Business Retention and Development Committee Minutes 2008 04 07

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City Council Business Retention & Development Committee Meeting Minutes April 7, 2008 Page 2 of 3 Bolte explained that a use tax is similar to a sales tax but it applies to items (manufacturing, computers, furniture, residential building materials) purchased outside of the City for use in the City. Louisville is in the minority by not having a use tax. Local businesses and residents would pay the tax on items purchased outside of town for delivery to town. Bolte reported that the City would receive an estimated $500,000 annually to help pay for capital projects and government services. Bolte noted that the tax would require voter approval. Revenue generated would vary some depending on capital investments of local businesses, but the ongoing purchases of goods and services would generate a more stable revenue stream. It would cost the City approximately $60,000 to administer collections. Dalton asked how the use tax is collected on online purchases. Bolte answered that online purchases are very difficult to track and generally unless it is reported voluntarily no use tax is collected. Michael Menaker, 1127 Choke Cherry Drive, asked if residential purchases such as appliances and computers could be exempt. Bolte said it is possible but very difficult to track. Dalton stated that BRaD should work to get the correct information about the use tax to businesses because many people he has spoken to have incorrect information about how a use tax would apply. Members discussed the general timing of a possible use tax ballot question and how it could be supported. SHOP LOUISVILLE CAMPAIGN UPDATE & SURVEY COMMENTS Hogan reported on the Downtown Business Association’s commitment to fund an additional $500 drawing (to be spent at DBA member stores) for the summer SL drawing. She reported that the SL web site now lists every retail business in Louisville whether they are registered with SL or not. Hogan added that the next SL subcommittee meeting will be May 5 at 10:00 AM for its quarterly planning meeting. INTERNATIONAL COUNCIL OF SHOPPING CENTERS CONFERENCE UPDATE Hogan gave a brief overview of the appointments that she has confirmed for the conference in Las Vegas, May 18-20. RETENTION VISIT LIST & UPDATE Muth reported that the first round of visits will be scheduled for April. Hogan reported that she recently had a visit with 844 Main Street Associates and that she and Fleming have set up a meeting with the owners of Village Square.