4800 West 92nd Avenue Westminster, CO 80031

City Government

 

1. Tax Administration

PDF version

7/12 

CHAPTER 1
TAX ADMINISTRATION

4-1-1:  DEFINITIONS
4-1-2:  EXEMPTION; BURDEN OF PROOF
4-1-3:  DEDUCTIONS AND CREDITS
4-1-4:  ACQUISITION, INCEPTION OR CESSATION OF BUSINESS
4-1-5:  RETAILER RESPONSIBLE FOR COLLECTION AND PAYMENT OF TAX
4-1-6:  TRUST STATUS OF TAX IN POSSESSION OF RETAILER
4-1-7:  FILING RETURNS; DUE DATE
4-1-8:  REPORTING PERIODS
4-1-9:  DUTY TO KEEP BOOKS AND RECORDS
4-1-10:  AUTHORITY OF THE FINANCE DIRECTOR
4-1-11:  AUDIT OF RECORDS
4-1-12:  TAX INFORMATION CONFIDENTIAL
4-1-13:  TIMELY PAYMENT; COMPUTATION OF DATES
4-1-14:  OVERPAYMENT FROM RETURNS
4-1-15:  TAX OVERPAYMENT DETERMINED THROUGH AUDIT
4-1-16:  TAX OVERPAYMENT BY PURCHASERS
4-1-17:  CLAIM FOR REFUND
4-1-18:  UNDERPAYMENTS FROM RETURNS
4-1-19:  TO FILE RETURN; FAILURE TO PROVIDE ADEQUATE RECORDS FOR AUDIT; ESTIMATED NOTICE OF ASSESSMENT
4-1-20:  TAX DEFICIENCIES DETERMINED THROUGH AUDIT
4-1-21:  PENALTIES
4-1-22:  INTEREST
4-1-23:  NOTICE OF ASSESSMENT
4-1-24:  ABATEMENT OF TAX DEFICIENCY
4-1-25:  PROTEST OF NOTICE OF ASSESSMENT OR DENIAL OF REFUND
4-1-26:  HEARINGS
4-1-27:  APPEALS
4-1-28:  LIEN FOR TAX DUE
4-1-29:  PERPETUANCE OF LIEN
4-1-30:  RELEASE OF LIEN
4-1-31:  CIVIL ACTION TO RECOVER TAX DUE
4-1-32:  JEOPARDY ASSESSMENT
4-1-33:  LEVY, DISTRAINT AND SALE
4-1-34:  STATUS OF TAX DUE IN BANKRUPTCY AND RECEIVERSHIP
4-1-35:  VIOLATIONS; SUMMONS AND COMPLAINT; PENALTY
4-1-36:  STATUTE OF LIMITATIONS
4-1-37:  LEGISLATIVE INTENT

4-1-1:  DEFINITIONS:  (2032 2972 3371 3544)  The following words, terms and phrases, when used in this Title, shall have the following meaning, unless specifically defined in another Chapter: 

“Business” shall mean all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect.

“Charitable Organization” shall mean any entity that:

(1)     Has been certified as a not-for-profit organization under Section 501(c)(3) of the Internal Revenue Code; and 

(2)     Is a religious or charitable organization. As used in this definition, a "charitable organization" is an organization that exclusively, and, in a manner consistent with existing laws and for the benefit of an indefinite number of persons, freely and voluntarily ministers to the physical, mental or spiritual needs of persons, and that thereby lessens the burdens of government.

“City” shall mean the municipality of Westminster.

“Code” shall mean the Westminster Municipal Code.

”Finance Director” shall mean the Finance Director of the City of Westminster or such other person designated by the City.  "Finance Director" shall also include such person's designee.

”Gross Sales,” for the purpose of this Chapter, shall include any relevant definition of "gross sales" included in other chapters of this Title.

“License” shall mean a Westminster sales and use tax license required pursuant to Section 5-4-2, W.M.C. 

”Occupational Taxes” shall mean the taxes levied by Chapter 5 and Chapter 7 of this Title.

“Person” shall mean any individual, firm, partnership, joint venture, corporation, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or representative capacity, whether appointed by court or otherwise, or any group or combination acting as a unit.

“Price,” for purposes of this Chapter, shall include any definition of "price" included in other Chapters of this Title.

”Purchase or Sale,” for purposes of this Chapter, shall include any definition of "purchase" or "sale" included in other chapters of this Title.

"Retailer," for purposes of this Chapter, shall include any definition of "retailer,” "operator" or "vendor" included in other chapters of this Title.

“Return” shall mean any form prescribed by the Finance Director for computing and reporting a total tax liability.

“Tax,” for purposes of this Chapter, shall include any definition of "tax" included in other chapters of this Title.

”Tax Deficiency” shall mean any amount of tax that is not reported in such manner as the Finance Director may prescribe or not paid on or before the due date.

”Taxable Sales” shall mean gross sales less any exemptions and deductions specified in this Title.

”Taxable Services” shall mean services subject to the tax pursuant to this Title.

“Taxpayer,” for purposes of this Title, shall mean any person obligated to pay, collect or remit tax under the terms of this Title. 

”Tax Policy” shall mean, for the purposes of Colorado Constitution Article X, Section 20, the provisions of this Title that govern the persons upon whom the City’s tax is imposed and the transactions to which the City’s tax applies, including tax exemptions and tax deductions, but excluding any provisions concerning fees, interest charges, or penalties related to the administration and enforcement of said tax policy. 

”Total Tax Liability” shall mean the total of all tax, penalties or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales. 

4-1-2:  EXEMPTION; BURDEN OF PROOF:  (2032 2972 3371) 

(A)    The burden of proving that any retailer is exempt from collecting or remitting tax shall be on the retailer under such reasonable requirements of proof as the Finance Director may prescribe. 

(B)    The burden of proving that any consumer is exempt from remitting the use tax shall be on such consumer under such reasonable requirements of proof as the Finance Director may prescribe.

(C)    The burden of proving that any taxpayer is exempt from remitting the occupation tax shall be on the taxpayer under such reasonable requirements of proof as the Finance Director may prescribe. 

4-1-3:  DEDUCTIONS AND CREDITS:  (2032 2972 3371 3552)   

(A)    Deductions From Gross Sales:  If included in reported gross sales, the following are deductible from gross sales:

(1)     Refunds.  The price of admissions, accommodations, tangible personal property, or taxable services returned by a purchaser when the price and the tax collected are refunded in cash or by credit.   

(2)     Bad debts.  Taxable sales that are found to be worthless and are actually and properly charged off as bad debts for federal income tax purposes.  Any amount so deducted and subsequently collected by the taxpayer shall be subject to the tax. 

(3)     Interest and finance charges.  The amount of interest or finance charges on credit extended in connection with any sale, if the interest or finance charges are separately stated from the price.

