Title

3 REVENUE AND FINANCE Chapters: 3.04 3.08 3.12 3.16 Chapter
3. 04 FISCAL YEAR Sections: Fiscal Year Sales and Use Tax Real Estate Transfer Tax Reimbursement
for Certain Town Services 3.04.010 Established. 3. 04.010 Established.
The first day of Januar

y o: each year is fi xeci and established

as th e **eginn~ng**
of the fiscal year for the town. (Ord.

4 1 §I, 1933) Chapter
3. 08 SALES TAX 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 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. Title

3
-Revenue and Finance Page

1 of 14 Updated: 04/28/083.08.010 Purpose. The purpose of this **cha~ter** is to impose

a sales tax on the **p~ivilege**
of selling tangible personal property
at retail upon every retailer
in the t:own. (Ord.

I series 1976 §I) 3.08.020 Definitions. For the purposes
of this ordinance and Chapter
3. 08 of the Gypsum Municipal Code, the words herein contained shall have the meanings set forth herein and in Sections 39-26-102 and 39-26-201, C.R.S.,
as it currently exists or may hereafter
be amended. The definitions

in such statutes are incorporated herein by this specific reference. (Ord. 10 series 1995 §I) **~** 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.

I series 1976 §3 (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 **requi~e.** (Ord.

I **se~ies** 1976§3 (b)) 3.08.050 License--Renewal. It shall be the duty of each licensee,
on or before January lst of each year during which this **chapte~** 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.

I series 1976 §3 (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.

I series 1976 §3 (f)) 3.08.070 License--Exemption. Title 3 - Revenue and Finance Page

2 of 14 Updated: 04/28/08No license shall be required for any person engaged exclusively

in the business of selling corrunodi ties which are exempt from taxation under this chapter. (Ord. I **ser~es**1976 §3 (g)) 3.08.080 Sales Tax Imposed. f-.. Pursuant
to Article XX of the Colorado Constitution
and the Town's Home Rule Charter effective October 21, 1982, including Section 1.3 and Article
VI of the Charter, there is he reb::{ imposed or:the sale of tangible personal proper-::y
at retail, the furnishing

of services, and sale of food items,

asales tax equal tofour percent (4ft<) of the gross receipts '"Sales Tax")

.The tangible personal property and services taxable under this Ordinance shall be the sameasthe tangible personal property, services, and food taxable pursuant
to Section 39-26- 104, C.R.S., and subject to the same exemptions

asthose specified
in Section 39- 26-114, C.R.S., PROVIDED THAT the exemption for sales of electricity, coal, wood, gas,fuel oil, orcoke sold to occupanLS
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
ormachine tools pursuant
to Section 39-26-114 (ll), C.R.S., and the exemption for sales of food specified
in Section 39-26-ll4(l)(a)(XX), C.R.S., shall not apply to the Sales Tax, and the sale of such items is expressly made ta>:able under this Ordinance. The imposition
of the Sales Tax on individual sales shall be in accordance with schedules set forth ir: the rules and regula Lions promulgated

by the Department

of Revenue.
If any vendor, during any reporting period, shali collect asthe Sales Tax anamount in excessof the amount of the Sales Ta>: imposed by this Ordinance,

he shall remit to the Executive Director the full amount of the Sales Ta>: herein imposed and also such excess. (Ord 15, Series 2004) B. Irrunediately following the payment of all costs of the recreation center ("Recreation Center") constructed

by the Town, including debt service onBonds orother obligations issued to finance the Recreation Center, the Town Manager shall certify to the Town Council that all such costs have been paid, satisfied
or cancelled,

asto be more fully set forth in the Town ordinance authorizing the Bonds described
in Section

6 of Ordinance No. 15 (Series 2004)

.The one percent **(l**

**)**Sales Tax increase approved by the Town's electors onNovember

2, 2004, shall terminate

assoonas possible after such certification ("Termination Date"), **cons~s':.ent**with the regulations and practices
of the Colorado Department

of Revenue for collection
of an expiring sales tax, and onand after the Termination Date, the Sales Tax shall be imposed at the raLe of three percent (3%) of gross receipts. !my revenues collected from the one percent

