TAX RETURNS AND PAYMENTS

Colorado Springs City Code ch. 2, art. 7, pt. 8

in effect

Colorado Springs City Code § 2.7.801 REPORTING AND REMITTANCE PERIODS

2.7.801: REPORTING AND REMITTANCE PERIODS: A. Every retailer shall file a tax return with the Director, on or before the twentieth day of each calendar month, for the preceding month, and shall simultaneously remit an amount equal to the amount of tax required by part 2 of this article. B. If the accounting methods regularly employed by the retailer or licensed consumer in the transaction of business, or other conditions are such that the returns aforesaid made on a calendar month basis will impose unnecessary hardship, the Director may, upon written request of the retailer or licensed consumer, accept returns at intervals as will, in the Director's opinion, better suit the convenience of the taxpayer and will not jeopardize the collection of the tax, provided that the Director may by rule permit a retailer or licensed consumer whose monthly City tax liability is less than three hundred dollars ($300.00) to make returns and pay taxes at intervals not greater than every three (3) months or whose monthly City tax liability is fifteen ($15.00) or less to make returns and pay taxes on an annual basis, or as approved by the Director. Tax returns filed on a quarterly or annual basis shall be filed with the Director on or before the twentieth day of the month following the end of the reporting period. C. Every retailor who files exclusively through the Colorado Department of Revenue Sales and Use Tax System (SUTS) is permitted to follow the State of Colorado's filing frequency requirements. (1968 Code §3-85; Ord. 76-168; Ord. 83-164; Ord. 91-161; Ord. 93-176; Ord. 01-42; Ord. 20-47)

Colorado Springs City Code § 2.7.802 FORM AND CONTENTS

2.7.802: FORM AND CONTENTS: A. Returns to be filed by the taxpayer or other persons required to file returns shall contain the information and be made in a manner and upon the forms as the Director may prescribe. B. The City shall use the standard municipal sales and use tax reporting form and any subsequent revisions thereto adopted by the Executive Director of the Department of Revenue by the first full month commencing one hundred twenty (120) days after the effective date of the regulation adopting or revising the form. On the adoption of the form set forth in this section by the Executive Director of the Department of Revenue, the Director shall provide for an effective date for the form within the period prescribed in subsection 2.7.801B of this part and on the form becoming effective, the form shall supersede and replace any form in conflict prescribed by the Executive Director under subsection A of this section. (Ord. 85-274; Ord. 01-42)

Colorado Springs City Code § 2.7.803 CONSOLIDATION OF RETURN

2.7.803: CONSOLIDATION OF RETURN: A retailer engaged in business in two (2) or more places or locations, whether within or without the City, and collecting taxes, may file one return covering all places or locations, when accompanied by a supplemental report showing the gross and net taxable sales for each place or location. (1968 Code §3-85; Ord. 76-168; Ord. 01-42)

Colorado Springs City Code § 2.7.804 RETAILER'S FEE; TIMELY FILING OF RETURN

2.7.804: RETAILER'S FEE; TIMELY FILING OF RETURN: (1968 Code §3-85; Ord. 76-168; Ord. 91-161; Ord. 01-42; Ord. 03-176; Ord. 09-141; Rep. by Ord. 11-85)

