Section 5-2-1. Title. The provisions of this Article 2 of Chapter 5 of the Municipal Code of the City of Northglenn shall be known and cited as the Tax Administration Code.

[Source: Ord. 1037, 1991]

Section 5-2-2. Application--Construction.

The provisions of this article shall apply to the administration, enforcement and collection of sales and use taxes by the City of Northglenn, including taxes levied and imposed by Article 3 of this Chapter and any tax provided by ordinance to be administered, enforced or collected pursuant to the provisions of this article.

As used in this article, unless the context otherwise provides, the term "Code" means and includes the provisions of this article and the provisions of each and every ordinance or code administered under the provisions of this article.

The provisions of this article shall be construed to effect uniformity of administration, enforcement and collection of taxes, and to establish uniform procedures, but shall not be construed to extend or increase the application, rate or amount of any tax levied or imposed by ordinance; provided, however, that the imposition of a penalty, interest, or both penalty and interest shall be lawful and shall not be construed as an extension or increase of the application, rate or amount of tax.

The purpose of this Code is to provide the power necessary to exercise effectively the right to raise revenue that is essential to home rule and self-government. Any similarities to state law herein are adopted for the purpose of promoting efficiency in the collection of revenue. Regardless of any such similarities, the provisions contained herein are matters of solely local concern.

[Source: Ord. 1037, 1991]

Section 5-2-3. Definitions.

Collection Proceedings -- shall include the mailing of a notice of audit, an audit, and all remedies exercised by the Director pursuant to this Code to collect any unpaid taxes, penalties and interest.

Collection Costs -- shall include all costs of audit, assessment, bank fees, hearings, execution, lien filing, distraints, litigation, prosecution and attorneys fees.

Director -- means the Director of Finance of the City of Northglenn or such other person designated by the City in the enacting ordinance; Director shall also include such person's designee.

Taxpayer -- means any person obligated to collect and/or pay tax under the terms of this chapter.

[Source: Ord. 1037, 1991; 1322, 2003]

Section 5-2-4. Duties and Powers of Director.

The administration of the licensing provisions of this Code is hereby vested in the Director subject to the duties of the City Clerk; and the administration of all other provisions of the Code and of the City of Northglenn Sales and Use Tax is hereby vested in and shall be exercised by the Director, who shall prescribe forms and formulate and promulgate, with the approval of the City Manager, appropriate rules and regulations to effectuate the purpose of this Code, in conformity with this Code and subject to other provisions of law relating thereto, for the making of returns, for the ascertainment, assessment, and collection of the taxes imposed and for the proper administration and enforcement thereof, and to provide uniform methods of adding the tax, or the average equivalent thereof, to the purchase price. The Director shall have power and authority to amend, or rescind such rules and regulations, not inconsistent with the provisions of this Code as to the promulgation of regulations. Regulations adopted, amended, or rescinded by the Director shall be effective in the manner and at the time prescribed by the Director, subject to the provisions of the Code. The Director is authorized to delegate any duty or power to a subordinate unless otherwise provided herein.

The Director is further authorized to implement intergovernmental agreements related to the administration of this tax administration code. In the absence of such an agreement, the City will not recognize or authorize the collection of sales tax on a transaction that is subject to the collection of Northglenn sales tax pursuant to Section 5-3-3 of the Northglenn Municipal Code by any other governmental entity with the exception of that collected by the Department of Revenue of the State of Colorado and that collected by the City.

[Source: Ord. 1037, 1991; 1702, 2015]

Section 5-2-5. Director to Examine Returns. For the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the tax due from any taxpayer, the Director shall have power to examine or cause to be examined by an employee, agent, or representative designated by him for that purpose, any books, papers, records, or memoranda bearing upon the matters required to be included in the return. Subject to the provisions of the Code, the Director is authorized to prescribe the duties and powers of such officers, accountants, experts, and other persons as may be necessary in the performance of his duty. The Director may delegate to any employee of the City such power and authority as deemed reasonable and proper for the effective administration of this Code.

[Source: Ord. 1037, 1991]

Section 5-2-6. Retention of Records--Audits.

Taxpayer's Retention of Records. It shall be the duty of every person, firm or corporation liable to the City of Northglenn for any tax to keep and preserve for a period of three years such books, accounts and records as may be necessary to determine the amount of such tax liability.

Records to be Made Available for Audit. All such books, accounts and records shall be open for examination at any reasonable time by the Director or the Director's duly authorized agents. In the case of a person, firm or corporation which does not keep the necessary books, accounts and records within the City, it shall be sufficient if such person, firm or corporation produces within this City such books, accounts and records or such information as shall be reasonably required by the Director for examination by the Director or an agent duly authorized by the Director, or in lieu thereof, said person, firm or corporation shall pay in advance, or as approved by the Director, such travel, lodging, meal and related expenses as shall reasonably be incurred by the Director or the Director's duly authorized agent in examination of said books, accounts and records at such place where said books, accounts and records are kept.

Coordinated Audit.

Any taxpayer licensed in this City pursuant to Section 5-3-8 and holding a similar sales tax license in at least four other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein.

Within 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 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-based limitation upon this City's right to recover tax owed by the vendor for the audit period.

Except as provided in paragraph (7), any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of limitation may be audited by this City during the twelve months after request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.

If this City desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to paragraph (3), the Finance Director shall so notify the Finance Director of the municipality whose notice of audit prompted the taxpayer's request within ten 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.

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.

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.

