TOWNWIDE USE TAX ON RESIDENTIAL CONSTRUCTION 

AND BUILDING MATERIALS AND SUPPLIES; AND TO 

PROVIDE FOR THE SUBMISSION OF THIS ORDINANCE 

FOR APPROVAL AT THE SPECIAL ELECTION OF THE 

REGISTERED ELECTORS OF THE TOWN ON NOVEMBER 7, 

1995. 

WHEREAS, the Town of Gypsum ( 11 Town 11 ) is authorized by law to 

impose a sales tax on the sale of tangible personal property at 

retail, the furnishing of services, and sale of food, subject to 

approval of the registered electors of the Town; and 

WHEREAS, Town is authorized by law to impose a use tax on the 

use or consumption of construction and building materials and 

supplies, and motor and other vehicles, subject to approval of the 

registered electors of the Town; and 

WHEREAS, due to the need to construct and acquire certain 

capital improvements and provide other municipal services, and the 

necessity of creating a revenue source therefor, the Town Council 

( 11 Council 11 ) has determined and hereby determines that the public 

interest requires that the rate of the Town sales tax should be 

three percent (3%) on the sale of tangible personal property at 

retail, the furnishing of services, and sale of food, machinery and 

machine tools, and the rate of the Town use tax should be three 

percent (3%) on the use and consumption of construction and building materials and supplies within the Town; and 

WHEREAS, the three percent (3%) sales tax of the Town 

hereinafter provided, if approved and imposed, would result in a 

one percent (1%) increase in the current sales tax imposed by the 

Town on the sale of tangible personal property at retail and the 

furnishing of services, and extend to the sale of all food items, 

machinery and machine tools purchased within the Town; and 

WHEREAS, the three percent (3%) use tax of the Town 

hereinafter provided, if approved and imposed, would result in the 

imposition of a new tax on all construction and building materials 

and supplies used or consumed within the Town; and 

WHEREAS, the three percent (3%) sales tax and three percent 

(3%) use tax of the Town hereinafter provided, if approved and 

imposed, would not result in the imposition of a total sales tax or 
hereafter be amended. The definitions in such statutes are 

incorporated herein by this specific reference. 

Section 2. Sales Tax. 

(a) Sales Tax Imposed. There is hereby imposed on the sale 

of tangible personal property at retail, the furnishing 

of services, and sale of food items, machinery and 

machine tools, as provided in Section 29-2-105 (1) (d), 

C.R.S., a sales tax equal to three percent (3%) of the 

gross receipts ("Sales Tax") . The tangible personal 

property and services taxable under this Ordinance shall 

be the same as the tangible personal property, services, 

and food taxable pursuant to Section 39-26-104, C.R.S., and subject to the same exemptions as those specified in 

Section 39-26-114, C.R.S., PROVIDED THAT the exemption 

for sales of electricity, coal, wood, gas, fuel oil, or 

coke sold to occupants of residences pursuant to Section 

39-26-114(1) (a) (XXI), C.R.S., shall apply to the Sales 

Tax and the sale of such items shall not be taxable, and 

PROVIDED FURTHER THAT the exemption for sales of 

machinery or machine tools pursuant to Section 39-26-

114(11), C.R.S., and the exemption for sales of food 

specified in Section 39-26-114(1) (a) (XX), C.R.S., shall 

not apply to the Sales Tax, and the sale of such items is 

expressly made taxable under this Ordinance. The 

imposition of the Sales Tax on individual sales shall be 

in accordance with schedules set forth in the rules and 

regulations promulgated by the Department of Revenue. If 

any vendor, during any reporting period, shall collect as 

the Sales Tax an amount in excess of the amount of the 

Sales Tax imposed by this Ordinance, he shall remit to 

the Executive Director the full amount of the Sales Tax 

herein imposed and also such excess. 

(b) Place of Sale. For the purpose of the Sales Tax, 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 Town or to a 

common carrier for delivery to a destination outside the 

limits of the Town. The gross receipts from such sales 

2 
(c) Excepted from Sales Amount. The amount subject to the 

Sales Tax shall not include the amount of any sales or 

use tax imposed by Article 26 of Title 39, C.R.S. 

