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City Council Meeting Minutes May 6, 2008 Page 8 of 17 ORDINANCE No. 1534, SERIES 2008 - AN ORDINANCE AMENDING SECTION 3.20.260 OF THE: LOUISVILLE MUNICIPAL CODE CONCERNING THE REMITTANCE OF SALES TAX AND ADDING A NEW SECTION 3.20.412 TO THE LOUISVILLE MUNICIPAL CODE CONCERNING THE USE OF THE STATE ADDRESS DATABASE FOR REMITTANCE OF SALES TAX PAYMENTS - 2"d Reading -Public Hearing Mayor Sisk requested a City Attorney introduction. City Attorney Light read Ordinance No. 1534, Series 2008. Mayor Sisk opened the public; hearing requested a Staff presentation. Finance Director Kevin Watson explained Ordinance No.1534, Series 2008 contains two amendments to Chapter 3.20 of the Louisville Municipal Code: 1. Section 3.20.260 pertaiins to the method of payment of City sales tax revenue and proposes requirements for vendors exceeding a certain dollar threshold annually to submit sales tax payments via Automated Clearing House (ACH). This is available to vendors submitting $100,000 dollars in sales tax annually. 2. The new, Section 3.20.412 is part of amulti-year tax simplification effort involving the Colorado Municipal League (CML), the business community, and the CML Sales Tax Committee in developing a model "hold harmless" ordinance that home-rule municipalities are being encouraged to adopt. Section 3.20.260 allows the City to require vendors who remit $100,000 or more annually to remit sales tax payments via ACH to the City's main depository. Section 3.20.260 concerns the difficulty for both in-state and out-of-state vendors in collecting sales tax on behalf of the Colorado jurisdictions they do business in. The State adopted C.R.S. 39-26-105.3, which provides for the use of state certificate address locator dattabases to determine the proper rates and jurisdictions to which tax is owed. The State certified the locator databases of two firms, which must sustains 95% accuracy and vendors may choose one of the two. Municipalities have opein access to the databases used. The purpose of the ordinancE: is to provide a "hold harmless" provision to those vendors who rely solely upon these databases for collection and remittances of tax. Several home-rule cities and counties have enacted similar ordinances. Mayor Sisk requested public comment. There were no comments.