(B)    Credits From Tax Due:  Amounts previously paid pursuant to a tax levied by a municipality may be credited against the tax due on transactions or items, other than construction materials used in a project for which a City building permit is required, as follows:

(1)     When the present owner or user has previously paid a legally imposed sales or use tax on the transaction or item; except that the amount of such credit shall not exceed the amount of tax on such transaction or item computed at the rate established by Section 4-2-3, W.M.C. 

(2)     When the present owner or user of construction equipment has not previously paid a legally imposed sales or use tax attributable to any one municipality on the full price of such equipment, the credit shall be the aggregate value of all such taxes paid on such equipment up to the amount of tax due to the City on such equipment.

(C)       Collection Fee:  For each reporting period ending on or before December 31, 2010, every retailer shall be entitled to a collection and remittance fee equal to the lesser of one hundred dollars ($100) or two and one-half percent (2 1/2%) of the sum of the tax computed and any excess tax collected.  A retailer shall apply this fee as an offset against the amount of tax due to the City at the time of remittance.  Such fee shall be forfeited for any tax that is not reported and paid by the due date.  Failure to apply this fee as an offset against the amount of tax due at the time of remittance shall result in forfeiture of the collection fee.  This paragraph shall not apply to use tax.

4-1-4:  ACQUISITION OF BUSINESS:  (2032 3544)

(A)    Purchase of an Existing Business. 

(1)     Seller's responsibilities.  Any person engaged in business in the City who sells such business shall file a final return.  The reporting period for such return shall end on the date of the transfer of ownership of the business. 

(2)     Purchaser's responsibilities. 

(a)     Any person who purchases an existing business shall be responsible for determining the total tax liability from that business, and shall withhold from the initial purchase payment an amount sufficient to cover all such total tax liability, unless the former owner produces a receipt from the City showing that the total tax liability has been paid or a certificate from the City that there is no total tax liability.  

(b)     Any amount so withheld shall be paid to the City within ten (10) days of the date of the sale of the business. 

(c)     Any purchaser who fails to withhold such total tax liability, or fails to remit to the City the amount so withheld within the ten (10) day period allowed, shall, as well as the seller, be liable for any unpaid total tax liability.

(B)    Acquisition of an Existing Business by Means Other Than Purchase:   Any person who acquires or takes control of an existing business or the assets of an existing business by means other than purchase shall be responsible for payment of any total tax liability from that business.

4-1-5:  RETAILER RESPONSIBLE FOR COLLECTION AND PAYMENT OF TAX:  (2032 2972 3371)  Every retailer engaged in business in the City shall be liable and responsible for payment of an amount equivalent to the taxable sales multiplied by the specified rate.   

(A)    Tax Added to Price:  Retailers shall add the tax imposed, or the average equivalent thereof, to the price, showing such tax as a separate and distinct item.  Except as provided in this subsection, no retailer shall advertise, or hold out, or state to the public or to any consumer, directly or indirectly, that the tax or any part thereof shall be assumed or absorbed by the retailer, or that it will not be added to the price, or, if added, that it or any part thereof shall be refunded. 

(1)     Sales tax may be included in the price of any malt, vinous or spirituous liquor sold by the drink. 

(2)     Sales tax may be included in the price of items sold from coin-operated devices or the price of utilizing such devices. 

(3)     Admissions tax may be included in the admission charge.

(B)     Tax Constitutes Debt:  Any tax added to the price by a retailer shall constitute a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts. 

(C)    Excess Tax:  No retailer shall retain any tax collected in excess of the tax computed, but shall report such excess collections on the return for the period in which it was collected and include it in the calculation of tax due.

(D)    Disputed Tax:  When a dispute arises between a retailer and a purchaser who claims that the sale is exempt from the tax, the retailer shall collect and the purchaser shall remit such tax.  The purchaser may then submit a Claim for Refund to the City within sixty (60) days of the date of purchase.  Any such tax refunded by the City will be paid directly to the purchaser.

(E)    Use of Electronic Location Database; Retailer Held Harmless:

(1)     Any retailer responsible for the collection and payment of tax under this Title may use an electronic database of State addresses that is certified by the State Department of Revenue pursuant to Section 39-26-105.3, C.R.S., to determine the jurisdictions to which tax is owed. 

(2)     Any retailer that uses the data contained in an electronic database certified by the State Department of Revenue pursuant to Section 39-26-105.3, C.R.S., to determine the jurisdictions to which tax is owed shall be held harmless for any tax, penalty, or interest owed to the City that otherwise would be due solely as a result of an error in the electronic database, provided that the retailer demonstrates that it used the most current information available in such electronic database on the date that the sale occurred.  Each retailer shall keep and preserve such records as prescribed by the Finance Director to demonstrate that it used the most current information available in the electronic database on the date that the sale occurred.  Notwithstanding the above, if the error in collecting and remitting is a result of a deceptive representation, a false representation, or fraud, the provisions of this subsection shall not apply. 

(3)     The provisions of this subsection shall not apply to use tax.

4-1-6:  TRUST STATUS OF TAX IN POSSESSION OF RETAILER:  (2032)  All tax collected by any retailer shall be the property of the City and remain public money in the hands of such retailer, who shall hold the same in trust for the sole use and benefit of the City until paid to the City. 

4-1-7:  RETURNS REQUIRED; TIME FOR FILING AND PAYING TOTAL TAX LIABILITY:  (2032 2972 3371 3544 3553) 

(A)    Except as provided in this Section, every taxpayer shall, on or before the twentieth (20th) day of the month, make a return to the Finance Director for the preceding calendar month, and file such return whether or not tax is due. 

(B)    Occupation Taxes: Every taxpayer required to report and remit occupation taxes shall file a return and remit any tax due pursuant to the applicable provisions of Chapter 5 and Chapter 7 of this Title.

(C)    Construction Equipment: Every person who uses construction equipment in the City shall, on or before the date the construction equipment is located in the City, make a return to the Finance Director, and file such return whether or not tax is due.

(D)    Construction Materials: Every person who pays an estimated prepayment of use tax pursuant to Section 4-2-9, W.M.C., shall make a return to the Finance Director of use tax due in excess of such estimated prepayment. 

(1)     For public and private improvements, such return shall be made on or before the thirtieth (30th) day following written acceptance of any improvements by the City. 

(2)     For projects requiring a City building permit, such return shall be made on or before the thirtieth (30th) day following the issuance of a Certificate of Occupancy, or the date of final inspection by the building official, whichever occurs later. 

(3)     A return shall not be required if no additional use tax is due.

(E)    Initial Use Tax: Every person who purchases or establishes a business inside the City shall, on or before the twentieth (20th) day of the month following the first (1st) day of business, make an initial use tax return to the Finance Director, and file such return whether or not tax is due.

(F)     Cessation of Business: Any person who sells out or quits business shall, within ten (10) days, make a return to the Finance Director and file such return whether or not tax is due.

(G)    Time for Payment: When a return of tax is required under this Title, or regulations promulgated pursuant hereto, the person required to make such return shall, without assessment, pay such total tax liability to the Finance Director at the time and place fixed for filing the return.

