§ 53-5. Coordinated audit procedure.

(a)

Any taxpayer licensed by the city pursuant to either the city retail sales tax article or the city use tax article or both, and holding a similar sales tax license in at least four (4) other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein.

(b)

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

(c)

Except as provided in paragraph (g), any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of the period of limitations on all tax assessments provided by the Denver Revised Municipal Code may be audited by the city during the twelve (12) months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.

(d)

If the city desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to paragraph (c), the manager shall so notify the municipality whose notice of audit prompted the taxpayer's request within ten (10) days after receipt of the taxpayer's request for coordinated audit. The manager 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.

(e)

If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by the city, the manager shall facilitate arrangements between the 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 manager 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.

(f)

If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by the city, the manager shall, once arrangements for the coordinated audit between the 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 manager shall also propose a schedule for the coordinated audit.

(g)

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

(1)

When the proposed audit is a jeopardy audit;

(2)

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

(3)

When a taxpayer refuses to promptly sign a waiver of the period of limitations on all tax assessments provided by the Denver Revised Municipal Code;

(4)

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

(Ord. No. 921-91, § 1, 12-9-91; Ord. No. 775-07, § 91, 12-26-07)