City Council Study Session Agenda and Packet 2012 05 08

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PAGE THREE SUBJECT: UPDATE /DISCUSSION - DRAFT ORDINANCE — SALES /USE TAX DATE: MAY 8, 2012 tax return for 2011. This has resulted in the collection of an additional $50,000 of use tax that should have been paid for 2011. By amending the language, most businesses will be required to file one sales /use tax return per year. If the current language is not revised to require a minimum of one sales /use tax return per year, staff will need to continue courtesy - calling for approximately 400 accounts. This diverts staff from other duties and delays payment of the use tax revenue legally due to the City. Assessments /Municipal Summons Staff recommends the proposed amendments to Section 3.20.425 and 3.20.090 to provide the taxpayer additional information on how assessments are calculated and to add the issuance of municipal summons' as an enforcement tool. The current process for handling delinquent taxpayers includes: • Mailing a "missing filer" letter (taxpayer allowed 10 days to respond) • Issuing a tax assessment (taxpayer allowed 30 days to respond) • Filing a tax lien with Boulder County • Requesting a meeting with taxpayer or establishing a payment plan • Certifying the taxes to Boulder County for collection. Staff recommends adding the ability to have delinquent taxpayers appear in Municipal Court to improve the City's ability to secure compliance. This approach is one which many other cities currently utilize. This process would be done prior to certifying the taxes to Boulder County. Staff anticipates that this process would be necessary only a few times a year and generally when all other methods of communication have failed. This process has been discussed with the Louisville Police Department, the Municipal Court Judge, and the Prosecuting Attorney with a favorable response. Attachments: 1. Draft Ordinance 10