p

FISCAL YEAR 

Sections: 

3.04.010 Established. 

3. 04.010 Established. The first day of Januar y o: each year is fi xeci and established as the 

eginn~ng of the fiscal year for the town. (Ord. 41 §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: 04/28/08 
hereafter be amended. The definitions in such statutes are 

p

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: 04/28/08 
p

p

rty 

p

tangible personal 

and services 

property, 

taxable under this Ordinance shall be the same as the 

104, C.R.S., and services, and food taxable pursuant to Section 39-26-

26-114, C.R.S., PROVIDED subject to the same exemptions as those specified in Section 39-

gas, fuel oil, or 

THAT the exemption for sales of electricity, coal, wood, 

114 (1) (a) (XXI), C.R.S., 

coke sold to occupanLS of residences pursuant to Section 39-26-

shall not be 

shall apply to the Sales Tax and the sale of such items 

machinery or machine 

taxable, and PROVIDED FURTHER THAT the exemption for sales of 

exemption for sales 

tools pursuant to Section 39-26-114 (ll), C.R.S., and the of food specified shall not apply in Section 39-26-ll4(l)(a)(XX), C.R.S., 

ta>:able under 

to the Sales Tax, and the sale of such items is expressly made 

shall be 

this Ordinance. The imposition of the Sales Tax on individual sales 

promulgated 

in 

by 

accordance with schedules set forth ir: the rules and regula Lions 

period, shali 

the Department of Revenue. If any vendor, during any reporting 

Sales Ta>: imposed 

collect 

by 

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

full amount of 

this Ordinance, he shall remit to the Executive Director the 

2004) 

the Sales Ta>: herein imposed and also such excess. (Ord 15, Series 

B. Irrunediately following ("Recreation Center") the payment of all costs of the recreation center 

other obligations constructed by the Town, including debt service on Bonds or 

certify to 

issued to finance the Recreation Center, the Town Manager shall 

cancelled, as 

the Town Council that all such costs have been paid, satisfied or to be more fully set forth in the Town ordinance authorizing Bonds described the 

(l ) Sales Tax 

in Section 6 of Ordinance No. 15 (Series 2004) . The one percent 

terminate as soon 

increase approved by the Town's electors on November 2, 2004, shall as possible after such certification 

cons~s':.ent with ("Termination Date"), 

Revenue for collection 

the regulations and practices of the Colorado Department of 

Date, 

of an expiring sales tax, and on and after the Termination 

receipts. 

the Sales Tax shall be imposed at the raLe of three percent (3%) of gross 

prior to 

!my revenues collected from the one percent ( 1!!;) sales tax increase 

may be used 

the Termination Date and not needed LO pay costs of the Recreation Center 

reso:::.uLion or ordinance. 

for any other capital improvement purposes designated by Town (Ord 15, Series 2004) 

3.08.090 Place of Sale. 

consurrunated 

For the purpose 

at 

of the Sales Tax, all retail sales shall be considered 

personal property 

the place of business of the retailer, unless the tangible 

destination outside 

sold is delivered by the retailer or his agent to a 

to a destination 

the limits of the Town or to a common carrier for delivery 

sales shall 

outside the limits of the Town. The gross receipts from such 

sales and use 

include delivery charges when such charges are subject to the state 

place to which 

tax 

deliver 

imposed by Article 26 of 

Ti~le 39, C.R.S., regardless of the is made. If a retailer has no permanent place of business 

Title 3 - Revenue and Finance 

Page 3 of 14 

Updated: 04/28/08 
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: 04/28/08 
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 
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 
ax. 

It shell be 

or 

~c furnish 

the 

du~y of 

~he person making such applicatior: 

of the 

ell necessc.ry bills anci invoices evidencing ~he payment 

such payment, 

tax. :f the Town !'1anager is satisfied 

~ha~ there has beer. 

necessary. Purchases 

then he shall refund or credit the amount as may be of cons-.:ruction mater.:'..els possessing a val~d Gypsuffi from Gypsurr vendors materials purchased re~ail sales tax license, and cons~ruction ve:-1dor or a commor_ ou~side of Gypsum and no~ delivered by ::i"1e of this sectior,. carrier may be subject ~o the credit provisions (Ord. 10 series l995 §3) 

3.08.200 Use of Revenues. 

p._. 

~he one 

2004 

percen~ 

Increase and 

f._uthoriza~ion. Use of the revenues derived frorr 

November 2, 2004, (li) shell Sales Tax increase approved by the Town's electors on be restricted to capital improvemen~ 

pu~poses, to c. sc.les ta}: capital improvement funci that may be including cieposit created by subsequen~ o!:"dinar1ce, relating to a fully descr~bed in Sect: ion 4 of 

Ordinanc~ No. ballot: title for such election. 

recreation 

cen~er, 

15 (Series 2004) 

as more 

anci the 

B. 1995 Increase and Authorization. Use of the revenues derived the one percent (l~) ::rorr 

by the To;,.m's electors 

Sales Tax and the three percent (3·) Use Tax approved on November 7, 1995, shall be 

res"':r~cted c.s follows: 

c. 

( l) Sales Ta}:: Twenty percent (20 ) to general aa..rninis~rat.:on, eighty percen"': and (80~) c:o law enforcement, Town Hall and 

recreatio~. 

(2) Use Ta:r:: Tv1enty percent engineering, and eighty percent ( 20!!:) to general adminis~ra~ion anci (80~) to roads and road improvements. 

Other Revenues. E7:cept as restricted this Section, all o~her revenues generated by the Town may be used for any =.awful purpose. in subsec~ions ?. . or E. of Sales and Use Taxes withir. 

Title 3 - Revenue and Finance 

Page 7 of 14 

t'1- _,_ ..