HomeMy WebLinkAbout1984 Resolution No. 049I
RESOLUT LON NO , -1 q
SE RI ES OF 19 84 ---
A RESOLUTION EXPRESSING OPPOSITION TO SALES TAX "S lMPLIFICATION"
LEGISLATI ON WHICH WOULD ELIMlNAT E LOCAL CONTROL OF THE MUNICIPAL
SA LES TAX BASE AND LOCAL CO NTROL OF SALES AND USE TAX ENFORCE-
MENT,
WHEREA S I the City of En g lewo od ha s a sale s and use ta>:
whi c h Ls l e vied, col l ec t e d a nd e n fo r ced local l y ;
WH.l::N.EAS , the mun icipal sale s and use tax is t h ·~
principal t ax s ource for our mun i cipali ty, raising in 19 83
$9 ,7 43 ,1 06 ln r evenu e ln comparlson wlth only $822 ,2 73 rais ed
f rom the municipal prope r ty ta1t;
WH EREAS I s a l e s t ax s imp lt f i nt ion leg i s lat ion recom-
me nded by the inte rim Busi ness l ss, ommitt ee f or con side r a tion
d ur ing the 19 85 legislative ses s ... uld r e qui r e t he l oca l s ale s
t ax bas e and de f Lni t ions t o con { ... rm with the stat e base and
de f init ions , centra liz e enfo r ceme n t a nd audit ing powers and
p r ocedures in the s t a t e Department o f Re venue, prohibi t applica-
tion of u se taxe s to s t ora ge , and c o ul d r educe local sales and
us e tax r eve nu es of home rule mun i ci palitie s ;
WHEllEAS , the s t a t e ba se has become unre l iable and
smal l e r i n r e cent years t hrough e na ctment o f many e xem ptions j
a nd
WH ERE AS, the Ci t y o f En g l e •·.; •d s u ppor t s many revisions
in t he sal es and us e tax sys t em wh ,+ w: · 1 st r eamline stat e and
local sa l es and use t a xes without t-.'.Jo r l o ss of l oca l c o ntrol o r
local r e venues i
NOW ' THf:RErnRE' BE l T Ro SO LVE D BY Tll o C l TY OF
ENGL EWOOD , THAT TH E ClTY CO UNCI L :
* Opposes a ny sales tax l e g i slation whi c h ties th e local s a l es
a nd u se t a x t o t he stat e t ax base with o r wit hou t local
option s ;
* Oppo ses g ra nt ing the De pa rt me nt of Re ve nue un i lat e r al
authorit y to determine a nd control all de f lnl t l ons r elating
t o l o c al sales tax base s ;
* Opposes ce ntr-a l izat Lon of aud i t i ng , enf orceme nt a nd appeals
autho rit y i n the Depa rtme nt o f Reve nu e ;
* Opposes l oss of a u tho r ity fo r mu n ic i.pa l i t i.c s to ~mp osc u se
t axes on s t o r agc i
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* Opposes efforts to provide tax r e ductions to spe cial inte r ests
through state mandated r e ductions in local sales and u ese taxesj
* Sup port s legislation dra f ted by the Colo rado Municipal League
which would simplify the sale s tax sys tem without unduly inter
fering with local co ntro l o f the s ale s and us e tax by, among
other things:
Requiring use of a standa rdi z e d sales and use tax
r e po rt Ing form for all home rule s municipalities
whi ch c ollect t he ir own sales tux;
Provlding sing l e audit s ale s and use t a x protection
at the option o f the taxpay e r rat he r than ma ndatvrily
f or all t axpaye r s o pe r a ting i n mo t'e than one
j u rsidict lon;
Making proce dure s of home rule municipali t ies uni fo rm
wi th the 5 !'":1te 's with r es pe ct t o va r i ous c o l l e c t ion
and e nf o rce me nt proce dures ;
P::-ohibiting double taxati on of s a les and use tax
t r a ns acttons;
Ac ce l e r a ting r e mittan ce o f De pa rtmcmt of Revenue col-
l c ct Lons t o tll('ls e mun i cipalities a nd countie s 1,r,1hose
sale s taxes a r e co llected by the s tat e ;
Si mp l t fy i ng t axat l on o( cons truction and bu lldi ng
ma t e r la l s ;
Re quir i ng muni c i pali t ies t o provide geog r apliical ma ps
oi:-l oca t i on guide s t o r e tat l e r s; a nd
Es t ab lis hing a task fo r c e 1,r,1i th i n stat e gove rnme nt o f
s t a t e and local of f iciAls a nd bu s ine s s r e p r e sen t a t ives
t o sta ndardi ze s ale s a n d us e t f\>. de[initi.o ns and o the r-
wise s tre am line s tat e sa l es and use r ax p r a c tices .