(H)    Alternate Reporting Schedule: If the accounting methods employed by the taxpayer, or other conditions, are such that returns made on a calendar month basis will impose unnecessary hardship, the Finance Director may, upon written request of the taxpayer, accept returns at such intervals as will, in the opinion of the Finance Director, better suit the convenience of the taxpayer, but not jeopardize the collection of the tax. The Finance Director may, by rule, permit taxpayers to make returns and pay taxes at intervals not greater than every twelve (12) months. Authorization for such alternate method of reporting may be revoked by the Finance Director and, immediately following notice of such revocation, the taxpayer shall file returns and remit tax on a monthly basis as if the alternate method of reporting and remitting the tax had never been granted. 

(I)     Returns shall contain such information and be made in such manner and upon such forms as the Finance Director may prescribe.

(J)     The signature of the taxpayer or the taxpayer’s duly authorized agent shall appear on all returns.  A valid digital signature, or the equivalent thereof, on a filed return transmitted electronically over the internet or similar means, or a signature on a return sent via facsimile or other form acceptable to the Finance Director, is accepted and held as a written signature.

(K)    For good cause shown in a written request of a taxpayer, the Finance Director may extend the time for making returns and paying or remitting tax due.

(L)    It shall be unlawful for any person to make any false statement in connection with a return. 

4-1-8:  Repealed by Ordinance 3544

4-1-9:  DUTY TO KEEP BOOKS AND RECORDS:  (2032 3544)

(A)    Every person engaged in business in the City shall keep and preserve for at least three (3) years after the due date of the return or the payment of the tax, whichever is later, books, accounts, invoices, and other pertinent papers and records suitable in content and form to allow the accurate determination of the tax due on such return by the Finance Director. 

(B)    Every person who uses construction equipment inside the City shall keep and preserve, for at least three (3) years after the due date of the return or the payment of the tax, records of the time each piece of construction equipment was located inside the City, invoices or records of the price of such construction equipment, and any sales or use tax paid on such construction equipment.

4-1-10:  AUTHORITY OF THE FINANCE DIRECTOR:  (2032 2972 3371)  The administration of this Title is hereby vested in the Finance Director.   

(A)    Forms and Procedures:  The Finance Director shall prescribe forms and administrative procedures for the ascertainment, assessment and collection of the tax.  

(B)    Regulations:  The Finance Director may formulate and promulgate appropriate regulations to effectuate the purpose of this Title as provided by this Code.

(C)    Additional Information:  The Finance Director may require any person to make additional returns, render statements, furnish records, or make informational reports to determine whether such person is liable for payment or collection of the tax.  

(D)    Subpoenas:  The Finance Director may issue a subpoena to command a person to attend and give testimony or to produce books, accounts and records. 

(1)     Any subpoena issued under the terms of this Title shall be served as set forth in the Colorado Rules of Civil Procedure, including the payment of witness fees.  When a witness is subpoenaed at the insistence of the taxpayer, the Finance Director may require that the cost of service of the subpoena and the fee be paid by the taxpayer.  In the discretion of the Finance Director, a deposit to cover the cost of the subpoena and witness fees may be required. 

(2)     If a subpoena issued by the Finance Director is duly served and the respondent fails to attend, give testimony or to produce books, accounts and records as commanded, the Finance Director may request the City Attorney to file a motion with the Municipal Court of the City for an order enforcing the subpoena.

(E)    Oaths:  The Finance Director is authorized to administer oaths and take testimony at the hearing. 

(F)     Agents:  The Finance Director may designate agents to assist in the performance of the duties and responsibilities set forth in this Title. 

(G)    Liquor Licenses:  Prior to the renewal, transfer or issuance of a license to sell any malt, vinous, or spirituous liquor, the Finance Director shall certify to the City Clerk that all returns have been filed and taxes paid.

(H)    Partial Payments; Payments in Installments:  The Finance Director may accept any partial payment made and apply such payments towards the total tax liability or allow payment of a total tax liability on an installment basis.  Payment of part, but less than the total, tax liability shall be first applied to penalty, if any, secondly to accrued interest, and, lastly, to the tax deficiency itself.  Deposit of such payments shall not in any way imply that the remaining balance is or has been abated.  Interest shall continue to accrue on the remaining tax deficiency until paid as provided by this Chapter.

(I)     Notices:  Notices required by this Title shall be in writing and delivered in person or sent post-paid by first-class mail, to the last known address of the taxpayer.

4-1-11:  AUDIT OF RECORDS:  (2032 3544) 

(A)    For the purpose of ascertaining the correct total tax liability from any person engaged in business in the City, the Finance Director may conduct an audit by examining all books, accounts and records of such person. 

(B)    Upon demand by the Finance Director, all books, accounts and records shall be open at any time during the City’s regular business hours for examination at the office of the Finance Director or some other place designated by the Finance Director for examination.  Any person under audit may elect to pay for costs or expenses incurred by the City in order to have such audit conducted at a place other than the place designated by the Finance Director, but, in any case, the time and place of the audit shall be designated by the Finance Director.  If any person refuses to voluntarily produce any of the foregoing information, the Finance Director may issue a subpoena to require that the taxpayer or their representative attend a hearing or produce any such books, accounts and records for examination.   

(C)    Any tax deficiency or overpayment ascertained through audit shall be computed by one (1) or more of the following methods as the agent of the Finance Director deems appropriate: 

(1)     By comparing the tax prepaid with building permits or reported and paid on returns to the actual tax due. 

(2)     By identifying transactions on which the tax was not properly or accurately collected or paid. 

(3)     By identifying other irregularities in the calculation of tax due. 

(4)     By using any of the above methods on a representative sample of the taxpayer's records, and utilizing the results to project the amount of tax deficiency or overpayment, if any.

(D)    Any charitable organization claiming exemption under the provisions of this Title is subject to audit in the same manner as any other person engaged in business in the City.

(E)    Coordinated Audit.  Any taxpayer licensed in this City pursuant to Section 5-4-2, W.M.C., and holding a similar sales tax license in at least four (4) other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein. 

(1)     Within fourteen (14) days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the taxpayer may provide to the Finance Director of this City, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice.  Such request shall include a list of those Colorado municipalities utilizing local collection of their sales tax in which the taxpayer holds a current sales tax license, and a declaration that the taxpayer will sign a waiver of any passage-of-time based limitation upon this City's right to recover tax owed by the taxpayer for the audit period.   

(2)     Except as provided in paragraph (6), any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of the statute of limitations may be audited by this City during the twelve (12) months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit. 

(3)     If this City desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to paragraph (2), the Finance Director shall so notify the Finance Director of the municipality whose notice of audit prompted the taxpayer's request within ten (10) days after receipt of the taxpayer's request for a coordinated audit.  The Finance Director shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of the coordinated audit. 

