HomeMy WebLinkAbout048 - 05/02/1995 - AMENDING CITY CODE CONCERNING DEFERRED PAYMENT OF USE TAX FOR LARGE BASE INDUSTRY ORDINANCE NO. 48, 1995
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE III OF CHAPTER 25 OF THE CITY CODE
CONCERNING DEFERRED PAYMENT OF USE TAX 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- of the
community; and
WHEREAS, the City Council has determined that economic development serves an
important public purpose by promoting primary and secondary jobs within the City, and generally
enhancing the local economy; and
WHEREAS, base industrial firms provide important employment and professional
opportunities for citizens of Fort Collins; and
WHEREAS,these firms also contribute to, and are an important element of the community's
human resource and social fabric; and
WHEREAS, it is the policy of the Council of the City of Fort Collins to periodically review
and evaluate the City's financial and economic development policies in terms of their relevance to
current community values, and the location-decisions-of large manufacturing business-, and-
WHEREAS, during the course of this review, City Council believes it is important to
consider additional information and data relative to the sales, use and real and personal property tax
structures of the City as they apply to large base industries; and
WHEREAS,under Chapter 25, Section 74(a)of the Code of the City of Fort Collins,the City
imposes a use tax upon the use of tangible personal property; and
WHEREAS, the City's collection of use tax, and the determination of exemptions therefrom,
are matters of purely local concern; and
WHEREAS, the City Council believes it is appropriate for the Financial Officer to consider
on a case-by-case basis, deferring use tax payments for Large Base Industry; and
WHEREAS, it is reasonable for the deferment to be extended for a period of no more than
five (5j years because the depreciatiorrorrtaxabi�persorrai property averages approximately twenty
percent (20%) per year.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Chapter 25, Article III, Division 3 of the Code of the City of Fort Collins is hereby
amended by the addition of subsections 25-129 to read as follows:
Sec. 25-129. Deferred Use Tax Payments for Large Base Industry.
(a) The Financial Officer may, in his or her discretion, agree to defer
the payment of use tax by a Large Base Industry. In no instance shall
such negotiation result in a payment deferral for more than five (5)
years from the date the use tax is due. Interest shall be charged on the
deferred amount at a rate of not less than one quarter of one percent
(.25%) per month, compounded annually.
(b) Factors to be considered by the Financial Officer when deciding whether
a payment deferral will be granted and the terms of such deferral may
include, without limitation:
(1) Whether the proposed deferral is in the best interest of the City;
(2) Whether the proposed deferral would be generally consistent with the
city's economic development goals and objectives;
(3) The impact of the proposed deferral upon the financial welfare of the
city and the provision of municipal services;
(4) The anticipated financial return to the city from the proposed
operations of the particular Large Base Industry;
(5) The impact of the proposed deferral upon the overall health, safety
and welfare of the citizens of the city; and
(6) Whether the Large Base Industry is committed to satisfactorily
mitigating any adverse environmental impacts of its operation, and is
further committed to the training and human resource development
of its work force.
(c) For the purposes of this Division, Large Base Industry shall mean a firm that: (1)
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).
(d) The provisions of this Article shall not be construed as establishing any
right or entitlement to a deferral of the payment of use tax on the part of any
applicant. The approval of any deferral plan shall be entirely discretionary
with the Financial Officer.
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 2 of May, A.
- —Mayor
ATTEST:
p1 City Clerk
Passed and adopted on final reading this 2nd day of 1995.
l
Mayor
ATTEST:
7fin�a.
City Clerk