City Council Minutes 2005 07 19 - Laserfiche WebLink

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City Council Meeting Minutes July 19, 2005 Page 6 of 9 Council member Van Pelt reported on a business journal article relative to the City of Boulder's initiative to use an incentive program for rebating use tax to businesses. She explained the City does not have a use tax and therefore, does not have the rebate option. She noted it would be advantageous for the City to have such flexibility. She stated her understanding that the ordinance would bring the City's current sales tax ordinance in line with state statutes. Finance Director Leslie stated the ordinance provided in Council packets does not have that ability. She stated they would like to make changes on the ordinance to address those issues. Finance Director Leslie stated the revisions to the current use tax can be done at any time. She projected a potential use tax collection of $800,000. City Attorney Light stated the ordinance, as currently written, does not implement changes to the balance of the current sales and use tax ordinance. He explained the intention of the ordinance was to bring the question of the new tax that is a more general tax for non-residential construction materials and not to make revisions to the existing sales and use tax ordinances. Mayor Sisk noted one of the advantages would be to put the local merchants on an even playing field with the merchants of other Cities. Sales Tax Coordinator Penney Bolte explained how the use tax would be collected. The City currently has a vendors list on the sales tax database. Those vendors would be notified to collect the use tax when applicable. Mayor Sisk asked if the State of Colorado has identifying account numbers for vendors. Sales Tax Coordinator Bolte responded yes. Council member Van Pelt stated her preference would be to pass a resolution referring the use tax measure to voters, and pending the outcome of the election, draft an use tax ordinance. She stressed the existing sales and use tax ordinance could be amended to be compliant with state statutes. Council members Clabots and Levihn concurred. Mayor Sisk stressed the importance of educating the voters on the use tax issues, and if it passes, designate how the use tax would be spent. MOTION: Council member Van Pelt moved to take no further action on Ordinance No. 1474, Series 2005 and direct Staff to draft a resolution for a ballot question for Council consideration on August 2, 2005, seconded by Council member Levihn. All in favor. Absent: Council members Keany, Marsella and Brown. City Attorney Light outlined the process for proceeding with the ballot language,