(4)     If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this City, this City's Finance Director shall facilitate arrangements between this City and other municipalities participating in the coordinated audit, unless and until an official from some other participating municipality agrees to assume this responsibility.  The Finance Director shall cooperate with other participating municipalities to, whenever practicable, minimize the number of auditors that will be present on the taxpayer's premises to conduct the coordinated audit on behalf of the participating municipalities.  Information obtained by or on behalf of those municipalities participating in the coordinated audit may be shared only among such participating municipalities. 

(5)     If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this City, this City's Finance Director shall, once arrangements for the coordinated audit between this City and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities will be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit.  The Finance Director shall also propose a schedule for the coordinated audit. 

(6)     The coordinated audit procedure set forth in this Section shall not apply:

(a)     When the proposed audit is a jeopardy audit;

(b)     To audits for which a notice of audit was given prior to the effective date of this Section;

(c)     When a taxpayer refuses to promptly sign a waiver of the statute of limitations; or

(d)     When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in paragraph (1).

 

4-1-12:  TAX INFORMATION CONFIDENTIAL:  (2032 2972)  All specific information gained under the provisions of this Title that is used to determine the total tax liability from a taxpayer, whether furnished by the taxpayer or obtained through audit, shall be treated by the City and its officers, employees or legal representatives as confidential.   

(A)    Except as directed by judicial order or as provided in this Section, no City officer, employee, or legal representative shall divulge any confidential information.

(1)     The Finance Director may furnish to officials of any other governmental entity any confidential information, provided that said jurisdiction enters into an agreement with the City to grant reciprocal privileges to the City. 

(2)         Nothing contained in this Section shall be construed to prohibit the delivery to a taxpayer or their duly authorized representative of a copy of such confidential information relating to such taxpayer, the publication of statistics so classified as to prevent the identification of particular taxpayers, or the inspection of such confidential information by an officer, employee, or legal representative of the City. 

(3)         The taxpayer shall be deemed to have consented to the disclosure of any confidential documents that are produced by either the City or the taxpayer in any public hearing or litigation arising from this Title. 

(4)     Nothing contained in this Section shall be construed to prohibit the City’s release of the terms of any business assistance or other agreement involving tax rebates or credits.

(B)    If directed by judicial order, the officials charged with the custody of such confidential information shall be required to provide only such information that is directly involved in the action or proceeding.

4-1-13:  TIMELY PAYMENT; COMPUTATION OF DATES:  (2032 2972) 

(A)        Timely payment shall be evidenced by the postmark date if mailed; otherwise timely payment shall be evidenced by the City cashier validation date.

(B)    Any due date, payment date, or deadline for remitting the total tax liability or providing information or taking other action that falls on a Saturday, Sunday or legal holiday recognized by either the federal government or State of Colorado shall be extended to the first (1st) business day following such weekend or holiday.

4-1-14:  OVERPAYMENT FROM RETURNS:  (2032)  If the amount remitted with the return is more than the total tax liability as computed from information in such return, a Notice of Overpayment will be issued.  After examining such Notice, the taxpayer may either submit a Claim for Refund or report the correct total tax liability by filing an amended return.  No refund of such overpayment shall be paid unless a signed Claim for Refund is submitted on or before the thirtieth (30th) day after the date of Notice of Overpayment. 

4-1-15:  TAX OVERPAYMENT DETERMINED THROUGH AUDIT:  (2032)  If the City ascertains through an audit of a taxpayer's records that the total tax liability is less than the full amount paid, a Notice of Overpayment shall be issued.  Such Notice will serve as documentation for a Claim for Refund, if such claim is signed and submitted by the taxpayer within thirty (30) days of the date of the Notice of Overpayment.

4-1-16:  TAX OVERPAYMENTS BY PURCHASERS:  (2032 3544)  Refunds of tax paid to a retailer by a purchaser who claims that the sale is exempt from or not subject to the tax may be requested by such purchaser by signing and submitting a Claim for Refund on or before sixty (60) days from the date of such purchase. 

4-1-17:  CLAIM FOR REFUND:  (2032 2972 3544 3569)  No tax overpayment shall be refunded unless a Claim for Refund is signed and submitted to the City by the taxpayer. 

(A)    Application:  An application for refund of tax shall: 

(1)     Be made on a Claim for Refund form furnished by the City; 

(2)     Be signed by the taxpayer; and 

(3)     Include adequate documentation of the claim. 

(B)    Refunds to Retailers: 

(1)     Refunds of tax collected by a retailer are limited to those retailers who at the time of the refund have either credited to their customer’s account or have refunded to their customer the taxes paid by their customer in error, if any. 

(2)     Refunds of tax collected by a retailer shall not be made to such retailer until the period during which a purchaser may claim refunds of such tax has expired, and then are limited to those amounts, if any, not previously paid by the City to the purchaser pursuant to any claim made by the same.

(C)    Determination:  The Finance Director shall examine the Claim for Refund and give written notice delivered in person or sent postpaid by first-class mail to the last known address of the taxpayer of the amount to be refunded or denied. The determination of the Finance Director shall become final thirty (30) days from the date of personal service of the notice or the date of mailing of the notice; provided, however, that within said thirty- (30) day period, the taxpayer may petition the Finance Director in writing for a revision, modification, or cancellation of such determination in accordance with this Chapter. A taxpayer who fails to protest the determination of the Finance Director within thirty (30) days shall be forever enjoined from claiming a refund of the amounts denied therein, excepting, however, that the Finance Director may, at his sole discretion, grant leave to file a second (2nd) claim in order to avoid a protest by an aggrieved taxpayer pursuant to this Chapter.

(D)    Refunds Not Assignable:  The right of any person to obtain a refund pursuant to this Chapter shall not be assignable. 

(E)    False Statements:  It shall be unlawful for any person to make any false statement in connection with a Claim for Refund.   

4-1-18:  UNDERPAYMENTS FROM RETURNS:  (2032)  If the amount remitted with a return is less than the tax computed from information in such return, a Notice of Assessment shall be issued. 

4-1-19:  FAILURE TO FILE RETURN; FAILURE TO PROVIDE ADEQUATE RECORDS FOR AUDIT; ESTIMATED NOTICE OF ASSESSMENT:  (2032 3544) 

(A)    If any taxpayer neglects or refuses to file a return by the due date, the Finance Director shall estimate the total tax liability as soon as practicable thereafter. Such estimate shall be based upon such information as may be available, with or without employing the investigative powers vested in the Finance Director by this Chapter, and a Notice of Assessment shall be issued. Such estimate may be adjusted if a return showing the actual total tax liability is filed within thirty (30) days from the date of personal service of the Notice or the date of mailing of the Notice. 

(B)    If the Finance Director determines that any taxpayer has neglected or refused to provide adequate books, accounts and records requested for audit, the Finance Director shall estimate the total tax liability.  Such estimate shall be based upon such information as may be available, with or without employing the investigative powers vested in the Finance Director by this Chapter, and a Notice of Assessment shall be issued. 

