OFFENSES; FAILURE TO FILE, PAY

Colorado Springs City Code ch. 2, art. 7, pt. 10

in effect

Colorado Springs City Code § 2.7.1001 DISCOVERY

2.7.1001: DISCOVERY: A. Investigation Of Books And Records: For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any person, the Director may hold investigations, examinations, audits and hearings concerning any matters covered by this City Tax Code and may investigate, examine, and audit any relevant books, papers, records, or memoranda of any person and may require the attendance of the person or any officer or employee of the person, or of any person having knowledge of the sales, and may take testimony and require proof of any information. The Director shall have power and authority to administer oaths to the persons. B. Depositions: The Director or any party in an investigation or hearing before the Director may cause the deposition of witnesses residing within or without the State to be taken in the manner prescribed by law for like depositions in civil actions in courts of this State and to that end compel the attendance of witnesses and the production of books, papers, records or memoranda. C. Subpoena By Director: If any taxpayer shall refuse voluntarily to furnish any of the foregoing information when requested by the Director, the Director may issue subpoenas to require the attendance and production by the taxpayer of any of the foregoing information in the taxpayer's possession, and may administer oath(s) and take testimony. Compliance with any subpoena issued may be enforced by application of the Director to the Municipal Court of the City, where enforcement may be in the same manner as contempt of court is enforced pursuant to chapter 11 of this Code. D. Judicial Subpoena: If the Director is unable to secure from the taxpayer information relating to the correctness of the taxpayer's return or the amount of the taxes due by the taxpayer, the Director may apply to any Judge of the Municipal Court of the City for the issuance of subpoenas to the other persons as the Director believes may have knowledge in the premises. Upon showing to the satisfaction of the court that the taxpayer cannot be found, or evades service of subpoena, or fails or refuses to produce records or give testimony, or is unable to furnish the records or testimony, the Judge shall have power, after service of summons upon the persons named in the petition of the Director, and after hearing, to cause the issuance of subpoenas under the seal of the court to the persons sought to be so summoned requiring them or any of them to appear before the Director and give testimony relating to the taxpayer's return or sales or purchases. In the event any person so served with subpoena shall fail to respond thereto, the Judge may proceed against the person as in cases of contempt. E. Issuance Of Subpoenas And Witness Fees: All subpoenas issued under the terms of this City Tax Code may be served by any person over the age of eighteen (18) years. The fees of witnesses for attendance and trial shall be the same as the fees of witnesses before the District Court, the fees to be paid when the witness is excused from further attendance. When the witness is subpoenaed at the insistence of the Director, the fees shall be paid in the same manner as other expenses under the terms of this City Tax Code, and when a witness is subpoenaed at the instance of any party to any proceeding, the Director may require that the cost of service of the subpoena and the fee of the witness be borne by the party at whose instance the witness is summoned. In such case, the Director may require a deposit to cover the cost of the service and witness fees. A subpoena issued as aforesaid shall be served in the same manner as a subpoena issued out of a court of record. (1968 Code §3-95; Ord. 76-168; Ord. 91-130; Ord. 01-42; Ord. 04-178)

Colorado Springs City Code § 2.7.1002 ASSESSMENT OF TAXES

2.7.1002: ASSESSMENT OF TAXES: A. If any person or taxpayer or retailer fails, neglects or refuses to collect the tax, or to make a return, or to pay the tax required in full, then the Director, on the information as is available, shall make an estimate of the tax due. In addition to the estimated tax there shall be added penalties and interest, when imposed by section 2.7.1003 of this part. The Director shall give the delinquent taxpayer, person or retailer written notice of determination, assessment and demand for payment, which notice shall be served personally, or by United States mail, first class postage prepaid, mailed to the last known address of the taxpayer as shown in the Sales Tax Division's records, and which assessment of the deficiency amount shall be due and payable twenty (20) days after service or mailing of the notice. If the tax deficiency amount, penalty and interest is not paid, or no request for hearing under section 2.7.903 of this article is made within twenty (20) days after notice of determination, assessment and demand for payment is mailed or personally delivered to the taxpayer, the taxpayer shall waive the right of protest of the amount, and the assessment shall be final. B. An appeal of a notice of assessment issued to a retailer or taxpayer for failure to file a return, underpayment of tax owed or as a result of an audit shall be submitted in writing to the Director within twenty (20) calendar days from the date of the notice of assessment. Any appeal shall identify the amount of tax disputed and the basis for the appeal. (Ord. 85-274; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.1003 FAILURE TO FILE TAX RETURN, PAY TAX

2.7.1003: FAILURE TO FILE TAX RETURN, PAY TAX: A. Interest On Underpayment, Nonpayment, Or Extensions Of Time For Payment Of Tax: If any amount of sales or use tax is not paid on or before the last date prescribed for payment, interest on the amount, at the rate imposed under section 2.7.1004 of this part, shall be paid for the period from the last date to the date paid. The last date prescribed for payment shall be determined without regard to any extension of time for payment and shall be determined without regard to any notice and demand for payment issued by the Director. In the case of a tax in which the last date for payment is not otherwise prescribed, the last date for payment shall be deemed to be the date the liability for the tax arises. 1. Interest prescribed under this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as the tax to which it is applicable. 2. If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this section on the portion of the tax so satisfied for any period during which the overpayment is allowed. 3. Interest prescribed under this section on any sales or use tax may be assessed and collected at any time during the period within which the tax to which the interest relates may be assessed and collected. B. Sales Or Use Tax; Deficiency Due To Negligence: If any part of the deficiency in payment of the sales or use tax is due to negligence or intentional disregard of the ordinances or of authorized rules and regulations of the City, but without intent to defraud, there shall be added a penalty of ten percent (10%) of the total amount of the deficiency, and in such case interest shall be collected at the rate as specified in section 2.7.1004 of this part, 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 addition shall become due and payable within twenty (20) days after written notice and demand is made to the person by the Director. C. Deficiency Due To Fraud: If any part of the deficiency is due to fraud with the intent 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 such 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. D. Sales Tax; Use Tax; Neglect Or Refusal To Make Return Or To Pay: If a person neglects or refuses to make a return in payment of the sales or use tax or to pay any sales or use tax as required, the Director shall make an estimate, based upon the information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the sum of fifteen dollars ($15.00) for failure or ten percent (10%) of the delinquent tax, whichever is greater, and interest on the delinquent taxes at the rate imposed under section 2.7.1004 of this part plus one-half percent (1/2%) per month from the date when due, not exceeding eighteen percent (18%) interest in the aggregate. (Ord. 85-274; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.1004 RATE OF INTEREST

