HomeMy WebLinkAbout040 - 03/20/2007 - AMENDING CHAPTER 25 OF THE CITY CODE TO CREATE A MANUFACTURING EQUIPMENT USE TAX REBATE ORDINANCE NO. 040, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 25 OF THE CODE OF THE
CITY OF FORT COLLINS TO CREATE A
MANUFACTURING EQUIPMENT USE TAX REBATE
WHEREAS,the Manufacturing Equipment Use Tax Rebate Program(the"Program")was
initiated in 1996, and was intended to focus on encouraging the reinvestment made by local
manufacturing firms in new manufacturing equipment; and
WHEREAS,the Program has provided rebates to manufacturers for every calendar year since
1996 except for 2002 when it was discontinued due to economic conditions; and
WHEREAS,modifications were made to the Program in 2006 to reflect several requests from
the manufacturing community; and
WHEREAS, the Finance Committee recommended adding the Program to the Code of the
City of Fort Collins (the "Code") to ensure that the Program provides an important economic
incentive on an ongoing basis; and
WHEREAS, historically, the Program has been funded by the Use Tax Carryover Reserve
which represents use tax collections over and above the "ceiling" budgeted for use in support of
General Fund operations; and
WHEREAS,the City Council believes that the Program is abeneficial incentive program and
should be established for that purpose.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Chapter 25, Article II of the Code of the City of Fort Collins is hereby amended by
the addition of a new Division 5 which reads in its entirety as follows:
DIVISION 5. MANUFACTURING EQUIPMENT USE TAX REBATE
Sec. 25-71. Definitions.
The following words, terms and phrases, when used in this Division, shall have
the meanings ascribed to them in this Section:
j Qualifying manufacturer shall mean an industrial manufacturer who, in an
industrial setting, produces a new product, article, substance or commodity that is
different from and has a distinctive name, character or use from the raw or prepared
materials used to manufacture the product.
Manufacturing equipment shall mean manufacturing equipment to be used in the
City directly and exclusively in the manufacture of tangible personal property for sale
or profit.
See. 25-72. Establishment.
There is hereby established a manufacturing use tax rebate program to provide
relief from use taxes imposed upon a qualifying manufacturer.
Sec. 25-73. Application for rebate.
Application for the manufacturing equipment use tax rebate on qualifying
manufacturing equipment shall be made on forms to be provided by the City.In order
to qualify for such rebate, the application must be filed between August 1 and
December 31, inclusive, of each year for which a rebate is requested. Only one (1)
application shall be filed per qualifying manufacturer.
Sec. 25-74. Qualifications.
In order to qualify for a rebate under the provisions of this Division,the following
requirements must be met:
(a) The qualifying manufacturer must be licensed with the City and classified as
a"manufacturer"under the Standard Industrial Code.
(b) The qualifying manufacturer must certify compliance with all federal, state
and local laws and regulations applicable to a manufacturing facility located
within the City limits.
(c) The qualifying manufacturer must be current in all payments to the City and
in compliance with any contractual agreements with the City.
(d) Machinery and equipment must be tangible personal property when
purchased; be necessary for, and used directly in, the manufacturing of
tangible personal property to be sold; not be used in any activity other than
the actual manufacturing process; not be merely useful or incidental to the
manufacturing operation; and be purchased in the year the rebate is being
applied for.
(e) The qualifying manufacturer must have paid the appropriate use tax.
-2-
Sec. 25-75. Amount of rebate.
The amount of rebate payable shall be in the sum set forth in a rebate schedule
to be adopted by the City's Finance Department consistent with rules and regulations
promulgated pursuant to § 25-77.
Sec. 25-76. Payment.
The City shall make all rebate payments to each qualifying manufacturer by a
single check.
Sec. 25-77. Administration.
The Financial Officer shall administer the program established by this Division
and may prepare a rebate application form, adopt rules and regulations consistent
with the provisions of this Division, and audit and verify the applications submitted
pursuant to this Division. Any rebate application form shall require the claimant to
verify and sign the application under oath. The burden of proving entitlement to a
rebate under this Division is on the claimant. The Financial Officer may require
reasonable information to support the rebate application.
Secs. 25-78—25-85. Reserved.
Introduced and considered favorably on first reading, and ordered published this 6th day of
March, A.D. 2007, and to be presented for final passage on t Oth day of March, A.D. 2007.
Mayor
TTEST:
City Clerk
Passed and adopted on final reading this 20th day o ch, A.D. 2007.
Mayor
TT'EST:
City Clerk
3