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HomeMy WebLinkAbout055 - 05/18/2010 - AMENDING SECTION 25-252 OF THE CITY CODE RELATING TO THE VENDOR FEE FOR COLLECTING AND REMITTING LOD ORDINANCE NO. 055, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 25-252 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO THE VENDOR FEE FOR COLLECTING AND REMITTING LODGING TAX WHEREAS, Sections 25-252(a), (e), and (f) of the City Code authorize lodging providers to retain three percent of the amount of lodging tax they collect for the City (the "Vendor's Fee"); and WHEREAS, the Vendor's Fee was originally adopted in recognition of the time and effort expended by lodging providers to collect the City's lodging tax from their customers; and WHEREAS, current business practices include automated accounting processes that have significantly reduced the time lodging providers need to invest in collecting the City's lodging tax; and WHEREAS, the total amount currently retained by lodging providers is approximately $25,000 per year; and WHEREAS, the loss of this amount of lodging tax revenues has a negative effect on the City and its citizens given the recent budget constraints; and WHEREAS, the City incurs an administrative expense of approximately $5,000 per year associated with monitoring the Vendor's Fee and eliminating the Vendor's Fee would eliminate that expense; and WHEREAS, the City Council believes it to be in the best interests of the City to eliminate the Vendor's Fee and to utilize the resulting savings to help defray City expenses. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 25-252(a), (e), and (f) of the City Code are hereby amended to read as follows: Sec. 25-252. Payment of tax. (a) Every lodging provider shall be liable and responsible for the payment of an amount equal to three (3) percent of all proceeds derived from the providing of lodging accommodations as established pursuant to § 25-242 and any such lodging provider shall file a return each month with the Financial Officer on or before the twentieth day of each month for the preceding month and remit any amount equivalent to the lodging tax collected to the Financial Officer. (e) No person other than the City may take enrichment from the collection or payment of such tax or from liability for payment of the full amount of the tax as levied by § 25-242 . Section 2. That this Ordinance shall become effective on July 1, 2010. Introduced, considered favorably on first reading, and ordered published this 4th day of May, A.D. 2010, and to be presented for final passage on the;1ay of May, A.D. 2010. May ATTEST: 'City Clerk Passed and adopted on final reading on the 18th day oPQQ., A.D. 2010. Mayo ATTEST: City Clerk