2.7.1004: RATE OF INTEREST: When interest is required or permitted to be charged under the provisions of this City Tax Code, the annual rate of interest shall be that established by the State Commissioner of Banking pursuant to Colorado Revised Statutes section 39-21-110.5. (Ord. 85-274; Ord. 01-42)

Colorado Springs City Code § 2.7.1005 ADDITIONAL CORPORATE AND PARTNERSHIP PENALTY

2.7.1005: ADDITIONAL CORPORATE AND PARTNERSHIP PENALTY: In addition to the personal liability provided in section 2.7.607 of this article, all officers of a corporation and all members of a partnership required to collect, account for, and pay over any tax administered by this City Tax Code who wilfully fail to collect, account for, or pay over the tax or who wilfully attempt in any manner to evade or defeat any tax, or the payment thereof, are subject to, in addition to other penalties provided by law, a penalty equal to one hundred fifty percent (150%) of the total amount of the tax not collected, accounted for, or paid over, or which was otherwise evaded. An officer of a corporation or a member of a partnership shall be deemed to be subject to this section if the corporation or partnership is subject to filing returns or paying taxes administered by this City Tax Code and if the officers of corporations or members of partnerships voluntarily or at the direction of their superiors assume the duties or responsibilities of complying with the provisions of any tax administered by this City Tax Code on behalf of the corporation or partnership. (Ord. 85-274; Ord. 01-42)

Colorado Springs City Code § 2.7.1006 DIRECTOR MAY WAIVE PENALTY; CREDIT; LIMITATION

2.7.1006: DIRECTOR MAY WAIVE PENALTY; CREDIT; LIMITATION: The Director is authorized to waive, for good cause shown, any penalty assessed in this article and interest imposed in excess of six percent (6%) per annum. (Ord. 85-274; Ord. 01-42)

Colorado Springs City Code § 2.7.1007 UNLAWFUL ACTS

2.7.1007: UNLAWFUL ACTS: It shall be unlawful for any retailer, consumer or any other person subject to the tax levied by this City Tax Code: A. To fail to make any required return by the due date, or B. To make any false or fraudulent return, or C. To make any false statements in any return, or D. To fail to make payment to the Director by the due date of any taxes collected or due the City, or any interest or penalty due the City, or E. To evade the collection or payment of any taxes collected or due the City or the payment of interest or penalty due the City, or F. To fail to pay by the due date the tax, interest, penalty, or G. To aid or abet another in any attempt to evade payment of the tax, interest or penalty, or H. To issue to the City a check in payment of any taxes collected or due the City or in payment of penalty or interest due the City, which check is dishonored by the drawee of the check. In any prosecution for a violation of this subsection, introduction of the check dishonored by the drawee, bearing notice of the dishonor from the drawee, shall constitute in evidence a prima facie showing that the check was issued by the drawer at a time when the drawer had on deposit with the drawee insufficient funds to allow the drawee to honor the check on presentment. (1968 Code §3-110; Ord. 76-168; Ord. 81-251; Ord. 83-112; Ord. 91-161; Ord. 01-42)

Colorado Springs City Code § 2.7.1008 PAYMENT BY CASH OR GUARANTEED FUNDS

2.7.1008: PAYMENT BY CASH OR GUARANTEED FUNDS: When any person, taxpayer or retailer liable for the payment of a tax imposed by this City Tax Code has issued to the City one (1) or more checks dishonored by the drawee on account of insufficient funds or for any reason whatsoever, then the Director may require that the person, taxpayer or retailer pay any taxes collected for or due to the City or any penalty or interest due to the City by cash or funds in the other form that will in the discretion of the Director guarantee payment of the tax, penalty or interest to the City. (Ord. 81-251; Ord. 91-161; Ord. 01-42; Ord. 23-34)

Colorado Springs City Code § 2.7.1009 COST OF COLLECTION

2.7.1009: COST OF COLLECTION: If any person, taxpayer or retailer liable for the payment of a tax has repeatedly failed, neglected or refused to pay the tax within the time specified for the payment, and the Director has been required to exercise enforcement proceedings three (3) or more times through the issuance of a notice of determination, assessment and demand for payment to enforce collection of any taxes due, the Director is hereby authorized to assess and collect the amount of the taxes due together with all interest and penalties provided by law and also an additional amount of fifty dollars ($50.00) which is imposed to compensate the City for administrative and collection costs incurred in collecting the delinquent taxes. The Director may modify or abate in full the cost of collection for good cause shown. (Ord. 85-274; 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/0-0-0-4084Fetched: 11/1/2026