§ 53-59. Tax lien.

(a)

The tax imposed by this article, together with the interest and penalties herein provided and the costs of collection which may be incurred, shall be and, until paid, remain a first and prior lien superior to all other liens upon the goods, merchandise, furniture and fixtures, tools and equipment of any retailer, or used by any retailer in conducting his retail business under lease, title retaining contract or other contract arrangement, within the city and shall take precedence on all such property over other liens or claims of whatsoever kind or nature and may be foreclosed by seizing under distraint warrant and selling so much of said merchandise, furniture and fixtures, tools and equipment as may be necessary to discharge said lien.

(b)

The real or personal property of an owner who has made a bona fide lease to a retailer shall be exempt from the lien created in this section (1) if such property can reasonably be identified from the lease description and (2) if the lessee is given no right to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease until its termination if the lease is filed or recorded, within ten (10) days after the execution of the lease, with either the executive director of the state department of revenue or the clerk and recorder of the city. Where the lessor and lessee are blood relatives, relatives by law, or have twenty-five (25) percent or more common ownership, a lease between them shall not be considered bona fide for the purpose of this section.

(c)

Any retailer who is in possession of property under the terms of a lease, which property is exempt from lien as provided in this section, may be required by the manager to make return of and pay over taxes collected at more frequent intervals than monthly, or may be required to furnish security for the proper payment of taxes whenever the collection of taxes appears to be in jeopardy.

(d)

The extension herein contained of the preexisting right of distress to merchandise, furniture and fixtures, tools and equipment of or used by the taxpayer shall apply to tax obligations in default at the time of the passage of this amendment and the existing liens created by Ordinance No. 437, Series of 1964, and Ordinance No. 666, Series of 1981, shall continue to apply, subject to the limitations in this article contained. A sale at retail from a stock of merchandise in the regular course of business shall release the item or items sold from the lien created by this section, but newly acquired merchandise shall come and remain under such lien until sold at retail or until the tax is paid.

(Ord. No. 666-81, § 1, 12-14-81; Ord. No. 638-84, § 23, 12-3-84; Ord. No. 922-91, § 13, 12-9-91; Ord. No. 1027-02, § 2, 12-16-02)

Case Law annotation— The mere use of personal property subjects it to lien, notwithstanding lack of ownership in the using party. Horacek v. Cherry Creek Corporation, 28 Colo. App. 258, 472 P. 2d 158 (Colo. Ct. of App., Div. II, 1970).