City Council Study Session Agenda and Packet 2012 05 08

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING, CITY MANAGER DATE: MAY 8, 2012 SUBJECT: UPDATE /DISCUSSION — DRAFT ORDINANCE — SALES /USE TAX ORIGINATING DEPARTMENT: FINANCE SUMMARY: The attached draft reflects proposed amendments to section 3.20 of the Louisville Municipal Code. The proposed changes can be categorized into four separate points. The first point amends recordkeeping, requests for refund and related expense reimbursement; the second clarifies requirements for tax exemption of outside deliveries; the third amends the sales /use tax filing requirements; and the fourth clarifies the assessment process with the addition of municipal summons as part of the delinquent tax collection procedures. Expense Reimbursement Staff recommends the proposed amendments to Section 3.20.070, Section 3.20.465 and Section 3.20.510 to allow for the reimbursement of City costs incurred to organize taxpayer records, review large amounts of refund claim data, perform off -site audits or to fulfill distraint warrant seizures. In the case of off -site review of records, the taxpayer would be required to sign a binding agreement with the City that all related travel expenses, and in some cases an hourly fee to organize or assemble documents, will be reimbursed. The travel expenses and hourly fee would be based on actual costs and the hourly fee would be set by the City Manager or the Finance Director. For refunds, the applying entity would be allowed eight (8) hours of staff time at no charge but would be responsible to reimburse the City for any staff hours in excess of the eight (8) hours spent assembling and deciphering records in order to substantiate the claim. In the event of a distraint warrant seizure the taxpayer would be responsible reimburse the City for all reasonable costs and expenses incurred from the time of seizure through the sale of the property. In all cases, the taxpayer liability may be deducted from any amount due to the taxpayer, from any deposit made, from the sale of the seized property, or absent a credit, the taxpayer would be invoiced separately for such expenses. isSUBJECT UPDATE /DISCUSSION DRAFT ORDINANCE — SALES /USE TAX AGENDA ITEM 111 8