HomeMy WebLinkAbout047 - 05/02/1995 - AMENDING CITY CODE CONCERNING A USE TAX LIMIT FOR LARGE BASE INDUSTRY (FAILED TO PASS) ORDINANCE NO. 47, 1995
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING DIVISION 1 OF ARTICLE III OF CHAPTER 25 OF THE CffY CODE
CONCERNING A USE TAX LIMIT FOR LARGE BASE INDUSTRY
WHEREAS, the City of Fort Collins has an adopted economic development policy that
indicates that the retention of base industrial firms is critical to the overall prosperity o "the
community; and
WHEREAS, the City Council has determined that economic develops it serves an
important public purpose by promoting primary and secondary jobs within the C' , and generally
enhancing the local economy; and
WHEREAS, base industrial firms provide important empl ment and professional
opportunities for citizens of Fort Collins; and
WHEREAS,these firms also contribute to, and are an i ortant element of the community's
human resource and social fabric; and
WHEREAS, it is the policy of the Council of e City of Fort Collins to periodically review
and evaluate the City's financial and economic de elopment policies in terms of their relevance to
current community values, and the location d isions of large manufacturing business; and
WHEREAS, during the course f this review, City Council believes it is important to
consider additional information and d a relative to the sales, use and real and personal property tax
structures of the City as they appl to large base industries; and
WHEREAS, under apter 25, Section 74(a) of the Code of the City of Fort Collins, the
City imposes a use tax u n the use of tangible personal property; and
WHEREAS ie City's collection of use tax, and the determination of exemptions therefrom,
are matters of p ly local concern; and
WI- -REAS; the City Council believes it is in the bee, interests of the City to establish a
tempor limit on the amount of use tax which should be paid by a Large Base Industry on
in cry used in the manufacturing process.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 25-71 of the Code of the City of Port Collins is hereby amended by
the addition of the following definitions:
F&:. Ie�
4a (amass
Large Base Industry shall mean a firm that:(]) produces, or will produce, manufactured
goods, at least eighty (80) percent of which are, or will be, produced for export to areas
outside of the city; (2) employs, or will employ, no fewer than one hundred persons for at
least thirty-five (35) hours of year-round employment per week; and (3) owns or leases, or
will own or lease, real property or equipment within the city limits that is used in the
operation of the firm's business and that has, or will have, as of the date of the
commencement of the firm's operation, a fair market value of no less than one hundred
million dollars ($100,000,000).
Manufacturing Process shall mean the performance of an integrated series of operations
which places tangible personal property in a form, composition, or character different from
that in which it was acquired, whether for sale or for use by the manufacturer. The change
in form, composition or character must result in a different product having a distinctive
character and use.
Section 2. That Section 25-74(b) of the code of the City of Fort Collins is hereby amended
by the addition of a new subsection (15), to read as follows:
(15) Machinery used in the manufacturing process of any individual Large Base
Industry that has paid use tax to the City in any given year in excess of the
following amounts:'
1095 $2,000,000.00
1996 , 2,100,000.00
1997 2,200,000,.QQ
1998 2,300,00t1.00
9'199 2,400,000.0Q
2000 2,500,000.00
1001 2,600;000.00
2002 2,�00;OOo.00
2003 2,800100,0
2004 z;900;000.00
2605 3,000,000.00
Section 3. That the amendment to Section 25-74(b) made pursuant to Section 2 above shall
remain in effect only through December 31, 2005, at which time said amendment shall be null and
void and of no further effect, so that the collection of the full amount of use tax levied on the
machinery referred to therein shall resume on January 1, 2006.
1.
The exemption in subsection(15) shall remain in effect only through December 31,2W5,at which time said exemption shall be null and void and of
no further effect,so that the collection of the full amount of use lax levied on the machinery referred to therein shall resuume on January 1,2W6.
Introduced, considered favorably on first reading, and ordered published this 18th day of
April, A.D. 1995, and to be presented for final passage on the 2nd day of May, A.D. 1995.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 2nd day of May, A.D. 1995.
Mayor
ATTEST:
City Clerk