The coordinated audit procedure set forth in this section shall not apply:

When the proposed audit is a jeopardy audit;

To audits for which a notice of audit was given prior to the effective date of this section;

When a taxpayer refuses to promptly sign a waiver of limitation, or;

When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in paragraph (2).

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-7. Tax Reports and Returns--Preservation.

City's Preservation of Records. All reports and returns of taxes received by the Department of Finance covered by this Code shall be preserved until the City Clerk orders them destroyed.

Confidential Nature of Returns. Except in accordance with judicial order, consent of the taxpayer or as otherwise provided by law, the Director, the Director's agents, clerks and employees shall not divulge or make known in any way information disclosed in any document, report or return filed in connection with any of the taxes covered by this Code. The officials charged with the custody of such documents, reports and returns shall not be required to produce them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the Director in an action or proceeding under the provisions of any such taxing or open record statutes when the report of facts shown thereby are directly involved in such action or proceeding, in either of which events the Court may require the production of, and may admit into evidence, so much of said reports, or of the facts shown thereby, as are pertinent to the action or proceeding, and no more.

Taxpayer Request for Records. Nothing contained in this section shall be construed to prohibit the delivery to a person or the person's duly authorized representative of a copy of any return or report filed in connection with the person's tax, and such copies may be certified by the Director, or the Director's deputy or agent, and when so certified shall be evidence equally with and in like manner as the originals and may be received by the courts of this State as evidence of the contents.

Publication of Statistics--Returns Available to City Attorney. Nothing in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection of returns by the City Attorney or the City Manager or their authorized representative.

Records Available to Authorized Jurisdictions. Notwithstanding the provisions of this section, the Director in the Director's discretion may furnish to the taxing official of any other state and its political subdivisions, to the State of Colorado and its political subdivisions, and to the United States any information contained in tax returns and related schedules and documents filed pursuant to this Code, or in the report of an audit or investigation made with respect thereto provided that said jurisdiction enters into an agreement with the Director to grant similar privileges to the City and, provided further, that such information is to be used only for tax purposes.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-8. Assessment; Penalties and Interest.

Assessment. If the Director determines, pursuant to an audit or estimated assessment, that any person, taxpayer or vendor has failed, neglected or refused:

To collect all taxes due; or

To make a return and pay all taxes due; or

To remit the proper amount of tax due; or

To pay in full all taxes due because of negligence, fraud or on a regular basis;

THEN penalties and interest shall also be assessed and the Director shall give to the delinquent person, taxpayer or vendor a written Notice of Final Determination--Assessment and Demand for Payment which notice shall state the full amount of taxes, penalties and interest due and shall be served personally or by certified or registered mail, which assessment of deficiency amount will be due and payable thirty (30) days after receipt of such notice.

Estimated Assessment. If the Director is unable to audit the records of a taxpayer, either due to the taxpayer's refusal or lack of cooperation, due to time constraints, or due to other reasons which the Director may reasonably determine, the Director shall make an estimate based upon such information as may be available and shall issue an assessment as provided herein.

Mathematical Error on Tax Returns. In the event that the amount of tax is understated on the taxpayer's return due to a mathematical error, the Director shall notify the taxpayer by written Notice of Final Determination--Assessment and Demand for Payment of the amount of tax in excess of that shown in the return which is due and has been assessed. The taxpayer shall have no right of protest or appeal as in the matter of other assessments but shall pay the tax due and assessed or file an amended return to show the true amount of tax due within twenty (20) days from receipt of such assessment.

Interest. Unless the taxpayer shows that its failure to comply fully with this Code is due to reasonable cause, which the taxpayer may prove in a hearing requested pursuant to this Code, there shall be added to all assessments a penalty of fifteen (15%) of the deficiency. Interest on the deficiency amount shall accrue per month at the rate of interest fixed annually by the State Commissioner of banking in accordance with C.R.S. §9-21-110.5, as it may be amended from time, which rate is currently the prime rate as reported by the "Wall Street Journal" plus three (3) points, rounded to the nearest full percent. The rate of 2008 shall be set by the City on October 1, 2007, The rate for each subsequent year shall be set annually on July 1, or the first business day thereafter. The rate to become effective on January 1 of the next succeeding year. Interest shall be collected from the time the return was due.

Late Payment Prior to Assessment. If any amount of tax due is paid late pursuant to an extension of time, after an audit, after correction of an erroneous return or for another cause, but is paid prior to issuance of a Notice of Final Determination--Assessment and Demand for Payment, no penalty shall be due and interest on such amount shall be paid at the rate of nine percent (9%) per annum from the date due until the date paid. In the case of taxes in which the last date for payment is not otherwise prescribed, the last date of payment shall be deemed to be the date the liability for tax arises.

Penalty for Fraud or Failure to File Return. If any deficiency in taxes paid is due to fraud with the intent to evade the tax or due to the taxpayer's failure to file a return, there shall be added, instead of the penalty prescribed in subsection (d) above, a penalty of fifty percent (50%) of the total amount of the deficiency to the assessment required by subsection (a) above. Interest on such deficiency shall accrue and be collected at a rate of one and one-half percent (1 1/2%) per month on the amount of such deficiency from the time the return was due.

Special Penalty for Repeated Enforcement. In any assessment issued to a person or taxpayer against whom enforcement proceedings have been commenced in the past, a special penalty, in addition to all others provided in this Code, shall also be assessed. This special penalty shall be equal to the greater of one hundred dollars ($100.00) or twenty-five percent (25%) of the tax deficiency. For purposes of this subsection, "enforcement proceedings" shall mean:

issuance of a distraint warrant; or

filing of a lawsuit in the district or county court; or

three occurrences of the revocation of the person's or taxpayer's license by the City Clerk or issuance of a summons to municipal court for the nonpayment of taxes or a combination of revocations and summonses.

Director May Waive Penalty. The Director is hereby authorized to waive, for good cause shown, any penalty assessed as provided in this Code. Interest imposed in excess of nine percent (9%) per annum shall be deemed a penalty. If the Director finds that a taxpayer has, in good faith, paid tax to a vendor then the Director is hereby authorized to abate the interest and penalty in its entirety.

Interest and Penalty Assessment. Interest and penalties prescribed under this article 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. If any portion of a tax is satisfied by credit of an overpayment, then no interest or penalty shall be imposed under this section on the portion of the tax so satisfied for any period during which, if the credit has not been made, interest and penalty would have been allowed with respect to such overpayment.

[Source: Ord. 1037, 1991; 1497, 2007; 1604, 2011]

Section 5-2-9. Jeopardy Assessment.

Jeopardy Enforcement. If the Director finds that collection of the tax will be jeopardized by delay, in the Director's discretion, the Director may declare the taxable period immediately terminated, determine the tax, and issue notice and demand for payment thereof; and, having done so, the tax shall be due and payable forthwith, and the Director may proceed immediately to collect such tax as provided in subsection 5-2-17 (Distraint).

Immediate Enforcement Action. In any other case wherein it appears that the revenue is in jeopardy, the Director may immediately issue demand for payment; and, regardless of the provisions of Section 5-2-11 (Hearing) and 5-2-12(Appeals) of the Code, the tax shall be due and payable forthwith and, in the Director's discretion, the Director may proceed immediately to collect said tax as provided in subsection 5-2-17 (Distraint).

Security for Payment. Collection under either subsection (a) or (b) of this Section 5-2-9 may be stayed if the taxpayer gives such security for payment as shall be satisfactory to the Director.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-10. Notice by Mail. The taxpayer shall at all times have the burden of ensuring that the taxpayer's correct address is on file with the Director. In the event that a notice is sent to the taxpayer, pursuant to this Code, and said notice is not received by the taxpayer through no fault of the City of Northglenn, or the notice is returned by the post office as undeliverable or rejected by the taxpayer, such notice shall be deemed given on the date mailed and the City of Northglenn shall have no further obligation to complete service of the notice.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-11. Hearings.

Request for Hearing. Any taxpayer may request an informal hearing on any proposed tax by reason of Notice of Final Determination--Assessment and Demand for Payment or by reason of denial of the taxpayer's claim for refund by application to the Director within thirty (30) days of the receipt of a notice of deficiency, assessment or denial of refund. The request for hearing shall be in writing and shall set forth the taxpayer's reasons for and the amount of the requested changes in the deficiency, assessment or denial of refund.

Hearing Time and Place. The Director shall notify the taxpayer in writing of the time and place for such hearing thirty (30) days prior thereto, unless the taxpayer requests shorter notice or an extension of time. Such hearing shall be held and the final decision thereon issued within ninety (90) days after the Director's receipt of request for a hearing, except the period may be extended by the Director if the delay in holding the hearing or issuing the decision was occasioned by the taxpayer, but, in any such event, such hearing shall be held and the decision thereon issued within one hundred eighty (180) days of the taxpayer's written request therefor. In all cases, the hearing shall be held in Northglenn, Colorado, at the office of the Director.

Informal Hearing. If the taxpayer elects to participate in an informal hearing, additional informal hearings shall not be permitted except at the discretion of the Director. Informal hearings shall be conducted in any manner acceptable to the taxpayer and the Director with the purpose of settling the outstanding issues between the parties. If no settlement is reached, or if the taxpayer wishes to appeal the Director's decision set forth in the hearing determination notice, or if the taxpayer has timely requested a hearing pursuant to subsection (a) of this Section and the Director has failed to hold such hearing or issue a decision thereon within the time periods set forth in subsection (b) of this Section, the taxpayer may request the Executive Director of the Department of Revenue to conduct a hearing. The taxpayer shall request the Department of Revenue hearing within thirty (30) days of the issuance of the Director's decision, in accordance with C.R.S. § 29-2-106.1. If the taxpayer fails to timely appeal the Director's decision to the Department of Revenue, or fails to timely appeal the Director's decision to the District Court, as provided by C.R.S. § 29-2-106.1(8), all further rights to a hearing and appeal are waived and the taxpayer shall be bound by the Notice of Final Determination--Assessment and Demand for Payment or final Denial of Refund.

Director to Conduct Hearing. The hearing shall be held before the Director, or a hearing officer designated by the Director. The hearing shall be informal and no transcript, rules of evidence, or filing of briefs shall be required; but the taxpayer may elect to submit a brief, in which case the City may submit a brief. At the hearing, the taxpayer may assert any facts, make any arguments and file any briefs and affidavits the taxpayer believes pertinent to the case. The taxpayer shall be notified of the name of the hearing officer twenty (20) days before the hearing date and any objection by the taxpayer to the hearing officer shall be filed in writing at least forty-eight (48) hours prior to the hearing.

Hearing Based on Written Brief. The taxpayer may also file a written brief and such other written materials or documents as the taxpayer shall deem appropriate and request that the Director reconsider the deficiency without a hearing. The Director shall proceed to reconsider the deficiency in the same manner as if the written material submitted had been presented at a hearing pursuant to this section. The submission of written material shall be considered for all purposes the same as a request for and submission of the material at a hearing. The City staff shall be permitted to respond in writing to the submittals of the Taxpayer. Rebuttal submissions may be permitted at the discretion of the Director.