(d) Specific Ownership Tax Exemption. All sales of personal 

property on which a specific ownership tax has been paid 

or is payable shall be exempt from the Sales Tax when 

such sales meet both of the following conditions: 

(i) The purchaser is a non-resident of, or has his 

principal place of business outside the limits 

of the Town, and 

(ii) Such personal property is registered or required 

to be registered outside the limits of the Town 

under the laws of the State of Colorado. 

(e) Sales Tax Sales Subject to Other Local Sales or Use 

Taxes. The applicability of the Sales Tax shall be 

subject to the provisions of Section 29-2-105 (2) and (4), 

C.R.S. 

(f) In the event the seven percent (7%) limitation provided 

in Section 29-2-108(1), C.R.S. is to be exceeded in the 

Town by a proposed county sales tax, such limitation 

shall be exceeded by one percent (1%) in the Town. 

Section 3. Use Tax. 

(a) Use Tax Imposed. There is hereby imposed on the use and 

consumption within the Town of any construction and 

building materials and supplies for residential 

construction only, as provided in Section 29-2-109(1), C.R.S., a use tax equal to three percent (3%) of the 

gross receipts ("Use Tax"). 

(b) Excepted from Use Tax. The Use Tax shall not apply to: 

(i) The storage, use or consumption of any tangible 

personal property which is subject to a retail 

sales tax imposed by the Town; 

3 0 
however, this 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; 

(iv) The storage, use or consumption of tangible 

personal property by the United States 

government, or the state, 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; 

(v) 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; 

(vi) 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; 

(vii) The storage, use or consumption of a motor or 

other vehicle purchased at retail on which 

registration is required; 

(viii) 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 the Use Tax; 

(ix) The storage, use, or consumption of any 

construction and building materials required or 

4 
consumption of tangible personal property already 

subjected to a legally imposed sales or use tax of 

another statutory or home rule town, city, or city and 

county equal to or in excess of the Use Tax, a credit 

shall be granted against the Use Tax with respect to a 

person's storage, use or consumption in the Town of 

tangible personal property purchased by him in a previous 

statutory or home rule town, city or city and county, 

which credit shall be equal to the sales or use tax 

previously paid by him, but shall not exceed the amount 

of the Use Tax imposed. 

(d) Three Year Limit on Use Tax. The Use Tax shall not be 

imposed as specified herein more than three years after 

the most recent sale of the property if, within the three 

years following such sale, the property has been 

significantly used within the state for the principal 

purpose for which it was purchased. 

Section 4. Sales Tax Collection. The collection, 

administration, and enforcement of the Sales Tax shall be performed 

by the Executive Director of the Department of Revenue of the State 

of Colorado ("Executive Director") in the same manner as the 

collection, administration, and enforcement of the Colorado State 

Sales Tax. Unless otherwise provided by Article 2 of Title 29, 

C.R.S., the provisions of Article 26 of Title 39, C.R.S., shall 

govern the collection, administration, and enforcement of the Sales 

Tax. 

Section 5. Use Tax Collection. The Use Tax shall be 

collected prior to issuance of a certificate of occupancy, 

temporary certificate of occupancy or final inspection for all 

construction projects subject to the same. For all construction 

and building materials subject to the use tax which are not used or 

consumed in a project subject to such certificates or inspection, 

the Use Tax shall be paid within seven (7) days of such use or 

consumption. The person using or consuming the construction or 

building materials shall, at the time of payment of the Use Tax, 

present to the Town receipts or invoices showing the amount paid 

for the materials. This use tax collection procedure may be 

changed by duly adopted ordinance, without the need for voter 

approval. 

5 
this Ordinance shall be remitted to the Executive Director by any 

such delinquent vendor. 

Section 7. Use of Revenues. The revenues derived from the 

Sales Tax and Use Tax shall be restricted as follows: 

SALES TAX: TWENTY PERCENT (20%) TO GENERAL ADMINISTRATION, AND 

EIGHTY PERCENT (80%) TO LAW ENFORCEMENT, TOWN HALL AND RECREATION. 

USE TAX: TWENTY 

ENGINEERING, AND 

IMPROVEMENTS. 