BE IT FU RTH ER RESO LVE D that the City Counc il utges its
s~na tor and r e present a t ive t o su p po rt sale s tax simpllfic ation
l e g islatio n a t. ou t U ned abo ve a nd vi gorously oppos e a ny s tat e
lcg.l s lation whi ch wou l d p rovi cie f or s t a t e control of the lo ca l
s ales a nd u s e t ax ba s e , ce n tra lize e n fo r ceme n t ac tivi ties i n the
De par tm e nt o f Rev e nu e , o r o the nd se r esu l t t n t he l oss o f c on-
trol and l oca l r e ve nu e s , and s up po r t the Co l ora do Mu n ic ipal
LP a c ue t owards t hese e nd ~.
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ADOPTED AND APPROVE D THI S 17th day of December, 1984 .
~lf ~ t~Mayor
I, G~ry R. Hi gbee, ex off i c i o City Cl e rk-Treasure r of
the City of Englewood, Colorado , he re by ce rt ify that th'? above is
a true, accurat e an d comp let e copy of Resolutlon No . ~,
Seri ea of 1984 .
C O U N C I L C O M M U N I C A T I O N
DATE
Decemh<'r 1 2 , 19 84
I NITIATED BY
AGEND A l TE M
///.,()..,
City Ma n ag er
SUBJE CT Sale ~ and Use Ta x
S i mpl i fi c ation Le&is lat i o11
ACTIOr J PROPOSED Re c ommen d a t ion t o ap pr ove r eso l ut ion xp re ss ing o pposi -
ti on t o t\1 Sa l es ;8 x S J mpl ifi ca t ion Le g i s l a t io n c o n c~rn ing th e e l imin a -
ti o n 1lf l o cal con tr o l o f mu n ic i pal sales a nd u s e t ax and co ntrol of sales
and u s ~ t or. en f o r cement.
Background
Last ye a r o n e of the most c ontroversia l issues co n s id e r ed bv th e St at e
l esi~J a tl.r c was th e sa le s t ax simpl i f i cat io n hiJ]. This it ~m was thE
t 0p legis l ative priority f o r Cr!L l as t \'l•n r .
Easicit ll y , t he bill provide d for n state -co llected s al es t ax wh~c!1 woull
t l1cn I,~ r cd!s trihut Pd back t o ci ti es hascd on t he ~mo~nt co ll ec t e ci f r o0
busJ11csses within t h at en tity . Tl1~ lc~1 s lnti nn was w1c 11dra wn l a s t year
and will be r s ub ni tt ed nex t year . ~:any of t1 1e more offens iv L s e ctions
h ave he en r e ~rit t cn a n d , as n o~ stand~, will a ll o w the ci tie s to c ollec t
t he i r o w1 1 t a x ba sed on t l1c St3te b3sc , wi th certa in excep ti o n ~.
Tl1e Jegisla t i0n is ~t ill a conrern t o ~un i cip;1lit i es and th e C~L . The
LLn 1·uc has as k ed all Liti~s ~~ p ass a r eso lut !on statin g our co nc erns
about tlii s matt e r , a c opy of wh1ch i s a tt acheJ . R&~h e r t han po i n t 0 a
l e 11~tl1 ~ r ~v ie ~ of t h!s legisl a ti 0n in t his me~o r an~u m, 1 am atta c hing un
a nalysis as pr~pared by our fin a11c·c• Depa rt ment an d a l ~o ~lie CML an :lysis .