Colorado Springs City Code § 2.7.805 SPECIAL ACCOUNTING

2.7.805: SPECIAL ACCOUNTING: A. Alcoholic Beverage Sales By The Drink: Any retailer selling malt, vinous, or spirituous liquors by the drink may include in the sales price of those beverages the tax levied under this City Tax Code; provided, that no retailer shall advertise or hold out to the public in any manner, directly or indirectly, that the tax is not included as a part of the sales price to the consumer. The schedule set forth in part 2 of this article shall be used by the retailer in determining amounts to be included in the sales price. No retailer shall gain any benefit from the collection or payment of the tax, except the permitted retailer's fee, nor shall the use of the schedule set forth in part 2 of this article relieve the retailer from liability for payment of the full amount of the tax levied by this City Tax Code. B. Combined Sales Of Services And Personal Property: Every retailer, conducting a business in which the transaction between the retailer and the consumer consists of the supply of tangible personal property and services in connection with the maintenance or servicing of the consumer's property, shall be required to pay the tax levied under this City Tax Code upon the full contract price, unless application is made to the Director for permission to use a percentage basis of reporting the tangible personal property sold and the services supplied under the contract. The Director is authorized to determine the percentage based upon the ratio of the tangible personal property included in the consideration as it bears to the total of the consideration paid under the combination contract or sale which shall be subject to the tax levied pursuant to the provisions of this City Tax Code. This section shall not be construed to include elements upon which the tax is to be imposed as the full purchase price as defined in section 2.7.104 of this article, nor shall be construed as an allowance for the retailer to fail to itemize to the customer the taxable and nontaxable portions of the bill. C. Sales Tax Collections By Nonresident Retailers: Every retailer engaged in business in this City even though not maintaining an office in this City, and making sales of tangible personal property or taxable services subject to the sales tax, must, in accord with this City Tax Code, collect and remit the sales tax on the sales in like manner as Colorado Springs retailers collect and remit the sales tax. D. Leases And Rentals: When right to continuous possession or use of any article of tangible personal property is granted under a lease or rental contract, and the transfer of possession would be taxable under this City Tax Code if an outright sale were made, the lease or rental contract shall be considered the sale of the article and the tax shall be computed and paid upon the lease or rental payments charged. All amounts, required to be paid by the lease pursuant to the lease or rental contract, are part of the taxable lease or rental payments charged. In lieu of computing and paying tax upon each rental or lease charge as it is paid or becomes due, the retailer may pay one lump sum payment based on the entire retail purchase price of the item to be leased or rented, upon written permission by the Director. (1968 Code §§3-86, 3-87, 3-88, 3-89; Ord. 76-168; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.806 CONFIDENTIAL INFORMATION; EMPLOYEE RESTRICTIONS

2.7.806: CONFIDENTIAL INFORMATION; EMPLOYEE RESTRICTIONS: A. Except as otherwise provided by this City Tax Code, the Director shall not produce any return or document submitted by a taxpayer or divulge any information obtained from a return or other document submitted by a taxpayer except as: 1) ordered by a court or as otherwise provided by law, or 2) may be necessary or useful to resolve any matter arising under this City Tax Code. B. The Director may release information contained on any license. C. The Director may release returns or other documents or divulge information obtained from returns or other documents to the following persons: 1. The taxpayer and any person designated by the taxpayer. 2. The City Attorney and any person designated by the City Attorney, for the purpose of assisting the Director in the administration of the City Tax Code. 3. The City Auditor and any person designated by the City Auditor, for the purpose of an audit, provided that the City Auditor commits not to include taxpayer information or information that identifies, or permits the identification of, a taxpayer, in an audit or any other report, and further commits not to release any return or report to any person not authorized to receive that information under the City Tax Code. 4. Any external auditor engaged by the City, and any person designated by the external auditor, for the purpose of an audit, provided that the external auditor commits not to include taxpayer information, or information that identifies, or permits the identification of, a taxpayer, in an audit or any other report, and further commits not to release any return or report to any person not authorized to receive that information under this City Tax Code. 5. Any person authorized to receive taxpayer information under an agreement to exchange information entered into between the Director and a governmental entity responsible for the administration of the tax laws of that governmental entity. The agreement must provide that the taxpayer information disclosed is subject to the restrictions on disclosure that are mandated in this section. D. It is unlawful for any employee of the Department of Finance or for any other employee of the City who is engaged in the administration of this City Tax Code to be employed, directly or indirectly, to: 1) prepare any tax return or document required by this City Tax Code, 2) advise, prepare materials or data, or to audit the books of any person who owes or may owe tax imposed by this City Tax Code, or 3) prepare records or documents that will or may be used for any purpose under this City Tax Code. E. The Director may release statistics based upon information gathered from returns and documents filed under this City Tax Code if the statistics do not identify, or permit the identification of, any taxpayer. F. Except as provided in this section, it is unlawful for any person wilfully to divulge a return or document, or information obtained from a return or document, submitted by the taxpayer. (1968 Code §3-93; Ord. 76-168; Ord. 87-158; Ord. 91-161; Ord. 01-42; Ord. 08-218)

