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Home My WebLink About1047_Amending Part 7, Ch 5, Section 7-503_Use TaxTulsa County Clerk - PAT KEY Doc # 2015014690 Page(s): 2 Recorded 02/23/2015 at 04:38 PM Receipt # 521004 Fee $15.00 �nxoM CITY OF OWASSO, OKLAHOMA ORDINANCE NO.1047 AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXATION, AMENDING CHAPTER 5, USE TAX, SECTION 7 -503, EXCISE TAX ON STORAGE, USE OR OTHER CONSUMPTION OF INTANGIBLE, PERSONAL PROPERTY LEVIED, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, INCREASING THE USE TAX LEVIED TO THREE AND ONE -HALF PERCENT (3.5 %.) THIS ORDINANCE AMENDS PART 7, CHAPTER 5, SECTION 7 -503, OF THE OWASSO CODE OF ORDINANCES. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT: SECTION ONE (1): Part Seven, Finance and Taxation, Chapter Five, Use Tax, Section 7- 503, Excise Tax on Storage, Use Or Other Consumption Of Intangible, Personal Property Levied, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended to read as follows: SECTION 7 -503 EXCISE TAX ON STORAGE USE OR OTHER CONSUMPTION OF INTANGIBLE PERSONAL PROPERTY LEVIED There is hereby levied and there shall be paid by every person storing, using or otherwise consuming within the city, tangible, personal property purchased or brought into this city, an excise tax on the storage, use or other consuming within the city of such property at the rate of three and one -half percent (3.5 %) of the purchase price of such property. Such tax shall be paid by every person storing, using, or otherwise consuming, within the city, tangible, personal property purchased or brought into the city. The additional tax levied hereunder shall be paid at the time of importation or storage of the property within the city and shall be assessed to only property purchased outside Oklahoma; provided, that the tax levied herein shall not be levied against tangible, personal property intended solely for use outside the city but which is stored in the city pending shipment outside the city or which is temporarily retained in the city for the purpose of fabrication, repair, testing, alteration, maintenance or other service. Any person liable for payment of the tax authorized herein may deduct from such fax any local or municipal sales tax previously paid on such goods or services; provided that the amount deducted shall not exceed the amount that would have been due if the taxes imposed by the city had been levied on the sale of such goods or services. SECTION TWO (2): REPEALER All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION THREE (3): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected but shall remain in full force and effect. SECTION FOUR (4): DECLARING AN EFFECTIVE DATE The amendments contained in this ordinance shall become effective on April 1, 2015. SECTION FIVE (5): CODIFICATION The Chapter and Ordinances above shall be amended and codified in Part 7, Chapter 5, Section 7 -503 in the Owasso Code of Ordinances. PASSED by the City Council of the City of Owasso, Oklahoma on the 17th day of February, 2015. Y OF Vk Jer' M berly, Mayor ~ OFFICMAL C' ATTEST: SEAL MP Sherry Bis p, City (SEAL) APPROVED as to form and legality Juli Lombardi, City Attorney PUBLISHER'S AFFIDAVIT ORD NO. 1047 PUBLICATION DATE(S) 02/26/15 CASE NUMBER: ORD NO. 1047 AD NO: 00193739 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa I SS I, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a weekly newspaper of general circulation in Tulsa, Oklahoma, a newspaper quali- fied to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISPED DATE(S) O Representative Signatu Subscribed to and sworn to me this 27th day of February, 2015. Notary Public �� L 6-ih.e ancy, Carol Moore My commission number: 06011684 My commission expires: December 8, 2018 Customer #: 00000779 Customer: CITY OF OWASSO Publisher's Fee: 105.00 193739 Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, February 26, 2015. CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 1047 AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXA- TION, AMENDING CHAPTER 5, USE TAX, SECTION 7.503, EXCISETAX ON STORAGE, USE OR OTHER CONSUMPTION OF INTANGIBLE, PERSONAL PROPERTY LEVIED, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, INCREASINGTHE USE TAX LEVIED TO THREE AND ONE -HALF PERCENT (3.5%.) THIS ORDINANCE AMENDS PART 7, CHAPTER 5, SECTION 7- 503, OF THE OWASSO CODE OF ORDINANCES. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT: SECTION ONE (1): Part Seven, Finance and Taxation, Chapter Five, Use Tax, Section 7.503, Excise Tax on Storage, Use Or Other Consumption Of Intangible, Persona] Property levied, of the Code of Ordinances of the City of Owasso. Oklahoma, shall be amended to read as folfovs: SECTION 7-603 EXCISETAX ON STORAGE, USE OR OTHER CONSUMPTION OF INTANGIBLE. PERSONAL PROPERTY LEVIED There Is hereby levied and there shall be paid by every person stor- ing, using or otherwise consuming within the city, tangible, personal property purchased or brought into this city excise tax on the storage, use or other consuming within the city at such property at the rate of three and one -half percent (3.5 %) of the purchase price of such property. Such has shall be paid by every person storing, using, or otherwise consuming, within the city, tangible, personal property purchased or brought nto the city. Theaddigonaltaxleded hereunder shall be paid at the time of Importation or storage of the property within the city and shall be assessed to only property pur. chased outside Oklahoma; prodded, that the In levied herein shall not be leved against tangible, personal property Intended solely for use outside the city but which is stored in the city pending shipment outside the city or which is temporarily retained in the city for the pur- pose of fabrication, repair, leading, alteration, maintenance or other service. Any person liable for payment of the In authorized herein may deduct from such in any local or municipal sales in previous- ly paid on such goods or services; provided that the amount deduct- ed shall not exceed the amount that would have been due if the taxes Imposed by the city had been levied on the sale of such goads or services. SECTIONTWO (2): REPEALER Al ordinances or pans of ordinances in conflict with this orcinance are hereby repealed to the extent of the conflict only. SECTION THREE (3): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or Ineffective, the remaining portion shall not be affected but shall remain In full force and effect SECTION FOUR (9): DECLARING AN EFFECTIVE DATE The amendments contained In this ordinance shall become affective on April 1, 2015. SECTION FIVE (5): CODIFICATION The Chapter and Ordinances above shall be amended and codified in Part 7, Chapter 5, Section 7 -50.7 In the Owasso Code of Ordinances. PASSED AND APPROVED this 17TH day of February, 2015. /a/ Jeri Moberly, Mayor ATTEST: /at Sherry Bishop, City Clark APPROVED AS TO FORM: /s/ Julie Lombard], City Attorney The City Wit out Limits. TO: The Honorable Mayor and City Council City of Owasso FROM: John W. Feary Government Affairs SUBJECT: Ordinance No. 1047 Amending the Use Tax Rate DATE: February 13, 2015 BACKGROUND: W � ()I fvck 2015 N The Owasso City Council may authorize, through passage of an ordinance, the increase of the City's use tax rate to coincide with the municipal sales tax rate. The current use fax rate in Owasso is 3% which matches the current sales fax rate. On April 1, 2015, the new sales fax rate of 3.5% will become effective in Owasso. Oklahoma Statute allows for a municipality's use fax rate to be increased by a majority vote of the governing body to a rate equal to but not greater than the sales fax rate established by a majority vote of citizens in a community. Use tax revenues are derived from goods purchased outside of the taxing jurisdiction which are delivered and utilized within the jurisdiction. Use tax revenues to municipalities predominately come from building and construction materials utilized in new residential and commercial developments. These goods are reported by consumers and vendors on a monthly basis to the Oklahoma Tax Commission. The Oklahoma Tax Commission collects and distributes both sales and use taxes from vendors to municipalities monthly. The FY 2014 -15 Owasso City Budget estimates use tax revenues at $730,800. Using this number, a use fax increase of .5% would result in approximately $121,800 in additional use fax revenues for FY 2015 -16. RECOMMENDATION: Staff recommends approval of Ordinance No. 1047, amending the City of Owasso's use tax rate from 3% to 3.5 %, effective April 1, 2015. ATTACHMENT: Ordinance No. 1047