Rl cnmrnlnd,1 tjpn
Rt.l·0 r.1rncn<l r1t v Count.11 p;i~s 1 !1c :1t t ;1ll1 (d l<esolution s t ntinr ou 1 opposi t ien
t o t ill· sa le s t ax stt:"'.p]i f iu1t:,1n I1rlsla t ion nc currl:'n tl •· 1r0 pr,sld ,
Cc,101 tt dn HunlC'lJ),d 1., .. 11gu•
n t ,vt•n ,bt• 1 1 ~, , 9b(
Swana r y of t>c t.ria-e nt.a ] Pr o vhd on u of
s a les Tax •s i,pl if icetion• lt i 11
~pproved l>y O w
Uu.si nese lft 6 \ll!:A Coaa i tt.e e
Se pt.ea.bet 2!., 1904
1. Self'~ a nd Use Ta x Basr
Homt 1u le rounic1pali t1 es ar e &ubjected t " t.hc s ta t.e bast in all re s ;:,ec t~
~x ccpt for ninf" 1 0::a l options anC u.·o (2) "·,dld card" opt i ons . Tnt:
Ex t'cuti vt Di r ector-o f t he st.ate Depa rtn1en t of Revenue det1ne s £.ales t ax
base defi n i t ion s a pplicab l e t o ell ho me r ule municipa l1t.1es .
1-.. Home r u l e 111 u.ni cipali ues lose c on t.1 0 1 of th ;,r mos t impor tan t re\·enu«:
socrce.
e . ltr.r-.ed iete r evenut:: losse~ r c-~u!t for citie s \,·hose ~ales ta >: bases a re
broade r t han the state's base a nd t he allowabl e o p ti ons .
c . In the fu ture t hE' Gen eral J..sser.bly c o u l C Ad o pt f ur t ber exer..;-oons t c,
the state ba se , the r eby r e ducJng local r evenues to a r. eve n c;1r~ater
exttnt. (Tt,e st.at.e h as r e duc e d i t.s s a1£•s a r . .:. use tc.x base hi ty -o:ie
tirrts in the pa~t t e:1 yea r s .)
n . Munid pali t1 er w~uld t---prP,,er.teO !r or e,•e r inc r easing t hei r sales te >'.
base ..,,1 t:-,aut approvtd ot t he Gener el Asse:-:.bl y .
E. The E>:e cut.i \'e oi r ect..0 1 of t he Departr.,ent of Re vE'nu e h6 s t.oul a ·.J'lh o r1ty
over salts t..!n: babe def in it ioM,, a n '.) hi ~ def1n::..t.1om, co"Jl0 cau5e
a d di t.ional re venue l c-,~ses for wunic1Fa lit1E:S ,
11. ce nt ral1zat1on
Aut.horit y iE, centra lized ir. the Oepart.ment of Revenue i n se veral e.r eos,
inc lu l 'n9 a p;,,eal!o t:y uu:payer 5 t''-'t·r l ora l cll sp.Jt.es 1m•olv 1n~ h,...:-e rule
mi..""ll~J pblities , cen'..rtil1 z P:! e u 1 t !: e : . .:i ~i.!c rcer-t!n 't ~r o::edu re s , o!lr .:
st.anda rd12.e ::3 r eou lau c ns a nC rr cn•ot.:tl ir., llr,1f11:::l nudlt ~ a:e trc:ii,,~t.tc.::: !c
e.~l ta>:?cyer E. opc ra tl nCJ 1n ti Vl t. t.t.;\n one !,:,c ai. ~\lrlF::1cuo1 ..
1-,. Taxpaye r h n 1:. n o Of-tl"--n t.o c~.oost a c oM.vl 1dnte::J audi t or ut il 1z E.
c ur rent r;y stem of Sf"f iil r ate r.u,tr end loc al ~udit.s . This prov is1or,
req u i r e6 .-v e ry ju, 166 J~t.l o r1 de b lfln() t ~, ,g uJ1 t a ny busine 6~ oprrot.1n; l l!
r.i or e t.h ar. ant; JLri "C.c t1 0 :, t tJ P"' f e n thet ti'Jd it 6!lT'ulu,~a•uu~ly ""'1tl ,
o•.ht>r ju r ir 0 1c u om .
