City Council Minutes 2006 08 01 - Laserfiche WebLink

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City Council Meeting Minutes August 1,2006 Page 6 of 12 . Building materials used in connection with new residential construction or new residential building projects, that are purchased, leased or rented from sources inside or outside the City, on which the City sales tax has not been paid. . The ballot question provides City Council with the authority, to waive or reduce the amount of use tax due and payable to the City allowing them to enter into agreements for the sharing or crediting of revenues from use tax if City Council determines sueh waiver is in the best interest of the city. The ballot question asks the registered electors of the City of Louisville to impose new taxes that will: . Permit the addition of new residential housing and at the same time achieve a balance that will embrace the City's commitment to being a small town. . Allow for limited growth in the community while diversifying its revenue base to capitalize on economic changes in the City that can fluctuate from being a retail-based community to a commercially based community. Mayor Pro Tem Brown requested public comment. There were no comments. COUNCIL COMMENT Mayor Pro Tem Brown clarified the use tax would only be collected on large items delivered to Louisville. Finance Director Leslie noted the commercial companies would be subject to the use tax on their equipment purchases. At this time, without a use tax in place, the commercial sector is not paying their fair share of taxes. Council member Marsella asked if other surrounding cities have use tax. Finance Director Leslie stated the majority of the home rule cities have a use tax. Mayor Pro Tem Brown noted in Section 1 of the resolution, the first sentence of the ballot question has a blank dollar amount for the estimated use tax collection. Finance Director Leslie stated the estimated use tax collection is $800,000. PUBLIC COMMENT Eileen Patrick, Library Board of Trustees member, stated the Board of Trustees have discussed this issue and offer their service to the City on the use tax issue. She stressed the use tax is in the best interest of the City's economic health. Council member Muckle noted the LIse tax would be collected on new residential development only and not on existing homes.