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File #: 1990-2017    Version: 1
Type: Ordinance Status: Passed
File created: 7/13/2017 In control: Finance Committee
On agenda: 7/31/2017 Final action: 8/3/2017
Title: To authorize the Finance and Management Director to enter into a Voluntary Disclosure Agreement with the State of Ohio; to authorize the City Auditor to transfer funds within the Fleet Management Operating Fund; to authorize the expenditure of $104,309.72 from the Fleet Management Operating Fund; to authorize the expenditure of $45,690.28 from the Taxes to Remit Fund; and to declare an emergency. ($150,000.00)
Attachments: 1. Ord 1990-2017 Legislation Template
Explanation

BACKGROUND: This legislation authorizes the Finance and Management Director to enter into a Voluntary Disclosure Agreement with the State of Ohio for purposes of remitting state sales and use tax related to the sale of compressed natural gas to the general public via the City's compressed natural gas fueling stations. It was determined through meetings with the Ohio Department of Taxation, the Department of Finance and Management, and the Columbus City Attorney's Office, that the sale of compressed natural gas to external entities falls under the State's definition of Tangible Personal Property and as such is subject to a 7.5% state sales and use tax. It should be noted that the internal use of compressed natural gas by City vehicles will not be subject to this tax. The Department of Finance and Management began collecting and depositing these funds into an agency fund beginning in November 2016. This Voluntary Disclosure Agreement will govern the remittance of such proceeds and covers all taxable sales of compressed natural gas for the period June 1, 2014 through May 31, 2017. It is estimated that the total state sales and use tax proceeds to be remitted currently is $118,457.86. It should be noted that the City will be required to remit such tax proceeds on a monthly basis going forward. The annual remittance of such tax proceeds going forward is estimated at approximately $70,000.00.

Emergency action is requested to ensure that tax proceeds can be remitted to the State of Ohio promptly.

FISCAL IMPACT: This ordinance authorizes the expenditure of up to $150,000.00, collectively from the Fleet Management Operating Fund 5200 and the Taxes to Remit Fund 3305, with the State of Ohio for purpose of remitting state sales and use tax proceeds related to the public sale of compressed natural gas.

Title

To authorize the Finance and Management Director to enter into a Voluntary Disclosure Agreement with the State of Ohio; to authorize the City Aud...

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