Finance Committee Agenda and Packet 2015 08 17

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Ci y t Lousy • Do. SINCE 1878 CITY COUNCIL COMMUNICA AGENDA ITEM Draft SUBJECT: DATE: PRESENTED BY: SUMMARY: A RESOLUTION EXTENDING THE SUSPENSION OF ORDINANCE NO. 1534, SUBSECTION 3.20.412 ELECTRONIC DATABASE; RETAILER HELD HARMLESS SEPTEMBER 15, 2015 KEVIN WATSON, FINANCE DEPARTMENT The State of Colorado, Department of Revenue adopted C.R.S. 39 -26 -105.3 in 2007, which provided for the use of State - certified address locator database providers to determine the proper sales tax rates and jurisdictions to which tax is owed. 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. The adoption of the above ordinance was brought about by CML's support of the certified database program, but since Louisville is a home -rule municipality and participation in the statutory "hold harmless" program is not required, our participation is optional. While the City of Louisville favors the ability to provide out -of -City vendors with accurate tax information by location address, past audits and due diligence reviews of the provider databases certified by the Colorado Department of Revenue were conducted and revealed deficiencies that would be detrimental to the City. In 2009, at the request of Finance staff, City Council approved Resolution No. 33, Series 2009 suspending Subsection 3.20.412B 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. In 2011, Finance staff brought forward, and City Council approved, Resolution No. 67, Series 2011 requesting an additional 24 months to re- evaluate and determine compliance or to allow the City to develop its own address database. After approval of Resolution No. 67, Series 2011, Finance staff learned that the address locator database providers would no longer permit access to their databases by local municipalities. In lieu of this access, the providers require jurisdictions to submit electronic data files of their jurisdictional addresses which they will compare with their data. CITY COUNCIL COMMUNICATION