PERCENT 

EIGHTY 

(20%) TO GENERAL ADMINISTRATION AND 

PERCENT (80%) TO ROADS AND ROAD 

Section 8. Duration. The Sales and Use Tax provided herein 

shall commence January 1, 1996, and continue until repealed. 

Section 9. Election. Before this Ordinance shall become 

effective, it shall be submitted to and receive the approval of a 

majority of the registered electors of the Town voting thereon at 

the special election to be held on Tuesday, November 7, 1995. The 

special election shall be conducted as follows: 

(a) Conduct of Election. The election shall be held and 

conducted in accordance with Section 29-2-102, C.R.S., 

Article 10, Title 31, C.R.S., and Article X, Section 20 

of the Colorado Constitution. The Council hereby approves and authorizes the Town Clerk to execute and 

enter into such agreements or amendments to agreements, 

on behalf of the Town, with Eagle County, Colorado, 

regarding the preparation and mailing of the Notice required by Article X, Section 20 of the Colorado 

Constitution. The Council hereby designates the Town 

Clerk as the Election Official for the conduct of the 

election on behalf of the Town, with the authority and 

direction to proceed with any action necessary or 

appropriate to effectuate the prov1s1ons of this 

Ordinance and all constitutional and statutory provisions 

governing the conduct of this election. 

(b) Ballot Titles. The ballot titles for the Sales Tax and 

Use Tax questions shall be in substantially the following 

form: 

6 
FOR THE FOLLOWING PURPOSES : TWENTY PERCENT ( 2 0%) TO GENERAL 

ADMINISTRATION, AND EIGHTY PERCENT (80%) TO LAW ENFORCEMENT, TOWN 

HALL AND RECREATION? 

2 . SHALL THE TOWN OF GYPSUM TAXES BE INCREASED BY $18 0, 0 0 0 

ANNUALLY, COMMENCING IN 1996, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY FROM THE IMPOSITION OF A THREE PERCENT (3%) USE 

TAX ON THE USE OR CONSUMPTION OF ANY RESIDENTIAL CONSTRUCTION AND 

BUILDING MATERIALS; AND SHALL SUCH USE TAX COMMENCE JANUARY 1, 1996 

AND CONTINUE INDEFINITELY IN CONFORMANCE WITH ORDINANCE NO. 1995-

10; TO BE SPENT, AS A VOTER-APPROVED REVENUE CHANGE AND AN 

EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY, WITHOUT LIMITING OR AFFECTING THE COLLECTION OR SPENDING OF OTHER REVENUES, 

FOR THE FOLLOWING PURPOSES: TWENTY PERCENT (20%) TO GENERAL 

ADMINISTRATION AND ENGINEERING, AND EIGHTY PERCENT (80%) TO ROADS AND ROAD IMPROVEMENTS? 

Section 10. Repeal. Sections 3.08.020, 3.08.080, 3.08.090, 

3.08.100, 3.08.110 and 3.08.120 of the Gypsum Municipal Code are 

hereby repealed in total. 

Section 11. Codification. The provisions of this Ordinance 

shall be codified in the Gypsum Municipal Code as follows: 

(a) Section 1 of this Ordinance shall be codified as Section 

3.08.020 of the Gypsum Municipal Code. 

(b) Section 2 (a) of this Ordinance shall be codified as 

Section 3.08.080 of the Gypsum Municipal Code. 

(c) Section 2 (b) of this Ordinance shall be codified as 

Section 3.08.090 of the Gypsum Municipal Code. 

(d) Section 2 (c) of this Ordinance shall be codified as 

Section 3.08.100 of the Gypsum Municipal Code. 

(e) Section 2 (d) of this Ordinance shall be codified as 

Section 3.08.110 of the Gypsum Municipal Code. 

7 
( j) 

(k) 

Section 3.08.150 of the Gypsum Municipal Code. 

Section 3 (b) of this Ordinance shall be codified as 

Section 3.08.160 of the Gypsum Municipal Code. 

Section 3 (c) of this Ordinance shall be codified as 

Section 3.08.170 of the Gypsum Municipal Code. 