B . 1d r.11n1str11t 1on lln5 c 11 f o 1c emC'n l pr oct-d u rt-s a 1 t• l en<;1th y and c os tly.
C. l:xecu t 1 vt: Dirc~c o r o f t h •• Depb rlm<:n t o f Re ve n u t· d e t c r r.i 1ne i wr1 1 ch e ntity
._.lll a u :h t a nd w:1e 11 for all bus1 n essts w1 t.h o pe r au oni:; 1 n mo r t: t h ar. or,t-
1 :>::-n l J Uris d1c-u on .
I.J . J..ll loc o ) o ud1 t 6 11 ,u s t b f' r t\'l e•·e1 h y th~ [u •r1a r \.[!'1 Pnt of Ji.evcnu l: tic.t o n:
b ll 1n g . All t1 u c:l 1t c ollect10 :,t. t1 r t-h ~n~ll'-1 y t t,c· Depa rt.mer.t of
f..{'Vt:l,Ut',
E . J..ny audi t r es ult i n v o l v i ng a l ocal g o v e rnmen t is su bj ect t.o a n a p peal
t o a nd d e t ermi na t i on b y th e state Department of F,eve nuc..
l 11 • StoraqQ
Authc 2 1 t y o f holflt: r u l e a nd stat utor y mu n1 c i pallti e s a nj c ou n t1 es to u nposr:
a n y u sr: tax or1 sto r agt: 1s repea l ed .
lr-p.?::-t
A, A ma jor rev€nue l o !.s re!.ul t s .
E , Tr, use t ax is •·e akeneO hy re st r ic t in? i t s a r;:,h ca :.ior: t o u 5.e o :
c onsumption . /1.:'1 u ns:rup~lou~ tn>:yayr:r can a s sert ti.at t Lc 1 ter is 1n
tr ans1t or i n s t o r agf: a :,S , t h e u •f o 1 t , r1c : ta xo !.J .!e .
c . lf t he u se t ax 1 5 wc a \;e ne d , t a ,:pa yers can l,u y i terr,!:. o u :-o f -t o· .. .-11 , anC
av:nd the l o c2.l s ales t.~>: \,,.1 tt. loc al b u5 iness~s p .:. t.en t.ially affec:ed
a dve :-s~l y .
o. Thi s re s t r i c ti on is inconsi sten t ,...J tr, t.h e s t ctc.'s u se t a x .-·h1ci,
c on tinue s t o apt-1l Y t o St:>r a g e-.
CCJ L'lJl/,11 1 ,.,~1):J':l f'hJ l,[l,C.111
h i.>v e n.: . .n 1 , 1~b :.
J•r ov icie F; f!landatc,r y u se o t a sta,1 ,du rch ;·.~d 1r1 un ic 1 p e l sa l e s a 1,:\ u s f:' t a>.
rc p::i ru ng f o ni !o t all h e r:-'!:' n.lt> tn ur ,1c 1pc:.l1 t.l f"t, •·r,1 ct , c ol lec t t.hc.1 r ow :.
6ole!, t.nx . (J\ 6 a:-1da r o 1ze j f o r~, lie~ c l rt-ad y be e1. o cv1..lope; t y t.h~!"e h :;:icn>c:
r u l e n,·.m1 cipal:t.1e6 .)
P 1·o v 1d es s i n9 l c aucii t_ Eo l e s c:n :i USE: t a >: p rottct i o n at t.he opt i on o ! l h t:
taxpa y e t .
~u~hc-ri z e ~ a n~ e ncoura9 es c o o r:il n£1t.t-d sales an :i u s<: t.o x a u ch t.s bet.,..tt:.ll t..'it"
Oe?art.me n t o f Revenue a.nd l ocal gov ernn-,e n t.s .
