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HomeMy WebLinkAbout2012-09-25; City Council; 21010; Refund to Optumrx Inc Business Tax LicenseCITY OF CARLSBAD - AGENDA BILL AB# 21,010 MTG. 9/25/12 DEPT. FIN REFUND TO OPTUMRX, INC. FOR BUSINESS LICENSE TAX DEPT. DIRECTOR cJf\^ CITY ATTORNEY J^^ CITY MANAGER [yi^ RECOMMENDED ACTION: Adopt Resolution No. 2012-225 authorizing a refund of business license tax to OptumRx, Inc. of $626,682. ITEM EXPLANATION: OptumRX provides home delivery of prescription orders to customers nationwide through its mail service pharmacy in Carlsbad. Certain prescription drug receipts are derived from payments attributable to federal prescription benefits offered under the Medicare Advantage and Medicare Part D prescription drug plans. These Medicare receipts are preempted from the city's business license tax. OptumRX discovered that it had included Medicare receipts in calculating its business license taxes. It is now requesting a refund of this overpayment on its last three years of business license taxes. The Finance Department has audited the account, verifying OptumRX's gross receipts, as well as Medicare receipts, and ensuring compliance with all other business license policies. Section 5.04.130 of the Carlsbad Municipal Code requires Council approval of any refund in excess of $25,000. Therefore, staff is recommending approval of a refund to OptumRX, Inc. of $626,682. FISCAL IMPACT: The payment will result in a refund of $626,682. This amount was reflected as a reduction in revenues in Fiscal Year 2011-12. ENVIRONMENTAL IMPACT: The proposed action does not qualify as a "project" under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or reasonably foreseeable indirect physical change in the environment. EXHIBITS: 1. Resolution No. 2012-225 authorizing a refund of business license tax to OptumRX, Inc. DEPARTMENT CONTACT: Colette Wengenroth 760-602-2430 colette.wengenroth@carlsbadca.gov FOR CITY CLERKS USE ONLY. y COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit 1 RESOLUTION NO. 2012-225 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REFUNDING BUSINESS LICENSE TAX PAYMENT TO OPTUMRX, INC. WHEREAS, OptumRX, Inc. overpaid its business license taxes to the City of Carlsbad; and WHEREAS, the Finance Department confirmed the overpayment by OptumRX, Inc. and verified the refund amount. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows that: 1. The above recitations are true and correct. 2. That a refund of business license tax of $626,682 to OptumRx, Inc. is authorized. // // // // // // // // // // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25*^ day of September 2012, by the following vote to wit: AYES: NOES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. None. ABSENT: None. E M. WOOD, City Clerk (SEAL) r 0;<