TAXPAYER LIABILITY

Colorado Springs City Code ch. 2, art. 7, pt. 6

in effect

Colorado Springs City Code § 2.7.601 EXEMPTION BURDEN OF PROOF

2.7.601: EXEMPTION BURDEN OF PROOF: The burden of proving that any retailer or consumer is exempt from collecting or paying the tax upon any goods sold or purchased, paying the same to the City, or from making returns, shall be on the retailer or consumer under reasonable requirements of proof prescribed by the Director. (1968 Code §3-76; Ord. 76-168; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.602 RETAILER'S RESPONSIBILITY

2.7.602: RETAILER'S RESPONSIBILITY: A. Collection Of Tax: Every retailer "Engaged In Business" and selling at "Retail" shall, irrespective of the provisions of part 2 of this article, be liable and responsible for the payment of an amount equivalent to three and seven one-hundredths percent (3.07%) of all sales made by the retailer of commodities or services as specified in part 3 of this article. B. Remittance Of Tax: Every retailer "Engaged In Business" and selling at "Retail" shall file a return with the Director on or before the twentieth day of the month for the preceding month or months under report and remit an amount equivalent to three and seven one-hundredths percent (3.07%) of the taxable sales and also any excessive tax collections over three and seven one-hundredths percent (3.07%) as provided in section 2.7.808 of this article. The retailer shall add the tax to the amount of the sale as a separate and distinct item, and the tax shall be a debt from the consumer to the retailer and shall be recoverable at law in the same manner as other debts. C. Tax On Credit Sales: In the case of a sale on credit, rental purchase agreement or a conditional contract sale whereby the seller retains title as security for all or part of the purchase price, or whenever the seller takes a security interest in the goods or commodities to secure all or part of the purchase price, the total tax based on the taxable selling price shall become immediately due and payable. This tax shall be charged and collected by the seller. No refund or credit shall be allowed by either party to the transaction in case of repossession. (1968 Code §3-77; Ord. 76-168; Ord. 84-27; Ord. 91-161; Ord. 92-149; Ord. 93-176; Ord. 94-206; Ord. 95-182; Ord. 96-208; Ord. 97-97; Ord. 01-42; Ord. 01-168; Ord. 15-97 1 ; Ord. 20-61 2 ) Notes 1 | 1. January 1, 2016, is the effective date of ordinance 15-97. 2 | 2. January 1, 2021 is the effective date of ordinance 20-61.

Colorado Springs City Code § 2.7.603 RESPONSIBILITY FOR USE TAX PAYMENTS

2.7.603: RESPONSIBILITY FOR USE TAX PAYMENTS: A. City Residents: 1. Every resident of the City who purchases or leases taxable tangible personal property or taxable services for use, storage or consumption in the City from sources within or without the City and who has not paid the tax imposed by this City Tax Code to a retailer required or authorized to collect the tax shall file a City use tax return and pay the tax due to the City within thirty (30) days from the date of purchase or lease of the taxable tangible personal property or taxable service. 2. The City use tax return shall show the value of the tangible personal property purchased or the rental or cost of leasing the property, the use, storage, distribution or consumption of which is subject to the tax imposed by this City Tax Code, during the period of time covered by the return. B. City Businesses: 1. Every person who operates or maintains a business in the City and who purchases or leases taxable tangible personal property for use, storage or consumption in the City in connection with that business, from sources within or without the City, and who has not paid the tax imposed by this City Tax Code to a retailer required or authorized to collect the tax, shall, monthly, make a use tax return and pay the tax due to the City, on or before the twentieth day of the month following the purchase or lease and on or before the twentieth day of each succeeding calendar month for the preceding calendar month. 2. Returns shall show the value of the tangible personal property purchased or the rental or cost of leasing the property, the use, storage, distribution or consumption of which became subject to the tax imposed by this City Tax Code during the period of time covered by the return. (1968 Code §§3-78, 3-79; Ord. 76-168; Ord. 01-42)

Colorado Springs City Code § 2.7.604 CONTRACTORS, OWNERS OR LESSEES OF REALTY

2.7.604: CONTRACTORS, OWNERS OR LESSEES OF REALTY: Every purchase by a contractor shall be taxable as a purchase at retail unless the purchase is for taxable resale or otherwise exempt under this City Tax Code. Every contractor who shall build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure, or make improvement to real property, including all work performed on Federal, State, County, City, exempt institution and private construction job sites in this City and shall purchase construction and building materials, and every owner or lessee of realty situate in the City, upon which any article or articles of tangible personal property acquired from sources within or without the City are attached or affixed and which contractor, owner or lessee has not paid the sales tax imposed by this City Tax Code thereon, to a retailer required or authorized to collect the same, shall pay a use tax by making a monthly return and paying the tax due to the City, on or before the twentieth day of the month following the purchase and on or before the twentieth day of each calendar month thereafter for the preceding calendar month. A. Contents Of Return: Returns shall show the value of the tangible personal property purchased by the person, the use, storage, distribution or consumption of which became subject to the tax imposed by this City Tax Code during the period of time covered by the return. B. Books And Records: Any person who shall build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property within the City or who shall contract the aforesaid to be done and who shall purchase lumber, fixtures or any other building materials and supplies used therefor, or who shall contract for the purchase of the aforesaid shall keep and preserve all invoices, statements and other records showing the purchases. C. Preservation Of Books And Records: Any failure to preserve the invoices, statements and records shall cause all estimates and assessments of the tax owed, pursuant to section 2.7.1002 of this article, to be the only evidence of the tax due. D. Furnishing Of Information: It shall be the duty of the Regional Building Official 1 and the contractors and subcontractors who are hired to do the above stated work, or any portion thereof, to furnish the Director information as he may require as to any purchases of lumber, fixtures or any other building materials and supplies for the work. E. Building Inspections: An inspection, including a periodic or final inspection, shall not be made by the Regional Building Official, nor shall a certificate of occupancy, whether temporary or final, be issued, unless all taxes due as provided by this City Tax Code, on all construction and building materials connected with the construction, reconstruction, alterations, expansion, modification or improvement to real property within the City have been paid or arrangements therefor made with the Director. (1968 Code §3-80; Ord. 76-168; Ord. 81-251; Ord. 01-42; Ord. 23-36) Notes 1 | 1. The Regional Building Official is the administrator of the Regional Building Department. See chapter 7 of this Code.

Colorado Springs City Code § 2.7.605 NEW BUSINESS PURCHASES; SELLERS AND CONSUMERS

2.7.605: NEW BUSINESS PURCHASES; SELLERS AND CONSUMERS: A. Acquisition Of Business: The City tax shall be remitted on the price paid for tangible personal property which is acquired with the purchase of a business. The tax shall be based on the price paid for tangible personal property as recorded in the bill of sale or agreement and constituting a part of the total transaction at the time of the sale or transfer, provided the valuation is as great or greater than the fair market value of the tangible personal property. Where the transfer of ownership is a package deal made by a lump sum transaction, the tax shall be paid on the book value of tangible personal property set up by the consumer for income tax depreciation purposes, or on the fair-market value if no determination for income tax purposes has been made. When a business is taken over, by foreclosure or otherwise, in return for the assumption of outstanding indebtedness owed by former owners, the tax shall be paid on the fair-market value of all taxable tangible personal property acquired by the new owner. B. Purchaser Liable For Prior Owner's Unpaid Tax: The seller of a business, having outstanding City sales or use tax liability, must compute and pay the tax due at the time of the sale of the business. If the seller fails to pay the tax as required, the purchaser shall be liable for any unpaid tax of a predecessor. C. Agent Of Seller And Seller Liable For Tax: The purchaser shall report the tax on the City use tax return. The seller or the seller's agent shall be held liable for sales and use tax remittance on the sale of a business in the event the purchaser fails to remit the use tax due on the purchase. D. Return And Withholding Taxes: Any person who shall sell out a business or stock of goods or shall quit doing business shall be required to make out a return as provided in this City Tax Code within ten (10) days after the date that person completes the sale of the business or stock of goods, or quits business, and any successor in business, if any, shall be required to withhold a sufficient amount of the purchase money to cover the amount of the sales and use taxes due and unpaid until the time as the former owner shall produce a receipt from the Director showing that the taxes have been paid, or a certificate that no taxes are due. (1968 Code §3-81; Ord. 76-168; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.606 REGISTRATION OF AUTOMOTIVE VEHICLES

