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112 Cityot <br />Om Louisville <br />COLORADO - SINCE 1878 <br />FINANCE COMMITTEE <br />COMMUNICATION <br />SUBJECT: STANDARDIZED DEFINITIONS PROJECT, SALES TAX MODEL <br />ORDINANCE INTRODUCTION AND UPDATE <br />DATE: APRIL 18, 2016 <br />PRESENTED BY: PENNEY BOLTE, FINANCE DEPARTMENT <br />SUMMARY: <br />The Colorado General Assembly passed SJR14-038 in May 2014 (copy attached), a <br />resolution which pertains to locally collecting home -rule jurisdictions, and the <br />Assembly's request to have these jurisdictions adopt standardized definitions used in <br />the collection of sales and use taxes. The General Assembly requested the project and <br />the adoption of standardized definitions be completed by August 2016. <br />CML has facilitated this two-year process with the home -rule jurisdictions through the <br />Sales Tax Committee membership and a Standard Definitions Steering <br />Committee. CML has also met with affiliations and organizations in the business <br />community to solicit feedback, such as the Colorado Association of Commerce and <br />Industry (CACI), the Colorado Technology Association, and the Colorado Retail <br />Council. <br />In late 2014, CML conducted a survey to determine which definitions from the 1992 <br />definitions project were still being used by home -rule cities. With that information, and <br />throughout 2015, a master list of differing definitions was compiled, new definitions were <br />developed, and the first draft of a Model Ordinance was produced. <br />In January 2016, CML requested jurisdictions provide the second draft of the Model <br />Ordinance and overview to their respective City or Town attorneys for review and <br />comments. The draft was reviewed by Louisville's City Attorney's Office. <br />Key in this process is to ensure that the definitions are adopted in a manner that <br />remains revenue neutral, that they are consistent with the City's current tax base, <br />ordinances, and tax policies, and to prevent any TABOR violations. <br />I have followed this project closely and participated on behalf of the City of Louisville. I <br />am presently reviewing CML's final draft of the Model Ordinance issued in March, <br />comparing it to the City's current Tax Code, and drafting documents that will outline my <br />comparisons, recommendations and/or concerns for Finance Committee review. <br />I am happy to answer any questions or to provide additional information. <br />FINANCE COMMITTEE COMMUNICATION <br />126 <br />