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<br />~"'---fir <br />~ ~: <br />INTER-OFFICE MEMORANDiJM <br />CITY OF LA PORTE <br />T0: Robert T. Herrera, City "tanager <br />FROM: Charlene EldridgeC' Revenue Controller <br />SUBJ: Telecommunications Sales Tax <br />DATE: JUNE 9, 1987 <br />Telecommunications local sales tax on long distance charges <br />is an available revenue source not presently being utilized <br />by the City of La Porte. The City may charge a one percent <br />sales tax on long distance charges billed to La Porte <br />residents. <br />Implementation would begin with adopting an ordinance which <br />repeals the local sales tax exemption on telecommunication <br />services. This ordinance would be sent to the State <br />Comptroller by registered mail. If this repeal is provided <br />to the State Comptroller by June 30. 1987, the tax will be <br />imposed on October 1, 1987. Due to present budgetary <br />constraints, recommendation for consideration of this new <br />revenue source be reviewed by City Council. <br />I am presently conducting research to determine the actual <br />projected revenue impact this tax will provide the City. <br />When I conclude my analysis I will provide you with an <br />update. <br />xc: Robert Stewart, Finance Officer <br />