HomeMy Public PortalAboutOrdinance 494 Amending Chapter 6, Article 1 Regarding Business LicenseTOWN OF FRASER
ORDINANCE NO. 494
Series 2023
AN ORDINANCE AMENDING CHAPTER 6, ARTICLE 1 OF THE FRASER MUNICIPAL CODE
REGARDING BUSINESS LICENSES
WHEREAS, pursuant to State Senate Bill 22-032, Simplify Local Sales & Use Tax
Administration, on and after July 1, 2022, a local taxing jurisdiction is prohibited from charging a
fee for a general business license to a retailer that has a state standard retail license, makes
retail sales within the local taxing jurisdiction, and either does not have a physical presence in
the local taxing jurisdiction or only has an incidental physical presence within the local taxing
jurisdiction;
WHEREAS, the Board of Trustees desires to eliminate the required license fee and
registration application process for a Town of Fraser business license for those that hold a state
standard retail license to comply with the provisions of Senate Bill 22-032;
WHEREAS, the Board of Trustees desires to amend sections of the code related to
penalty for delinquent license fees and add sections to the code defining a change in the titling
of a license for short-term rental owners.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO, THAT:
PART 1: AMENDMENT OF MUNICIPAL CODE.
Chapter 6 (Business Licenses), anywhere of the Fraser Municipal Code (herein sometimes
referred to as the "Municipal Code") are hereby amended as follows [Note: additions are shown
in bold underlined print; deletions are shown as stfi4Eethreugh print and will delete the term any
where it is used throughout the section of the applicable code.
Sec. 6-1-20. - Definitions.
For purposes of this Article, the following definitions shall apply:
Business means and includes each kind of vocation, occupation, profession, enterprise and
establishment, or any kind of activity for gain, benefit, advantage, or livelihood conducted
within the Town.
Casual transaction is an isolated, single or incidental transaction (except for any rental of
residential property) which in itself does not constitute the carrying on of business. Examples
include but are not limited to: fund raisers, garage sales, bake sales or private sales of
possessions or vehicles.
Fixed business is any business operating with a physical presence within the Town as defined
below. Without limiting the generality of the foregoing, fixed business shall include any owner of
residential property who rents such property for any term of less than thirty (30) days and who
does not qualify as an incidental physical presence as defined below. Fixed business does not
include a home occupation.
Physical Presence means performing or providing services or selling, leasing, renting,
delivering, or installing tangible personal property for storage, use or consumption
within the local taxing jurisdiction. Physical presence includes:
1. Directly or indirectly by a subsidiary maintaining a building, store, office,
salesroom, warehouse, or other place of business within the local
jurisdiction;
2. Sending one or more employees, agents, or commissioned salesperson into
the local jurisdiction to solicit business, to install, assemble, repair, service,
or assist in the use of its products, or for demonstration or other reasons;
3. Maintaining one or more employees, agents or commissioned salesperson
on duty at a location within the local taxing jurisdiction;
4. Owning, leasing, renting or otherwise exerting control over real or personal
property sales within the local taxing jurisdiction. Includes any owner of
residential property who rents such property for any term of less than thirty
(30) days.
5. Engaging in activities within the taxing jurisdiction that are subject to other
business, fire, zoning, or other regulations of the local jurisdiction; or
6. Being subject to taxable privileges other than the requirements to collect
sales tax imposed by the local jurisdiction.
Home occupation is any business operated out of a residence. Home occupations are
regulated by zoning districts.
License means a business license, or Short Term Rental Operating License.
Nonfixed business is any business with an incidental physical presence, not having a set
operating location within the Town, but which otherwise does business within the Town.
Examples include but are not limited to; door-to-door sales, transient vendors, construction
trades and retail and wholesale distributors. Without limiting the generality of the foregoing,
nonfixed business shall include any owner of residential property who contracts with a rental
management business for the rental of such property of any term of less than thirty (30) days,
provided that such rental management business collects and remits to the Town the license
fees for all such managed properties.
Incidental Physical Presence means performing or providing services or selling, leasing,
renting, delivering, or installing tangible personal property for storage, use, or
consumption within the local taxing jurisdiction that occurs infrequently and is not
regularly scheduled within the ordinary course of an individual or entity's business
activities.
