact tax brackets for the sales tax imposed by this Article shall be identical to and correspond with the sales tax brackets formulated by the State Department of Revenue. (Prior code 6-3.9)

Sec. 4-6-100. Collection agency.

Any vendor or retailer shall be entitled as a collection agent for the Town to withhold a collection fee in the amount of three and one-third percent (3⅓%) from the total amount remitted by the vendor or retailer to the Town each month. If any vendor or retailer is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the Executive Director, the vendor or retailer shall not be allowed to retain any amounts to cover his or her expenses in collecting and remitting said tax, and an amount equivalent to the full three and one-third percent (3⅓%) shall be remitted to the Executive Director by any such delinquent vendor. (Prior code 6-3.10)

Sec. 4-6-110. Building and motor vehicle use tax.

This Article hereby imposes, at the rates set forth below, a use tax for the privilege of using or consuming within the Town any construction and building materials, and on motor and other vehicles on which registration is required which are purchased at retail. This Article hereby imposes a tax on the sale of tangible personal property at retail or the furnishing of taxable services as provided in Section 39-26-104, C.R.S., at the rates set forth below. Revenues generated from such tax shall be distributed as provided in Article III of this Chapter.

(1) Commencing January 1, 2008, through and including December 31, 2033, the use tax rate shall be three percent (3%).

(2) Commencing January 1, 2034, and perpetually thereafter, the use tax rate shall be one and one-half percent (1.5%). (Ord. 07-16 §4)

Sec. 4-6-120. Use tax exclusions.

The use tax imposed by this Article shall not apply to:

(1) The use or consumption of any tangible personal property, the sale of which is subject to a retail sales tax imposed by the Town.

(2) The 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) The 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 the State by a nonresident to be used in the conduct of a business in the State.

(4) The use or consumption of tangible personal property by the United States government or the state government, or its institutions or political subdivisions, in their governmental capacities only or by religious or charitable corporations in the conduct of their regular religious or charitable functions.

(5) The 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.

(6) The 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 use or consumption in 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 tax imposed by this Article.

(7) The use or consumption of tangible personal property and household affects acquired outside of the Town and brought into by a nonresident acquiring residency.

(8) The use of a motor vehicle if the owner is or was at the time of purchase a nonresident of the Town and he or she purchased the vehicle outside of the Town for use outside of the Town and actually so used it for a substantial and primary purpose for which it was acquired, and he or she registered, titled and licensed said motor vehicle outside the Town.

(9) The 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 this use tax Article.

(10) The 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 this use tax. (Prior code 6-3.12)

Sec. 4-6-130. Use tax brackets.

The exact tax brackets for the use tax imposed by this Article shall be identical to and correspond with the use tax brackets formulated by the State Department of Revenue. (Prior code 6-3.13)

Sec. 4-6-140. Use tax administration.

(a) The use tax imposed by this Article upon motor and other vehicles on which registration is required which are purchased at retail shall be collected by the authorized agent of the Department of Revenue in the County.

(b) The collection of the use tax for construction and building materials shall be administered by the Board of Trustees. Tax on the retail purchase of the price of said materials used or consumed within the Town must be paid upon the use or consumption of said materials within the Town. In no event shall any certificate of occupancy be issued prior to the full payment to the Town of all use tax due and owing pursuant to this Article. (Prior code 6-3.14)

Sec. 4-6-150. Use of revenues.

Immediately upon the receipt or collection thereof, the revenues derived from the sales and use tax imposed herein (net of the Town's costs of collection and administration) shall be deposited or applied as provided in Section 4-6-10 of this Article and Article III of this Chapter. (Ord. 07-16 §5)

Sec. 4-6-160. Effective date.

The effective date of the sales tax and the use tax imposed by this Article shall be January 1, 1994. (Prior code 6-3.15)

ARTICLE VII

Telecommunications Company Tax

Sec. 4-7-10. Definitions.

For purposes of this Article, the following words shall have the following meanings:

Line means a separate telephone number or telephone circuit identification number provided to a resident at retail.

Line count means the total number of lines for which US West (or its lawful successor) provides local telecommunications service to residents within the Town as of October 1, 2000.

