Finance Committee Agenda and Packet 2015 08 17

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C COLOR 1/4.,i y t Lousy Do. SINCE 87 FINANCE COMMITTEE COMMUNICATION SUBJECT: DATE: PRESENTED BY: SUMMARY: SUSPENSION OF RETAILER HELD HARMLESS SECTION OF THE LOUISVILLE MUNICIPAL CODE AUGUST 17, 2015 PENNEY BOLTE, TAX MANAGER Attached are two draft documents, a Council Communication and a Resolution, that are scheduled to be presented to City Council at the September 15, 2015 Regular Council Meeting. The proposed Resolution will extend the suspension of the "hold harmless" provision in the Louisville Municipal Code (LMC). BACKGROUND: On May 6, 2008, the Council approved Ordinance 1534, Series 2008, which provided a "hold harmless" provision to vendors that rely on State - certified databases for the collection and remittance of Louisville sales tax. City staff subsequently discovered that the State - certified databases contained deficiencies that would be detrimental to the City. Therefore, in 2009, City Council approved a resolution suspending Subsection 3.20.412B of the LMC for a period of 24 months, or until the City determined that there was sustained compliance by the address database providers, or until the City developed and implemented its own address database. City Council continued the suspension in 2011 and in 2013. The current suspension expires on September 16, 2015. As part of the City -wide Enterprise Resource Planning system (ERP) implementation, the City has started work to develop and utilize its own address database, or the ability to provide the electronic data files required by the State - certified database providers. However, at this time, Finance recommends a further extension of the suspension of Ordinance No. 1534, Section 3.20.412 of the LMC for an additional period of 24 months. This item is being provided to the Finance Committee for review and discussion prior to review by the full Council. FINANCE COMMITTEE COMMUNICATION