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City Council Finance Committee <br />Meeting Minutes <br />04/01/19 <br />Page 6 of 8 <br />REMOTE SELLERS — OUTSIDE CITY LOUISVILLE SALES TAX <br />Tax Manager Penney Bolte presented a review of the taxation of goods sold by <br />remote sellers, and how the recent decision by the Supreme Court in the South <br />Dakota v. Wayfair, Inc. case changed the prior definition of nexus, but also, though <br />not decided by the Court, may infer some limitations that are problematic for <br />Colorado home -rule cities. <br />Ms. Bolte also reviewed recent and proposed legislation by both the Colorado <br />House and Senate, the impact of the bills for home -rule cities, and CML warnings <br />to refrain from activities that could be seen as violations of the Commerce Clause. <br />Lastly, Ms. Bolte outlined the Tax & Licensing Departments' efforts to license all <br />voluntary -collecting remote sellers within the current licensing requirements of the <br />Louisville Municipal Code. <br />Resident John Leary stated that City staff is not able to segregate sales tax <br />revenue (including any addition sales tax revenue submitted by remote sellers), <br />between sales made to residents and sales made to businesses. Mr. Leary stated <br />this fact impacts the data used in the Fiscal Impact Model. <br />Finance Committee Chairperson Maloney thanked Ms. Bolte for the information <br />and asked what assistance or action is needed from the Finance Committee. Ms. <br />Bolte stated that no action is necessary unless the Committee or City management <br />is interested in reviewing sales/use tax licensing requirements and fees. Finance <br />Committee Member Lipton stated that the City should strive to be business - <br />friendly. <br />The reports and corresponding narrative can be located in the packet of the April <br />1, 2019 Finance Committee Meeting. <br />INTERNAL CONTROLS EXAMINATION REPORT <br />Finance Director Kevin Watson presented the final report issued by Eide Bailly <br />regarding the review of processes, internal controls, and collection procedures at <br />four main offsite City locations. <br />Director Watson stated that many items have been addressed, while other items <br />require additional funding, or further cost/benefit analysis. <br />The Finance Committee requested City Manager Balser prepare a management <br />response to each issue raised or suggestion made, for Finance Committee review <br />at a future meeting. The Committee requested the response include a summary <br />7 <br />