2000 AGN AUG 01 I04_Tax Credit Code Amendment to Title 3

Browse Search

REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council Meeting of August 1, 2000 TO: Honorable Mayor Pro -Tem and City Councilmembers APPROVAL: Henry Garcia, City Manager�'""� FROM: Robb Steel, Redevelopment Direct. SUBJECT: Consideration of Second Reading of an Ordinance Repealing Ordinance No. 0-25-93 and Amending Chapter 3.28 of the Colton Municipal Code by Deleting Section 3.28.139. DATE: July 21, 2000 Background In December 1993, the Redevelopment Agency adopted Ordinance No. 2-93, which created a local Sales and Use Tax for the Plaza Las Glorias Shopping Center and Resolution No. 614 which approved entering into an agreement with the State Board of Equalization (the "SBOE") to administer the sales and use taxes generated by Plaza Las Glorias Shopping Center. Copies of Ordinance No. 2-93 and Resolution 614 are attached to the staff report as Exhibit "A". As a companion item and as a result of implementing an Agency Sales Tax for the Plaza Las Glorias Shopping Center, the City Council adopted Ordinance 0-25-93 which amended Chapter 3.28 of the Municipal Code to provide a credit against payment of Sales and Use Taxes for any taxes paid 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 "B" The Agency is currently in the process of repealing the Agency Sales Tax at the Plaza Las Glorias Shopping Center and terminating the SBOE Agreement to Administer the Sales Tax generated from the 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. As such, 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. 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 Item #4