Request for Hearing--Time Limitation. After the expiration of thirty (30) days from the receipt of the Notice of Final Determination--Assessment and Demand for Payment or Denial of Refund, if the tax has not been paid, or if no request for hearing has been requested, or no written brief has been filed by the taxpayer, then the Notice of Final Determination--Assessment and Demand for Payment previously mailed, shall constitute a final assessment of the amount of the tax specified, together with interest, additions to tax and penalties or shall constitute a final Denial of Refund, as the case may be. The Director may promptly take necessary steps to collect all amounts owed. The taxpayer shall have no further right to a hearing, trial or appeal on the facts of its case.

Director May Adjust Tax Under Question. Based on the evidence presented at any hearing or filed in support of the taxpayer's contentions, the Director may modify or abate part or in full the tax and the interest and penalty related to such tax questioned at the hearing or may approve a refund.

Hearing Determination Notices. After an informal hearing, upon rejection, in whole or in part, of the claim for refund or upon the finding by the Director that, on hearing the evidence, an assessment in whole or in part has been made against taxpayer validly, the Director shall send a Hearing Determination Notice to the taxpayer setting forth the amount of claim for refund denied or the amount of deficiency assessment of taxes found due, stating therein the grounds for allowance or rejection in whole or in part.

Tax Due Date. Unless an appeal be taken as provided in subsection (c) of this Section, the tax, together with interest thereon and penalties, if any, shall be paid within thirty (30) days after receipt of the Hearing Determination Notice by the taxpayer.

[Source: Ord. 1037, 1991; 1604, 2011; 1824, 2022]

Section 5-2-12. Deleted.

Section 5-2-13. Refunds.

Disputed Sales Tax. Should a dispute arise between the purchaser and seller as to whether or not any sale, service, or commodity is exempt from taxation under this chapter, nevertheless the seller shall collect and the purchaser shall pay the tax and the seller shall issue to the purchaser a receipt or certificate, on forms prescribed by the Director, showing the names of the seller and the purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption.

Refund Allowed if Exempt. A refund shall be made, or a credit allowed, for the sales tax so paid under dispute by any purchaser who has an exemption under this Code provided such refund shall be made by the Director after compliance with the following conditions precedent: Applications for refund must be made within sixty (60) days after the purchase of the goods whereon an exemption is claimed and must be supported by the affidavit of the purchaser accompanied by the original paid invoice or sales receipt and certificate issued by the seller; and be made upon such forms as shall be prescribed and furnished by the Director, which forms shall contain such information as the Director shall prescribe.

Refund Disallowed. Upon receipt of such application, the Director shall examine same with all due speed and shall give notice to the applicant by order in writing of the Director's decision thereon. Aggrieved applicants, within thirty (30) days after such decision is received, may petition the Director for a hearing on the claim in the manner provided in Section 5-2-11.

Refund of Excess Use Taxes. Whenever the Director discovers from the examination of a return or pursuant to an audit of a taxpayer's records that the taxpayer has overpaid use taxes due the City, the Director shall issue the Director's warrant for payment of the excess taxes to the taxpayer, unless the overpayment is applied to offset other tax due. The Director shall keep in the Director's files a duplicate of said warrant and also a statement which sets forth the reason why such refund was ordered. If the refund totals less than $15.00, the refund amount shall be credited to the taxpayer's use tax account, unless the taxpayer requests payment of the refund.

Taxpayer's Discovery of Overpayment of Use Tax. A taxpayer may apply for a refund of payment of excess use taxes within sixty (60) days after discovery of the overpayment. The Director may deny such refund if the Director finds the taxpayer did or reasonably should have discovered the overpayment more than sixty (60) days prior to the date of the application for a refund. The taxpayer may petition the Director for a hearing on the claim in the manner provided in Section 5-2-11 within thirty (30) days after receipt of the Director's Denial of Refund.

Statute of Limitations. No refund shall be allowed or paid under any circumstances more than three (3) years after the City's receipt of sales or use taxes in question.

Refund to Offset Previous Tax Due. Whenever it is established that any taxpayer has, for any period, overpaid a tax imposed by this Code, and that there is an unpaid balance of tax and interest accrued according to the records of the Director, owing by such taxpayer for any other period, so much of the overpayment of tax plus interest allowable thereon as does not exceed the amount of such unpaid balance, shall be credited thereto and any excess of the overpayment shall be refunded.

Special Refund--Undercollection--Retailer Overpayment of Taxes. If any retailer can demonstrate to the reasonable satisfaction of the Director, or the Director's authorized agent, that consistent, diligent application and adherence by the retailer of the equivalent bracket system rates results in actual undercollection of the sales tax by the retailer, then the Director is authorized to allow said retailer either a credit against future tax liability or a refund of such undercollection as the Director may determine.

Special Refund--Estimated Payment Basis--Contractor Overpayment of Taxes. Application for refund by contractors prepaying on an estimated percentage payment basis, or actual tax basis, shall be made within eighteen (18) months after the date of purchase and shall be made on forms prescribed and furnished by the Director, which form shall contain, in addition to the foregoing information, such pertinent data as the Director shall prescribe.

Special Refund--County and State Highway Department Refund. The foregoing Section 5-2-13(i) notwithstanding, however, applications for refunds submitted either by the County Commissioners of Adams County, or the Department of Highways of the State of Colorado, shall be submitted within eighteen (18) months after purchase of the tangible personal property purchased by any person, firm or corporation furnishing work and materials under contract, either with the said County Commissioners or the said Department of Highways, for construction or repair of any portion of a legally designated County or State Highway and appurtenances thereunto belonging, located within the corporate limits of the City.