(C)       An estimated Notice of Assessment issued pursuant to this Section shall be prima facie correct, and the burden of proof that the items, services, privileges, occupations, or other transactions for which modifications or cancellations of such assessment are sought are exempt from or not subject to taxation shall be on the taxpayer and such proof shall be by a preponderance of evidence. 

4-1-20:  TAX DEFICIENCIES DETERMINED THROUGH AUDIT:  (2032)  If the City ascertains through an audit of the taxpayer's records that the tax due has not been fully reported or paid by the applicable due date, a Notice of Assessment shall be issued. 

4-1-21:  PENALTIES:  (2032 2972 3371 3544) 

(A)    Penalty for Tax Deficiency:  A penalty of fifteen dollars ($15.00) or ten percent (10%) of the tax deficiency, whichever is greater, shall be levied on any tax deficiency. 

(B)    Penalty for Fraud:  If any tax deficiency is due to fraud or the intent to evade the tax, the penalty shall be fifty percent (50%) of the total tax deficiency. 

(C)    Penalty for Repeated Enforcement:  If three (3) Notices of Assessment for the same type of tax have been issued to the same taxpayer within thirty-six (36) consecutive months, a special penalty of fifteen percent (15%) of the total tax liability, or twenty-five dollars ($25), whichever is greater, shall be levied. 

(D)    Penalty For Recurring Distraint:  If any taxpayer repeatedly fails, neglects, or refuses to pay the taxes levied by this Title within the time required by this Title, and the City has been required to issue distraint warrants to enforce the collection of the tax due from such taxpayer, the Finance Director is authorized to collect the tax deficiency, together with all interest and penalties thereon provided by law, and also an additionalpenalty of two hundred fifty dollars ($250) each for the second (2nd) and all subsequent distraint warrants regarding the taxpayer that are issued by the City pursuant to this Chapter.

(E)    Penalty for Improper Registration of a Motor Vehicle:  If the Finance Director determines that a person has registered or caused to be registered a motor vehicle outside the City and that such motor vehicle should have been registered at an address in the City, the Finance Director shall levy a civil penalty of five hundred dollars ($500). 

(F)     Assessment and Collection of Penalty: The penalties levied by this Section shall be assessed, collected, and paid in the same manner as provided in this Title for the collection of tax due. Assessment and collection of a penalty shall not preclude the collection of any tax due, any interest due, or the imposition of any other civil or criminal penalty provided by law.  

(G)    Abatement of Penalty:  Any penalty assessed in this Section may be abated by the Finance Director if the Finance Director finds good cause therefore.

4-1-22:  INTEREST:  (2032 2165 2972 3371)  Interest shall be levied at the rate of one percent (1%) each month, or fraction thereof, that any tax deficiency remains unpaid.  Except as provided in this Chapter, interest properly assessed on any tax deficiency shall not be abated and shall be collected and paid in the same manner as the tax itself.   

4-1-23:  NOTICE OF ASSESSMENT:  (2032 2792 3538 3544)  The Finance Director shall issue a Notice of Assessment for any total tax liability.  Notices of Assessment shall be in writing and delivered in person or sent postpaid by first-class mail to the last known address of the taxpayer.  Such total tax liability shall thereupon become an assessment, and such assessment shall be final and due and payable from the taxpayer to the City thirty (30) days from the date of personal service of the Notice or the date of mailing of the Notice; provided, however, that within said thirty- (30) day period, the taxpayer may petition the Finance Director in writing for a revision, modification, or cancellation of such assessment in accordance with this Chapter.  A taxpayer who fails to protest an assessment within said thirty- (30) day period shall be forever enjoined from protesting or appealing said assessment or claiming a refund of amounts paid to the City pursuant thereto, excepting, however, that the Finance Director may, at his sole discretion, grant leave to file a claim for refund in order to avoid a protest by an aggrieved taxpayer.

4-1-24:  ABATEMENT OF TAX DEFICIENCY:  (2032 3371) 

(A)    The Finance Director may abate up to ten percent (10%) of any tax deficiency or five thousand dollars ($5,000), whichever is greater, and the penalty and interest assessed thereon, if the Finance Director finds good cause therefor.  The Finance Director shall submit a report of amounts abated in excess of five hundred dollars ($500) to the City Manager.   

(B)    If the Finance Director issues an estimated Notice of Assessment to a taxpayer who neglects to file a return by the due date, and the taxpayer subsequently demonstrates to the satisfaction of the Finance Director that the amount so estimated is greater than the actual total tax liability, the Finance Director may, for good cause shown, abate the estimated total tax liability to the extent it exceeds the actual total tax liability. 

4-1-25:  PROTEST OF NOTICE OF ASSESSMENT OR DENIAL OF REFUND:  (2032 3371 3538 3544)

(A)    Any Notice of Assessment may be protested by the taxpayer to whom it is issued.

(1)     A taxpayer claiming an error in assessment shall submit a written protest to the Finance Director within thirty (30) days from the date of personal service or the date of mailing of the Notice of Assessment.  Such protest shall state the facts and reasons for and the amount of the requested changes and shall otherwise comply with any rules and regulations promulgated by the Finance Director relating to protests and hearings. 

(2)     The taxpayer may assert any facts and make any arguments that, in the opinion of the taxpayer, are pertinent to the protest.  Only matters contained in the protest shall be considered by the Finance Director. 

(3)     The taxpayer shall be prohibited from amending the protest to assert new facts or make new arguments more than ten (10) days after the protest is received by the Finance Director, unless the Finance Director issues an order either requiring more definite statements or granting leave to amend the protest. 

(4)     When a timely protest is made that conforms to the requirements of this Section, no further enforcement action will be instituted by the City for the portion of the assessment being protested unless:

(a)     the taxpayer fails to pursue the protest in a timely manner; or

(b)     the total tax liability will be jeopardized by delay and the City Manager has issued a jeopardy assessment and demand for payment pursuant to this Chapter. 

(5)     The filing of a protest shall not toll the accrual of interest on the amount of tax due. 

(B)    Any notice that the Finance Director has denied a Claim for Refund, in whole or in part, may be protested by the taxpayer to whom it was issued.

(1)     A taxpayer claiming an error in denial shall submit a written protest to the Finance Director within thirty (30) days from the date of personal service or the date of mailing of the notice of the Finance Director’s determination. Such protest shall state the facts and reasons for and the amounts of the requested changes and shall otherwise comply with any rules and regulations promulgated by the Finance Director relating to protests and hearings. 

(2)     The taxpayer may assert any facts and make any arguments that, in the opinion of the taxpayer, are pertinent to the protest. Only matters contained in the protest shall be considered by the Finance Director. 

(3)     The taxpayer shall be prohibited from amending the protest to assert new facts or make new arguments more than ten (10) days after the protest is received by the Finance Director unless the Finance Director issues an order either requiring more definite statements or granting leave to amend the protest.

