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11/20/84 Page -4- <br />SALES TAX/USE TAX REPORT Mr. Russ Caldwell of Kirchner Moore and <br />Company presented councilmembers with a <br />copy of the information related to this <br />item. <br />Acting City Administrator Rupp stated <br />Council had a study session on this parti- <br />cular item and they had asked that staff <br />gather information for their review. Attor- <br />ney Rautenstraus did this and it appeared <br />that with the budget adoption that more <br />specifics on this sales tax issue needs to <br />be addressed as a formal agenda item. This <br />was the reason for the addendum to the agenda. <br />Attorney Rautenstraus stated the question <br />came up at the study session - whether a <br />sales tax and a use tax could differ in <br />percentages. In reviewing this it appears <br />that the State Statues does not require them <br />to be the same but the Department of Revenue <br />does. The State takes the position that they <br />should be the same because they are sort of <br />off:-setting taxes in some circumstances. <br />ThE~y have not come out with a ruling on whether <br />you could have a smaller use tax than a sales <br />tai:; but a couple experts that he talked with <br />fe]_t that they probably would not want to <br />al]_ow that. Mr. Rautenstraus stated that he <br />haci provided Council with a letter from <br />Blake Jordan which set out ballot questions <br />foi- two potentials - Question I. would be <br />a ;ales tax increase of 1% to 30. Question <br />II., would increase the sales tax from 20 to <br />2 2`~ and then provided for a 2 zo use tax. <br />Quf~stion II. would make our sales tax 2 Z% <br />and the use tax 2 z o . <br />Russ Caldwell, Kirchner Mr. Caldwell stated the problem of setting <br />Moore and Company the rate is one we run into. Avery large <br />debate is going on in the State now as to <br />how sales and use tax ought to be collected <br />statewide. The Legislature has been studying <br />a sales tax simplification, spurred by the <br />Association of Commerce and Industry. They <br />ar~~ trying to standardize the sales tax rate <br />and collection procedures statewide. This <br />is difficult because there are approximately <br />30 Home Rule cities that collect on a lot of <br />items that the City of Louisville does not <br />collect on. Blake Jordan who used to be <br />the bond attorney for the Colorado Municipal <br />