Refunds Not Assignable. The right of any person to a refund under this Code shall not be assignable and such application for refund must be made by the same person who purchased the goods and paid the tax thereon as shown in the invoice of the sale thereof, except as provided in Subsection 5-2-13(j) hereof. The Director may, upon receiving a properly executed release of claim from the taxpayer and evidence to substantiate that the person's tax was remitted in error to another municipality, issue a joint refund check in the name of the taxpayer and the municipality, provided that the municipality has entered into an agreement to grant similar privileges to the City of Northglenn.

Burden of Proof of Exemption. The burden of proving that sales, services and commodities, on which tax refunds are claimed, are exempt from taxation or were not at retail, shall be on the one making such claim under such reasonable requirements of proof as the Director may prescribe.

Claims for Recovery. The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipality. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to correctly pay, collect and remit sales and use taxes to the City.

As used herein, "Claim for Recovery" means a claim for reimbursement of sales and use taxes paid to the wrong taxing jurisdiction.

When it is determined by the Finance Director of the City that sales and use tax owed to the City has been reported and paid to another municipality, the City shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances.

The City may make a written claim for recovery directly to the municipality that received tax and/or penalty and interest owed to the City, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a claim for recovery lies in the sole discretion of the City. Any claim for recovery shall include a properly executed release of claim from the taxpayer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the claim, and a request that the municipality approve or deny in whole or in part, the claim within ninety (90) days of its receipt. The municipality to which the City submits a claim for recovery may, for good cause, request an extension of time to investigate the claim, and approval of such extension by the City shall not be unreasonably withheld.

Within ninety (90) days after receipt of a claim for recovery, the City shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received, and shall notify the municipality submitting the claim in writing that the claim is either approved or denied in whole or in part, including the reasons for the decision. If the claim is approved in whole or in part, the City shall remit the undisputed amount to the municipality submitting the claim within thirty (30) days of approval. If a claim is submitted jointly by a municipality and a vendor or taxpayer, the check shall be made to the parties jointly. Denial of a claim of recovery may only be made for good cause.

The City may deny a claim on the grounds that it has previously paid a claim for recovery arising out of an audit of the same taxpayer.

The period subject to a claim of recovery shall be limited to the thirty-six (36) month period prior to the date the municipality that was wrongly paid the tax receives the claim for recovery.

[Source: Ord. 1037, 1991; 1604, 2011; 1824, 2022]

Section 5-2-14. Interest on Overpayments and Refunds.

Interest Allowance Basis. No interest shall be paid upon any overpayment of sales or use tax unless:

Such overpayment was made under protest, and

The taxpayer has requested a refund in writing within sixty (60) days after the tax was paid.

Payment of Interest.

No interest shall be allowed on any overpayment which is refunded within ninety (90) days after the actual payment of the tax or the last date prescribed for filing the return of such tax, determined without regard to any extension of time for filing the return, whichever is earlier.

If the taxpayer applies for an award of interest and otherwise has satisfied the provisions of this section, interest shall be allowed at the rate of nine percent (9%) per annum.

Interest shall accrue only from the date of the taxpayer's application for a refund. If the refund is to be applied against other taxes owed by the taxpayer, interest shall not be paid on the refund for the period after the due date of the amount against which the credit is taken.

Refund Erroneously Made to Bear Interest. Any portion of a sales or use tax, or any interest, assessable penalty, additional amount, or additional tax, which has been erroneously refunded, shall bear interest at the rate of nine percent (9%) per annum from the date of the payment of the refund.

[Source: Ord. 1037, 1991]

Section 5-2-15. False or Fraudulent Refund Claim.

Violation of Code. Any applicant for refund under the provisions of this article, or any other person who shall make any false statement in connection with an application for a refund of any taxes shall be deemed guilty of a violation of this ordinance.

Action to Recover Fraudulent Claims. If any person be convicted of violation of Section 5-2-15 (a) of this section, such conviction shall be "prima facie" evidence that all refunds received by such person during the current year were obtained unlawfully and the Director is hereby empowered and directed to bring appropriate collection proceedings for recovery of such refunds.

[Source: Ord. 1037, 1991]

Section 5-2-16. Director's Remedies in Case of Nonpayment.

So long as a final assessment remains unpaid, the Director may take any of the following enforcement procedures against the defaulting taxpayer:

Request the City Clerk to revoke, the taxpayer's sales and use tax license.

Issue a summons to the person or taxpayer to appear in the Municipal Court of the City of Northglenn on charges of violating this Code.

Issue a Distraint Warrant pursuant to this Code.

File a complaint in County or District Court to collect all amounts owed.

Regardless of the collection or enforcement procedures invoked by the Director, all unpaid taxes, penalties and interest shall be secured by a lien arising by operation of law as provided by this Code.

[Source: Ord. 1037, 1991]

Section 5-2-17. Enforcing Collection by Distraint.

Warrant. The Director may issue a warrant under the Director's own hand directed to any representative of the Department of Finance, including the sheriff of any county of the State, commanding such person to distrain, seize, and sell the personal property of the taxpayer, except such personal property as is exempt from execution and sale by any provision of this Code, for the payment of the tax due together with penalties and interest accrued thereon and collection costs:

When any deficiency in tax is not paid within thirty (30) days from the receipt of Notice of Final Determination--Assessment and Demand for Payment therefor and no hearing has been requested and no appeal from such deficiency assessment has been docketed with any district court of this state within said period; or

When any other amount of tax, penalty, or interest is not paid within thirty (30) days from the receipt of assessment and demand for payment thereof; or,

Immediately upon making of a jeopardy assessment or of the issuance of a demand for payment, as provided in Section 5-2-9.

