HomeMy WebLinkAbout1991 Ordinance No. 0259c
BY AIJI'HOR I TY
ORDDWlCE No %
SERIES OF 199-r--
COONCIL BILL NO. 2 4
mrROIXJCID BY CWNC IL
MEl-lBER CLAY'IU'l
AN mDINANCE CREATil(; A REBATE U:' S,I\L£S Afl!.I USE TAX 00 PURCHASES CF
MACHINERY A!ID MACIIIllE !COLS FCR UJS !'lr:SS ES IN 1'HE CITY CF ElG.S·o:x:>,
CDLCR.~00.
WHEREI\S, the Eng l ~-.;, ':l r ,"::,unc il de s ire s to stinul.ate the
Englewood econany and enca :.. •~ the OCfl\X!titivenes s, expansion and success
of manufacturing and r e lated bu:,ine L3ee ; and
WHEREl\S, the Ci ty of Dlgl....:x:d int>oses a Sales and Use Tax on
machlnery, and machine tools lotu.ch may in-pact the p.irchase of s uch
equi?"'Jlt; and
1-aiEREAS, the City Council desires to reduce the Sales and Use Tax on
!",ll'Chases for a aie year tri al period in order to assist the 11'dllufac:turing
sector; and
WHEREl\S,City Council desire 1 the reduction to be made over a three
year period, to encoorage businesses to expand and rer,l&in in the camunity;
IOI, TIIEREftRE, BE rr CIIOI\INED BY 'lllE Cm' CXXJNCIL CF nm CITY CF
EIG.60'.D, COLCIIADO, PS F'CILL06:
Section 1. 'l1le Sales and Use Tax paid oo p.irchases of machinery and
JMChine~ be rebated by an 1!11'0Ul1t equal to two pen::1!!111: (2'/.), of
the Sales and use Tax of 3.Sl that is 2/3.5 of the 3.5\ rate intx>sed by
the City of Dlglewood for the period July 1, 1991 to July 1, 1992. Fifty
percent of the rebate will be granted after Decmtier 31, 1992, the
retrainder will be rebated 25\ after December 31, 1993 and 25\ after
Dece!tt>er 31, 1994.
'Ille rebate will be credited against the sales and use taxes awed in
the last quarter of these years . If in excess of the taxes awed, a rebate
check will be made to the c:r,pany .
Machinery and machine tools nust rreet the definitions of Section 38,
Prq>erty , as defined in the Internal Revenue Code of 1954 and must have
been of a nature that would have qu alifi ed for the investmant tax credit .
Sect i on 2 . Sta t e Sale s Tax Ex"'!l'tion Form DR11 91 must be filed with
the City o f Dlgle,,r,:,d , Departlrent of Revenue, to qualify for the Sales and
Use Tax rebate . q,1alify for the rebate the mini.rnJm purc hase pr ice of a
single i t em mu s t t ~S0 0 .
-l -
Sectior, 3 . There is no intention to repeal any ot!1er section of the
D,gl~''ur-il!ipal c.ode.
Section 4 No purchases made after July 1, 1992 , shall qualify for
this rehate. All rebates shall be paid before July 1, 1995 and this
OrdinMce shall be null and void on and after July 1, 1995.
lntro-.,,ced , amended, read in full, and passed as er.ended on first
reading on t.h<I 15th day of April, 1991.
Published as a Bill for an Ordinance en the 18th day of April, 1991.
Read by title and passed a, final reading a, the 6th day of May, 1991.
Publist.ed by title as Ordinance No.~ Series o; 1991, on the 9th
day of May, 1991.
3 . A ~
f VUo . t/a .
r1 aA.4tts, Deputy City Clerk
I, Lcu:rishia A. Ellis, City Clerk of the City of Olglewood, Colorado,
hereby certify that the above w . foregoing is a true cxpy of the Q;dinance ::;-;;:,'." """' -.., --S, tlU• ~;• ,.,;,, . . .. rtl
ioocrlaCEL•
-2 -
e
DATZ
Apr.ll 15, 199 1
INITIATED BY
STAP'1' SO URCE
ISSUE/ACTION PROPOSED
COUNCIL COtoCUHICA'r f f:H!
SUBJECT Sales/Use Tsx Abateme t,t
o n Pu rchae s o f
AGENDA ITEM
11 • Mach i nery and Hachine To ol a.
Commu n i ty Development Department
Richard S . Wanu ■h, Directnc r::" Community Developme.nt
Pam ela L. Pepper, Economic Development Admi n istrator
An abatement of the ■ale ■ and u ■e tax on pu rchaaaa of mach i nery and machine tools
for a one-year period i ■ proposed aa an economic developmnnt incentive for Englewood
b u a i neo ■ea to encoura g e inve ■tment in the manufactur i ng aector o f our economy, to
provide new joba, &n d to remain competitive .
PREVIOUS COUNCIL ACTION
A staff report and pc e ■e n tat i o n to Ci ty Council in ttar ly March resulted in d i recting
sta f f to prepare the attached ordinance.
STAFF ANALYSIS
The establ i shme nt ot a n Enterpri ■e Zone ..,,ith in the City o f Englewo od caused Ci ty
Co u ncil to revia i t the general economic development incen t i ve ■ policies adopted l ast
year. City Counc i l was mo t i vated by the St ate o f Co l orado enco urag i ng l ocal govern-
me nts t o a dopt pol ic i es to promote ente rr,r iae zone d eve lopme nt business expansions
t hrou gh t he use o f i nc ent ive a which wo uld enhance state t ax incent i ve s .
BACJICGROUND
Th e o r dina nce pro po sed would r ebate a por tion o f the s a l es and use t a xes f o r a one
year per iod to encou rage the g rowth o f c ompan i es pu rchasi ng ma c h i nery a nd machine
t oo ls a nd spread the rebat e ove r a thre e year per i od to e nsure their c o nt i nu e d
l oca t ion i n Engl e wood .
Th e p r o po sed o r d in a nce will rebate 2\ of t he 3 . S\ sales and u se t a x for ma chine r y
a ntl mach i ne t ool s.
rt MAN CI llL
The fl1cal impa ct. of the rebate to the City of Englewood is est imated at S160 ,000
over the three year pa r iod .