HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/17/2013 - SECOND READING OF ORDINANCE NO. 170, 2013, AMENDINAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY December 17, 2013
City Council
STAFF
Jessica Ping-Small, Revenue and Project Manager
SUBJECT
Second Reading of Ordinance No. 170, 2013, Amending Chapter 25, Article III of the City Code
Concerning Sales and Use Tax.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on December 3, 2013, amends the City Code to
limit the option for vendors to file consolidated sales and use tax returns for multiple locations.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, December 3, 2013 (PDF)
2. Ordinance No. 170, 2013 (PDF)
Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY December 3, 2013
City Council
STAFF
Jessica Ping-Small, Revenue and Project Manager
SUBJECT
First Reading of Ordinance No. 170, 2013, Amending Chapter 25, Article III of the City Code Concerning
Sales and Use Tax.
EXECUTIVE SUMMARY
The purpose of this item is to amend the City Code to limit the option for vendors to file consolidated
sales and use tax returns for multiple locations.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Chapter 25 of the City Code currently allows vendors the option to file a consolidated sales and use tax
return for multiple locations within the city limits. Although the option provides a convenience to the
business community, it creates reporting discrepancies by geographical area for the Finance Department.
For example, if a vendor has a location within the Downtown Development Authority (DDA) and at Front
Range Village, by reporting on a consolidated return for both locations, the revenue is either recorded in
the DDA geographical area or the Front Range Village geographical area. The consolidation process
limits the City’s capability to accurately report sales and use tax collections by area.
Sales Tax staff frequently receives requests for collection data on the following geographical areas:
Downtown Development Authority
Midtown
Mall
Front Range Village
North College
The consolidated return allowance limits our ability to report on these areas accurately without manual
adjustments.
The proposed Code change affects 118 vendors which is 1% of our total licensed vendor count of 11,000.
The Sales and Use Tax license is free and non-expiring. The Code change does require a separate tax
return and license for each location. Staff will complete the process of creating the additional licenses on
behalf of the vendors to ease any administrative burden.
In addition the Sales Tax Department is in the process of implementing new sales tax software. The
software, which will be live in early 2014 will allow vendors to file and remit their sales tax online. This
added convenience will help to mitigate the additional requirement to file separate returns for each
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 2
location.
The Code will still allow for consolidated returns when the business location is not occupied by owners,
employees or sales staff. Examples of these businesses are DVD rental kiosks and ATM locations.
PUBLIC OUTREACH
Vendors affected by the proposed Code change were notified via letter in November 2013. Staff has
received very little feedback to date. Of the communication received, vendors were understanding of the
requirement and appreciative that staff will be completing the license application process on their behalf.
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ORDINANCE NO. 170, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 25, ARTICLE III OF THE CODE OF THE
CITY OF FORT COLLINS CONCERNING SALES AND USE TAX
WHEREAS, under Article V, Section 22 of the City Charter, the Financial Officer is
responsible for collecting, receiving and disbursing all money belonging to the City; and
WHEREAS, City staff regularly encounters sales and use tax reporting discrepancies
attributable to the use of consolidated tax returns by vendors with more than one location in the
City; and
WHEREAS, the consolidation return process requires the City to take additional manual
steps to separate collection data and accurately determine sales and use tax collections by
geographic area; and
WHEREAS, the Financial Officer and the City Manager recommend that the City Code
be amended to limit the use of consolidated sales and use tax returns; and
WHEREAS, the City Council wishes to accept the recommendations of the Financial
Officer and the City Manager and amend Chapter 25, Article III of the City Code to that effect.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS, that Section 25-128 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 25-128. Consolidation of returns.
A retailer doing business in two (2) or more places or locations, whether within or
without the City, and collecting taxes hereunder may file one (1) return covering all
such places or locations only if there are no owners, employees, agents, or
commissioned sales persons of such business on duty at any location in the City.
Any retailer conducting online sales must file a separate return covering online
sales, even if the retailer is filing a consolidated return for sales at physical
locations.
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Introduced, considered favorably on first reading, and ordered published this 3rd day of
December, A.D. 2013, and to be presented for final passage on the 17th day of December, A.D.
2013.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 17th day of December, A.D. 2013.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk