Laserfiche WebLink
Economic Vitality Committee <br />Meeting Minutes <br />December 15, 2023 <br />Page 2 of 6 <br />to help local businesses of all sizes and encouraged local businesses to reach <br />out to Finance if they have any questions. <br />City Manager Durbin added that staff will be providing an update on this item. <br />6. Staff Updates: <br />Manager Anderson gave an overview of the audit program that is being <br />revamped and implemented in 2024. He added that the Sales Tax team is also <br />working with Louisville businesses to help the transition to the new sales tax <br />rate which takes effect January 1, 2024. <br />Chair Dickinson asked how the audits will be communicated to the business <br />community. Manager Anderson responded that the effort will include an <br />educational component, but they will also look at certain industries that typically <br />have a higher level of error. <br />Chair Dickinson asked how discrepancies identified during audits will be <br />resolved. Manager Anderson responded that remediation will include interest <br />from the original due date as well as a 10% penalty. He added that there may <br />be a possibility of implementing a payment plan. Director Bailey noted that he <br />has the ability to waive the 10% penalty but not the interest. He also clarified <br />that there are no businesses currently on a payment plan. <br />Chair Dickinson question how far back the audits would be able to go. Manager <br />Anderson responded that the statute of limitations is 3 years. He also clarified <br />that audits will include taxes that were not remitted as well as taxes that were <br />not collected. <br />Councilmember Fahey asked how the audits will work with businesses that <br />have not been able to properly implement the bag tax. Sustainability Manager <br />Betzold added that 10 cents of the 25 cents bag tax is retained by the business <br />for purposes such as upgrading their POS system so that they can properly <br />implement the bag tax. City Manager Durbin noted that this issue does not fall <br />within the audit program. Manager Anderson added that if the auditors identify <br />this as a problem they can work with the business and sustainability to resolve <br />the issue. <br />Finance Director Bailey noted that there is a new sales/use tax rate in the City <br />of Louisville effective January 1, 2024. Finance is working with Economic <br />Vitality to communicate the change in tax rate to all Louisville businesses. <br />Manager Brown shared that Radiance Medspa's application for direct financial <br />assistance will be reviewed by the LRC during its December meeting. If the <br />LRC supports the request, the application will be advanced to City Council for <br />review. <br />Agenda Packet P. 4 <br />