(1) Section 3 (d) of this Ordinance shall be codified as 

Section 3.08.180 of the Gypsum Municipal Code. 

(m) Section 5 of this Ordinance shall be codified as Section 

3.08.190 of the Gypsum Municipal Code. 

(n) Section 7 of this Ordinance shall be codified as Section 

3.08.200 of the Gypsum Municipal Code. 

Section 12. Code Amendment. The title of Chapter 3.08 of the 

Gypsum Municipal Code is amended to read: Sales and Use Tax. 

Section 13. Severability. If any portion of this Ordinance 

is found to be void or ineffective, it shall be deemed severed from 

this Ordinance and the remaining provisions shall remain valid and 

in full force and effect. 

Section 14. Amendment. Any time prior to the deadline for 

finalizing election questions and ballot titles as provided by the 

applicable election laws, the Council may amend this Ordinance by 

the proper adoption of an ordinance setting forth the amendment. 

Amendments may include, but not be limited to, the amount, 

duration, and use of the Sales and Use Tax. The effective date of 

this ordinance setting forth the Sales and Use Tax and calling for 

the special election on November 7, 1995 shall not be altered by 

any such amendment. 

Section 15. 

Ordinance shall be 

p.m . at the Town 

Colorado. 

Public Hearing. 

held on the 

Council Chambers, 

A public hearing on this 

day of August, 1995 at 7:00 

Gypsum Town Hall, Gypsum, 

Section 16. Effective Date. This Ordinance shall become 

effective as a permanent ordinance and apply to sales beginning 

8 
OWN OF GYPSUM, ON THE 8#1 DAY OF AUGUST, 1995, BY A VOTE OF 4> IN FAVOR AND 

¢ AGAINST. On~ ~~nt. 

TOWN OF GYPSUM 

By 

Michael 

vt.L,;1J)~ 

Suriano, 

~~ 

Mayor 

ATTEST: 

FINALLY ADOPTED, PASSED AND APPROVED ON AUGUST 2Z , 1995. 

TOWN OF GYPSUM 

By ~J; S.u.d.&~ 

Michael Suriano, Mayor 

ATTEST: 
Sales and Use Tax 

Real Estate Transfer Tax 

Reimbursement for Certain Town Services 

Chapter 3.04 

FISCAL YEAR 

Sections: 

3.04.010 Established. 

3.04.010 Established. The first day of January of each year is 

fixed and established as the beginning of the fiscal year for the town. 

(Ord. 41 S1, 1933) 

Sections: 

3.08.010 3.08.020 3.08.030 3.08.040 3.08.050 

3.08.060 3.08.070 3.08.080 3.08.090 3.08.100 3.08.110 3.08.120 3.08.130 3.08.140 

3.08.150 

3.08.160 

3.08.170 

3.08.180 

3.08.190 3.08.200 

Chapter 3.08 

SALES TAX 

Purpose. 

Definitions. 

License--Required. License--Application. 

License--Renewal. 

License--Contents, posting and transferability. 

License-Exemption. 

Sales Tax Imposed. 

Place of Sale. 

Excepted from Sales Amount. 

Specific Ownership Tax Exemption. 

Sales Tax Sales Subject to Other Local Sales or 

Use Taxes. 

Vendor's Fees. 

Sales Tax Collection. 

Use Tax Imposed. 

Excepted from Use Tax. 

Use Tax Sales Subject to Other Local Sales or Use 

Taxes. 

Three Year Limit on Use Tax. 

Use Tax Collection. Use of Revenues. 

6 
39

6

0

, C.

.S., as 

t cu

e

t

y e

sts o

ay 

e

ea

te

be a

e

ded. 

The definitions in such statutes are incorporated herein by this 

specific reference. (Ord. 10 series 1995 Sl) 

3.08.030 License--Required. A. It is unlawful for any person to 

engage in the business of selling tangible personal property at retail 

without first having obtained a license therefor. Such license shall be 

granted and issued by the town clerk and shall be in force and effect 

until the thirty-first day of December of the year in which it is 

issued, unless sooner revoked. 

B. In case business is transacted at one or more separate premises 

by one person, a separate license for each place of business shall be 

required. 

