Finance Committee Agenda and Packet 2020 08 18

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City Council Finance Committee Meeting Minutes 07/21 /20 Page 6 of 7 The reports and corresponding narrative can be located in the packet of the July 21, 2020 Finance Committee Meeting. SALES & USE TAX SOFTWARE PROJECT & CIVIL MODEL ORDINANCE DISCUSSION Tax Manager Penney Bolte presented a brief review of the State SUTS project, and stated there are many moving parts involved should the City decide to become a member City. Finance Committee Member Lipton asked whether or not the City would be bound to utilizing the SUTS system long-term, or if in the future, the City could opt -out of its participation. Manager Bolte stated that the municipal code changes necessary for participation would need to be un-wound to return to full local collection, but that it would be achievable. Finance Committee Member Leh stated that the SUTS program is tricky, commenting that the City's voluntary process with remote sellers has been relatively positive, and that he would not want to see those efforts lost by joining the State SUTS project. Member Leh stated that this will need to be a full discussion with City Council, but that he does not yet feel the Finance Committee has enough information to make a recommendation, or even if the SUTS program is right for Louisville. Finance Committee Members asked about the experiences of other home -rule cities already enrolled, or getting ready to enroll in the SUTS system. Manager Bolte stated many of the communities working to adopt economic nexus and utilize the portal, were cities of various sizes that had volunteered to the State last year upon passage of SB-006. Manager Bolte stated that she would reach out to these cities for their feedback, but stated the challenges during the pandemic in receiving timely responses. The Finance Committee and staff briefly discussed home rule authority, licensing, taxpayer services for the business community, timelines, and ordinance issues that would need to be discussed. Mayor Ashley Stolzmann stated she has reservations about the SUTS program and its potential impact to local collection and the threats of a return to state - collection. Mayor Stolzmann stated that it has been demonstrated over time that local control leads to increased compliance and understanding of local tax rules. Mayor Stolzmann stated she would encourage a recommendation from staff due to the complex issues surrounding the SUTS project.