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HomeMy WebLinkAboutC20-345 Town of Eagle IGAINTERGOVERNMENTAL AGREEMENT BETWEEN EAGLE COUNTY AND THE TOWN OF EAGLE CONCERNING THE COLLECTION OF SALES TAXES ON THE SALE OF CIGARETTES AND TOBACCO PRODUCTS THIS INTERGOVERNMENTAL AGREEMENT (this “Agreement”) is made and entered into this ____________________, among EAGLE COUNTY, COLORADO (the “County”), a body corporate and politic and political subdivision of the State of Colorado (the “State”), and THE TOWN OF EAGLE (the “Town”), a municipality and political subdivision of the State. The County and the Town are referred to collectively herein as “the Parties” or individually as “a Party.” WHEREAS, pursuant to title 29, article 1, part 2, section 203, Colorado Revised Statutes, as amended (the "Intergovernmental Relations Statute''), and Article XIV, Section 18 of the State Constitution, governments may contract with one another to provide any function, service or facility lawfully authorized to each of the contracting units and any such contract may provide for the joint exercise of the function, service or facility; and WHEREAS, tobacco and nicotine use is the leading cause of preventable death in Colorado and in the United States generally; and WHEREAS, in 2019, the Colorado General Assembly passed, and the Governor signed, House Bill No. 19-1033 (the "Act''), which authorizes a county to levy, collect, enforce and administer a county- wide special sales tax upon all sales of cigarettes, tobacco products, or nicotine products within the unincorporated and incorporated areas of the county, but in the event a municipality has passed its own special sales tax upon all sales of cigarettes, tobacco products, or nicotine products, the county may only continue to levy, collect, enforce and administer its special sales tax within the municipal limits of that incorporated area of the county if the county and the municipality enter into an agreement permitting the county to do so; and WHEREAS, in 2019, to combat the upturn in youth tobacco use, the County passed a county- wide special sales tax of four dollars ($4.00) on each pack of cigarettes, or twenty cents ($0.20) per cigarette sold, and 40% on the sale of all other tobacco and nicotine products within the incorporated and unincorporated areas of the County; and WHEREAS, in 2020, the Town passed a ballot initiative implementing a sales tax of four dollars ($4.00) per pack of cigarettes or twenty cents ($0.20) per cigarette sold within the municipal limits of the Town and a 40% sales tax on the sale of all other tobacco and nicotine products starting on July 1, 2020; and WHEREAS, the County had been collecting the county-wide tax from retailers within the municipal limits of the Town beginning on January 1, 2020 through the implementation of the Town tax on July 1, 2020; and WHEREAS, the Town has requested that the County continue to collect the tax from retailers DocuSign Envelope ID: A800317D-D41D-41F1-811D-897324F609C0 9/20/2020 C20-345 within the municipal limits of the Town and pass the revenue through to the Town as more fully set forth in this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Implementation of the Town Cigarette Sales Tax. The Parties agree that the Town may levy, collect, enforce and administer its recently enacted municipal sales tax on the sale of cigarettes within the municipal limits of the Town. The County shall no longer be permitted to levy, collect, enforce or administer its county-wide tax within the Town’s municipal limits unless the Town decreases or otherwise changes its tax at a future date. Section 2. Administration, Powers and Duties. The County or its authorized designee shall (a) collect and administer the Town’s special sales tax on the sale of cigarettes, tobacco and nicotine products and (b) distribute the revenue from the taxes as described in Section 3 of this Agreement. The Town hereby agrees to pay the County a collection fee of 2.5% of the Town’s revenues from its special sales tax collected within the municipal limits of the Town. Should additional costs be charged by a 3rd party vendor to the County related to the collection of this sales tax, a portion of the charges will be charged to the Town by the County which amount shall be based upon the relative number of retailers within the Town. County will seek Town’s approval prior to executing a contract for additional services. Section 3. Distribution of Revenues. The County or its authorized designee shall collect and distribute the sales tax revenues. The County will remit to the Town the Town’s portion of the revenues from the taxes less (a) the 2.5% collection fee and (b) additional sums, if any, for the reimbursement of additional costs as stated in Section 2 of this Agreement no later than the 45th day following the month of collection of such revenues. The distribution will include a report showing the total amount of collections by retailer along with the total amount of fees charged by the County