Title
Ordinance No. 21-21 Creating Part 14 (Temporary Rebate Of 2% General Fund Portion Of City Sales Tax For Qualifying Restaurants For Lost Revenue As A Result Of The Economic Disruptions Due To The Presence Of Coronavirus Disease 2019 (Covid-19) Of Article 7 (Sales And Use Tax) Of Chapter 2 (Business Licensing Liquor Regulation And Taxation) Of The Code Of The City Of Colorado Springs 2001, As Amended, Pertaining To Temporary Rebate Of City Sales Tax
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
Due to the COVID-19 pandemic and ongoing public health emergency, many restaurants in the City, particularly those subject to mandatory capacity restrictions, have suffered severe revenue declines.
Many restaurants have been forced to choose between closing their business or laying off employees. By providing relief to certain restaurants, these businesses can continue to provide valuable services to their community and continue to employ individuals who would otherwise lose their jobs.
The restaurant industry is in particular need of relief in order to stabilize the economy of the City and to better position the City to recovery from the COVID-19 pandemic.
The attached Ordinance adds a new temporary section to the Sales Tax Code that provides a rebate to qualifying restaurants of actual sales tax paid for sales made in November 2020, December 2020, January 2021 and February 2021. The program is limited to the 2% General Fund portion of the City sales tax.
The State of Colorado and El Paso County have implemented similar sales tax rebate programs.
Background:
To be a "Qualifying Restaurant", the restaurant must meet the following criteria:
A. Currently doing business in the City at the time of application; and
B. Up to date on filing sales tax returns and payment of City sales tax; and
C. Meets either of the following:
i. Five Percent (5%) or greater decrease of Net Taxable Sales in the 3rd quarter of 2020 as compa...
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