Sec. 4-2-640. Proration as applied to certain construction equipment.
(a) Construction equipment which is located within the boundaries of the Town for a period of more than thirty (30) consecutive days shall be subjected to the full applicable use tax of the Town.
(b) With respect to transactions consummated on or after January 1, 1986, construction equipment which is located within the boundaries of the Town for a period of thirty (30) consecutive days shall be subjected to the Town’s use tax in an amount calculated as follows: the purchase price of the equipment shall be multiplied by a fraction, the numerator of which is one (1) and the denominator of which is twelve (12), and the product shall be multiplied by the use tax rate as established by this Article.
(c) Where the provisions of Subsection (b) above are utilized, the credit provisions of Subsection (f) below apply at such time as the aggregate sales taxes legally imposed by and paid to other municipalities on any such equipment equal the tax as imposed by this Article.
(d) In order to avail himself or herself of the provision of Subsection (b) above, the taxpayer shall comply with the following procedure:
(1) Prior to or on the date the equipment is located within the boundaries of the Town, the taxpayer shall file with the Town Clerk or the Finance Director an equipment declaration on a form provided by the Town. The declaration shall state the dates on which the taxpayer anticipates the equipment will be located within and removed from the boundaries of the Town, shall include a description of each such anticipated piece of equipment, shall state the actual or anticipated purchase price of each such anticipated piece of equipment and shall include such other information as reasonably deemed necessary by the Town.
(2) The taxpayer shall file with the Town an amended equipment declaration reflecting any changes in the information contained in any previous equipment declaration no less than once every ninety (90) days after the equipment is brought into the boundaries of the Town or, for equipment which is brought into the boundaries of the Town for a project of less than ninety (90) days’ duration, no later than ten (10) days after substantial completion of the project.
(e) If the equipment declaration is given as provided in Subsection (d) above, then as to any item of construction equipment for which the customary purchase price is under two thousand five hundred dollars ($2,500.00) which was brought into the boundaries of the Town temporarily for use on a construction project, it shall be presumed that the item was purchased in a jurisdiction having a local sales tax or use tax as high as the sales or use taxes imposed by this Article and that such local sales or use tax was previously paid. In such case, the burden of proof in any proceeding before the Town or a District Court shall be on the Town to prove such local sales or use tax was not paid.
(f) If the taxpayer fails to comply with the provisions of Subsection (d) above, the taxpayer may not avail himself or herself of the provisions of Subsection (b) of this Section and is subject to the provisions of Subsection (a) of this Section. However, substantial compliance with the provisions of Subsection (d) above shall allow the taxpayer to avail himself or herself of the provisions of Subsection (b) of this Section. (Ord. 1263, 2007)