City Council Agenda and Packet 2013 11 04

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2. Use Tax Rebate-Construction. The City shall rebate to Company 50% of the Construction Use Tax on the building materials for the Project, required under Louisville Municipal Code, section 3.20.300, excluding all revenues from the open space tax and historic preservation tax. 3. Use Tax Rebate – Tangible Goods.For the 2014 calendar year and the 2015 calendar year through June 30, 2015, and solely for the Company’s continuation in Louisville at the Project location, the City shall rebate to Company 50% of the Use Tax (and in certain circumstances as described below, Sales Tax) paid and collected on tangible goods purchased by the Company for the Company’s use at the Project location, as required under Louisville Municipal Code, section 3.20.300, excluding all tax revenues from the open space tax and historic preservation tax. In certain circumstances, Sales Tax may be included in this rebate, when the purchases were from companies with nexus with the City, therefore allowing those companies to remit sales tax to the City. Absent such nexus, Company would have remitted use tax to the City. No rebate shall be issued for goods purchased prior to the date of this Agreement. Only those tangible goods purchased for use at the Project location shall qualify for rebate consideration. Tangible goods include, by way of example, computers, furniture, fixtures, appliances, electronics, and do not include, by way of example, food, office supplies or other consumable goods not expected to last for three or more years. 4. Payment of Rebates; Cap; Interest; Inspection. The maximum amount of the rebates payable pursuant to Sections 1, 2 and 3 above shall in no event exceed the calculation of 50% of the fees or taxes described in Sections 1, 2, and 3 paid to the City. No interest shall be paid on any amounts of fees or taxes subject to rebate. The building permit fee and construction use tax rebates shall be paid by the City within 120 days following issuance of the certificate of occupancy for the Project, subject to Sections 5 and 6 below. The use tax rebate provided for in Section 3 above shall be paid by the City in annual installments. At the end of each calendar year, on or before January 31, the Company shall be responsible to remit to the City its total annual sales/use tax payment on the appropriate sales/use tax return form. The Company shall produce a monthly listings of all tangible personal property purchased in the prior month which qualifies for the Use Tax and Sales Tax rebate as defined in Section 3 above, and the City may audit such listing at Company’s offices during regular business hours to examine, and if needed, Company shall provide copies of the supporting invoices or receipts. Within 60 days after the end of each calendar year, the rebate payment will be remitted to Company at the mailing address of the Project location. City payment shall be by check made payable solely to Company, and the City will not make payment to any other person or entity. 5. Use of Funds. Funds rebated pursuant to this Agreement shall be used by Company solely for obligations, improvements and/or purposes permitted under Louisville Municipal Code section 3.24.060, which may include tenant improvements for occupancy of vacant space or the expansion or creation of jobs within the City. The eligible obligations, improvements and/or purposes for the Project shall be fully satisfied, completed and/or achieved prior to payment to Company of any rebate pursuant to this Agreement. 2 74