( 1!!;) sales tax increase prior to the Termination Date and not needed LO paycosts of the Recreation Center maybe used for anyother capital improvement purposes designated
by Town reso:::.uLion

or ordinance. (Ord 15, Series 2004) 3.08.090 Place of Sale. For the purpose
of the Sales Tax, all retail sales shall be considered consurrunated

at the place of business
of the retailer, unless the tangible personal property sold is delivered
by the retailer
orhis agent to

adestination outside the limits of the Town orto
acommon 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 usetax imposed by Article
26 of **Ti~le**39, C.R.S., regardless

of the place to which deliver is made. If aretailer has no permanent place of business Title 3 - Revenue and Finance Page

3 of 14 Updated: 04/28/08in the Town, or has more than one place of business, the place at which the retail sales are **consu~mated**
for the purpose
of the Sales Tax shall be determined
by the provisions
of **~rticle**
2E of Title 39, C.R.S., and by rules and regulations promulgated

by the Department

of Revenue. (Ord. 10 series 1995 §2 (b)) 3.08.100 Excepted from Sales Amount. The amounL subject to the Sales Tax shall not include the amount of any sales or use **ta~** imposed by Article 26 of Title 39, C.R.S. (Ord. 10 series 1995 §2 (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 ( ii) Such personal property
is registered

or required
to be registered outside the limits of the Town under the lav-1s of the State of Colorado. (Ord. 10 series 1995 §2 (d)) 3.08.120 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. (Ord. 10 series 1995 §2 (e)) 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 §6) 3.08.140 Sales Tax Collection. Effective July 1, 2008, the collection, administration,
and enforcement

of the Sales Tax shall be performed
by the Finance Director for the Town. Unless otherwise provided by this Gypsum Municipal Code or 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. The Director
of Finance may prescribe forms and reasonable rules and regulations

in conformity with this Chapter 3.08 for the making of returns, for the ascertainment, assessment and collection

of the taxes imposed hereunder, and for the proper administration
and enforcement hereof,

a copy of which forms, rules and regulations shall be made available
to the public. (Ord. 09, Series 2008 §1) Title 3 - Revenue and Finance Page

4 of 14 Updated: 04/28/083.08.150 Use Tax Imposed. There is hereby imposed on the use and consumption within -che Town of any construction
and building materials and supplies for residen':.ial construction only, as provided
in Section 29-2-109

( 1), C. H. S.,

a use tax equal to three percent **(3~)**o: -che gross receipts ("Use Tax"). (Ord. 10 series 1995 §3 (a)) 3.08.160 Excepted from Use Tax. The Use Tax shall not apply to: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) The storage, use or consumption

of any tangible personal property which is subject to
a retail sales ta:>: imposed by the Town; 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; The storage, use or consumption

of tangible personal property brought into the Town by
a nonresident thereof for his own storage, use or consumption v1hile 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; The storage, use or consumption

of **tangib~e**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; 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 cormnodity, 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; 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; The storage, use vehicle purchased required;

or at consumption retail on of

a which motor or other registration

is The storage, use, or consumption

of any construction
and building materials and motor and other vehicles
on which registration

is required
if
a wr:..tten contract for the purchase thereof was entered into prior to the effective date of the Use Tax; The storage, use, or consumption building material required
or Title 3 - Revenue and Finance Page

5 of 14 Updated: 04/28/08

of any construction made necessary

in and the(X) performance

of any entered into at any this Ordinance; and construction contract bid, let, or time prior to the effective date of Any construction
and building materials used fornonresidential construction. (Ord. 10 series 1995 §3 (b)) 3.08.170 Use Tax Sales Subject to Other Local Sales or Use Taxes. With respect
-co the Use

· Tai': 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

1 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 §3 (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 mos;: 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 §3 (d)) 3.08.190 Use Tax Collection. (a) Deposit. Prior to the issuance
of a building permit on any project, the Town Manager or his designated assistant shall collect the use ta>: in the amount of three percent (3'<) of the sale value of the construction materials. For purposes
of this subsection, fifty percent (50'<) of the estimated general contract costs and/or **50~** of the estimated mechanical contract costs shall be deemed to be the sale value of such construction materials. This amount collected shall be held by the Town

a deposit until the ultimate amount of use tax owed is finally determined
by the Town. (b) Determination

of Actual Use Tax. The person using or consuming the construction

or building materials shall, upon completion

of the project, present to the Town Manager receipts
or invoices showing the amount paid for construction materials.