(C)    Any timely protest that conforms to the requirements of this Section entitles a taxpayer to a hearing under the provisions of this Title.

(1)         If, in the opinion of the Finance Director, the issues involved in such protest may be resolved administratively, the Finance Director may recommend an informal meeting with the taxpayer. 

(2)         Participation in such an informal meeting does not prevent either the taxpayer or the City from holding a hearing if the dispute cannot be resolved by such meeting. 

(3)         If the issues are satisfactorily resolved at an informal meeting and a hearing is not requested, the remaining total tax liability, if any, shall be paid on or before ten (10) days after the date of the notification of the amount due.

4-1-26:  HEARINGS:  (2032 2275 3544)

(A)      The Finance Director shall notify the taxpayer in writing of the time and place fixed for hearing at least ten (10) days prior thereto, unless the taxpayer agrees to a shorter time. 

(B)    Every hearing shall be held in the City before the Finance Director.

(C)    The burden of proof that the items, services, privileges, occupations, or other transactions for which refunds of taxes are claimed, or for which modifications or cancellations of assessments are sought, are exempt from or not subject to taxation shall be on the taxpayer and such proof shall be by a preponderance of evidence.

(D)    At such hearing, the Finance Director is authorized to administer oaths and take evidence and hear argument. Pursuant to this Title, the Finance Director may issue subpoenas to compel the attendance of witnesses, the giving of testimony, and the production of books, papers, records or memoranda. 

(E)    After such hearing, the Finance Director shall issue a Findings of Fact, Conclusions, and Decision, which may modify or abate the tax, penalties and interest protested at the hearing, approve a refund, or uphold the assessment. The decision of the Finance Director shall be final upon its entry and shall be mailed to the taxpayer forthwith. 

(F)     After such hearing, the taxpayer shall not be entitled to a second (2nd) hearing on the same Notice of Assessment or denial of refund nor shall the taxpayer be entitled to file a claim for refund for amounts denied or paid pursuant to the final decision of the Finance Director on the same.  

(G)    Unless the final decision of the Finance Director is appealed as provided in this Chapter, the remaining total tax liability, if any, shall be paid on or before thirty (30) days after its entry. 

4-1-27:  APPEALS:  (2032 3544) 

(A)    Should the taxpayer be aggrieved by the final decision of the Finance Director subsequent to a hearing held pursuant to this Chapter, the taxpayer may proceed to have the same reviewed in the District Court in and for Adams County pursuant to Rule 106 (a)(4) of the Colorado Rules of Civil Procedure as the same now provides or may hereinafter be amended.

(1)     The petition or complaint for review must be filed within thirty (30) days from the entry of the Finance Director’s final decision. 

(2)     Upon filing a petition or complaint pursuant to this subsection, the taxpayer shall either file with the Finance Director a bond for twice the unpaid amount stated in the Finance Director’s final decision, or deposit the unpaid amount with the Finance Director in lieu of posting a bond. Should the taxpayer deposit the unpaid amount with the Finance Director, no additional interest shall accrue on the tax deficiency. The taxpayer shall not be entitled to interest on any deposited amount returned in accord with the direction of the court.

(B)    Alternative Remedy for Sales and Use Tax: After exhausting the remedies provided in this Chapter, a taxpayer may elect to appeal a sales or use tax assessment or denial of a claim for a refund of a sales or use tax to the Colorado Department of Revenue pursuant to Section 29-2-106.1(3), C.R.S. A notice of this right shall be included in any Notice of Assessment or denial of refund in clear and conspicuous type.

(C)    Any party, including the City, may appeal the decision of the District Court, the Executive Director of the Colorado Department of Revenue, or other such tribunal having jurisdiction, using all judicial, appellate, and extraordinary proceedings available.

(D)    A taxpayer who fails to timely appeal the final decision of the Finance Director pursuant to this Section shall be forever enjoined from protesting or appealing the same or claiming a refund of amounts denied or paid to the City pursuant thereto.   

4-1-28:  LIEN FOR TAX DUE:  (2032 3371)  The tax imposed by this Title, together with the interest and penalties herein provided, and any costs of collection that may be incurred shall automatically be and, until paid, remain a lien upon the real property of and tangible personal property, including goods, stock in trade, and business fixtures, owned or used by any taxpayer, including tangible personal property used under lease, installment sale, or other contract agreement.  Except as provided in this Section, such lien shall be a first and prior lien and shall take precedence on all such property over all other liens or claims of whatsoever kind or nature.

(A)    Priority of Liens Upon Real Property:  A lien upon the real property of the taxpayer shall be a first and prior lien and shall have precedence over all other liens of whatsoever kind or nature, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights shall have attached prior to the filing of a notice of lien by the Finance Director as hereinafter provided.

(B)    Improvements to Real Property:  The use tax imposed by this Title upon any article of tangible personal property that is attached and affixed to realty, or the improvements and structures located thereon, situated within the City, together with interest and penalties herein provided, shall constitute a first and prior lien upon such realty and the improvements located thereon so benefited by the attaching and affixing of such articles of tangible personal property thereto, which lien shall have precedence over all other liens of whatsoever kind or nature, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights shall have attached prior to the filing of a notice of lien by the Finance Director as hereinafter provided. 

(C)    Notice of Lien:  The Finance Director may serve a Notice of Lien in such form as the Finance Director may prescribe with the owner or possessor of property on which a lien has attached or file said Notice with the Secretary of State or the clerk and recorder of any county in Colorado in which the real or personal property is located.   

(D)    Exemption from Lien: 

(1)     The personal property of an owner who has made a bona fide lease to a taxpayer shall be exempt from the lien created in this subsection if such property can reasonably be identified from the lease description and if the lessee is given no right to become the owner of the property leased.  This exemption shall be effective from the date of the execution of the lease if the lease is recorded within ten (10) days of execution with the Secretary of State or county clerk and recorder of the county where the property is located or based. 

(2)     Motor vehicles that are properly registered in this State showing the lessor as owner thereof shall be exempt from such lien, except that such lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed the fair market value, or similar interest that is or may be credited to the lessee. 

(3)     Where a lessor and lessee are blood relatives, or relatives by law, or have twenty-five percent (25%) or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this Section.

(E)    Enforcement Against Real Property:  If a Notice of Lien is filed against real property, the Finance Director may direct the City Attorney to file a civil action to enforce such lien.  The court may determine the interest in the property of each party, decree a sale of the real property, and distribute the proceeds according to such findings. Procedure for the action and the manner of sale, the period for and manner of redemption from the sale, and the execution of deed of conveyance shall be in accordance with the law and practice relating to foreclosures of mortgages upon real property.  In any such action, the court may appoint a receiver of the real property involved in such action if equity so requires.

4-1-29:  PERPETUANCE OF LIEN:  (2032 3544)

(A)    Any lien for total tax liability shall continue until a Release of Lien is filed by the Finance Director.