Distraint Seizure--Advertisement--Sale--Redemption.

The agent charged with the collection shall make or cause to be made an account of the goods or effects distrained, a copy of which, signed by the agent making such distraint, shall be left with the owner or possessor, or at such person's usual place of abode with some member of such person's family over the age of eighteen (18) years, or at such person's usual place of business with such person' stenographer, bookkeeper, or chief clerk, or if the taxpayer is a corporation, shall be left with any officer, manager, general agent, or agent for process, with a note of the sum demanded and the time and place of sale. If said notice cannot be served on the taxpayer within thirty (30) miles of the City of Northglenn, it shall be mailed to the taxpayer's last known address, return receipt requested.

The agent shall forthwith cause to be published a notice of the time and place of sale, together with a description of the property to be sold, in some newspaper within the county wherein distraint is made, or, in lieu thereof and in the discretion of the Director, the agent or sheriff shall cause such notice to be publicly posted at the court house of the county wherein such distraint is made, and copies thereof to be posted in at least two other public places within said county.

The time fixed for the sale shall not be less than ten (10) days nor more than sixty (60) days from the date of such notification to the owner or possessor of the property and the publication or posting of such notices. Said sale may be adjourned from time to time by said agent or sheriff if such person's deems it advisable, but not for a time to exceed in all ninety (90) days from the date first fixed for the sale. When any personnel property is advertised for sale under distraint as aforesaid, the agent or sheriff making the seizure shall proceed to sell such property at public auction, offering the same at not less than a fair minimum price, including the expenses of making the seizure and of advertising the sale, and if the amount bid for the property at the sale is not equal to the fair minimum price so fixed, the agent or sheriff conducting the sale may declare the same to be purchased by him for the City. The property so purchased may be sold by the agent or sheriff under such regulations as may be prescribed by the Director.

In any case of distraint for the payment of taxes, the real property, goods, chattels, or effects so distrained shall be restored to the owner or possessor, if, prior to the sale, the amount due is paid, together with the fees and other charges or may be redeemed by any person holding a chattel mortgage or other evidence of right of possession.

Certificate of Sale--Evidence of Purchase. In all cases of sale, the agent or sheriff making the sale shall issue a certificate of sale to each purchaser, and such certificate shall be prima facie evidence of the right of the agent or sheriff to make such sale, and the conclusive evidence of the regularity of such person's proceedings in making the sale; and shall transfer to the purchaser all right, title and interest of such delinquent in and to the property sold; and where such property consists of certificates of stock in the possession of the agent or sheriff, the certificate of sale shall be notice, when received, to any corporation, company or association of said transfer, and said certificate of such sale shall be authority for such corporation, company, or association to record the transfer on its books and records; and where the subject of sale is securities or other evidences of debt, in the possession of the agent or sheriff, the certificate of sale shall be good and valid evidence of title in the person holding the same, as against any other person. Any surplus remaining above the taxes, penalties, interest, costs and expenses of making the seizure and of advertising the sale, shall be returned to the owner, or such other person having a legal right thereto, and, on demand, the Director shall render an account in writing of the sale.

[Source: Ord. 1037, 1991; 1604, 2011; 1824, 2022]

Section 5-2-18. Recovery of Unpaid Tax by Action at Law.

Action at Law. The Director may also treat any such taxes, penalties, or interest due and unpaid as a debt due the City from the taxpayer personally. In case of failure to pay the tax, or any portion thereof, or any penalty or interest thereon when due, the Director may receive at law the amount of such taxes, penalties, interest and collection costs in such county or district court of the county wherein venue may be proper under the applicable rule of civil procedure. The return of the taxpayer or the assessment made by the Director as herein provided, shall be prima facie proof of the amount due.

Writs of Attachment. Such actions may be actions in attachment, and writs of attachment may be issued to the sheriff and in any such proceedings, no bond shall be required of the Director nor shall any sheriff require of the Director an indemnifying bond for executing the writ of attachment, or writ of execution upon any judgment entered in such proceedings; and the Director may prosecute appeals or writs of error, in such cases without the necessity of providing bond therefor. It shall be the duty of the City Attorney, when requested by the Director, to commence action for the recovery of taxes due under this Code, and this remedy shall be in addition to all other existing remedies or remedies provided in this Code.

Civil Action to Enforce Lien Against Real Property. In any case where there has been a refusal or neglect to pay any tax due the City, the Director may cause a civil action to be filed in the district court of the county in which is situated any real property which is subject to said tax, to enforce the lien of the City for such tax upon the real property situated in that county or in any other county in the state which may be subject to such lien or to subject any real property or any right, title or interest in real property to the payment of such tax. The court shall decree a sale of such real property and distribute the proceeds of such sale, according to the findings of such court in respect to the interest of the parties and of the City; the proceedings in such action and the manner of sale, the period for and manner of redemption from such 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.

Exhaustion of Administrative Remedies. No lawsuit may be filed by the City until the time for the taxpayer to exercise the taxpayer's administrative remedies or to file an appeal has expired. This remedy shall be in addition to all other existing remedies available to the City. No de novo trial of the facts shall be permitted if the taxpayer has had a hearing before the Director or has had the opportunity for such a hearing, but failed to exhaust the taxpayer's administrative remedies.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-19. Sales and Use Tax Constitutes Lien.

