HomeMy WebLinkAbout1984-189-01/15/1985-EXPRESSING OPPOSITION TO SALES TAX 'SIMPLIFICATION' LEGISLATION WHICH WOULD ELIMINATE LOCAL CONTROL Y
RESOLUTION 84- 189
OF THE COUNCIL OF THE CITY OF FORT COLLINS
EXPRESSING OPPOSITION TO SALES TAX "SIMPLIFICATION"
LEGISLATION WHICH WOULD ELIMINATE LOCAL CONTROL
OF THE MUNICIPAL SALES TAX BASE AND LOCAL CONTROL
OF SALES AND USE TAX ENFORCEMENT
WHEREAS, the City of Fort Collins has a sales and use tax which is
levied, collected, and enforced locally; and
WHEREAS, the municipal sales and use tax is the principal tax source
for our municipality, raising in 1983 $12,516,342 in revenue in comparison
with only $2,835,761 raised from the municipal property tax; and
WHEREAS, sales tax simplification legislation recommended by the
interim Business Issues Committee for consideration during the 1985 legis-
lative session would require the local sales tax base and definitions to
conform with the state base and definitions, centralize enforcement and
auditing powers and procedures in the state Department of Revenue, prohibit
application of use taxes to storage, and generally reduce local sales and
use tax revenues of home rule municipalities ; and
WHEREAS, the state base has become unreliable and smaller in recent
years through enactment of many exemptions; and
WHEREAS, the City of Fort Collins supports many revisions in the sales
and use tax system which will streamline state and local sales and use
taxes without major loss of local control or local revenues ; and
WHEREAS, the City of Fort Collins estimates that enactment of the bill
recommended by the Business Issues Committee could result in a loss of
revenue currently and in future years.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS:
1. That the Council opposes any sales tax legislation which ties the
local sales and use tax to the state tax base with or without local
options .
2. That the Council opposes granting the Department of Revenue
unilateral authority to determine and control all definitions relating
to local sales tax bases.
3. That the Council opposes centralization of auditing, enforcement,
and appeals authority in the Department of Revenue.
4. That the Council opposes loss of authority for municipalities to
impose use taxes on storage.
5. That the Council opposes efforts to provide tax reductions to
special interests through state mandated reductions in local sales and
use taxes.
6. That the Council supports legislation drafted by the Colorado
Municipal League which would simplify the sales tax system without
unduly interfering with local control of the sales and use tax by:
Requiring use of a standardized sales and use tax reporting form
for all home rule municipalities which collect their own sales
tax;
Providing single audit sales and use tax protection at the option
of the taxpayer rather than mandatorily for all taxpayers oper-
ating in more than one jurisdiction ;
Authorizing statutory municipalities and counties to conduct
sales tax audits subject to procedures and requirements estab-
lished by the Department of Revenue;
Making procedures of home rule municipalities uniform with the
state ' s with respect to various collection and enforcement
procedures ;
Prohibiting double taxation of sales and use tax transactions;
Accelerating remittance of Department of Revenue collections to
those municipalities and counties whose sales taxes are collected
by the state;
Simplifying taxation of construction and building materials ;
Requiring municipalities to provide geographical maps or location
guides to retailers ; and
Establishing a task force within state government of state and
local officials and business representatives to standardize sales
and use tax definitions and otherwise streamline state sales and
use tax practices.
BE IT FURTHER RESOLVED that the Council of the City of Fort Collins, a
Home Rule city, established pursuant to Article XX of the Constitution of
the State of Colorado, urges its senators and representatives to support
sales tax simplification legislation as outlined above and vigorously
oppose any state legislation which would provide for state control of the
local sales and use tax base, centralize enforcement activities in the
Department of Revenue, or otherwise result in the loss of local control and
local revenues, and support the Colorado Municipal League towards these
ends.
Passed and adopted at a regular meeting of the City Council held
this 15th day of January, A. D. 1985.
Mayor
ATTEST:
City Clerk 'al\�—