City Council Agenda and Packet 2015 06 02

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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 June 15, 2015. Only those tangible goods purchased for Company's expansion of operations and use at the Project Location shall qualify for rebate consideration. Tangible goods include, by way of example, equipment, 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; Inspection. The maximum amount of the rebates payable pursuant to Sections 1 and 2 above shall in no event exceed the calculation of 50% of the fees or taxes described in Sections 1 and 2 paid to the City. The maximum amount of the rebates payable pursuant to Section 3 above shall in no event exceed the calculation of 50% of the taxes described in Section 3 above; provided, further that the total maximum amount of rebates payable pursuant to Section 3 shall in no event exceed $130,000. 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 or final inspection for the Project work, as determined by the City, 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 listing 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 required by the City to verify rebate amounts, 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. No Interest; Inspection and Disclosure of Records. No interest shall be paid on any amounts subject to rebate under this Agreement. Each party and its agents shall have the right to inspect and audit the applicable records of the other party to verify the amount of any payment under this Agreement, and each party shall cooperate and take such actions as may be necessary to allow such inspections and audits. The Company acknowledges that implementation of this Agreement requires calculations based on the amount of taxes collected and paid by the Company with respect to the term of this Agreement and issuance of rebate payment checks in amounts determined pursuant to this Agreement, and that the amounts of the rebate payment checks will be public information. The Page 2 of 6 40