Finance Committee Agenda and Packet 2020 04 21

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ILZCitvt�f Louisville COLORADO • SINCE 1878 FINANCE COMMITTEE COMMUNICATION SUBJECT: DATE: DELINQUENT SALES/USE TAX ACCOUNTS APRIL 21, 2020 PRESENTED BY: PENNEY BOLTE, FINANCE DEPARTMENT SUMMARY: Due to the impacts of the COVID-19 Pandemic on our local business community, many businesses have reached out to us with questions and for guidance related to their City sales/use tax, but just as many have not. To this point, staff has responded to businesses that there are no changes to the filing process or due dates, directed them to the Economic Development Resource web site, advised them that City Council is working towards a small business grant program, and continued with our general compliance processes and procedures. Those procedures are: • Mail a system -generated missing filer letter (5) business days after the tax due date. The letter generally states that we did not receive their return, that they add penalties and interest and submit the return, that if they had no sales a "zero" return should be submitted, and to contact us if there has been a business change or they need assistance. • Issue a tax assessment (10) business days after the missing filer letter is sent. The tax assessment issued requires action within (30) days. The assessment estimates the amount of tax due by the business based on previous periods, adds penalties and interest, and provides the option to request a hearing. • Once the (30) day period has passed actions may include: o Recording a tax lien with Boulder County Clerk & Recorder against the assets of the business. o Issuing a summons to appear in Louisville Municipal Court o Certifying taxes owed to Boulder County Assessor o Implementing a Payment Plan Each of the above options currently present challenges which may discussed further. DISCUSSION/DIRECTION: Staff seeks discussion with the Finance Committee on whether they wish any modifications to the standard procedures described. FINANCE COMMITTEE COMMUNICATION 8