HomeMy WebLinkAboutRES.748.09-09-1992 y
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BILL NO. 92-181 RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH THE MISSOURI
DEPARTMENT OF REVENUE FOR DISTRIBUTION OF USE
TAX REVENUES
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU,
MISSOURI, AS FOLLOWS:
ARTICLE 1. The City Manager, for and on behalf of the City of
Cape Girardeau, Missouri, is hereby authorized to enter into an
Agreement with the Missouri Department of Revenue for distribution
of use tax revenues. A copy of said Agreement is attached to this
Resolution and made a part hereof.
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PASSED AND ADOPTED THIS `'�i, ,�`t_ DAY OF . .`r�1�f_�•;;��r``�?�.�. , 19 ��'`:
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Francis E. Rhodes, Mayor
ATTEST:
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Julie� . Dale, Deputy City Clerk
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� AGREEMENT
t1�! ,�GKI�;I�;v1I�;V7' ("ngreement") entered into this day of , 1992 ,
hetween the below-signed taxing authority, hereinafter referred to as "Ta�ng Authority," and the Director of
Revenue of the State of�tissouri, hereinafter referred to as "Director".
WHEREt1S, Section 144.748, RSVto Supp. 1991, imposes an additional use tax ("local use tax� of one and
one-half percent (1 1/2%) on all transactions subject to tax under Sections 144.600 to 144.745; and
WNF,RF:AS, the Director is authorired to perform all functions incident to the administration, collection,
enforcement, and operation of the local use tax established by Section 144.748; and
�VHEREAS, the Director is required to deposit all local use tax collected, less one percent (1%) for the cost of
collection, into the "I,ocal Use Tax I�und" and thereafter to distribute such funds to political subdivisions based
on the formula set out in Section 144.74$; and
�VHERLAS, the constitutionality of the local use tax was challenged in the Circuit Court of Cole County,
State of�iissouri in a case styled llssociated Industries of�Iissouri and Alumax Poils, Inc. v. Director of
Revenue, Case No. CV 192-15CC; and
WI3F,REAS, the Circuit Court of Cole County upheld the tax and the decision has been appealed to the
Missouri Supreme Court; and
WIiEREAS, although not expected, if Section 144.748 is ultimately found to be unconstitutional, any tax
collected pursuant to that statute must be refunded; and
WHF,RF,AS, the Director will retain the tax collected which was collected pursuant to the statute pending the
final resolution of the appeal; and
WHERF,AS, the 'I'axing Authority is desirous of having the local use tax distributed by the Director to be
available for use by the '1'axing lluthority pending fu►al resolution of the appeal; and
WI-ILRI:AS, the 1'axing Authority and the Director desire to establish a course of dealing with regard to the
distribution of the local use tax pending the final resolution of the appeal; . .
NOW, TI-IF.RF,I�ORF,, in consideration of the f'oregoing premises and the mutual covenants and agreements
hereinafter set forth, the 'L'axing �luthority and the I�irector mutually agree as follows:
AR"TICLI: I
'['he "I'axing nuthority hereby agrees to indemnify the state of Vlissouri and the Director against any loss arising
directly or in�iirectly lrom the lawful payment of a refund of the tax collected in accordance with Section 144.748,
RSVto Supp. 1991, and distributed to the "I'axing nuthority.
AR"I'ICI,E II
I�rom and after the execution of this agreement, but no sooner than the October 10, 1992 distnbution, the
Director agrees to make regular and timely distributions to the "I'axing Authority of all taz collected in accordance
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� �•witli Sectioti 144.7�i�, IZSMo Supp. 1!�91, a.nd deemed to be due to the 'I'axing nuthority under the distribution
formula containeci therein.
AR"I'I(:I.I�, III
'I�he �['axing �luthority hereby agrees that in the event Section 144.7�8, RSvto Supp. 1991, is ultimately found to
be unconstitutional, the Director is hereby authori�ed to withhold from future distributions due the Taxing
Authority an amount equal to the 'I'axing Authority's share of the distribution from the local use tax fund since its
inception. '1'he 'I'axing Authority hereby agrees that the phrase "future distributions"as used in this agreement
shali mean any and all present or future taxes collected and administered by the Director on behalf of the "I'axing
Authority.
ARTICLE IV
'I'he I�irector hereby agrees that, in the event it becomes necessary, such monthly withholdings will be withheld
over the number of months equal to the number of months the local use tax was distributed (e.g. 12 months of
ciistribution will equal 12 months withholding). In the event that future distributions during the withholding
period (as defined in the f'oregoing sentence) are insufficient for the Director to recoup the entire amount required
pursuant to Article III, the I�irector may withhold from additional future distributions to the Taating Authority.
ARTICI.E V -
'I'he parties to this �lgreement agree that either party may cancel or terminate this agreement upon the giving of a
sixty-day written notification to the other party. Any written notification required by this agreement will be at the
address listed below. "I'he parties further agree that if this agreement is terminated by either party, the terms of
this agreement will remain effective as to any and all moneys distributed in accordance with this agreement while
the agreement was in effect.
IN WI't�1ESS WHN:RI�.OF the"I'axing �luthority has executed this agreement this day of
, 1992 and these presents duly signed by:ts unde;signeu ;epresentative, pursuant to the
authority of its governing body.
I_,ocal Taxing Director
Authority: _ of Revenue:
13y: _ �lddress: I'.O. I3ox 475
'I'itle: Jefferson City, VIO 65105-0475
nddress:
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