to the Town per Section 2. Section 4. Licensing, Regulation, Additional Fees or Taxes. This Agreement shall not limit each Party’s authority to independently license each retailer of cigarettes, nicotine products and tobacco products within its jurisdictional boundaries as it deems necessary and appropriate and to impose additional taxes, fees, or fines in excess of the sales tax as may be warranted. Section 5. Amendment of Agreement. This Agreement may be modified or amended only by a duly executed written agreement with the express approval of the governing bodies of the Parties. Section 6. Term and Termination of the Agreement. a. Effective Date. The term of this Agreement shall begin upon execution. b. Termination. The term of this Agreement shall end upon the written request of either party. Section 7. Execution and Performance of Agreement in Accordance with Law. Each Party hereby represents to the other Party that it has adopted and executed this Agreement in accordance with applicable law. Each Party shall perform their respective obligations and expend any revenues derived hereunder in accordance with all applicable laws, rules, and regulations, including but not limited to the Act, this Agreement, and a voter-approved ballot measure. Section 8. No Waiver of Immunity. All actions or omissions by any Party, including their DocuSign Envelope ID: A800317D-D41D-41F1-811D-897324F609C0 respective representatives, employees, agents, volunteers or officials, shall be the sole responsibility of the respective Party. The Parties understand and agree that liability for claims for injuries to persons or property arising out of the actions or omissions of any Party is controlled and limited by the provisions of the Colorado Governmental Immunity Act (“Immunity Act”) title 24, article 10, Colorado Revised Statutes, as now or hereafter amended and that the Parties do not intend to waive by any provision of this Agreement the liability limitations or any other right, immunity or protection afforded by the Immunity Act or as may otherwise be afforded by law. Section 91. Confidentiality. For purposes of ensuring proper distribution of the sales tax revenues, the County and the Town shall share and exchange confidential information obtained by the Parties or provided by the State subject to any limitations of the State and all statutes and local ordinances controlling the same while maintaining taxpayer confidentiality. All such information exchanged shall remain strictly confidential and shall be used only for the purposes designated herein. Section 10. Parties in Interest. Nothing expressed or implied herein is intended or shall be construed to confer upon any person other than the Parties any right, remedy or claim under or by reason of this Agreement, this Agreement being intended to be for the sole and exclusive benefit of the Parties. Section 11. No Personal Liability. No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of an elected or appointed official, officer, agent, servant or employee of any Party in his or her individual capacity. Section 12. Notices. Except as otherwise provided in this Agreement, all notices or other communications by either Party shall be in writing, shall be given in a reasonable time and shall be deemed given when actually received. Section 13. Severability. If any clause, provision, subsection, or Section of this Agreement shall be held to be invalid, illegal or unenforceable for any reason, the Agreement shall be reformed to the extent necessary to reflect the intent and purpose of the original agreement or the Parties may terminate this Agreement. Section 14. Interpretation. Because this Agreement is the result of mutual negotiation and drafting, in the event this Agreement is deemed to be ambiguous or vague, the Parties agree that the rule of construction that "ambiguities shall be construed against the drafter" shall not apply. In the event of any conflict between the Act, the Intergovernmental Relations Statute or any other law with respect to the exercise of any such power, the provision that permits the broadest exercise of the power consistent with the limitations set forth in this Agreement shall control. The laws of the State shall govern the construction and enforcement of this Agreement. Section 15. Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original; but such counterparts shall together constitute but one and the same Agreement. Electronic or scanned signatures shall be valid and acceptable for all purposes. DocuSign Envelope ID: A800317D-D41D-41F1-811D-897324F609C0 IN WITNESS WHEREOF, this Agreement has been executed by the Parties effective as of the date set forth above. EAGLE COUNTY, COLORADO By: _______________________ Kathy Chandler-Henry, Chair ATTEST: By: __________________________ Regina O’Brien, Clerk and Recorder TOWN OF EAGLE By: _____________________ Scott Turnipseed, Mayor ATTEST: By: _________________________ Jenny Rakow, Town Clerk DocuSign Envelope ID: A800317D-D41D-41F1-811D-897324F609C0