Colorado Springs City Code § 2.7.807 EXAMINATION OF RETURNS

2.7.807: EXAMINATION OF RETURNS: As soon as practicable after the return is filed, the Director may examine it. A. Recomputation: If it then appears that the correct amount of tax to be remitted is greater or less than that shown in the return, the tax shall be recomputed by the Director. B. Overpayment: If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the same person. C. Underpayment: If the amount paid is less than the amount due, the difference, together with interest thereon at the rate as specified in section 2.7.1004 of this article, from the time the return was due, shall be paid by the taxpayer within twenty (20) days after written notice and demand to the taxpayer from the Director. D. Negligent Deficiency: If any part of the deficiency in payment of sales or use tax is due to negligence, but without intent to defraud, there shall be added a penalty of ten percent (10%) of the total amount of the deficiency, and in the case interest shall be collected at the rate as specified in section 2.7.1004 of this article, on the amount of the deficiency from the time the return was due, from the person required to file the return, which interest and penalty shall become due and payable within twenty (20) days after written notice and demand is made by the Director. E. Fraudulent Deficiency: If any part of the deficiency is due to fraud with the intent by the taxpayer to evade the tax, then there shall be added a penalty of one hundred percent (100%) of the total amount of the deficiency, and in the case, the whole amount of the tax unpaid, including additions, shall become due and payable twenty (20) days after written notice and demand is made by the Director, and an additional three percent (3%) per month on the amount shall be added from the date the return was due until paid. (Ord. 85-274; Ord. 01-42)

Colorado Springs City Code § 2.7.808 EXCESS COLLECTION; FAILURE TO REMIT COLLECTIONS

2.7.808: EXCESS COLLECTION; FAILURE TO REMIT COLLECTIONS: If any retailer shall, during any reporting period, collect as a tax an amount in excess of three and seven one-hundredths percent (3.07%) of the total taxable sales, the retailer shall remit to the Director the full net amount of this tax imposed and also such excess. The retention by the retailer of any excess of tax collections over three and seven one-hundredths percent (3.07%) of the total taxable sales of the retailer, or the intentional failure to remit punctually to the Director the full amount required to be remitted by the provisions of this City Tax Code, is hereby declared to be a violation of this City Tax Code and shall subject the retailer to the imposition of penalty and interest, and may subject the retailer to other remedial actions provided within this City Tax Code. (1968 Code §3-85; Ord. 76-168; Ord. 84-27; 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 § 2.7.809 UNLAWFUL TO ASSUME OR ABSORB TAX

2.7.809: UNLAWFUL TO ASSUME OR ABSORB TAX: It shall be unlawful for any retailer to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax, or any part thereof imposed by this City Tax Code, will be assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold, or if added, that it or any part thereof will be refunded. (1968 Code §3-90; Ord. 76-168; Ord. 01-42)

