HomeMy WebLinkAboutPACKET Town Board Study Session 2010-03-23ALE STUDY SESSION TOWN BOARD Tuesday, March 23, 2010 4:30 p.m. Rooms 202 & 203 170 MacGregor Ave. AGENDA 4:30 p.m. Park Theatre Mall Sales Tax Rebate Request. 5:30 p.m. Dinner Break. 5:45 p.m. Committee System Discussion. Transportation Committee Formation. Miscellaneous. NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared.
Jackie Williamson From: Admin iR3045 Sent: Wednesday, March 17, 2010 4:01 PM To: Jackie Williamson Subject: Job Done Notice(Send) ***************************** *** Job Done Notice(Send) *** ***************************** JOB NO. 2501 ST. TIME 03/17 14:54 PGS. 1 SEND DOCUMENT NAME TX/RX INCOMPLETE ----- TRANSACTION OK 6672527 Greg White 5869561 KEPL 5869532 Trail Gazette 5861691 Channel 8 6353677 Reporter Herald 2247899 Coloradoan 5771590 EP News ERROR ----- 1
Jacqueline Halburnt From: Greg White [greg@gawhite.com] Sent: Friday, March 19, 2010 10:39 AM To: Jacqueline Halburnt Subject: Sales Tax Rebates Jacquie: You asked my opinion with regard to whether or not the Town had the legal authority to rebate sales tax to the business owners affected by the Park Theater Mall fire. Sales tax rebates that I am familiar with are similar to those rebates which you outlined in your original Memo to the Town Board and are in the context of annexation or development agreements where a municipality rebates sales tax to reimburse developers who have installed public infrastructure. I did talk to John Frey, Windsor's Town Attorney, with regard to whether or not any sales tax rebates were requested and/or paid by Windsor as a result of the damage to businesses from the Windsor tornado. He told me that Windsor did not rebate any sales tax as a result of that natural disaster. Should the Board choose to consider the rebating of sales tax to the business owners affected by the Park Theater Mall Fire, it is my opinion that sales tax revenue of the Town may be rebated as requested by the business owners but should be pursuant to a policy adopted by the Board which addresses the parameters of a rebate policy program. If you need anything further, please let me know. Thanks, Greg 1
. Estes Park - Business Disaster Sales Tax Recovery (BDSTR) Proposal Disaster Assistance Provided tes Park reduces a business's tax burden over a period of 24 months to allow that business to successfully stablish itself at a new location or to re-open at it's original location after a of period of closure. Kev Components: a.) Qualification Criteria: a business currently collecting and paying sales tax in Estes Park is destroyed in a man-made or natural Disaster (through no fault of their own) and can no longer operate their business without relocating or closing for a significant period of time due to the destruction caused by the Disaster. b.) Qualification Period: up to 24 months directly following the last sales tax period City Sales Tax was paid prior to the Disaster and business closure. c.) How it is Administered: The Businesses City Tax Burden is reduced for the first 12 month period by 75% and the second 12 month period by 50% in the form of a monthly rebate. City Taxes must be collected and paid according to current Tax Code and deadlines. Rebate is paid 90 days in arrears and is discontinued immediately if the Business is terminated. d.) The Goal and Benefit to Estes Park: is to assist established Businesses in reopening and resuming City Sales Tax Collection as soon as possible after a Disaster and to remain in business long after the Rebate period. e.) Risks and Costs: This Program is designed to insure Tax Revenues paid in are always in excess of Tax Rebate paid out. Annual Sales City Sales Tax Sales Tax City Sales Tax Revenue $ 4% Reinvestment +/- Net Example A: Business Closes, Utilizes BDSTR Program to Re-open and Re-establish business to previous sales levels Business Disaster - Business Closure $ 400,000 $ 16,000 n/a $ (16,000) Year 1 - Relocate Business Utilizing BDSTR $ 345,000 $ 13,800 $ 10,350 $ 3,450 Year 2 - Re-building Business w/BDSTR $ 350,000 $ 14,000 $ 7,000 $ 7,000 Year 3 - Re-established $ 365,000 $ 14,600 5 -$ 14,600 ear - BDSTR Return $ 17,350 $ 25,050 ar 4 - Mature Business $ 385,000 $ 15,400 $ -$ 15,400 Year 5 - Well Established $ 400,000 $ 16,000 $ -$ 16,000 5 Year - BDSTR Return $ 17,350 $ 56,450 Example B: Business Closes, Utilizes BDSTR Program to Re-open and Re-establish business to higher sales levels Business Disaster - Business Closure $ 200,000 $ 8,000 n/a $ (8,000) Year 1 - Relocate Business Utilizing BDSTR $ 175,000 $ 7,000 $ 5,250 $ 1,750 Year 2 - Re-building Business w/BDSTR $ 195,000 $ 7,800 $ 3,900 $ 3,900 Year 3 - Re-established $ 205,000 $ 8,200 $ -$ 8,200 3 Year - BDSTR Return $ 9,150 $ 13,850 Year 4 - Mature Business $ 205,000 $ 8,200 $ -$ 8,200 Year 5 - Well Established $ 205,000 $ 8,200 $ -$ 8,200 5 Year - BDSTR Return $ 9,150 $ 30,250 f.