Department of Finance
Reference: Adopt Changes to the Sales Tax Code
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Prepared By: Maria Ostrom, Finance Director
Date Prepared: December 2, 2020
PURPOSE
To adopt changes to the sales tax code to add definitions regarding marketplace facilitators and economic nexus, clarify license exemption, renewal and expiration date, and amend sales tax collection enforcement to include cash and cash equivalents.
STRATEGIC FOCUS AREA
Innovative, Data-Driven, Results-Focused City Government
Financially Responsible
BACKGROUND
Staff presented proposed sales tax code changes to City Council at the November 10, 2020 study session. City Council reviewed the changes and directed staff to bring forward an ordinance incorporating the proposed changes for formal consideration to a future Council meeting.
FINANCIAL IMPACT
The COVID-19 pandemic has accelerated the market shift to online shopping. This change to the sales tax code will help clarify when retailers with no physical presence in the City selling into the City are required to collect Brighton city sales tax. Online retailers that are currently licensed with Brighton have remitted $559K YTD in sales tax. With this code change, additional online retailers will become licensed and collect Brighton’s tax for sales made into the City.
The clarification for licensing exemption, renewal and expiration date has no financial impact.
The change to include cash and cash equivalents in enforcement of sales tax collection will have no immediate financial
STAFF RECOMMENDATION
Approve the tax code changes as proposed.
ATTACHMENTS
1. Ordinance
2. PowerPoint presenation