Finance Committee Agenda and Packet 2019 04 01

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City Council Finance Committee Meeting Minutes 02/18/19 Page 6 of 9 needs to be discussion to get everyone on the same page. Member Lipton stated that the City has hit its sales tax revenue peak, and needs to be more than defensive, the City needs to be offensive. Chairperson Maloney and City Manager Balser discussed looking at indicators in April and then providing an update to City Council. Member Lipton requested Director Watson prepare a normalized narrative to the City's sales tax revenue. The reports and corresponding narrative can be located in the packet of the February 18, 2019 Finance Committee Meeting. ACCOUNTS RECEIVABLE WRITE-OFFS Tax Manager Bolte provided a listing of sales tax account write-off's approved by Director Watson. The total amount of the write-offs approved was $177.39. Ms. Bolte provided the Finance Committee a listing of sales tax account write-off's that require the Committee's authorization. The listing consisted of penalties and interest for one tax account in the amount of $3,432.07. The Finance Committee reviewed and approved the requested write-off. OUTSIDE LOUISVILLE SALES TAX CATEGORIZATION Tax Manager Bolte presented an overview of the sales tax industry categories to the Finance Committee and requested guidance from the Committee regarding the re -categorizing of tax accounts currently assigned to "Other Retail". The Finance Committee Members and staff discussed the growing number of outside -City vendors licensing with the City to voluntarily collect City sales tax which was spurred by the recent South Dakota v. Wayfair Supreme Court decision. Finance Committee Members determined that, since staff is able to identify in -City vs. Outside City activity for each of the industry type codes, it is not necessary to isolate in -City brick -and -mortar stores in the segregated industry type code of "General Merchandise" while assigning all outside vendors to "Other Retail". Manager Bolte stated that all entities currently coded to "Other Retail" would be moved to the "General Merchandise" industry code, that the January 2019 sales tax reports would reflect this change, and that the quarterly sales tax reports provided to the Finance Committee would include additional reports of Sales Tax Revenue by Industry for both in -City and Outside City. The reports and corresponding narrative can be located in the packet of the February 18, 2019 Finance Committee Meeting. 7