City Council Minutes 2002 02 12 - Laserfiche WebLink

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Louisville Special City Council Meeting February 12, 2002 Page 8 recommends 3-1/3% for the vendor fee, with a cap of $100. This would allow any vendor that is remitting to the City up to $3,000 in sales tax per reporting period, the full 3-1/3%. The cap will impact approximately 30 vendors, or 5% of those reporting in any given period. In one sample month this cap would eliminate approximately $22,000 in state-allowed vendor fees. COUNCIL COMMENTS Davidson had questions relative to the proposed sales tax ordinance on page 11, Sec. 3.20.030 Levy A. Sales Tax Rate, (1) and (2). He stated that those statements do not include the open space tax. He questioned whether Council wants to divide the revenue in such a fashion or put restriction on those funds. He voiced his preference to allow Council some flexibility in allocating the money. City Manager Simmons explained that the one percent is tied to the bond issue. Davidson had a question on page 12 with respect to the revenue for school facilities. He suggested that other uses could be added and asked that the City Attorney address this issue. Sisk asked if there is credit for small business owner who put together a schedule. Ray confirmed that there is such a credit and it is a 3-1/3% limitation. Sisk suggested meeting with the Chamber of Commerce to discuss this issue, perhaps at a Breakfast meeting. Mayer asked if there was a way for businesses to electronically file their taxes. Ray stated that that is planned for the future and it would be put on the City's Web Page. Ray explained that the business licensing would have to be reviewed at a later time to make it more consistent. She stated that it would be a one-time no-fee business registration. Keany voiced concern that would create a stack of business licenses that would never expire. Ray stated that it would simply be a registration and that businesses would be tracked through their sales tax payments. Sisk asked when the Sales Tax Ordinance would come before Council. Ray stated that it would come before Council at the next regular meeting. Sisk asked when the City would begin to collect sales tax. Ray responded July 1, 2002. Sisk asked if companies such as Sears would collect taxes for Louisville. Ray stated that it would be considered a use tax and be subject to a vote under the Tabor laws. City Manager Bill Simmons concurred that it would be a new tax and would come under the Tabor laws, requiring a vote of the registered voters.