2000 AGN JUL 18 I02 - Laserfiche WebLink

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CC Report —Repeat of Section 3.28.139 July 18, 2000 Page 2 of 3 to the Redevelopment Agency by the retailers located in Plaza Las Glorias Shopping Center. Please refer to copy of Ordinance 0-25-93 attached to the staff report as Exhibit "D Although this SBOE agreement could have been terminated much earlier, the Agency has not previously done so. The Agency has agenclized and shall consider eliminating the Agency Sales Tax and SBOE Sales Tax Administration Agreement at the Agency meeting on July 18, 2000. To effectuate the termination of the SBOE Agreement, the Agency must then forward a certified copy of this Ordinance along with a formal written request to the SBOE to cancel the Sales Tax Administration Agreement. Once complete the Agency will cease to receive any of the sales taxes generated by the Shopping Center and they will be sent directly to the City of Colton in the future. To complete all the necessary actions relating to the Agency Sales and Use Tax, the City should adopt an Ordinance to repeal Chapter 3.28 of the Municipal Code to eliminate Section 3.28.139 of the Municipal Code which currently grants a credit against the payment of local sales and use taxes paid to the Agency to any retailer located in the Plaza Las Glorias Shopping Center. Once the Agency repeals the Agency Sales and Use Tax for the Shopping Center, the Agency will no longer receive any tax revenues and the City should eliminate this credit to the retailer located in the Shopping Center. Financial Impact The Agency is currently collecting sales taxes generated from the Plaza Las Glorias Shopping Center and on a quarterly basis makes payment to the City for the sales and use taxes received from the SBOE. Upon the effective date of the cancellation of the SBOE Administration Agreement the Agency will no longer receive any payments from the SBOE for the sales taxes generated by the Shopping Center. All future sales tax reimbursement payments from the Agency to the City shall also cease upon the termination of the SBOEAgreement as the City shall receive these payments directly form the SBOE. Because the Agency has reimbursed the City for the amount of sales taxes diverted, terminating the SBOE Agreement will have no financial impact to either entity�, Environmental Impact: None Recommendation: Waive full reading and approve first reading of Ordinance No. — -00 ORDINANCE NO. 0- -00 -- AN ORDINANCE OF THE CITY OF COLTON, CALIFORNIA REPEALING ORDINTNCE 0-25-93 AND AMENDING CHAPTER 3.28 OF THE COLTON MUNICIPAL CODE BY DELETING SECTION 3.28.139.