C. Any person engaged in the business of selling tangible personal 

property at retail in the town, without· having secured a license 

therefor, except as specifically provided in this chapter, shall be 

guilty of a violation of this chapter. (Ord. 1 series 1976 S3 (a,d,e)) 

3.08.040 License--Application. Such license shall be granted and 

renewed only upon application stating the name and address of the person 

desiring such a license, the name of such business and the location and 

such other facts as the town clerk may require. 

(Ord. 1 series 1976 S3 {b)) 

3.08.050 License--Renewal. It shall be the duty of each licensee, 

on or before January 1st of each year during which this chapter remains 

in effect, to obtain a renewal thereof if the licensee remains in the 

retail business or liable to account for the tax provided in this 

chapter, but nothing contained in this chapter shall be construed to 

empower the town clerk to refuse such renewal except revocation for 

cause of licensee's prior license. (Ord. 1 series 1976 S3 (c)) 

3. 08.060 License--Contents, posting and transferability. Each 

license shall be numbered and shall show the name, residence, place and 

character of business of the licensee and shall be posted in a 

conspicuous place in the place of business for which it is issued. No 

license shall be transferable. (Ord. 1 series 1976 S3 (f)) 

3.08.070 License--Exemption. No license shall be required for any 

person engaged exclusively in the business of selling commodities which 

are exempt from taxation under this chapter. 

(Ord. 1 series 1976 S3 (g)) 

7 
104, C.R.S., and subject to the same exemptions as those specified in 

Section 39-26-114, C.R.S., PROVIDED THAT the exemption for sales of 

electricity, coal, wood, gas, fuel oil, or coke sold to occupants of 

residences pursuant to Section 39-26-114 (1) (a) (XXI), C.R.S., shall 

apply to the Sales Tax and the sale of such items shall not be taxable, 

and PROVIDED FURTHER THAT the exemption for sales of machinery or 

machine tools pursuant to Section 39-26-114 (11), C.R.S., and the 

exemption for sales of food specified in Section 39-26-114 {1) (a) (XX), 

C.R.S., shall not apply to the Sales Tax, and the sale of such items is 

expressly made taxable under this Ordinance. The imposition of the 

Sales Tax on individual sales shall be in accordance with schedules set 

forth in the rules and regulations promulgated by the Department of 

Revenue. If any vendor, during any reporting period, shall collect as 

the Sales Tax an amount in excess of the amount of the Sales Tax imposed 

by this Ordinance, he shall remit to the Executive Director the full 

amount of the Sales Tax herein imposed and also such excess. (Ord. 10 

series 1995 S2 {a) ) 

3.08.090 Place of Sale. For the purpose of the Sales Tax, 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 

Town or to a common carrier for delivery to a destination outside the 

limits of 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., regardless of the 

place to which deliver is made. If a retailer has no permanent place of business in the Town, or has more than one place of business, the place 

at which the retail sales are consummated for the purpose of the Sales 

Tax shall be determined by the provisions of Article 26 of Title 39, 

C.R.S., and by rules and regulations promulgated by the Department of 

Revenue. (Ord. 10 series 1995 S2 (b)) 

3.08.100 Excepted from Sales Amount. The amount subject to the 

Sales Tax shall not include the amount of any sales or use tax imposed 

by Article 26 of Title 39, C.R.S. (Ord. 10 series 1995 S2 (c)) 

3.08.110 Specific Ownership Tax Exemption. All sales of personal 

property on which a specific ownership tax has been paid or is payable 

shall be exempt from the Sales Tax when such sales meet both of the 

following conditions: 

(i) The purchaser is a non-resident of, or has his principal place 

of business outside the limits of the Town, and 

8 
3.08.130 Vendor's Fees. The vendor shall be entitled as collection 

agent for the Town to withhold an amount equal to three and one-third 

percent (3 1/3%) of the total amount to be remitted by the vendor to the 

Executive Director each month to cover the vendor's expense in the 

collection and remittance of the Sales Tax. If any vendor is delinquent 

in remitting the Sales Tax, other than in unusual circumstances shown to 

the satisfaction of the Executive Director, the vendor shall not be 

allowed to retain any amounts to cover his expense in collecting and 

remitting said Sales Tax, and an amount equivalent to the full amount of 

the Sales Tax imposed by this Ordinance shall be remitted to the 

Executive Director by any such delinquent vendor. 