Short Term Rental Operating License is a fixed business license, meaning a license
issued by the Town of Fraser to residential property owners who operate a short-term
rental by renting their property for a term of less than thirty (30) days and who manage
the property's rental platform calendar, advertisements, cleaning or any other property
services directly.
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Sec. 6-1-30 Business license required.
(c) All businesses must post a license, appropriate to the type of business in
compliance with Chapter 6 of the Fraser Town Code.
Sec. 6-1-50. - Exemptions.
Persons exempt from the provisions of this Article are:
(1) Churches or established religious organizations.
(2) Any organization exempt from payment of state and local sales tax.
(3) Schools and community -wide preschools/day care facilities.
(4) Federal and state governments and all political subdivisions thereof.
(5) Persons exempt from business licensing under state law.
(6) Persons engaged in a casual transaction.
(7) Owners of residential property who rent their property for a rental term of thirty (30) days
or longer, and all owners of rental time shares regardless of the rental term.
(8) Persons selling goods or services at temporary or special events. Such individuals are
required to obtain a yearly special events vendor license, allowing for the sale of goods
at such venues. An alternative is for the event sponsor to act on behalf of all vendors as
to congregate and submit all taxes (additional reporting requirements apply in this
situation). A special events license would be required for the sponsor in addition to a
normal Town business license.
(9) Businesses with a state standard retail license, makes retail sales within the local
taxing jurisdiction, and either does not have a physical presence in the local
taxing jurisdiction or only has an incidental physical presence within the local
taxing jurisdiction.
Sec. 6-1-100. — License renewal and fees.
(c) Commencing on June 1, 2023, the annual business license for property owners
renting a property for less than 30 days and manage their own rental property
services shall pay an annual Short Term Rental Operating License fee and shall
obtain a license prior to the commencement of operating a short term rental. The
license shall be valid from the date obtained in conjunction with the Short Term
Rental permit approval date.
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(c)u The annual business license and Short Term Rental Operating License fee for all
busineeccs shall be in such amount as is established from time to time by ordinance or
resolution adopted by the Board of Trustees for each business requiring a separate license
(includes a sales tax license). Such fee is set forth in Appendix A to this Code.
Sec. 6-1-130. — Penalty.
Every person convicted of a violation of any provision of this Article shall be punished as
yet forth in Section 1 10 of this Code.
Commencing June 1, 2023, any business or Short Term Rental found to be
operating without a license or late in renewing a license will be assessed an
administrative penalty.
Discovery of a business or short term rental operating in the previous year without a
license will be assessed a prior and current year's annual fee plus an administrative
penalty.
The administrative penalty will be assessed ten (10) business days after the due date. A
paper and electronic notification will be sent. Such penalty is set forth in Appendix A to
this Code.
Appendices
Appendix A — Fee Schedule.
Chapter 6
6-1-100
Annual STR Operating License $40.00
Administrative Penalty $20.00
PART 2: REPEAL.
Any and all existing ordinances or parts of ordinances of the Town of Fraser covering the same
matters as embraced in this Ordinance are hereby repealed and all ordinances or parts of
ordinances inconsistent with the provisions of this ordinance are hereby repealed; provided,
however, that such repeal shall not affect or prevent the prosecution or punishment of any
person for any act done or committed in violation of any ordinance hereby repealed prior to the
taking effect of this Ordinance.
PART 3: SEVERABILITY.
If any section, subsection, sentence, clause, or phrase of this Ordinance is, for any reason, held
to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of
the remaining portions of this Ordinance. The Town of Fraser hereby declares that it would
have adopted this Ordinance, and each section, subsection, clause or phrase thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses and
phrases thereof be declared invalid or unconstitutional.
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PART 4: EFFECTIVE DATE.
This Ordinance shall take effect thirty (30) days after passage, adoption and publication thereof
as provided by law.
PART 5: PUBLICATION.
This Ordinance shall be published by title only.
READ, PASSED, ADOPTED AND ORDERED PUBLISHED BY THE BOARD OF TRUSTEES
AND SIGNED THIS 15 day of Yfl , 2023.
Votes in favor:
Votes opposed: 0
Votes abstained: 0
OCORA 9'
BOARD USTEES OF THE
TOWN OF FRA R, CQtORADO
BY:
Published in the Middle Park Times on n1A.,tic��3,�0�3
Philip Vandrrnail, Mayor
EST:
Antoinette McVeigh, Town Clerk
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