Any sales or use tax imposed by this Code, together with the interest and penalties herein provided, and the cost of collection, shall be a first and prior lien upon:

The goods, stock-in-trade, and business fixtures of or used by any taxpayer under lease, title-retaining contract or other contractual arrangement; and

The real and personal property owned or leased by any such taxpayer, including personal property affixed to real property, and shall take precedence on all such property over other claims and mortgages. This lien shall arise upon the day the tax becomes due and payable and shall be extinguished by operation of law when the tax is paid in full, including any interest, penalty and collection costs.

Whenever the business or property of any taxpayer subject to this Code shall be placed in receivership, bankruptcy or assignment for the benefit of creditors, or seized under distraint for property or other taxes, all taxes, penalties and interest imposed by this Code and for which said person is in any way liable under the terms of this Code, shall be a prior and preferred lien against all the property of said taxpayer, and no sheriff, receiver, assignee or other officer shall sell the property of any person subject to this Code under process or order of any court, without first ascertaining from the Director the amount of any taxes due and payable under this Code. If there be any such taxes due, owing or unpaid, it shall be the duty of such officer to first pay the amount of said taxes out of the proceeds of said sale before making payment of any moneys to judgment creditors or other claims of whatsoever nature.

At any time a tax has accrued but is unpaid, the Director may issue a notice of tax lien, setting forth the name of the taxpayer, the amount of the tax, penalties and interest, the date of the accrual thereof, and that the City claims a first and prior lien therefore on the real and tangible personal property of the taxpayer. Said notice may be filed in the office of the Clerk and Recorder of any county in the state in which the taxpayer owns real or tangible personal property. Issuance of such notice and filing thereof shall be at the discretion of the Director and shall not affect the priority or validity of the lien provided by this Code, which arises by operation of law when the tax accrues and is payable.

Any representative of the Director to whom a Distraint Warrant has been issued may file a Notice of Lien in such forms as the Director may prescribe with the person in possession of any personal property or rights to property belonging to the taxpayer if not previously recorded with the County Clerk and Recorder. The Director may release said lien as to any part or all of the property or rights to property covered by such lien upon such terms as he may deem proper.

Any lien for taxes as shown on the records of the County Clerks and Recorders as herein provided, upon payment of all taxes, penalties, and interest covered thereby, shall be released by the Director in the same manner as mortgages and judgments are released.

[Source: Ord. 1037, 1991]

Section 5-2-20. Compromise.

Compromise Limitation. After an assessment has become final because the taxpayer has waived its right to a hearing or because the hearing officer has issued his or her final decision, the Director or City Attorney may compromise to the extent of One Thousand Dollars ($1,000.00) any collection proceeding arising under this Code.

Compromise Record. Whenever a compromise, in value or valuation, of One Thousand Dollars ($1,000.00) or less is made by the Director or the Director's delegate in any case, there shall be placed on file in the office of the Director or the Director's delegate the opinion of the Director with the Director's reasons therefor, which may include financial inability of the taxpayer to pay a greater amount, with a statement of:

The amount of tax assessed;

The amount of interest, additional amount, additional to the tax, or assessable penalty, imposed by law on the person against whom the tax is assessed; and

The amount paid in accordance with the terms of the compromise.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-21. Sale of Business or Property Subject to Lien.

Any person or taxpayer who shall sell out such person's business or stock of goods or all the assets of a business to another person or any person or taxpayer who quits business, shall make out the return as required by this Code and remit all taxes due within twenty (20) days after the business or stock of goods is sold, or the taxpayer quits business. The purchaser or successor to the business, stock of goods or assets shall withhold sufficient of the purchase money to cover all of said taxes until such time as the former owner produces a receipt from the Director showing that all taxes have been paid in full.

Taxes due upon the sale of a business or stock of goods include all sales taxes which were collected or should have been collected prior to the sale, all use taxes accruing or payable prior to the sale, and all sales taxes due on the personal property sold by the seller to the new owner of the business or stock of goods.

Until all taxes due under this section are paid in full, both the former owner and the purchaser shall remain personally liable thereon and subject to all collection proceedings available under this Code. Action by the City against the former owner shall not prevent the exercise by the City of all remedies provided herein against the successor owner.

Any person who takes or purchases personal or real property under lease, title retaining contract or other contract arrangement, by purchase, foreclosure sale, or otherwise, takes the same subject to the lien for any delinquent taxes owed by the original owner and shall be liable for the payment of all delinquent taxes, interest, penalty and collection costs of such prior owner, not however, exceeding the value of the property so taken or acquired. Any person who takes title to or possession of any real property upon which a use tax is owed takes said property subject to the lien for said delinquent tax and shall be liable for the payment thereof to the extent of the tax, interest, penalties and collection costs.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-22. No Final Inspection or Certificate of Occupancy Unless Tax Paid. No final inspection shall be made by the City Building Inspector, and no Certificate of Occupancy shall be issued unless all taxes due as provided in the City Sales and Use Tax Code have been paid or arrangements therefore made with the Director.

[Source: Ord. 1037, 1991; 1322, 2003]

Section 5-2-23. Certificate of Discharge--Partial--Values Determined.

Certificate of Discharge Subject to Lien. If any property, real or personal, under the law, shall be subject to a lien for the payment of any tax due the City, the Director may issue a certificate of discharge of any part of the property subject to the lien if the Director finds that the fair market value of that part of such property remaining subject to the lien is at least double the amount of the liability remaining unsatisfied in respect to such tax and the amount of all prior liens upon such property.

