Public Hearing followed by discussion and possible action on any and all matters regarding the First Reading of Ordinance No. 348.  An ordinance of the Mayor and City Council of the City of San Luis, Arizona, amending the San Luis Tax Code 2014 by adding Subsection 35-840 (d) relating to Sales Tax Rate for Retail Sales of Tangible Personal Property; establishing an effective date; and providing for severability. (Kay Marion Macuil, City Attorney)

A.  Open Public Hearing
B.  Close Public Hearing
C.  Action on First Reading of Ordinance No. 348

A work session was held on this item on January 6, 2016.  A tiered sales tax is where there is a different tax rate depending on the amount of purchase.  At the January work session Mayor Gerardo Sanchez suggested that there should be a tax of 1.5% on single items costing $2,500.00 or more while the sales tax on remaining items of lesser value remain the same.  A copy of the summary, minutes, and memo from the January 6, 2016 meeting are attached.  In response, staff prepared a tiered tax ordinance for City Council's consideration. 

The basis for having a lower tax on just a single item  is so that (1)  there will not be difficulties in calculating the tax  for vendors when numerous items that add up to $2,500.00 and (2) to encourage businesses with items costing $2,500.00 to locate to San Luis.