2.7.606: REGISTRATION OF AUTOMOTIVE VEHICLES: A. As used in this section "Penalty Assessment" means a written notice of the determination of the Director that a violation of Colorado Revised Statutes section 42-6-139(2), has occurred and assessment and demand for payment of the civil penalty provided in subsection C of this section. B. It is unlawful to register a motor vehicle in violation of the provisions of Colorado Revised Statutes section 42-6-139(2). C. Any person who causes a motor vehicle to be registered in violation of the provisions of Colorado Revised Statutes section 42-6-139(2), shall be assessed a five hundred dollar ($500.00) civil penalty pursuant to the authority granted in Colorado Revised Statutes section 42-6-139(4). The procedure for the assessment of the civil penalty shall be as follows: 1. When the Director determines on the information as is available that a person has caused a motor vehicle to be registered in violation of the provisions of Colorado Revised Statutes section 42-6-139(2), the Director shall issue to the person a penalty assessment. If the Director also has determined pursuant to section 2.7.1002 or 2.7.1202 of this article that sales or use taxes are due to the City on the purchase of the motor vehicle, the penalty assessment may be included in a deficiency notice. 2. The person shall pay the penalty assessment within the time period of this Code provided pursuant to section 2.7.1002 or 2.7.1202 of this article for payment of any amount due pursuant to a deficiency notice, unless the person requests a hearing in the manner provided in subsection C3 of this section. 3. If the person desires to protest the penalty assessment, the person shall request in writing a hearing before any referee as provided in subsection 2.7.903D of this article in the twenty (20) day time period as provided pursuant to subsection 2.7.903A of this article for requesting a hearing. The request for a hearing shall set forth the facts that show that a violation of Colorado Revised Statutes section 42-6-139(2), did not occur. The referee shall issue a written decision affirming or withdrawing the penalty assessment within the same time period and in the same manner as provided pursuant to section 2.7.903 of this article after hearing on a deficiency notice. If the decision affirms the penalty assessment, the person shall pay the civil penalty within thirty (30) days after the decision unless an appeal is made to the Director pursuant to section 2.7.904 of this article. If an appeal is made to the Director pursuant to section 2.7.904 of this article, a hearing shall be held by the Director as hearings are otherwise provided under section 2.7.904 of this article. 4. The person may seek judicial review of the decision by the Director made under the provisions of section 2.7.904 of this article under rule 106(a)(4) of the Colorado Rules of Civil Procedure as the same provide or may hereinafter be amended. The alternative dispute resolution procedure set forth in section 2.7.908 of this article shall not apply to review of a civil penalty assessment under this section. 5. The Director may enforce collection of the penalty assessment in the same manner as provided pursuant to this City Tax Code for the collection of unpaid sales or use taxes, penalties or interest. 6. Nothing in this section shall preclude the collection of any tax or fee provided by law, the collection of any penalties or interest thereon provided by law, or the imposition of any other civil or criminal penalty provided by law. D. Registration; Where Made: 1. For purposes of this section, a person's residence shall be the person's principal or primary home or place of abode to be determined in the same manner as residency for voter registration purposes as provided in Colorado Revised Statutes sections 1-2-102 and 31-10-201; except that "Voter Registration" shall be substituted for "Motor Vehicle Registration" as a circumstance to be taken in to account in determining the principal or primary home or place of abode. 2. Except as may be otherwise provided by rule or regulation of the Director of Revenue of the State of Colorado, it is unlawful for any person who is a resident of this State to register any motor vehicle owned by the person or to obtain a license or to procure a certificate of title at any address other than: a. For a motor vehicle which is owned by a business and operated primarily for business purposes, the address from which the vehicle is principally operated and maintained; a person maintaining a business within the City meeting the requirements of this subsection D2a shall be a "Business Resident" under the provisions of this section. b. For any motor vehicle for which the provisions of subsection D2a of this section do not apply, the address of the owner's residence; except that, if a motor vehicle is permanently operated and maintained at an address other than the address of the owner's residence, the motor vehicle shall be registered at the address from which the motor vehicle is permanently operated and maintained. E. Sales And Use Tax Requirements; Motor Vehicles: 1. Purchase In The City By A City Resident: The purchase of an automotive vehicle in the City by a person who is a City resident at the time of purchase for use within the City shall be subject to City sales or use tax. The tax shall be collected by the retailer selling the automotive vehicle and shall be paid by the consumer. If the seller does not collect the tax, the purchaser shall pay the tax to the City or its agent prior to or at the time the registration certificate is issued by the County Clerk and Recorder of El Paso County. The tax shall be payable even if the purchaser subsequently moves out of the City after the purchase. 2. Purchases Outside City By A City Resident: The purchase of any automotive vehicle outside the City by a person who is a City resident at the time of purchase for use or storage in the City shall be subject to taxation hereunder. The tax shall be payable to the City or its agent prior to or at the time the registration certificate is issued by the County Clerk and Recorder of El Paso County. The tax shall be payable even if the purchaser subsequently moves out of the City after the purchase. 3. Payment Of Tax Before Registration: Any resident of the City who shall purchase any "automotive vehicle" as defined in this City Tax Code, whether new or used, from sources within or without this City, for use within the City shall, prior to or at the same time of registering within El Paso County and obtaining the license for the vehicle, pay City sales tax to the retailer selling the automotive vehicle, or pay the applicable tax to El Paso County Clerk and Recorder as agent of the City or make a return showing the transaction to the Director and pay the tax applicable. Failure to pay the tax on the automotive vehicle as provided in this City Tax Code shall constitute a violation of this City Tax Code. 4. Restrictions On Registration And Transfer Of Title: No automotive vehicle purchased or acquired by a resident of the City for use in the City shall be registered in El Paso County, nor shall title thereto be transferred within El Paso County, nor shall a license or registration for the use thereof in the State of Colorado be issued by the County Clerk of El Paso County, if the tax imposed by this City Tax Code upon the purchase, or use, storage, distribution or consumption of the same has not been paid to the City or its agent. 5. Failure To Register Automotive Vehicles As Resident Of City: Any resident of the City who registers an automotive vehicle, whether new or used, outside the corporate limits of the City for use within the City, shall immediately, and prior to registering and obtaining a license therefor, make a return, showing the transaction to the Director and thereupon pay the applicable tax. Failure to pay the tax on the automotive vehicle as provided in this City Tax Code shall constitute a violation of this City Tax Code. 6. Registration To Evade Taxation: It shall be unlawful for any resident of this City to evade the collection or payment of any taxes collected or due the City, or the payment of any interest or penalty due the City under this section by registering the automotive vehicle except in conformity with the provisions of this section. (Ord. 87-157; Ord. 91-161; Ord. 93-176; Ord. 94-206; Ord. 01-42)

