Tax Exempt Licensure#
No charitable organization shall purchase tax free in the City or use in the City tangible personal property or taxable services without payment of the tax unless the organization first obtains an exempt organization license and presents its license to the vendor before making a purchase, lease or use of the property or services.
The application for an exempt organization license should include copies of the organization's current certificate of incorporation, bylaws, financial statements showing sources of revenues and expenditures, the organization's current sales tax exemption certificate from the Colorado Department of Revenue or from another state, and a copy of the Internal Revenue Service's letter of determination recognizing the organization as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
An applicant whose application has been denied may, within twenty (20) days after such decision is mailed, petition for a hearing on the claim.
By obtaining an exempt organization license, the institution agrees to make regular and complete reports of all purchases, both those that are not taxable and those that are taxable, including, without limitation, purchases of property and services resold to members and others and those used for other than the exempt purpose of the institution.
An exempt organization license shall expire on the expiration date stated on such license or at such earlier time as the nature of the organization or its activities change so that it no longer qualifies as a charitable organization. If it's determined that the exempt status is no longer appropriate the organization shall promptly return the exempt organization license.