(B)    Any person who purchases or repossesses real or personal property upon which a lien has attached shall be liable for the payment of such total tax liability up to the value of the property taken or acquired. 

4-1-30:  RELEASE OF LIEN:  (2032)  Upon payment of the total tax liability or enforcement of the lien, the Finance Director shall file a Release of Lien with the county clerk and recorder of the county in which the lien was filed. 

4-1-31:  CIVIL ACTION TO RECOVER TAX DUE:  (2032) 

(A)    Any unpaid total tax liability shall constitute a debt of the taxpayer to the City and the Finance Director may direct the City Attorney to file a civil action to collect such total tax liability.

(B)    The return filed by a taxpayer or the Notice of Assessment issued by the Finance Director shall be prima facie proof of the total tax liability.

(C)    If a judgment is obtained by the City, collection of the total tax liability may be made by attachment, garnishment or other means authorized by law.  When attachment is sought, no bond shall be required of the Finance Director nor shall any sheriff require of the Finance Director an indemnity bond for executing the writ of attachment or writ of execution upon any judgment. 

4-1-32:  JEOPARDY ASSESSMENT:  (2032 2972 3371) 

(A)    Issuance:  If the collection of any total tax liability from a taxpayer, whether or not previously assessed, will be jeopardized by delay, the City Manager may declare the taxable period immediately terminated, order the Finance Director to determine the total tax liability, and issue a Jeopardy Assessment and Demand for Payment.  Notwithstanding the provisions of Section 4-1-25(A), W.M.C., any total tax liability so assessed shall be due and payable immediately.   

(B)    Security for Payment:  Enforcement of a jeopardy assessment and demand for payment may be stayed if the taxpayer gives security for payment that is satisfactory to the City Manager.   

(C)    Dispute of Jeopardy Assessment:  If, in the opinion of the taxpayer, the jeopardy assessment is not for the correct amount of total tax liability, the taxpayer shall remit the total tax liability as assessed and submit a Claim for Refund to the City.

4-1-33:  LEVY, DISTRAINT AND SALE:  (2032 2972 3371 3538 3544)

(A)    The City Manager may sign and issue a warrant directed to any employee or agent of the City, or any sheriff of any county in Colorado, sometimes in this Section collectively referred to as “agent,” commanding the levy upon, and distraint and sale of all property and rights to property, except as exempted by this Section of the taxpayer or on which a lien has attached for the payment of the total tax liability.

(1)     Such warrant may be issued if the total tax liability is not remitted on or before thirty (30) days from the date of a Notice of Assessment and no protest of such assessment has been timely filed. 

(2)     Such warrant may be issued if the total tax liability is not paid within thirty (30) days from the final decision issued by the Finance Director after a hearing on a timely protested Notice of Assessment and no petition for appeal has been timely filed as provided by this Title. 

(3)     Such warrant may be issued immediately if a Jeopardy Assessment and Demand for Payment has been issued.

(B)        The City Manager may apply to the Municipal Court of the City for a warrant authorizing any employee or agent of the City to search for and distrain property located inside the City to enforce the collection of total tax liability.

(1)         The City Manager shall demonstrate to the Court that the premises to which entry is sought contains property that is subject to distraint and sale for total tax liability. 

(2)     If a Jeopardy Assessment and Demand for Payment has been issued, the City Manager shall specify to the Court why collection of the total tax liability will be jeopardized. 

(3)     The procedures to be followed in issuing and executing a warrant pursuant to this subsection shall comply with Rule 241 of the Colorado Municipal Court Rules of Procedure.

(C)    Levy and Distraint:

(1)     Levy and distraint may be made by serving a notice of levy or distraint warrant on any person in possession of, or obligated with respect to, property or rights to property subject to levy, including receivables, bank accounts, evidences of debt, and securities. 

(2)     Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the City, surrender such property or rights to property or discharge such obligation to the City, except such part of the property or rights to property as is, at the time of such demand, subject to an attachment or execution under any judicial process. 

(3)     A person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the City, is liable in person and estate to the City in a sum equal to the value of the property or rights to property not so surrendered, but not exceeding the amount of the total tax liability for the collection of which such levy has been made, together with costs of collection and interest on such sum at the rate determined pursuant to Section 4-1-22, W.M.C., from the date of such levy. Any amount, other than costs and additional interest, recovered under this paragraph shall be credited against the total tax liability for the collection of which this levy was made. 

(4)     A person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made who, upon demand by the City, surrenders the property or rights to property, or discharges the obligation to the City, or who pays a liability under paragraph 3 of this subsection is discharged from any obligation or liability of the delinquent taxpayer with respect to such property or rights to property arising from the surrender or payment. 

(5)     As used in this subsection, “person” includes an officer or employee of a corporation; an officer, member, manager, or employee of a limited liability company; an officer, employee, or elected official of the State of Colorado, its departments or institutions, and the political subdivisions thereof; or a member or employee of a partnership, who as such officer, member, manager, elected official, or employee, is under a duty to surrender the property or rights to property, or to discharge the obligation.

(D)    Disposal of Distrained Property: 

(1)     The agent charged with the collection shall make or cause to be made an inventory of the property distrained, a copy of which, signed by the agent making such distraint, shall be served by leaving it with the owner or possessor of the property; or at the person’s usual place of abode; or with any officer, manager, accountant, bookkeeper, general agent, registered agent, or agent for process; or finally by mailing by certified mail to the last known address of the owner or possessor, together with a copy of the warrant, a notice of the sum of the total tax liability and related expenses incurred to date, and notice of the time and place of sale.   

(2)     A notice of the time and place of the sale, together with a description of the property to be sold, shall be published in a newspaper of general circulation within the county where distraint is made or, in lieu thereof and in the discretion of the Finance Director, the notice shall be posted at the courthouse of the county where distraint is made, and in at least two (2) other places within such county. 

 (3)     The time fixed for the sale shall not be less than ten (10) days nor more than sixty (60) days from the date of distraint. The sale may be postponed by the City or agent for no more than ninety (90) days from the date originally fixed for the sale, except, however, if the property distrained consists of live animals, perishable goods, or is of other such nature that would, in the opinion of the Finance Director, make it dangerous or otherwise inadvisable to retain for said period, it may be immediately sold or disposed of by the agent. 

(4)     The property shall be sold at public auction for not less than a fair minimum price, and if the amount bid for the property is less than the fair minimum price so fixed, the property may be declared to be purchased by the City and the City shall file a Release of Lien thereof.  If the property is purchased by the City, such property may be disposed of in the same manner as other City property. 

(5)     The property may be offered first by bulk bid, then subsequently for bid singularly or by lots, and the City or its agent may accept the higher bid.

(6)     The property offered for sale shall be restored to the owner or possessor if, not less than twenty-four (24) hours prior to the sale, the total tax liability, together with all costs of collection, are paid by the owner or possessor or other person holding an unperfected chattel mortgage or other right of possession.