Lc av s c o llec t ic.,n and enf o r c e me n t re sponr.ib1li t 1 e!.' a r iE»inCJ fro= s~:--.~le or
C'Oo r Oi net.ed audi t s -..·1 t.h t h~ De par t.rne:-i t o f Re v enuf' or the hor..t-r c:e rt 'Jr.1cJ -
pr.llt.y othe r-•1se r esponsib1 E: f c-t c o Jiec ung t h e t a>.:.
Prod dcs f o r a n aud;.t f ee o ! :: 1 /3 p f:rcent o: s alt·r. ,5,nQ usE t a ):E:S rt:-
c o vE:re .5 ._o b e pai6 by t h t g o\'t:r n r,ent~l e n t i ty b enef!.t 1 n9 fr om t ne
c.-c.orch na t ed au <:1 t t o c orr,pen sa tt:: t he sc·.•e rnme ntnl Pi.ti ty \.'h l c h c o ~1:l.u c -_e j
the au.di t .
Auth o:-iz.es st.z,t u t ory t ,uni c 1pal 1.ue s a n.J c o u ntl e !.i t o cono uct &o l es t.ox
aud its su~Je c t to proce:Oure s ar id requirem~nt s e s t atli shej by t he Depc.:t -
ir en t c ! Re ve n ue .
Au t hor 1z.es an:! encoura 9e!'i t h e excha:-,gt-of s al E:r a r.'.5 u~e t.a x 1r.!o :-r a ·_1c:--.
r.i :,r e e xtc .s 1vel y b et..,•E-er . Depu rL-ner.t c,f Re v e:1ue e r,:! munic1pe:.l it:i.P S u r,:!
c o unti e s -..·hicti auciit t h ei r s al es t.ax.
,...av.e ~ proc edure s o f h ome :r ule munici pa iitl F~ u n1 f o :-c. wi t h the stat e 's -..·;.:...:'":
respec t t o . ._a t u t E-of l ia-,1 t at::.om, f""'r a s sessr.-ien t.s ar.:l refun ds , pe r,e ltU.!"
a n:i inte r e s t o r. cieli n quent p aym e n t.£, a nd po s t 1n9 of b ::md s f o r a ;>pr:als .
E.staUl 1 ~h e s a pro c e d ur e-f o r re so lv!.ng n.\!lt1 ~u r n:::1:t .1on r.: ~al f-£ c.·.: \.:.'.E
t el': ciiFpJtes t o rr o t.e c t t.e..>:f,ayen-fr or. n:u l t iJ uri s .. L.c t1 0:-1al c :a:.:·!".
A:-ctje r il te s re[:': ttanc t: of Dept.r t.ment c { Peve:r,ut co: lec-tior.~ t.c t.t .'J H ·
c . ..:n iClJ-l!i l :.tie ~ an6 cou nt1e b ..,.-ho s e cn l e 5 tax es a r e c ollec t ed by t ht: E.:e ·.!!.
Es t.aLlu,he~ o ta!:k t o r ce -..·:t hin the De1-,ar t.me r.t o f r't-v cnue c,f s t att-. r .l.:·.1 -
c1pa) a n:'. t.iu sir,e !i r r e p 1ese r1tot•vl•s t o standa r f1:e h b l P r-. c ni:: u !it t.a,.. Ot f.-
niu o n s cH,d othe ndst· 1,trcat:'.llM: ,;tau• ua l e i; a1 .::: \..t • ta x p :-act1 ceb , Th~
te ~,. f e r n H t r RYbn t l t ~ rt·;.-v r t t o t n e C.•ri e!"o l J,,ss e n~•~)' L) Jd nua?),
l 9~t ,
I
1..111e n1p t s con s tru c llon aiateri al r. i'rom l oc ,l ■al ee t.a x whe re ev idenrt-~.s
rr o vi d ed th a t t.h f.' loc a l ue e t.11 x ha & or '1 ill p ai d in the jur1 1diction 1n
... ·tuch t he 11ater1als wi l l be u sed .
Ex e mp t s conat.ruc tion mater i al s t ro1I1 local etora ge ua e ta,ces.
