Title
Ordinance No. 19-21 Amending Sections Within Part 3 (Taxable Transactions, Commodities and Services) and Part 4 (Exempt Transactions, Commodities and Persons; Deductions) of Article 7 (Sales and Use Tax) of Chapter 2 (Business Licensing, Liquor Regulation and Taxation) of the Code of the City of Colorado Springs 2001, as Amended, Pertaining to Sales and Use Tax Definitions
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
In an effort to simplify and standardize the varying sales tax systems throughout Colorado, including those of Home Rule Municipalities, Senate Joint Resolution 14-038 was passed in 2014 requesting the Colorado Municipal League (CML) to develop a package of Standard Definitions. The current standardization project took about two years to complete, and CML's Sales Tax Committee results were provided to locally collecting home rule jurisdictions in late 2016 for review and adoption.
The goals in developing these definitions, and the direction to the Municipalities in their review and modifications, were to add clarity and remain revenue neutral so that there would not be a need for a TABOR election.
Colorado Springs began the review process in early 2017 and completed the process in late 2018. As a result of the City's review, and to remain revenue neutral, not all of the CML definitions that were recommended for addition, deletion or modification were accepted by the City for inclusion in our Ordinance.
The attached Ordinance provides necessary changes to the exemption portion of code that are a result of the modification of the definitions.
The accompanying Ordinance incorporates the additions, deletions and modifications of sales tax definitions that are deemed appropriate for the City of Colorado Springs and is intended to add clarity about current tax practices for businesses. These changes will not result in any new tax levies and will not increase tax revenue.
Previous Council Action:
N...
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