Laserfiche WebLink
Board of County Commissioners <br /> July 9, 2013 <br /> Page Two <br /> To mitigate this tax burden, Verotown has requested that the Third Amendment be revised to allow <br /> Verotown to distribute 30% of its taxable income to its partners/members, thereby providing them with <br /> funds to pay the taxes. The figure of 30% is a rough estimate of the amount of taxes that each <br /> partner/member will pay on his or her share of the income. <br /> County staff understands and appreciates this issue, and agrees that Verotown should be allowed to <br /> distribute funds to its partners/members so they can pay income taxes on their allocated share of the net <br /> income. County staff also notes that this concept — distributing funds to pay taxes on allocated, but not <br /> distributed, income—is not unique to Verotown. Many entities which are required by tax laws to allocate <br /> income to its owners— such as partnerships, sub-S corporations, limited liability companies, etc. —follow <br /> the same practice. <br /> Because Verotown has never signed the Third Amendment approved by the Board on June 4, the process <br /> to implement the change simply involves Board approval of a new version of the Third Amendment <br /> incorporating the change, and signature of the new version by both parties. <br /> A copy of the new version of the Third Amendment, with the change in section 11 highlighted, is <br /> (W attached. <br /> RECOMMENDATION. <br /> The County Attorney's Office and administrative staff recommend that the Board approve the new version <br /> of the Third Amendment to Facility Lease Agreement, and authorize the Chairman to sign it on behalf of <br /> the Board. <br /> ATTACHMENT(S). <br /> Proposed Third Amendment to Facility Lease Agreement <br /> ASP:LAC <br /> F..IAtmrneyVlndnIGENERALIB C CIAgendo MemoslDodgen—(PTM 10-do <br /> 134 <br />