R Ju i r es hom e rule mun ici pal i ti~s Yh ich col!ect their OYn ■ales taxt s t.o
mal'.e a va i la ble t.o retail ers u pon request si aps ahowing t h e geographica l
bo undarie s of t he inu n ic ipal ity , and alloW'& the retailer t o rely UJ)On t.h t.
aiaps s o provide d .
EFF ECT!; OtJ EN GLElvOOD OF l.9R5
S AL ES TAX L EG ISLAT I O N P RO POSED
llY INTf l'i M LEGIS LAT I VE COMMI TT E r.
Th i e a na lys i s fo l low th e ma jor po i , t s
p ages o f tl1e SM L memo , Novem be r 15 , 19 84 .
thos t p oi ntF-for whi c h tt. re is ar, , f fc c-t
been nti1 rbercd for ebs i e 1 r efe r t~ce .
as d isc-ussed 0 11 t he y e l J o,,·
Corrment s wi J J only mad e fo r
o n Engle wood . The it ~rn F l1c ve
1 . S&l es Tax Exere p tio11 for Cons~r uct io n ~nd Build ing M~t~ri als
Analysis
Englewood ado pt ed t his p o licy in the late l9 70 's ,
2 . Pr oh ib itio n Agai n st Dou ble Tax a tion
Englewood has b e n followin 9 t h is policy for at l e ast te n
(10) yea r s .
3 . Ma nd n t or y Con f or mit y ~1t l1 State Sa l es Ta x Base
An~lysis
The City cu r Lently t a xes th e follow i ng trans a ctior1s f o r ~hirh
t he S t a e pr o vid e s ~n (xem~tion :
a) M~chine r y or ma c-~i nc tools
b) Pow e r used i n re ~i denr e s
c ) Pow ~r used 1n ma~u !act u rin ~ an~ re!a ed a c-t i ,it ies
o ) Cabl e telev i si on ser v ices
e) Roo ms or arcomod a t i ons at a high er thx r a te t h2 n t hE
general muni ci p a l sales t a~
f) Ad~:ssions to p,a~tS of p ublic ent,rt ai nme nt
T h e City v1ould n ot b e 1rnff cdia t ly a ff ec ted b:· t ~is s t::ctio n o f
this legislation.
Th e-i rrplicati o,1s o :.-c u :·,ccr.tain . The State h as f"rodeci ':":'.c-~-:~,
0 11e1 t h e ye a r s . I ! t r:is c or.ti,~ues t o o c cL.1 , C:1g)e \•·c,0C ¥.'C'uld t,t
c1ffr•ct eU dept nd 1n 9 on ~•ht1 t ad cl1t i~n a ) e xenr,t :c,n s ate pro \·i~:(,:i ,
C. N~venu~ Depa r tm nt t s tablis !1 e s ~te nd; d ized D~f .r i tio n s
An c.l y~
The-City h a s a d o t e d t h £:-poi1ry of a r -ceptin-:; t h e dc f 1:i i :i o 11 ~
P:t a blished by t .S U:tf' f\,-.r--.;rt mc,n ~ of RP \1"rHi £: for l c::-:ar..,l ~
1tc·m!"'.. Ot Lc .. r ci l e.::; i1 1 th,· Sr a L h cvl· ne -.•t 1oref def1 1,i Li o n :
I
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which r e n ot al wa y s th e samP as t he Starr d flnl tlon s . Th i
c ausPs many prob l em s for th e m rc ha n t , especi a l]) i f t h~ f i r~
has dcu linqs i r, s ve r u l comm u niLi t'S wi th diffc.tent detin 1 tior1 ::,
fo r l h s a~e t ,a ns act ion . Engl ew ood wou l J not br mate ri ally
affected by h av i ng stand a rdiz ed d efin i Ions .
The developmen t o f standard d e fi nit ion s sh ou ld be a c o oper a tive
ef fort o[ citi e s and the State . Th Q Ex ec utive Di r ecto r of t he
Depa rtme n t of Revenu e s hou l d not be the s ol e de t e rmin e r of wha t
the d efi nit ions o[ ta xa t,on -a~goin g t o be .
