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RESOLUTION NO. 67 111 SERIES 2011 A RESOLUTION EXTENDING THE SUSPENSION OF THE EFFECT OF SUBSECTION 3.20.414.B OF THE LOUISVILLE MUNICIPAL CODE, CONTAINING A HOLD HARMLESS PROVISION RELATED TO RETAILER USE OF STATE-CERTIFIED ELECTRONIC DATABASES FOR PAYMENT OF SALES TAX WHEREAS,Subsection 3.20.414.B of the Louisville Municipal Code provides that a retailer using data in a State-certified database to determine the jurisdiction to which sales tax is owed shall be held harmless for tax,penalties and interest owed the City that otherwise would be due solely as a result of an error in the database, excepting circumstances set forth in Subsections C and D of said Section 3.20.414; and WHEREAS,pursuant to Subsection D of said Section 3.20.414,the City Council may,by regulation adopted pursuant to Section 3.20.400.B, suspend the effect of said Subsection B; and WHEREAS,by Resolution No. 33,Series 2009 the City suspended the effect of Subsection 3.20.414.B for a period of 24 months or until the City determined to develop and utilize its own address database, or until the databases were able to sustain compliance with applicable accuracy standards; and • WHERAS,the current 24-month suspension will expire October 5,2011,the City has not yet developed its own address database, and recent review of the database providers indicates the use thereof would have a material adverse effect on the City; and WHEREAS,through audits and due diligence conducted during the period of suspension, the Director of Finance has determined that there are inaccuracies in one of the state-certified databases that in the Director's judgment have a material adverse effect on the City,that at least one of the databases does not in the Director's judgment meet other criteria in C.R.S. §39-26-105.3,and that effectiveness of the provisions of Subsection B under such circumstances will have a material adverse affect on the City's ability to collect taxes owed; and WHEREAS,the Director of Finance has proposed the following regulation be adopted: 1. That Subsection 3.20.414.B of the Louisville Municipal Code (formerly codified as Subsection„3.20.412.B of said Code)be suspended for an additional 24 months effective as of the date of this Resolution. 2. That the period of such extended suspension shall be for 24 months from the date of this Resolution, unless otherwise provided by subsequent regulation approved by City Council resolution. 3. That during such period of suspension, the hold harmless provision of said Subsection • 3.20.414.B shall not apply. Resolution No. 67, Series 2011 Page 1 of 2