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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