Colorado Springs City Code § 2.7.607 LIABILITY OF FIDUCIARIES

2.7.607: LIABILITY OF FIDUCIARIES: A. Satisfaction Of Liability: For the purpose of facilitating the settlement and distribution of estates, trusts, receiverships, other fiduciary relationships, and corporations in the process of dissolution or which have been dissolved, the Director may agree with the fiduciary or surviving directors upon the amount of taxes due from the decedent, or from the decedent's estate, the trust, receivership, or other fiduciary relationship, or corporation, for any of its taxable periods, under the provisions of the taxes covered by this City Tax Code and except upon a showing of fraud, malfeasance or misrepresentation of a material fact, payment in accord with the agreement shall be full satisfaction of the taxes for the taxable periods to which the agreement related. B. Personal Liability: Except as provided in subsection D of this section, any personal representative of a decedent, or of the estate of a decedent, or any trustee, receiver, or other person acting in a fiduciary capacity, or any director of a corporation in the process of dissolution or which has been dissolved, who distributes the estate or fund in the person's control without having first paid any taxes covered by this City Tax Code due from the decedent, decedent's estate, trust estate, receivership, or corporation, covered by this City Tax Code and which may be assessed within the time limited by this City Tax Code, shall be personally liable to the extent of the property so distributed, for any unpaid taxes of the decedent, decedent's estate, trust estate, receivership, or corporation, covered by this City Tax Code and which may be assessed within the time limited by this City Tax Code. C. Notification Of Liability: The distributee of a decedent's estate, or a trust estate or fund, or the stockholder of any dissolved corporation who receives any of the property of the decedent's estate, trust estate, fund, or corporation, shall be liable to the extent of the decedent, trust estate, fund, or corporation, covered by this City Tax Code and which may be assessed within the time limited by this City Tax Code. Notice to the distributee or stockholder shall be given in the same manner and within the time limit which would have been applicable had there been no distribution. D. Limitation Of Liability: 1. In the event tax covered by this City Tax Code is due from a decedent, or of the decedent's estate, or by a corporation, and in order for a personal liability under subsection B of this section to remain in effect, determination of the tax due shall be made and notice and demand therefor shall issue within eighteen (18) months after written request for the determination, filed after the filing of the decedent's final return or filed after the filing of the return of the decedent's estate with respect to which the request is applicable, by any personal representative of the decedent, or by the corporation, filed after the filing of its return; but a request under this provision shall not extend the period of limitation otherwise applicable. 2. This subsection D of this section will not apply in the case of a corporation unless: a. The request notifies the Director that the corporation contemplates dissolution at or before the expiration of the eighteen (18) month period; b. The dissolution is begun in good faith before the expiration of the eighteen (18) month period; and c. The dissolution is completed. 3. Upon the expiration of the eighteen (18) month period, without determination being made and notice and demand being issued, the personal representative or representatives of the decedent, and the directors of the corporation no longer will be liable under the provisions of subsection B of this section. (1968 Code §3-106; Ord. 76-168; Ord. 01-42)

Colorado Springs City Code § 2.7.608 SALES BY AUCTION

2.7.608: SALES BY AUCTION: The auctioneer at any sale, except when acting as an agent for a duly licensed retailer licensed to sell the commodities or articles under auction, or when selling only tangible personal property which is exempt from retail sales or use tax, is a retailer and the business conducted by the auctioneer in accomplishing the sale is the transaction of a business as defined. (Ord. 91-161; Ord. 01-42)

Source: City of Colorado Springs, Colorado, City Code and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/coloradospringsco/latest/coloradosprings_co/0-0-0-3833Fetched: 11/1/2026