Bankruptcy and Wheat Ridge Tax

Mailing Address for Bankruptcy Notices

Please avoid sending bankruptcy notices to the lock box.  It is for tax and license renewal processing only and additional documents incur unnecessary charges to effect their delivery to the City.  
                                                                                          City of Wheat Ridge
Tax Division
7500 W. 29th Ave.
Wheat Ridge, CO  80033-8001

Status of Wheat Ridge Taxes and Bankruptcy

Any tax collected on behalf of the City of Wheat Ridge, such as sales tax, lodgers' tax, and admissions tax, is money held in trust, or "trust taxes," and as such becomes a first and prior claim in bankruptcy.  Trust taxes are never the property of the business, but are always the property of the jurisdictions in which they were collected.  Other taxes, such as telecommunications occupation tax, liquor occupation tax, and use tax are ordinary claims.

What Happens When the Tax Division Receives a Bankruptcy Notice

Receipt of a bankruptcy notice by the Tax Division triggers the issue of a standard bankruptcy letter advising the taxpayer about the status of certain taxes as first and prior claims.  Behind the scenes, the account is evaluated for all tax liabilities - unfiled returns, amounts due on the account, and use tax that may be due based on the county's business personal property tax roll, if it applies. The account is annotated and the cover page scanned to the account if liabilities appear to exist. When a claim filing notification is received, Tax Division staff will file a claim if it's appropriate. 

After the Discharge of Debts

Once the debts allowed in bankruptcy have been discharged, the City is barred from attempting to collect non-trust taxes - use taxes, telecommunications occupation tax, and liquor occupation tax - for the bankruptcy period.  However, trust taxes are not discharged and the City may attempt to collect them for the bankruptcy periods, including though an audit, and subject to the statutory limitations when the trust taxes were lawfully collected.