If the use tax deposited with the Town exceeds
**3~** of the actual sales value of construction materials,

as evidenced
by the receipts
or invoices, the Town shall refund the excess. If the use tax deposited with the Town is less than

3 1 i of the actual sales value of construction materials, the person using or consuming the construction materials shall pay the Town the shortfall within seven (7} days. (c) Final Enforcement. Until paid in full, the Town may at its discretion withhold any certificates

of occupancy, temporary certificates

of occupancy
or inspections. 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.

In addition, until paid the full use ta>: owing shall constitute

a lien upon the real property benefited
by such construction improvements,
and the Town Manager
is authorized

to Title 3 - Revenue and Finance Page

6 of 14 Updated: 04/28/08

I::.lE:

c.notice:o:sush lie:-. v::u:J-. Count:{ Clerk and Recorder. **Th~**unpc.id tax mayc.lso be ceYt.:=ied
tothe County .F_ssessor for **co:lectio~**witt **proper~y**taxes. !d' **Cons~ruction Mater~c.ls** Subject to **O~her**Local Sc.les orUse Taxes. **!~ ~he** tc.xpayer purchases **construc~io~**materials wnict are subject toalegally impose::i sc.=.esorusetc.}:of Gypsum or **ano~her statu~ory** 
orhome rule town, **c~~y,**or **c~~y**and county, then he may **submi~**.:'..mToices
or stetements,

in acco:cdc.nce with subsectior:
(b) of **tb~s**Section, the Town use **~ax.** reflect.:'..ng the payment
**o~**the taxand make **applicatio~**

**~G**for **cred~t**orrefund of **an~**amount paid asa **~c.lid**sales orIt shell be the **du~y**of **~he**person making such applicatior: **~c**furnish ell necessc.rybills anci invoices evidencing **~he**paymentof the tax.:f the Town !'1anager is satisfied **~ha~**there has beer.such payment, then he shall refund orcredit the amountasmaybe necessary. Purchases
of cons-.:ruction mater.:'..els from Gypsurr vendors possessing

a **val~d**Gypsuffi **re~ail**sales tax license, and **cons~ruction**materials purchased **ou~side**
of Gypsum and **no~**delivered
by ::i"1eve:-1dor oracommor_carrier maybe subject **~o**the credit provisionsof this sectior,. (Ord. 10series l995 §3) 3.08.200 Use of Revenues. p._. **~he** 2004 Increase and **f._uthoriza~ion.**
Useof the revenuesderived frorrone **percen~**(li) Sales Tax increase approved by the Town's electors
onNovember

2, 2004,shell be restricted

to capital **improvemen~ pu~poses,** to
c.sc.les ta}: capital improvement funci that maybe including cieposit created by **subsequen~**o!:"dinar1ce, relating
toa fully **descr~bed**
in Sect: ion
4of **Ordinanc~**No. ballot: title for such election. recreation **cen~er,** 15 (Series 2004) asmore anci the B. 1995 Increase and Authorization.
Useof the revenuesderived ::rorrthe one percent **(l~)**Sales Taxand the three percent (3·)UseTax approved by the To;,.m's electors
onNovember

7, 1995, shall be **res"':r~cted**

c.sfollows: c.

( l)Sales Ta}:: Twenty percent
**(20**

**)**to general **aa..rninis~rat.:on,**
and eighty percen"': **(80~)**c:olaw enforcement, Town Hall and **recreatio~.** (2)Use Ta:r:: Tv1enty percent engineering, and eighty percent

( 20!!:)to general **adminis~ra~ion**
anci **(80~)**toroads and road improvements. Other Revenues. E7:cept asrestricted this Section, all **o~her**revenues generated
by the Town maybe used for any=.awful purpose.
in **subsec~ions**

?.
.orE.of Sales and Use Taxes withir. Title 3 -Revenue and Finance Page

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