Title
AN ORDINANCE AMENDING SECTION 28-179 OF THE CODE OF ORDINANCES OF THE CITY OF LEE'S SUMMIT BY REVISING THE TAX RATES BY LAND USE CATEGORY FOR CALCULATION OF THE LICENSE TAX ON BUILDING CONTRACTORS.
Body
Issue/Request:
AN ORDINANCE AMENDING SECTION 28-179 OF THE CODE OF ORDINANCES OF THE CITY OF LEE'S SUMMIT BY REVISING THE TAX RATES BY LAND USE CATEGORY FOR CALCULATION OF THE LICENSE TAX ON BUILDING CONTRACTORS.
Key Issues:
• Annual review of License Tax by Committee and Report to Council is required by ordinance
• License Tax Review committee provided 3 recommendations:
o Increase License Tax fees in FY2017 by 10% on commercial and manufacturing / industrial development activities
o Projects eligible for license tax funding should be limited to projects identified in the City’s Thoroughfare Master Plan (TFMP)
o License tax funding should be managed on a cash-flow basis, and not used for debt financing
Background:
As required by ordinance, the License Tax Committee’s recommendations were presented the full City Council on June 16, 2016. Council directed City Staff to draft and present an ordinance adopting the recommendations of the Committee.