City Council Minutes 2006 07 18 - Laserfiche WebLink

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City Council Meeting Minutes July 18, 2006 Page 5 of 7 items that would be subject to the tax. A similar tax on building materials for all residential construction was previously approved by the Louisville voters, and the revenues received were ear-marked specifically for items related to capital projects for schools and youth in Louisville. That tax expired in 2003 and voters in 2003 defeated a proposal to extend the tax (Ballot issue 2A). Finance Director Leslie reviewed the Use Tax Pocket Guide utilized in the November 1, 2005 election. Updated financial information is required by TABOR. With respect to the first ballot question on use tax, she estimated $375,000 in revenues for the first year. On the second ballot question, new construction of homes valued at $350,000 would generate $500 per new home. COUNCIL COMMENT Mayor Sisk asked how the tax would be collected. Finance Director Leslie stated every business in Louisville would be registered and use tax would be submitted just like sales tax. After the first six months, audits would be completed by the Finance Department. Mayor Pro T em Brown clarified existing homes would not be affected by the use tax on new residential homes, but would be affected by any new purchases of appliances and equipment. He supported the use tax. Council member Yarnell noted the amenities the City provides and the quality of life issues are important factors when considering the use tax. She was in support of the use tax and educating the public as to its merits. Council member Muckle concurred with other Council members comments. He noted the Louisville Fire Protection District was very successful in their recent election to increase the mill levy through public education. He stressed the importance of educating the public. Council member Sackett noted through budget process he recognized there is a decline in sales tax, and a new revenue source is needed. He stated the City is at a disadvantage by not having a use tax. He supported the use tax and educating the public on the issues. Council member Clabots supported the use tax ballot questions and noted without the use tax, City services would have to be cut. Mayor Sisk supported the use tax and stated the City provides services and amenities, which characterize Louisville. He noted the City Attorney advises the two questions could be combined under one question. He asked for Council's preference on the whether there should be one or two ballot questions. He asked City Attorney Light to outline the next steps in the process.