Back to legislation introduced in Council period 14
|Councilmember Jack Evans
A PROPOSED RESOLUTION IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To declare the existence of an emergency with respect to the need to act now to increase the amount of the arena fee to be remitted on June 15, 2001 and to terminate the arena fee beginning in fiscal year 2002. RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the "Arena Fee Rate Adjustment and Elimination Emergency Declaration Resolution of 2001".
Sec. 2. (a) The Committee on Finance and Revenue held a public roundtable on Bill 14-23, the permanent version of the "Arena Fee Rate Adjustment and Elimination Emergency Act of 2001", on February 8, 2001. At that public roundtable, no opposition was voiced concerning an increase in the arena fee, a gross receipts tax, which is only paid by businesses with annual gross receipts over $2 million. The D.C. Chamber of Commerce submitted a letter in support of the legislation.
(b) Increasing the arena fee for qualifying tax payers will ensure that enough revenue is collected in the coming tax year to pay off the arena bond and eliminate the arena fee for future years.
(c) The arena fee is paid by taxpayers with annual gross receipts over $2 million. The increase proposed in both the permanent and emergency legislation is as follows:
(d) There is no current requirement in the law for excess collections to be returned to the taxpayers. For example, if $12 million were collected to pay off a balance to $2.8 million, the city would have a surplus of $9.2 million after retiring the bonds.
(e) Eliminating the arena fee is a business-friendly move, since it not only eliminates a monetary payment, but also eliminates administrative costs and burdens associated with collecting the fee.
(f) The Committee on Finance and Revenue approved the permanent legislation on February 27, 2001.
(g) The permanent legislation will not be effective before the July 15, 2001 arena fee is due to be paid by qualifying businesses.
Sec. 3. The Council of the District of Columbia determined that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the "Arena Fee Rate Adjustment and Elimination Emergency Act of 2001" be adopted after a single reading.
Sec. 4. This resolution shall take effect immediately.
1. The Tax Parity Act of 1999 eliminated the arena fee for businesses with annual gross receipts under $2 million.
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