HomeMy WebLinkAbout1995 Ordinance No. 023•
•
ORDINANCE NO. Ji
SERIES OF 1~95
BY AUTHORITY
COUNCIL BILL NO. 23
INTRODUCED BY COUNCIL
MEMBER HATHAWAY
AN ORDINANCE EXTENDING THE CITY OF ENGLEWOOD REBATE OF SALES AND
USE TAX ON PURCHASES OF MACHINERY AND MACHINE TOOLS.
WHEREAS, the Englewood City Council authorized the creation of a rebate of sales and use
true on purchases of machinery and machine tools for businesses in the City of Englewood
with the passage of Ordin ance No. 25 , Series of 199 1; and
WHEREAS, this program was to stimulate ec onomic growth in the manufacturing and
industrial sectors of the Ci ty; and
WHEREAS , Ordinance No . 25 , Series of 1991 set forth t hat all purchases of machinery and
machine tools eligible for r ebate would be made by July 1, 1992; and
WHEREAS , Ordinance No. 34 , Series of 1992 set forth that all purchases of machinery and
machine tool s eligible for rebates would be made by July l , 1995 ;
WHEREAS, with the passage of this ordinance the rs bate of sales and use true on purchases
of machinery and mach ine tools for businesses within the City shall be ex.:en ded to purchases
made by July 1, 1998 and shall become null and void thereafter;
NO W, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
F.. 'GLEWOOD , COLORADO, THAT :
~-The City Council of the City of Englewood , Co lorado hereby approves the
extension of Ordinance No . 25 , Series of 1991 which created the rebate of sales and use tax on
purchases of machinery and mac~Jine tools for businesses in the City of Englewood from July
l, 1995 to July 1, 1998.
Introduced, read in full , and passed on first reading on the 15th day of May, 1995.
Publi shed as a Bill fo r an Ordinance on the 18th day of May, 1995.
Read by title and passed on final reading on the 5th day of Jun e, 1995 .
Published by title as Ordinance No . d3 , Seri es of 1995 , on the 8th day of June, 199fi .
~~ V'Thomas J . Bum s, Mayo r
-1-
10 b vii
I, Loucrishia A Ellis, City Clerk of the City of f:nglewood , Colorado, hereby certify that
the above and foregoing is a true copy of the Ordinance paaaed on final reading and
published by tiUe aa Ordinance No . ~ Series of 1995.
~!/ft£·
Loucrishia A. Ellis
-2 -
...
•
•
•
• '
COUNCIL COMMUNICATION
Oat" Agenda Item Subject
May 15, 1995 Ordinance Extending Rebate
11 a iii of Sales and Use Tax on
Purchases of Machinery and
Machine Tools
Initiated By I Staff Source
F inancia l Services Deoartment Frank G[lglewicz, Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Facilitates economic growth in the City of Englewood . The City Council of Englewood passed
Ordinance 25, Series of 1991 and Ord inance 34, Series of 1992.
RECOMMENDED ACTION
•
Staff recommends approval of this bill for ordinance as it improves th e City's pro-business
stance and encourages the manufacturing and industri al sectors of the City to purchase
machinery and machine tools at a reduced cost. The ordinance would allow a rebate of 2% of
•
the Sales and Use Tax of 3.5% (57 .14% of the 3 .5% rate imposed by the City). In January of
the year following the purchase and payment of the tax , 50% of the rebate amount is allowed .
The rema ining 50% is rebated equally over the next ye ars . The ordinance is null and vc,id on
and after July 1, 1998.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The C ity of Englewood began imposing a use tax on purchases outside the corporate limits of
the C ity on January 1, 19B6 . The use tax is intended to put the City's vendor's on a "level
playing field " wi th ve ndors in a lower sales tax rate district. Without the use t?.>r a vendor in a
lower sales tax district would enjoy a compet itive advantage over a vendor in a higher taxed
district . In 1991 , City Council passed Ordinance 25 , Seri es of 1991 . Tt1is ordinance rebated
57.14% of the 3 .5% use tax on machinery and ma ch ine tools . The intent was to stimulate
economic growth in the manufacturing and industrial secto rs of the City . The program has
allowed for an est imated $1 B3 , 126 in rebates since the program began in 1991. T h e
provisions of Ord inance 25 sha ll be null and vo id on July 1, 1995. Rebates will cont inue
through 1997 .
Abolishi1"111 the U!a tax altogether has bean discussed , but Iha lost revenues would be
prohibitive , and w..s not cons idered a viable al emalive. Not renewing the rebate program
was discussed , but it was considered a valuable tool for attracting and reta ining businesses in
Englewood .
FINANCIAL IMPACT
The City of Englewood allowed for an est im ated $183 ,126 in rebates from the original rebate
prog ram . Most likely, the City would rebate about the same for purchases of mach inery ar ,-:1
machi ne tools if the program is extended .
UST OF ATTACHMENTS
Proposed Bill For Ord in ance
Copy of Ord inarr,;i 25 , Serie s of 1991
' •
•
•
•
•
9c
---C?.:::~;:c:; :;o.,r'."?
~~ .:: :_99:---
c:coc.::. 3!:l. ::O. 2~
~ 3'! c:t~,C=-
~!BC'. C::.U-:1:N
.!.!I c:•~=~c 01:.:==:c .\ ?,,E:;.'::; ct ~ _;:::, t.:SZ :.;x CN ?U?C~ cr
:-~.;:::z::::,: ,;::;i :-1.'C-:::::Z ':'CCL.a :e;i, =-~S:.::::C:SS-;:.S :::,; ':'.~ C::"! C!' :::cz;cx:o ,
r::::::r.,:::,;.x.
