Laserfiche WebLink
COUNCIL COMMUNICATION <br />TO: MAYOR AND FINANCE COMMITTEE MEMBERS <br />FROM: MALCOLM FLEMING, CITY MANAGER <br />DATE: DECEMBER 6, 2010 <br />SUBJECT: USE TAX ORDINANCE <br />ORIGINATING <br />DEPARTMENT: FINANCE <br />SUMMARY: <br />Pursuant to Ordinance No. 1575, Series 2010, adopted on July 20, 2010, the City referred to <br />the voters and voters approved on November 2, 2010 a TABOR ballot issue imposing a <br />permanent City use tax at a rate of 3.50% upon, the use, storage, distribution or consumption <br />of any article of tangible personal property or taxable services purchased, leased or rented <br />from sources outside the City, and upon rental of storage space within the City. The use tax <br />becomes effective January 1, 2011. <br />The attached ordinance is scheduled for first reading at the December 7, 2010 Council <br />meeting. The ordinance is being presented to the Finance Committee at this time for initial <br />review and comment. Second reading and adoption of the final ordinance is scheduled for <br />December 21, 2010. <br />The ordinance amends various sections of Chapter 3.20 of the Louisville Municipal Code <br />necessary to implement and administer the new use tax. Attached are two drafts of the <br />ordinance – a clean draft that repeals and reenacts the various sections that are being <br />amended and a redline draft showing the detailed revisions being made to the Sales and Use <br />Tax Code currently in effect. <br />Some highlights of the ordinance are as follows: <br />Section 3.20.020 Definitions <br /> – Contains changes that aid in identifying items subject <br />to, or exempt from, the new use tax and the current sales tax. These changes serve to <br />make clear the existing sales and use tax base and do not change that base. <br />Section 3.20.210 Property and Services Taxed <br /> – Incorporates the definition changes <br />from Section 3.20.020 to better identify items subject to the current sales tax. <br />Section 3.20.220 Exemptions from Sales Tax <br /> – Incorporates the definition changes <br />from Section 3.20.020 to better identify items that are exempt from the current sales tax. <br />Section 3.20.402 Sales/Use Tax License <br /> – Requires all businesses, regardless of <br />whether or not goods and services are sold, to obtain a sales and use tax license. <br />SUBJECT AGENDA ITEM <br />USE TAX ORDINANCE <br />é <br /> <br />