(Ord. 10 series 1995 S6) 

3.08.140 Sales Tax Collection. The collection, administration, and 

enforcement of the Sales Tax shall be performed by the Executive 

Director of the Department of Revenue of the State of Colorado 

("Executive Director") in the same manner as the collection, 

administration, and enforcement of the Colorado State Sales Tax. Unless 

otherwise provided by Article 2 of Title 29, C.R.S., the provisions of 

Article 26 of Title 39, C.R.S., shall govern the collection, 

administration, and enforcement of the Sales Tax. (Ord. 10 series 1995 

S4) 

3.08.150 Use Tax Imposed. There is hereby imposed on the use and 

consumption within the Town of any construction and building materials 

and supplies for residential construction only, as provided in Section 

29-2-109 (1), C.R.S., a use tax equal to three percent (3%) of the gross 

receipts ("Use Tax") . (Ord. 10 series 1995 S3 (a)) 

3.08.160 Excepted from Use Tax. The Use Tax shall not apply to: 

(i) The storage, use or consumption of any tangible personal 

property which is subject to a retail sales tax imposed by the Town; 

( ii) 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 business; 

(iii) The storage, use or consumption of tangible personal 

property brought into the Town by a nonresident thereof for his own 

storage, use or consumption while temporarily within the Town; however, 

this 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; 

9 
e, 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; 

(vi) 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; 

(vii) The storage, use or consumption of a motor or other vehicle 

purchased at retail on which registration is required; (viii) 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 the Use Tax; 

(ix) The storage, use, or consumption of any construction and 

building material 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 Ordinance; and 

(x) Any construction and building materials used for nonresidential construction. (Ord. 10 series 1995 S3 (b)) 

3.08.170 Use Tax Sales Subject to Other Local Sales or Use Taxes. 

With respect to the Use Tax imposed upon the use or consumption of tangible personal property already subjected to a legally imposed sales 

or use tax of another statutory or home rule town, city, or city and 

county equal to or in excess of the Use Tax, a credit shall be granted against the Use Tax with respect to a person's storage, use or consumption in the Town of tangible personal property purchased by him in a previous statutory or home rule town, city or city and county, which credit shall be equal to the sales or use tax previously paid by him, but shall not exceed the amount of the Use Tax imposed. (Ord. 10 series 1995 83 (c)) 

3.08,180 Three Year Limit on Use Tax. The Use Tax shall not be 

imposed as specified herein more than three years after the most recent 

sale of the property if, within the three years following such sale, the 

property has been significantly used within the state for the principal 

purpose for which it was purchased. (Ord. 10 series 1995 S3 (d)) 

3.08.190 Use Tax Collection. The Use Tax shall be collected prior 

to issuance of a certificate of occupancy, temporary certificate of 

occupancy or final inspection for all construction projects subject to 

9-1 
g

y 

y 

p

, 

e

approval. (Ord. 10 series 1995 SS) 

3.08.200 Use of Revenues. The revenues derived from the Sales Tax 

and Use Tax shall be restricted as follows: 

SALES TAX: TWENTY PERCENT ( 2 0%) TO GENERAL ADMIN I STRATI ON, AND 

EIGHTY PERCENT (80%) TO LAW ENFORCEMENT, TOWN HALL AND RECREATION. 

USE TAX: TWENTY PERCENT (20%) TO GENERAL ADMINISTRATION AND 

ENGINEERING, AND EIGHTY PERCENT (80%) TO ROADS AND ROAD IMPROVEMENTS. 

(Ord. 10 series 1995 87) 

Sections: 

3.12.010 

3.12.020 

3.12.030 

3.12.040 

3.12.050 

3.12.060 

3.12.070 

3.12.080 

3.12.090 

3.12.100 

3.12.110 

CHAPTER 3.12 

REAL ESTATE TRANSFER TAX 

Short title. 

Applicability. 

