HomeMy WebLinkAbout2010-059-08/17/2010-DIRECTING THE CITY MANAGER TO REVIEW THE USE TAX PROVISIONS OF THE CITY CODE, AS WELL AS THE CITY'S RESOLUTION 2010-059
OF THE CITY COUNCIL OE THE CITY OF FORT COLLINS
DIRECTING THE CITY MANAGER TO REVIEW THE USE TAX PROVISIONS OF THE
CITY CODE, AS WELL AS THE CITY'S MANUFACTURING EQUIPMENT USE TAX
REBATE PROGRAM, AND TO MAKE RECOMMENDATIONS TO THE CITY COUNCIL
REGARDING ANY CHANGES THERETO THAT MAY HELP PROMOTE THE
ECONOMIC HEALTH OF THE CITY
WHEREAS, the City Council is asking the registered electors of the City to consider an
.85% increase in its sales and use tax rate that would, if approved by the voters, increase the
amount of revenues available to the City for the provision of basic services; and
WHEREAS, in addition to proposing the foregoing increase in the City's sales and use tax
base,the City Council continues to protect and expand the City's tax base by retaining and attracting
employers, including manufacturers; and
WHEREAS, the City Council has made economic vitality a top strategic priority over the.
past five years; and
WHEREAS, in spite of its strong economic vitality efforts, the City and the surrounding
community have been adversely affected by the recent economic downturn,which has cost Larimer
County 6,157 net jobs, of which over 4,000 are in Fort Collins; and
WHEREAS, the City Council recognizes that the use tax presently imposed by the City on
manufacturing could be viewed as an impediment to attaining the City's goals of growing,retaining,
expanding and attracting businesses and other economic activity; and
WHEREAS, for that reason, the City currently has a use tax rebate program for
manufacturing equipment to provide relief from use taxes imposed upon qualifying manufacturers;
and
WHEREAS, members of the local business community have suggested that expanding the
existing manufacturing equipment use tax rebate program to include research and development
equipment and/or reducing or even eliminating the use tax on manufactures might strengthen the
community's appeal to manufacturers and other employers; and
WHEREAS, in the interest of promoting the overall economic health of the City, the City
Council wishes to explore such possibilities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLINS that the City Manager is hereby directed to thoroughly review the City's use tax
program, including, without limitation,the manufacturing equipment use tax rebate program, and,
in consultation with the Financial Officer and City Attorney, submit a report and recommendation
to the City Council, on or before March 31, 2011, as to the advisability of. (1) reducing or
eliminating the City's use tax, or exempting manufacturers in the City therefrom; and/or (2)
expanding or otherwise enhancing the manufacturing equipment use tax rebate program.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th
day of August A.D. 2010.
Mayor
ATTEST:
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City Cleik