;.~z.;s, t..~e ~q!=M:C<! C!.:7 C....-u..-:c:..l w!=~ ~ ~aea ':..~e
~g!.-eo...o:<! ~r.ar.::· a:-.=. ~"":.c::-..::~c;e ':..~e c:r.;:e-:.:0:::.· .. "e!':ess, e:<;:ar.sicn an<! S\!c:.:ess
c: :7.:..-:~?C"::=:...-:q ar.C:. :7~a-:.~C. :,.;.s.:...-:esses; ar.C.
i:"rZ?~~~, ':..._.e e:_ -:.y c: :::-.gl.2WCIOC !..'7:?=ses a Sales me! t:se -:ax en
-::ac~.:..-.e=-1, ar.C ~~:-...:...-.~ :.:::c:.~ · .. t-..:.c:: ':iG'f !..-:;:ac:. ':.~e :=i-:=::..-.a.se c= sec..~
~.l.:.::,:rre:-.-:.; :r:C
:-~z.;s , :..--.e C!-::: c:-.=..-.c::.: ces:..--es -:.::: =~~2 -:..~e sales ~c:. ::se ':'ax er:
::i=:..:.._~e.s ::= a C?:e ~-=== ---:e=:.cc. .:..-:. c=Z -:.:i ass:.s:. --e -a...~:::r-:::-=.:-g
Sao=::=; :..-:C
:❖~Z..~-S,~'="! C..-.:..-:c:..: =es:.=~ :.-.e ~c-~=-.-: ':.: :e =a.ce ~v-e= a :..•.=ee
::ea: ;:e=:.::C, '::: =---:.==~age '="..:s!..-:esses -:.::: ~C:. a::C. =~..a.:..-. i..""t :..'"'.e c:r.rc,_,~_:.:~:n
:;a-;, -==-.:-:-:-r-=:-;o, s:-=--~.!:.!~ s: 7=:! c:::-Y c::,..:.;c::. cr ::~ c::"! cr
:::=~o , c:::L.."Rr.:0, ;.s ::C::.:C·lS :
~.:en 1.. ~.e Sal~s .?r.C:. Use Tax '2i.C. C."'l ;:,r:.~ C: :nac:.i.!..-:e=".1 anc!
::-.ac..:.....:...-.e -::,e ls 5'--.a.!..: =e :;1:.a-:.~ ~ an a:ff'CC..-::: eq-~ to t"...-:::> :;:e=oent ( Z-:.}: cf
-=..1-..e Sc.las ar:C. Use Ta.~.:::: 3.~ :.~t; :.S 2 /3.5 cf t.."-:.e 3 .~ :ate .:...-;x:sed by
t.112 C! •• ::.: c::: :::::.g l ~ :c: :.::e ;e:-:.c.c :cly ~, 1991 -:::: Jul"f l, 1992. FL~
;:,e:=e::...: == :.--.e ~a..:e ·"'1.1! ::e g:=an~e': ,.:~e= :ece::-.be= 31 , 1:192, t..•.e
=~.a.:..~~ :,ri-1!. '::-e =el:.a-:ec. 2:~ a...~~-· :ecS!.:-e= 31, 1993 anC. 2:~ a_~~
Dec~~ ll, 1994.
~.e ~te ·J:.11 :e ,=eC:::ec. ac;a.::...-.s~ ~1...e sales and use t.axes a.ed i.,
-:.'"'.e !as~ ~.iar:e: c: :."-:.ese :_;ea.-s. !!: :.., e::<e~s cf t.'-:e t.axes o.l!d, a :-el::at2
c."ie.:.k · .. ~ be :-.ace -:.o :..'-:e C:::..:--U1Y.
St!c::Ocn 2. St~-:e Sales :-ax E:<~~.:.cn :'c:'::\ ORl.19 l rm:.s-: ::e ::.lee. ·..ri-:. .....
t..1...e c.:.:.: ct ~c;-~, ee:-~"':'e!:t of ~ve.-,i.:.e, t..o qua.l.L~ !or t.'"'.e Sales and
t;se ':'a..x =~1=~. ':"O ~al.:.:="! === :..'-:e :"!ba~e :.-:e ::ti...,im..:m ?U-,-:..-.a5e ~ce of a
si.-:g~e i::~ ~~ :e SS OO.
5ec:: ... :, ?. ~e..~ :..S :"CJ i.t\t:S."1ticn -=.a~ ar.y c:1:..'":.er sec:.:.cn cf !..'":.e
::-.g!e-...ood ~!'.:.,~c:.r c. ~<!!!.
Sac:-:!c n 4. ~k:I ;:u...-:.•.ases :r.ac!e ~er Jul:, l , 1992, shall c;-..:al.:..:-! ::.:
:."".~ ~~e .. u~ ~a~~ ~ !.l ::e ?A,id. ~c.~ :UJ.y l, 1995 anc. ~-.is
C:::!!.-iance st-.aJ._ 2 :'!Ul.l anc! •J0 ic! en and at--..er July l, 1995.
I/1':..--ca:.::d, am.'1~, :-ead ;.n :ull, and ;:assed as =cec. en !.:.=n
:eac.:..sg en :.::e l.=t..":. cay of A;:r ::J., 1991.
?ublis:"'bi as a 3ill :or an Crci.,ar.c~ ai -:.~e lBt.~ <!ay of ~r:J., 19 9_.
?.eac! °='f ~-:le ar.c! ?USeC en !:..nal. :-eaci.,g en t.':e 6t.'\ cay o:: :-lay, l99l.
?i.::Jl.:..si"'.ed :y :.=.:le as C:-:.!..-.ar.~ ~-a: ~es of 1991, c., -:."':e 3t.~
'2.y o f :-1.1.y, 199-.
I
-~./111/~j ,1~i (! t
•