(a) There shall be exempt from the affordable housing short-term rental tax imposed under this Article the following:
(1) Consistent with the definition of a short-term rental unit under Section 4-9-20, and pursuant to the specific terms of exemption as provided in the November 5, 2019, voter-approved ballot question, there is a specific exemption from the terms of the affordable housing short-term rental tax and the provisions of this Article for any short-term rental units if such individual unit is classified as commercial property by the San Miguel Assessor.
(2) Lodging rentals or sales to the United States government and all departments and institutions thereof, the State of Colorado and the departments, institutions and political subdivisions thereof, and the Town of Telluride; but only in the exercise of their governmental functions and only when rentals and purchases are supported by official government purchase orders or other official documentation, and paid for by draft or warrant drawn on the government’s account directly to the vendor.
(3) Lodging rentals or sales to charitable organizations duly established and recognized under state or federal law, but only to the extent any such rental or sale is transacted in the conduct of the organization’s regular charitable functions and activities and is paid for directly by the organization without reimbursement therefor.
(4) All rentals or sales which the Town is prohibited from taxing under the Constitution or laws of the United States or the State of Colorado.
(5) All lodging rentals or sales supported by a bona fide reservation and with consideration received from a consumer to a vendor, if both the reservation is made and consideration is received before 11:59:59 p.m., Mountain Standard Time, on December 31, 2019, as this would be prior to the January 1, 2020, effective date or commencement date of the affordable housing short-term rental tax.
(b) The burden of proving that any rental, sale or other transaction is exempt from the excise tax imposed under this Article shall be on the person asserting such exemption under such reasonable requirements of proof as the Finance Director may prescribe. (Ord. 1498 §1 (Exh. A), 2019)