(7)     The City or its agent shall issue to each purchaser a certificate of sale, which shall be prima facie evidence of its right to make the sale and conclusive evidence of the regularity of its proceedings in making the sale, and shall transfer to the purchaser all right, title, and interest of the taxpayer in and to the property sold. 

(a)     When the property sold consists of certificates of stock, the certificate of sale shall be notice to any corporation, company, or association to record the transfer on its books and records.

(b)     When the property sold consists of securities or other evidences of debt, the certificate of sale shall be good and valid evidence of title. 

(c)     When the property sold consists of a motor vehicle, the certificate of sale shall be notice, when received, to any public official charged with the registration of title to motor vehicles of such transfer and shall be authority to record the transfer in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not.

(8)     Any surplus remaining after satisfaction of the total tax liability, plus any costs of making the distraint and advertising the sale, may be distributed by the City first to other jurisdictions that have filed liens or claims of sales and use or personal property ad valorem taxes, and second to the owner, or such other person having a legal right thereto.  

(9)     The Finance Director shall submit a written account of the sale to the City Manager.

(E)    Property Subject to Distraint; Exempt Property:  Property of the taxpayer subject to distraint shall include the personal property of the taxpayer and the goods, stock in trade and business fixtures owned or used by any taxpayer, including those used under lease, installment sale, or other contract arrangement.  Property exempt from distraint and sale shall include the personal property described as such in Section 4-1-28(D), W.M.C.

(F)     Return of the Property:  The taxpayer or any person who claims an ownership interest or right of possession in the distrained property may petition the City Manager, or the Municipal Court, if the property was seized pursuant to a warrant issued by the Court, for the return of the property.

(1)     The grounds for return of the property shall be that the person has a perfected interest in such property that is superior to the City's interest or that the property is exempt from the City's lien.   

(2)     The factfinder shall receive evidence on any issue of fact necessary to the decision of the petition.  If the factfinder determines, by a preponderance of the evidence, in favor of the taxpayer or other petitioner, the property shall be returned. 

(G)    Notice of Intent to Levy:  Every notice of assessment issued by the Finance Director shall contain notice of the City’s right to enforce collection of the sum demanded by levy, distraint and sale pursuant to this Section.

4-1-34:  STATUS OF TAX DUE IN BANKRUPTCY AND RECEIVERSHIP:  (2032 2972 3371)  Whenever the business or property of any taxpayer is subject to receivership, bankruptcy or assignment for the benefit of creditors, or distrained for property taxes, the total tax liability shall remain a claim and lien against the property of the taxpayer to which a lien has attached pursuant to this Chapter.  No sheriff, receiver, assignee or other officer shall sell the property of any such taxpayer under process or order of any court without first ascertaining from the Finance Director the amount of the total tax liability.  The officer shall remit any total tax liability before making payment to any judgment creditor or other claimants. 

4-1-35:  VIOLATIONS; SUMMONS AND COMPLAINT; PENALTY:  (2032 3371)

(A)    It shall be a violation of this Title to fail to perform any applicable affirmative duty specified in this Title, including, but not limited to: 

(1)     The failure of any person engaged in business in the City to obtain a license; 

(2)     The failure of any taxpayer to file a timely return or to make timely payment of any total tax liability;

(3)     The failure of any resident individual or business to comply with the registration requirements for automotive vehicles;

(4)     The making of any false or fraudulent statement by any person in any return, Claim for Refund, or hearing; or

 (5)     The evasion of collection of any tax by any person or the aiding or abetting of any other person in an attempt to evade the timely payment of tax due.

(B)    The Finance Director may direct the issuance of a complaint and summons to appear before the Municipal Court of the City to any person who may be in violation of this Title or of the rules and regulations promulgated by the Finance Director to enforce this Title.

(C)    Violations of this Title are criminal offenses and shall be punished by a fine or imprisonment or both pursuant to Title VI of this Code.  Each and every twenty-four (24) hour continuation of any violation shall constitute a distinct and separate offense. 

4-1-36:  STATUTE OF LIMITATIONS:  (2032 3371 3544 3633)  Unless the limitation period has been extended as provided in this Section, the statute of limitations for provisions contained in this Title shall be as follows:   

(A)    Refunds: 

(1)     No refund of tax paid to a retailer by a purchaser shall be issued to such purchaser unless a Claim for Refund is submitted to the City by the purchaser on or before sixty (60) days from the date of such purchase.  

(2)     No refund of overpayment from returns shall be issued unless a Notice of Overpayment is submitted to the City on or before thirty (30) days after the date of such Notice of Overpayment. 

(3)     No other refund shall be issued unless a Claim for Refund is filed on or before three (3) years after the date such overpayment was paid to the City.

(B)    Assessments:  Except as provided in this Section and unless such period is extended, the tax levied by this Title and the penalty and interest applicable thereto, other than interest accruing thereafter, shall be assessed within three (3) years after the return is filed, and no notice of lien shall be filed, or distraint warrant issued, or suit for collection instituted, or any other action to collect the same commenced, after the expiration of such period unless the Finance Director issues a notice of assessment within such period.

(1)     For purposes of this Section, a return shall include a construction equipment declaration, an initial use tax return, and any other form prescribed by the Finance Director for reporting a total tax liability. 

(2)     For purposes of this Section, a return filed before the last day prescribed by law or by regulation promulgated pursuant to this Title for the filing thereof shall be considered as filed on such last day. 

(3)     When a taxpayer fails or refuses to file a return, or files a false or fraudulent return with intent to evade tax, the total tax liability may be assessed and collected at any time.

(C)    Protests:  No protest of a Notice of Assessment or Denial of a Claim for Refund shall be valid if submitted to the Finance Director in other than written form or after the period allowed in this Chapter.

(D)    Except as otherwise provided in this Title, a complaint or action for a violation of this Title shall be instituted within three (3) years after the alleged violation.

(E)    Except for the period described in subsections (C) and (D) of this Section, the period of limitation may be extended before its expiration. 

(1)     The taxpayer and the Finance Director may agree in writing to extend the period. 

(2)     If the City provides written notice to the taxpayer prior to the expiration of the period of limitation that the latter's records will be audited pursuant to this Chapter, such period of limitation shall be extended for the audit period until thirty (30) days after the date of the Notice of Assessment or Notice of Overpayment issued as a result of such audit.  "Audit period" includes all reporting periods with due dates that fall within the thirty-six (36) month period preceding the date of the notice of audit, or, if a City building permit is required, the period between the issuance of such building permit and the issuance of a final Certificate of Occupancy.

(F)  To the extent the periods described in this Section have not expired or been extended, the Finance Director may issue assessments and refund taxes paid, notwithstanding any previous audit, investigation, assessment, or refund pertaining to the same.

4-1-37:  LEGISLATIVE INTENT:  (2972)  Any changes to the City’s tax policy resulting in a net revenue increase to the City shall be subject to voter approval in accordance with the provisions of Colorado Constitution Article X, Section 20. 

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