Definitions. 

Tax--Imposed. 

Tax--Amount. 

Tax--Liability. 

Tax--Payment. 

Tax--Assessment and lien on property. 

Exemptions--Designated. 

Ex~ption--Certificate. 

Allocation of funds. 

3.12.010 Short title. The ordinance codified in this chapter shall be known and may be cited as the 11 Gypsum real estate transfer tax. 11 

(Ord. 7 series 1982 S1) 

3.12.020 Applicability. The property which is subject to this tax 

consists of all real property lying within the town limits as this time, 

or which is the subject of annexation into the town in the future. 

(Ord. 7 series 1982 S4) 

9- 2 
Ms. Sandra Olsen 

Deputy Town Clerk 

Town of Gypsum 

P.O. Box 130 

Gypsum, Colorado 81637 

Re: Ordinance No. 1995-10 

Dear Sandra: 

Pursuant to your 

Ordinance No. 1995-10, 

special election. 

request, enclosed is 

regarding the Town' s 

another 

November 

Feel free to contact me if you need anything else. 

Enclosure 

Sincerely, 

Micki L. Wadhams 

Paralegal 

P.C. 

copy of 

71 1995 
VIA FACSIMILE No. 970-524-7522 

AND MAIL 

TO: Jeff Shroll, Town Manager 

Sharon Keigley, Town Clerk 

Town of Gypsum 

). 

FROM: Robert G. Cole and Paul C. Rufie~~'->1-~.c:::.,.;e:; RE: Sales Tax on Natural Gas Sales for Residential Use 

SUMMARY 

Since 1976, the year of the original imposition of the Town's sales tax, Rocky 

Mountain Natural Gas has collected and remitted sales tax on sales of natural gas to 

residents of the Town. The Town's new Ordinance implementing the increased sales tax 

expressly exempts the sale of natural gas for residential use. This difference between the 

1976 and 1995 authorizations has raised the following questions: 

1. Why is the sale of natural gas exempt now when it was not in the past? 

2. Can the Town remove the natural gas exemption from its current tax? 

3. Must the Town refund sales tax collected under the original authorization? 

The following constitutes our discussion of each of the questions: 

DISCUSSION 

1. Why is the sale of natural gas exempt now when it was not in the past? 

Both the 1976 and 1995 sales tax authorizations were made with a full 

incorporation of the exemptions found in Section 39-26-114, C.R.S. In 1979, the 

statutory exemptions were amended to include the exemption for all sales of electricity, 

coal, wood, gas, fuel oil or coke sold for residential use. The 1995 Ordinance expressly 

incorporated that exemption, making the newly authorized 3% sales tax inapplicable to 

the sale of natural gas for residential use. 
As a home rule municipality, the Town could remove the natural gas exemption. 

In its 1995 election, the Town removed the exemption for the sale of food items. The 

natural gas exe'mption could be similarly removed. Because the 1995 Ordinance was 

approved by the voters and included the exemption, removing the exemption would 

technically be an increased tax. \Ve believe, therefore, that in order to remove the 

natural gas exemption at this juncture would require an election. 

3. Must the Town refund sales tax collected under the original authorization? 

The 1976 authorization was proper under the then existing statutes and the Town's 

home rule powers. We believe that the tax collected on the sale of natural gas for 

residences need not be refunded. Because of the express exemption in the 1995 

authorization, sales tax on residential natural gas for January 1996 should not have been collect~d. Pursuant to Section 39-26-114(2)(a), C.R.S. a refund need not be made for 

the January 1996 tax unless an application for a refund is made within 60 days. The 

Town may wish to consider voluntarily refunding the erroneously collected tax through 

the assistance of Rocky Mountain Natural Gas. The Town should notify Rocky Mountain 

Natural Gas that future billings should not include a sales tax for sales of natural gas for 

residential use. 

If you have any further questions or concerns, please advise. 

PCR:tk 
y 

P.O. Box 3000 

Scottsbluff, Nebraska 69363-30 

RE: SALES TAX COLLECTION FOR THE TOWN OF GYPSUM 

Dear Accounting, 

The Town of Gypsum recently enacted an Ordinance 

implementing a 1% increase in Sales Tax for the Town of Gypsum. 