Local telecommunications service means basic local exchange service or basic service, as defined by Section 40-15-102, C.R.S., which is authorized by a certificate of public convenience and necessity or otherwise pursuant to Title 40, Part 15, C.R.S. For purposes of this Article, local telecommunications service shall not include wireless service.

Resident means any person, individual, corporation, partnership, joint venture, company, firm, association, proprietorship or other entity residing or having a place of business within the Town.

Telecommunications company means any company providing local telecommunications service within the Town. (Ord. 00-08 §1)

Sec. 4-7-20. Levy of tax.

There is hereby levied on and against each telecommunications company within the Town a tax on the occupation and business of providing local telecommunications service at retail to residents of the Town. The annual amount of tax shall be computed as follows:

(1) Each telecommunications company shall pay a tax of no more than nine hundred dollars ($900.00).

(2) The amount of tax shall be nine hundred dollars ($900.00) divided by the line count, and multiplying the result by the number of lines the telecommunications company provides within the Town.

(3) The tax shall be calculated each October after the filing of the statement described in Section 4-7-40, and shall be effective on the following January 1.

(4) The tax shall be due and payable in full on or before February 1 of each year, except as otherwise provided in Paragraph (5) below.

(5) Each new telecommunications company that first becomes subject to this Article during any calendar year shall calculate its tax for that calendar year, as stated in Paragraph (2) above. The tax shall be prorated based on the number of months service is provided during that year. Each new telecommunications company that becomes subject to this Article within the first ten (10) months of a tax year shall pay the prorated tax during the month that it first provides service. Each new telecommunications company that becomes subject to this Article within the last (2) months of a tax year shall pay the total prorated tax within sixty (60) days of the date it first provides service. (Ord. 00-08 §1)

Sec. 4-7-30. Effective date.

The tax levied by this Article shall commence on January 1, 2001, or on any date after January 1, 2001, on which the telecommunications company first provides local telecommunications service in the Town. (Ord. 00-08 §1)

Sec. 4-7-40. Filing statements.

On October 1, 2000, each telecommunications company that will be subject to this Article on January 1, 2001, shall file with the Town Clerk, in such form as the Town Clerk may require, a statement showing the total number of lines in the Town on January 1, 2001. Thereafter, by October 1 of each year, each telecommunications company subject to this Article shall file a statement with the Town Clerk showing its total number of lines in the Town, to determine the tax for the following year. (Ord. 00-08 §1)

Sec. 4-7-50. Failure to pay.

If any telecommunications company subject to the provisions of this Article fails to pay the tax as herein provided, the full amount of tax shall be due and collected from such company, with an additional penalty of ten percent (10%) of the amount of taxes due, which shall be a debt due and owing from such company to the Town. The Town Attorney, upon direction of the Board of Trustees, shall commence and proceed to final judgment and determination in any court of competent jurisdiction an action at law to collect the debt. (Ord. 00-08 §1)

Sec. 4-7-60. Inspection of records.

The Town and its officers, agents and representatives shall have the right, at all reasonable hours and times, to examine the books and records of any telecommunications company subject to the provisions of this Article, and to make copies of the contents thereof. (Ord. 00-08 §1)

Sec. 4-7-70. Local purpose.

The tax set forth in this Article is imposed upon occupations and businesses in the performance of local functions, and it is not a tax upon those functions relating to interstate commerce. This Article is not intended to be a grant of franchise to any telecommunications company. (Ord. 00-08 §1)

Sec. 4-7-80. Tax in lieu of other taxes.

The tax in this Article shall be in lieu of all other taxes on any telecommunications company subject to the provisions of this Article, other than ad valorem taxes. The tax in this Article shall also be in lieu of any free service furnished to the Town by any telecommunications company. The tax in this Article shall be in addition to any otherwise applicable fees. (Ord. 00-08 §1)

Sec. 4-7-90. Liabilities to continue.

All tax liabilities incurred before amendment of this Article, under prior versions of the tax, shall be and remain unconditionally due and payable, shall constitute a debt to the Town, and shall be treated as though all prior applicable ordinances and amendments thereto were in full force and effect. (Ord. 00-08 §1)