,. Uni form Co ll ect ion Pr ocedur es
An al ysis
Ge ne rall y , th e City conform s to th e procedu res u sed by t he
SL a te . The r e is on e a r ea wh ich wou ld materially a f fect t he
Ci ty , th e ve nd or 's fee . Th e Sta te pe r mits a 3 1/3\ ve nd o r's
f ee ; th e City permit s a 1 .6 % ve ndor's f ees . Us i n g ~10 ,0 00 ,000
as b re p r ezenta ti ve y e a rly sal s tax co ll ec tion , the City wo uld
realiz e a Sl60 ,000 red uction In s ales tax co ll e cted .
6. Stand a r d Municipa l Sal es a nd Us e Tax Report in g For~
Ana lys is
The City c urr en tly use s a st anda rd for m i n con j unct ion ~i th
seve r a l ot her Co lor a d o c i ties . Thi s is an item which the Cit y
woul support ve ry st rongly .
7 . Coordina e d ~udi ti ng and Cent r a lized Enfo rc em e nt
An a lysis
I f t his s ection o f l egislatio 11 was lo be imple~ented as ~ritlen,
the audi t f11n c io n o f th e se ve r e } c1t iEs a nd t h~ State w0uld L~
a nig htmare . The pro cess wou!d be cumbe r ~ome a nd wou ld gr atly
red u ce th e effectiveness of the audit proc ss .
The c ont r ol o f he audit f u nctions of lht home r ul e c iti e s ~0uld
gene red l y re st wi th th e Er.ec ut iv£• Di r ec tor of he S a te Rc·.1e1 Jt"'
Depa r tment . This pe r son wou ld have great pow r5 ~n de t@ rm1n~ng
~h ich busi nesses we r e to be aud it ed , who ~o u ld do th au d1t ,
wh e n it would be ~o ne , etc . Conceivably , th e Ex ecuti ve Di r ecto1
could r qu i r e a c ity to audit a business and do t hP au dit fo r
the St a t and all ot h r c iti es . This co u ld be a de trime n t t o a
hom C> r t.:le ci t y and i ts own a udit progru
'fn St;ac view~ this as ii dH:a f w1y :o
s t fl f f with a concu rr ent 1nc 1cc.1~t in t:.t.-1
And aud: l LVe nu es .
nc r ~ase th~ir nudit
t i ncom e .
-3-
'I'h i ~ r;rn a l sr:: b c vi e "''erl az a ma jor step in complete state c on -I
tto l r,! th e s~lP s t ax s ys t em .
:I . T r1x · ayer ,\pp0;;] !.. t-o Uepartme n t o f Re venu e
Lik e nu ~ber 7 above , this s ec ti o n is ~ major s t ep towa r d sta P
co ntr o l of loc a l s al s tat proc edu re s. Jn 3 tead o f sim p l1fyi 119
t h e s ystem , it com p li ca te s th sys t em a nd impedes time l y
coll ection o t s a l es Mnd use tax e s . Th e Ex ec ut ive Director i s
given powers far b ~yo r1d tho se needed to a~s is t i n th e enforce-
me n of local ta xes.
9 . Bounda ··y Location Gui es
En glewood h as b ee n pr ovidi ng t his i nfo r ma t i on since the
lat e, 1970 's .
10. Rep ea l o[ Local Use Ta xes on Storage
An a l v s i s
~h1l e En g l ewoo d ha s t ~i s pro \•isi on as pa r t o f its us e t ax cede ,
it has nc l been e nf o r ced . ThPre ~r e fe~, lf ~ny , bu si n esse s
whict1 a1 e subjec t t o this pr0visi0 n . Jf t he srora ge clau Je
were str :l:en f ro~ l o c a l c odes , Englewo od ~ould be n efit b e c2u se
WP wou l d receive u se t ~xes on it ms which cu r r 0n tly have bee r
ta xE::s as st o rage in o ther JU l !sdic tioi1S . An amoun t of t €·:e1.u e
r ea l lied c n nnot be r~J d ily es t i~ated .
I