The new ordinance effective January 1, 1996 expressly exempts the 

sale of natural gas for residential use from the tax increase. 

The only way the tax can be reinstated is by another election and 

passed by the voters. 

We, therefore, request that future billings not include 

Gypsum's 3% sales tax for sale of natural gas from KN Energy for 

residential use. I am enclosing a copy of the Town Code that 

expresses the new change. Should you have any questions, please 

do not hesitate to contact the Town Clerk, Sharon Keigley. Thank 

you for your assistance. 

Very Truly Yours, 

TOWN OF GYPSUM 

17(4~ 

Jeff Shroll, Town Manager 

cc; Robert G. Cole, esq. (via telefax) 

Gypsum Town Council 

w/enc. 
P.O. Drawer 2150 

Glenwood Springs, Colorado 81602-2150 

RE: SALES TAX COLLECTION FOR THE TOWN OF GYPSUM 

Dear Accounting, 

The Town of Gypsum recently enacted an Ordinance implementing a 1% increase in Sales Tax for the Town of Gypsum. The new ordinance effective January 1, 1996 expressly exempts the sale of electricity for residential use from the tax increase. 

The only way the tax can be reinstated is by another election and passed by the voters. 

We, therefore, request that future billings not include Gypsum's 3% sales tax for sale of electricity from Holy Cross for residential use. I am enclosing a copy of the Town Code that 

expresses the new change. Should you have any questions, please do not hesitate to contact the Town Clerk, Sharon Keigley. Thank 

you for your assistance. 

Very Truly Yours, 

TOWN OF GYPSUM 

/7(_./4«_ 

Jeff Shroll, Town Manager 

cc: Robert G. Cole, esq. (via telefax) 

Gypsum Town Council 

w/enc. 
personal property, services, and food taxable pursuant to Section 39 - 26-

104, C.R.S., and subject to the same exemptions as those specified in 

Section 39-26-114, C.R.S., PROVIDED THAT the exemption for sales of 

electricity, coal, wood, gas, fuel oil, or coke sold to occupants of 

residences pursuant to Section 39-26-114 (1) {a) (XXI), C.R.S., shall 

apply to the Sales Tax and the sale of such items shall not be taxable, 

and PROVIDED FURTHER THAT the exemption for sales of machinery or 

machine tools pursuant to Section 39-26-114 (11), C.R.S., and the 

exemption for sales of food specified in Section 39-26-114 (l) (a) (XX), 

C.R.S., shall not apply to the Sales Tax, and the sale of such items is 

expressly made taxable under this Ordinance. The imposition of the 

Sales Tax on individual sales shall be in accordance with schedules set 

forth in the rules and regulations promulgated by the Department of 

Revenue. If any vendor, during any reporting period, shall collect as 

the Sales Tax an amount in excess of the amount of the Sales Tax imposed 

by this Ordinance, he shall remit to the Executive Director the full 

amount of the Sales Tax herein imposed and also such excess. (Ord. 10 

series 1995 S2 (a) ) 

3.08.090 Place of Sale. For the purpose of the Sales Tax, 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 

Town or to a common carrier for delivery to a destination outside the 

limits of 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 . , regardless of the 

place to which deliver is made. If a retailer has no permanent place of 

business in the Town, or has more than one place of business, the place 

at which the retail sales are consummated for the purpose of the Sales 

Tax shall be determined by the provisions of Article 26 of Title 39, 

C.R.S., and by rules and regulations promulgated by the Department of 

Revenue. (Ord. 10 series 1995 S2 (b)) 

3.08.100 Excepted from Sales Amount. The amount subject to the 

Sales Tax shall not include the amount of any sales or use tax imposed 

by Article 26 of Title 39, C.R.S. (Ord. 10 series 1995 S2 (c)) 

3.08.110 Specific Ownership Tax Exemption. All sales of personal 

property on which a specific ownership tax has been paid or is payable 

shall be exempt from the Sales Tax when such sales meet both of the 

following conditions: 

(i) The purchaser is a non-resident of, or has his principal place 

of business outside the limits of the Town, and 

8