§ 53-98. Retailers to collect tax.

(a)

Tax rates. A tax of three and one-half (3.5) percent is imposed and levied and there shall be collected and paid a tax upon the exercise of the privilege of storing, using, distributing or consuming in the city tangible personal property, or a product or a service subject to the provisions of this article, purchased at retail, or deemed to be purchased at retail, except tangible personal property, or a product or a service 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 uses, consumptions, distributions and storages of tangible personal property, products, or services specified in subsection (b) of this section, there is levied and imposed upon the privilege of storing, using, distributing or consuming in the city a tax in accordance with the rates set forth therein.

(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 used, consumed, stored or distributed. 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 relating to and costs 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 the city retail sales tax article shall be taxed under this article 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 consumer or user to the retailer until paid, recoverable at law in the same manner as other debts.

(d)

Vending machine sales. Notwithstanding provisions herein regarding the unlawful assumption or absorption of the tax, any retailer vending items through coin-operated vending machines may include in 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)

Affixing of tangible personal property on realty. Every person who attaches and affixes to realty or the improvements and structures located thereon, situated within the city, any article of tangible personal property taxable hereunder, acquired from sources without the city and who has not paid the tax imposed by this article thereon, to a vendor required or authorized to collect the same, shall monthly make a return and pay the tax due to the manager on or before the twentieth day of each calendar month thereafter. The full amount of such unpaid taxes, arising as aforesaid, together with interest and penalties as hereinafter provided shall constitute a first and paramount lien upon such realty and the improvements located thereon, so benefited by the attaching and affixing of such articles of tangible personal property thereto, which lien shall have precedence over all other liens of whatsoever kind or nature, except as to liens for general taxes created by state law, and except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights shall have attached prior to the filing of the notice of lien by the manager as hereinafter provided; and the manager is hereby authorized to file a notice of lien therefor against said benefited realty and the improvements and structures thereon with the clerk and recorder of the city; and upon full payment of the amount of taxes, interest and penalties on account thereof, the manager may release and discharge said lien. Unless so released and discharged, said lien shall continue for six (6) years from the date said notice of lien is filed, notwithstanding the general limitation-of-action clause contained in this article.

(f)

Outside-city contracts, deliveries, etc. Every vendor required or permitted to collect the tax shall collect the tax imposed by the provisions of this article, notwithstanding the following:

(1)

That the purchaser's order or contract of sale is delivered, mailed or otherwise transmitted by the purchaser to the vendor at a point outside Denver as a result of solicitation by the vendor through the medium of a catalog or other written advertisement; or

(2)

That the purchaser's order or contract of sale is made or closed by acceptance or approval outside of the city or before said tangible personal property enters the city; or

(3)

That the purchaser's order or contract of sale provides that said property shall be, or it is in fact, procured or manufactured at a point outside the city and shipped directly to the purchaser from the point of origin; or

(4)

That said property is mailed to the purchaser in the city from a point outside the city or delivered to a carrier at a point outside the city F.O.B., or otherwise, and directed to the vendor in the city, regardless of whether the cost of transportation is paid by the vendor or by the purchaser; or

(5)

That said property is delivered directly to the purchaser at a point outside the city, if it is intended to be brought to the city for use, storage or consumption in the city.

(g)

Collection mandatory. Every vendor engaging in business in the city and selling tangible personal property, or a product or a service taxable hereunder shall collect, and is required to collect, the tax imposed and levied by this article from the purchaser.

(h)

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 53-99, remitting any excess of collections over the amount required by section 53-99 of this Code, and rounding to the nearest whole dollar as provided in section 53-99, to the manager in the retailer's next periodic tax return.

(i)

Consumer returns due, generally. Every person who is engaged in business in the city and who purchases tangible personal property, a product or service taxable hereunder for use, storage or consumption in the city in connection with the business, who has not paid the tax imposed by this article thereon to a vendor required or authorized to collect the same, shall, monthly, make a return of and pay over the tax due to the manager, on or before the twentieth day of each calendar month thereafter. The amount of the consumer use tax may be subject to reduction as provided by section 53-92 for previously paid sales or use taxes.

(j)

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 53-99.

(k)

Use tax increment to fund the Denver preschool program. In addition to the use tax otherwise imposed by this section, a tax of fifteen one-hundredths of one (0.15) percent shall be paid on all taxable uses, consumptions, distributions, and storages of tangible personal property, products, and services, except on tangible personal property, products, and 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.

(l)

Use tax increment to fund the Parks, Trails, and Open Space Program. In addition to the use tax otherwise imposed by this section, a tax of twenty-five one-hundredths of one (0.25) percent must be paid on all taxable uses, consumptions, distributions, and storages of commodities and services, except on commodities and 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.

(m)

Use tax increment to fund the Caring for Denver Fund. In addition to the use tax otherwise imposed by this section, a tax of twenty-five one-hundredths of one (0.25) percent shall be paid on all taxable uses, consumptions, distributions, and storages of commodities and services, except on commodities and 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.

(n)

Use tax increment to fund Healthy Food for Denver's Kids Initiative. In addition to the use tax otherwise imposed by this section, a tax of eight one-hundredths of one (0.08) percent shall be paid on all taxable uses, consumptions, distributions, and storages of commodities and 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 Article IV of Chapter 23.

(o)

Use tax increment to fund the Denver College Affordability Fund. In addition to the use tax otherwise imposed by this section, a tax of eight one-hundredths of one (0.08) percent shall be paid on all taxable uses, consumptions, distributions, and storages of commodities and services, except on commodities and 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. 667-81, § 1, 12-14-81; Ord. No. 637-84, § 17, 12-3-84; Ord. No. 535-85, § 1, 10-15-85; Ord No. 464-86, §§ 2, 3, 7-28-86; Ord. No. 482-86, § 1, 8-5-86; Ord. No. 735-86, §§ 1, 3, 11-3-86; Ord. No. 558-87, § 1, 10-5-87; Ord. No. 303-88, § 1, 5-23-88; Ord. No. 70-89, § 1, 2-21-89; Ord. No. 973-99, § 2, 12-27-99; Ord. No. 141-00, § 2, 2-22-00; Ord. No. 595-01, § 1, 7-16-01; Ord. No. 774-02, § 1, 9-30-02; Ord. No. 556-06, § 4, 8-7-06; Ord. No. 853-06, § 2, 12-26-06; Ord. No. 400-09, § 2, 7-20-09; Ord. No. 614-09, § 3, 10-26-09; Ord. No. 449-14, § 4, 8-11-14, elec. 11-4-14; Ord. No. 159-15, § 2, 4-13-15; Ord. No. 111-16, § 2, 3-14-16; Ord. No. 528-2017, § 17, 6-26-17; Ord. No. 641-18, § 4, 7-16-18; Ord. No. 1420-18, § 4, 12-10-18)