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<br />City Council <br />Meeting Minutes <br />October 20,2009 <br />Page 9 of 15 <br /> <br />City Attorney Light read Ordinance No. 1560, Series 2009. <br /> <br />Mayor Sisk requested a Staff presentation. <br /> <br />City Manager Fleming explained the City's retail vendors collect sales tax on <br />taxable transactions and then remit the tax collected to the City. Under the City's <br />existing code, they are allowed to retain 3-1/3% of the amount of tax due to the <br />City, up to a maximum of $1010 to help offset the vendor's cost of collecting and <br />remitting the tax to the City. A vendor's fee is allowed only when the tax payment <br />is made on or before the due date. The proposed ordinance repeals Subsection <br />C of Section 3.20.370, thereby eliminating the vendor's fee and providing for the <br />full payment of all taxes collected on the City's behalf. The repeal would be <br />effective for taxes collected on or after January 1, 2010. <br /> <br />The General Fund portion (about $68,570) of the increase in revenue resulting <br />from this action would be used to partially offset costs of maintaining the City's <br />economic development effort. Repealing the vendor fee would result in <br />approximately $120,000 in additional revenue for the City annually. <br /> <br />COUNCIL COMMENT <br /> <br />Mayor Sisk requested background information of the state provision for vendors <br />retaining 3-1/3% fee. City Manager Fleming explained home rule cities collect <br />their own sales tax, while the state collects and remits sales tax for statutory <br />cities. The state had a provision allowing vendors to retain the 3-1/3%, but has <br />temporarily suspended thE! provision through 2010. Finance Director Watson <br />stated the suspension was for a two-year period. <br /> <br />Mayor Sisk opened the public hearing and requested public comment. There <br />were no comments. <br /> <br />MOTION: Councilor Dalton moved to approve Ordinance No. 1560, Series 2009 <br />on second and final reading, seconded by Councilor Yarnell. Roll call vote was <br />taken. The motion carried by a vote of 7-0. <br /> <br />EXECUTIVE SESSION - PENDING LITIGATION (Louisville Charter, Section 5- <br />2(d) - Authorized Topics -- "Consultation with an attorney representing the City <br />with respect to pending Iitigatiion" and C.R.S. Section 24-6-402(4)(b) <br /> <br />EXECUTIVE SESSION - REAL PROPERTY ACQUISITIONS - REAL <br />PROPERTY IN LOUISVIL.LE (Louisville Charter, Section 5-2(c), C.R.S. 24-6- <br />402(4 )(a) - Authorized Topics <br /> <br />REGULAR BUSINESS ITEMS SUSPENDED <br />