Colorado Springs City Code § 2.7.810 REFUNDS

2.7.810: REFUNDS: A. No refund shall be made to any person prior to compliance with the following conditions: 1. Applications: Claims may be made for refunds under subsection D and/or tax monies paid in error or mistake or paid in excess of the rate as specified in the alternative rate of tax exemption where an overpayment results. Application for refund must be made within three (3) years after the date of purchase, storage, use or consumption of the goods for which the refund is claimed. The application must be made on forms prescribed and furnished by the Director, which forms shall contain the information as the Director shall prescribe. 2. Examination Of Applications: Upon receipt of the application, the Director shall examine the same with all due speed and shall give notice in writing to the applicant of the decision. 3. Proceeds Of Refunds: Any claim for a refund shall first be applied by the Director to any tax deficiencies or liabilities existing against the claimant before allowance of the claim. If any overpayment of tax monies for any period is discovered as a result of audit by the Director and deficiencies are discovered and assessed against the taxpayer as a result of the audit, the excess monies shall first be applied against any deficiencies outstanding or any liabilities existing against the claimant to the date of assessment. If an overpayment exists after the application, the claimant may elect to take a credit for the amount toward future liabilities or may have the amount refunded. 4. Appeal Of Denial Of Refund: An appeal of a denial of a refund shall be submitted in writing to the Director within twenty (20) calendar days from the date of the denial of the refund and shall identify the amount of refund requested and the basis for the appeal. B. Dispute Exemption: No refund shall be made nor credit allowed for the tax so paid under dispute by any person who claims one or more exemptions as provided by this City Tax Code except upon compliance with the following conditions precedent: 1. Applications: Applications for refund must be made within sixty (60) days after the purchase or acquisition of the goods or service on which the exemption is claimed and must be supported by the affidavit of the applicant accompanied by the original paid invoice or sales receipt and a certificate issued by the seller. The application must be made upon the forms as shall be prescribed and furnished by the Director, which forms shall contain the information as the Director shall prescribe. 2. Proof Of Exemption: The burden of proving that any person is exempt from paying the tax upon any personal property or service purchased, acquired, used, stored or consumed within the City shall be upon the person asserting the claim for exemption under the reasonable requirements of proof as the Director may prescribe. 3. Examination Of Applications: Upon receipt of the application, the Director shall examine the same with all due speed and shall give notice in writing to the applicant of the decision. 4. Appeal Of Denial Of Refund: An appeal of a denial of a refund shall be submitted in writing to the Director within twenty (20) calendar days from the date of the denial of the refund and shall identify the amount of refund requested and the basis for the appeal. C. False Statements: 1. False Statements: It shall be unlawful for any person to make any false statement in connection with an application for refund of any taxes. 2. Recovery Of Refunds: If any person is convicted under the provisions of subsection C1 of this section, the conviction shall be prima facie evidence that all refunds received by the person during the preceding three (3) year period were obtained unlawfully and the Director is empowered to bring appropriate action for the recovery of the refunds. D. Subject to the requirements of this Part, the owner of a qualifying affordable housing project will be eligible for a refund of City tax monies paid for the purchase or use of construction materials, as defined in section 2.7.104 of this article. 1. A qualifying affordable housing project is a project where the owner can demonstrate to the satisfaction of the City: a. The project is located in the City; and b. The project is new construction of multi-family dwellings, substantial rehabilitation of an existing multi-family dwelling, or conversion of an existing commercial building to multi-family dwelling; and c. The project consists of at least one (1) dwelling unit qualified as income-restricted affordable housing based on U.S. Department of Housing and Urban Development criteria at the time of application as determined by the Manager of Community Development; and d. The project has received a final certificate of occupancy; and e. The owner has represented and warranted to the City and there are adequate safeguards, as determined by the City, in place to ensure that the required number of income-restricted affordable dwelling units in the project will remain as affordable housing for a minimum of fifteen (15) years from the completion of the project ("affordability period"); and f. The contractor and/or subcontractor has assigned to the owner all rights the contractor and/or subcontractor has, or may have, to any refund of City taxes paid for the purchase or use of construction and building materials for the project. 2. A "qualifying mixed-use project" is a qualifying affordable housing project that may include, in addition to affordable housing, market rate housing or commercial space. For qualifying mixed-use projects the refund shall be proportional to the percentage of the qualifying mixed-use project that is for income-restricted dwelling units. The percentage of the qualifying mixed-use project eligible for the refund is determined by the City. 3. Property owners shall substantiate compliance to the City on an annual basis throughout the affordability period in accord with City policy. Failure to provide required substantiation or failure to provide the required number of income-restricted affordable dwelling units in the project as affordable housing for the required affordability period will result in the property owner being required to pay the entire refund back to the City. 4. Purchases for ongoing, routine maintenance shall not qualify for any refund. Purchases of tangible personal property that is retained or reused after the completion of the qualifying affordable housing project, such as tools or equipment, shall not qualify for any refund. (Ord. 85-274; Ord. 91-161; Ord. 01-42; Ord. 22-39; Ord. 23-36)

Colorado Springs City Code § 2.7.811 ALTERNATIVE RATE OF TAX EXEMPTION CREDIT

2.7.811: ALTERNATIVE RATE OF TAX EXEMPTION CREDIT: A taxpayer is entitled to a credit for tax paid by the taxpayer in excess of the applicable tax under the rate of tax as specified in the alternative rate of tax exemption. The credit may be taken by the taxpayer against any tax due and owing on a sales and use tax return filed by the taxpayer during the period for which the taxpayer is eligible for a refund under section 2.7.810 of this part. (Ord. 85-213; 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/0-0-0-3925Fetched: 11/1/2026