§ 53-27. Retailers to collect tax.

(a)

Tax rates. A tax of three and one-half (3.5) percent is imposed and levied upon all taxable sales of tangible personal property, products, and services except those tangible personal property, products, or services specified in subsection (b) of this section. In order to avoid amounts that are fractions of pennies, taxpayers shall use a rounding procedure approved by the manager when computing the tax.

On those taxable sales of tangible personal property, products, or services specified in subsection (b) of this section, there is levied and imposed upon all taxable sales a tax in accordance with the rates set forth in subsection (b).

(b)

Special rates.

(1)

Special note for aviation and railway fuel. Any fuel in the form of liquid or gas that is prepared, advertised, offered for sale, sold for use and used or commercially usable for the generation of power for the propulsion or drawing of aircraft, railroad cars or railroad locomotives shall be taxed at the rate of four cents ($0.04) for each gallon purchased. In order to avoid amounts that are fractions of pennies, taxpayers shall use a rounding procedure approved by the manager when computing the tax.

(2)

Special note for short-term rentals of automotive vehicles. Automotive vehicles as defined in this article, when they are for any term of thirty (30) days or less, hired for use, rented, leased or transferred under a grant of a license to use, shall be taxed at the rate of seven and one-quarter (7.25) percent of the rentals paid or purchase price. In order to avoid amounts that are fractions of pennies, taxpayers shall use a rounding procedure approved by the manager when computing the tax. One and three-quarters (1.75) percent of such tax shall be used to pay debt related to and costs of operating, maintaining and improving the National Western Center Campus and the Colorado Convention Center and other tourism related projects.

(3)

Special note for prepared food and beverages. Food and beverages not exempted from taxation under section 53-26(8) of this article shall be taxed at the rate of four (4) percent of the purchase price. In order to avoid amounts that are fractions of pennies, taxpayers shall use a rounding procedure approved by the manager when computing the tax.

(c)

Tax to be shown as separate item. Except as provided in this section, retailers shall add the tax imposed, or the average equivalent thereof, to the purchase price, showing such tax as a separate and distinctive item, and when added, such tax shall constitute a part of such price and shall be a debt from the purchaser to the retailer until paid, recoverable at law in the same manner as other debts.

(d)

Vending machines; liquor by the drink. Notwithstanding provisions hereinafter regarding the unlawful assumption or absorption of the tax, any retailer selling malt, vinous or spirituous liquors by the drink or vending items through coin-operated vending machines may include in the purchase price for the drink or the purchase price for the vended item the tax levied by this article; but no such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer.

(e)

Retailer as collecting agent. The retailer shall be entitled as collecting agent of the city to apply and credit the amount of his collections of the tax levied by this article against the amount required to be paid over by him under the provisions of section 53-28, remitting any excess of collections over the amount required by section 53-28 and rounding to the nearest whole dollar as provided in section 53-28, to the manager in the retailer's next periodic sales tax return.

(f)

Retailer not to benefit. No retailer shall gain any benefit from the collection or payment of the tax, except as permitted by this article, and the use of the rounding procedure approved by the manager shall not relieve the retailer from liability for payment of the amount required by section 53-28.

(g)

Sales tax increment to fund the Denver preschool program. In addition to the sales tax otherwise imposed by this section, a tax of fifteen one-hundredths of one (0.15) percent shall be paid on all taxable sales of tangible personal property, products, or services, except on tangible personal property, products, or services specified in subsection (b) of this section, beginning January 1, 2015 and expiring December 31, 2026. The revenue from such additional tax shall be used for the sole purpose of funding the Denver preschool program pursuant to article III of chapter 11.

(h)

Sales tax increment to fund the Parks, Trails, and Open Space Program. In addition to the sales tax otherwise imposed by this section, a tax of twenty-five one-hundredths of one (0.25) percent must be paid on all taxable sales of commodities or services, except on commodities or services specified in subsection (b) of this section, beginning January 1, 2019. The revenue from such additional tax must be used for the sole purpose of funding the Parks, Trails, and Open Space Program created in article XII of chapter 39.

(i)

Sales tax increment to fund the Caring for Denver Fund. In addition to the sales tax otherwise imposed by this section, a tax of twenty-five one-hundredths of one (0.25) percent shall be paid on all taxable sales of commodities or services, except on commodities or services specified in subsection (b) of this section, beginning January 1, 2019. The revenue from such additional tax shall be used for the sole purpose of funding the Caring for Denver Fund pursuant to article XIV of chapter 24.

(j)

Sales tax increment to the fund the Healthy Food for Denver's Kids Initiative. In addition to the sales tax otherwise imposed by this section, a tax of eight one-hundredths of one (0.08) percent shall be paid on all taxable sales of commodities or services, except on commodities and services specified in subsection (b) of this section, beginning January 1, 2019 and expiring December 31, 2028. The revenue from such additional tax shall be used for the sole purpose of funding Healthy Food for Denver's Kids Initiative pursuant to Division 6 of the Article VIII of Chapter 2. Providing that the tax expires in ten (10) years, the revenues from these increased taxes shall be collected and spent before December 31, 2029 by Denver. Notwithstanding any limitations on revenue, spending, or appropriations contained in Section 20 of Article X of the Colorado Constitution or any other provision of law, any revenues generated by this sales tax increment, as approved by the voters at the municipal election on November 6, 2018, may be collected and spent as a voter-approved revenue changes and shall not require further voter approval to modify the tax rate as provided in section 53-85 or to collect and spend any revenue derived from a modified tax rate.

(k)

Sales tax increment to fund the Denver College Affordability Fund. In addition to the sales tax otherwise imposed by this section, a tax of eight one-hundredths of one (0.08) percent shall be paid on all taxable sales of commodities or services, except on commodities or services specified in subsection (b) of this section, beginning January 1, 2019, and expiring December 31, 2030. The revenue from such additional tax shall be used for the sole purpose of funding the Denver College Affordability Fund pursuant to article IV of chapter 11.

(Ord. No. 666-81, § 1, 12-14-81; Ord. No. 638-84, § 11, 12-3-84; Ord. No. 536-85, § 1, 10-15-85; Ord. No. 465-86, §§ 2, 3, 7-28-86; Ord. No. 480-86, § 1, 8-5-86; Ord. No. 717-86, § 1, 10-27-86; Ord. No. 557-87, § 1, 10-5-87; Ord. No. 302-88, § 1, 5-23-88; Ord. No. 69-89, § 1, 2-21-89; Ord. No. 973-99, § 1, 12-27-99; Ord. No. 773-02, § 1, 9-30-02; Ord. No. 556-06, § 2, 8-7-06; Ord. No. 853-06, § 1, 12-26-06; Ord. No. 400-09, § 1, 7-20-09; Ord. No. 614-09, § 1, 10-26-09; Ord. No. 449-14, § 3, 8-11-14, elec. 11-4-14; Ord. No. 159-15, § 1, 4-13-15; Ord. No. 111-16, § 1, 3-14-16; Ord. No. 528-17, § 6, 6-26-17; Ord. No. 641-18, § 2, 7-16-18; Ord. No. 1420-18, § 2, 12-10-18)