Certificate of Discharge to Part of Property. If any property, real or personal, under the law, shall be subject to a lien for the payment of any tax due the City, the Director may issue a certificate of discharge of any part of the property subject to the lien if there be paid over to the Director in part satisfaction of the liability in respect to such tax an amount determined by the Director, which shall not be less than the value, as determined by the Director, of the interest of the City in the part to be so discharged.

How Values Determined. In determining such values, the Director shall give consideration to the fair market value of the part to be so discharged and to such lien thereon as have priority to the lien of the City.

Certificate of Release Conclusive. A certificate of release or of partial discharge issued under Subsection 5-2-23(a) shall be held conclusive that the lien of the City upon the property released therein is extinguished, but shall not extinguish, nor release, any portion of the lien nor property not specified in the release.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-24. Closing Agreements.

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 such person's or its taxable periods, under the provisions of the taxes covered by this Code and except upon a showing of fraud, maleficence or misrepresentation of a material fact, payment in accordance with such agreement shall be full satisfaction of the taxes for the taxable periods to which the agreement related.

Personal Liability. Except as provided in Subsection 5-2-23(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 such person's control without having first paid any taxes covered by this Code due from such decedent, decedent's estate, trust estate, receivership, or corporation, covered by this Code and which may be assessed within the time limited by this 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 Code and which may be assessed within the time limited by this Code.

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 such 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 Code and which may be assessed within the time limited by this Code. Notice to such 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.

Limitation of Liability.

In case tax covered by this article is due from a decedent, or of the decedent's estate, or by a corporation, in order for 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 such 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 such request is applicable, by any personal representative of such 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.

This subsection (d) will not apply in the case of a corporation unless:

Such request notifies the Director that the corporation contemplates dissolution at or before the expiration of such eighteen (18) month period.

The dissolution is begun in good faith before the expiration of such eighteen (18) month period; and

The dissolution is completed.

Upon the expiration of said eighteen (18) month period, without determination being made and notice and demand being issued, the personal representative or representative of the decedent and the directors of the corporation no longer will be liable under the provisions of subsection (b) of this section.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-25. Limitations.

General Limitations.

Statute of Limitations. Except as provided in this section, the taxes for any period, together with the interest thereon and penalties with respect thereto, imposed by this Code shall not be assessed, nor credit taken, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, or any other action to collect the same be commenced, more than three (3) years after the date on which the tax was or is payable; nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period. In the case of a failure to make a return or in the case of a false or fraudulent return with intent to evade tax, the tax together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. The commencement of collection proceedings shall toll the running of the Statute of Limitations.

Date Fixed. For purposes of this section a tax return filed before the last day prescribed by law or by regulation promulgated pursuant to law for the filing thereof, shall be considered as filed on such last day.

Extension of Period. Where, before the expiration of the time prescribed in this section for the assessment of tax both the Director or the Director's delegate and the taxpayer have consented in writing to any assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

Revision Qualification--Periods Covered. Nothing in this section shall be construed to limit any right accrued or to revive any liability barred by any statute at the date this Code becomes effective.

Trust Status of Tax in Possession of Retailer. All sums of money paid by the purchaser to the retailer as taxes imposed by this Code shall be and remain public money, the property of the City of Northglenn, in the hands of such retailer and such retailer shall hold the same in trust for the sole use and benefit of the City of Northglenn, until paid to the Director, and for failure to so pay to the Director, such retailer shall be punished as provided by law. Thus, the Statute of Limitation provided herein does not apply to collections of public money in the possession of the retailer and such moneys are collectable at any time after their due date upon demand of the Director.

[Source: Ord. 1037, 1991; 1824, 2022]

Section 5-2-26. Notice of Sales and Use Tax Ordinance Amendment.

In order to initiate a central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the Finance Director of the City shall file with the Colorado Municipal League, prior to the effective date of this section, a copy of the City sales and use tax ordinance reflecting all provisions in effect on the effective date of this section.

In order to keep current the central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the Finance Director of the City shall file with the Colorado Municipal League prior to the effective date of any amendment a copy of each sales and use tax ordinance amendment enacted by the City.

Failure of the City to file such ordinance or ordinance amendment pursuant to this section shall not invalidate any provision of the sales and use tax ordinance or any amendment thereto.

[Source: Ord. 1037, 1991]

Section 5-2-27. Participation in Simplification Meetings. The Finance Director shall cooperate with and participate on an as needed basis with a permanent statewide sales and use tax committee convened by the Colorado Municipal League which is composed of state and municipal sales and use tax and business officials. Said committee will meet for the purpose of discussing and seeking resolution to sales and use tax problems which may arise.

[Source: Ord. 1037, 1991]

Section 5-2-28. Severability--Saving Clause.

As used in this section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the City; and the term "this ordinance" means and includes the ordinance enacting this section, together with any and all exhibits and schedules therein incorporated, and each chapter, article and section of the Municipal Code in which such ordinance is codified.

If any provision of this ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council of the City of Northglenn hereby declares that it would have passed this ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid.

The amendment, repeal or supersession of any ordinance or provision of any ordinance by this ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right which may have been incurred or obtained under such ordinance or provision thereof; and such ordinance or provision thereof so amended, repealed or superseded shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right and for the enforcement of such penalty, liability, or right and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered or made in such actions, suits or proceedings, or prosecutions imposing, inflicting or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings and appeals pending before any court or administrative tribunal.

[Source: Ord. 1037, 1991]