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HomeMy WebLinkAbout1068_Sales Tax Recapture< m a Z m D o D D 0�b0>,<�x.lxz <Z=_fi0- TDI p O g m 0 o O am Q A T y z Z Z m� o> -� y ° m OZOAO>00>0 y r D D m rn m m O n T r y 0< A Zy =O0ZTM, y O O" x 0 0 z V m CZD M>mm,D'o m S m m x D z HE p -<00->>' 9 O °D„-ozz> DAD DX� M^+ ' ONAm°O N m O -< A m T S z 0 0 o x m <:q m Z N DCO °O;, "WO Zvm- �Dm <ooD p�.N Z ND-°N ZOxmT r .' O V° A n -- mi�D'^Orn��Dy T N m N O y m< D O M 0 m y N" rn;c yaa 020 y ov- 0Tm0m' v O=;K m T D mm <zoi tnz m° m p y m S C m D < Oo3n0m >� Ot''DyZD v 0 00 �O O � Z D H z rn 0 o O mD S O D COU 39 mmmo 1 0 m bo a AAr� N N Om O �OfNN � i .b OND r OD OD (A) m W N 7C WAN 1 3 A 9 .fir 1 A w i W O O O� 7 N m m - � ' m m C O S 0 Q Q 1 O �_ y y D C -r' V �. 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O V° A n -- mi�D'^Orn��Dy T N m N O y m< D O M 0 m y N" rn;c yaa 020 y ov- 0Tm0m' v O=;K m T D mm <zoi tnz m° m p y m S C m D < Oo3n0m >� Ot''DyZD v 0 00 �O O � Z D H z rn 0 o O mD S O D COU 39 mmmo 1 0 m bo a AAr� N N Om O �OfNN � i .b OND r OD OD (A) m W N 7C WAN 1 3 A 9 .fir 1 A w i C. Thirty percent (30 %) of the one -half cent tax shall be restricted to Owasso Street Department. 4. It is hereby declared to be the purpose of fifty -five hundredths (.55) of one cent tax to provide revenues to fund street improvements and related expenditures, to include debt service on obligations issued to finance said improvements, on East 961h Street North from approximately North 1191" East Avenue to North 129E East Avenue and on East 11611, Street North from approximately US HWY 169 to Mingo Road with any excess revenue collected to be used for additional street improvements. The levy and collection of fifty -five hundredths of one cent shall commence on January 1, 2017, and shall expire on December 31, 2023. SECTION THREE (3): Section 7 -208 shall be amended to read as follows SECTION 7 -208 TAX RATE; SALES SUBJECT TO TAX There is hereby levied an excise tax of three and one -half percent (3.5 %) upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code. Beginning January 1, 2017 and ending December 31, 2023, there is hereby levied an additional excise tax of fifty -five hundredths of one percent (0.55%) for a total of four and five hundredths percent (4.05%) upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code including but not exclusive of the following: 1. Tangible Personal Property 2. Natural or artificial gas, electricity, ice, steam, or any other utility or public service except water and those specifically exempt by this chapter; 3. Transportation for hire of persons by common carriers, including rail roads, both steam and electric, motor transportation companies, taxicab companies, pullman car companies, airlines and all other means of transportation for hire; 4. Service by telephone and telegraph companies to subscribers or users, including transmission of messages, whether local or long distance. This shall include all services and rental charge having any connection with transmission of any message; 5. Printing or printed matter of all types, kinds, and characters and the service of printing or overprinting, including the copying of information by mimeograph or multigraph or by otherwise duplicating written or printed matter in any manner, or the production of microfiche containing information on magnetic tapes furnished by customers; 6. Service of furnishing rooms by hotel, apartment hotel, public rooming house, motel, public lodging house or tourist camps; 7. Service of furnishing storage or parking privileges by auto hotels and parking lots; 8. Selling, renting or otherwise furnishing computer hardware or software or coding sheets, cards, or magnetic tapes on which prewritten programs have been coded, punched, or otherwise recorded; 9. Food, confections and all drinks sold or dispensed by hotels, restaurants, or other dispensers, and sold for immediate consumption upon the premises or delivered or carried away from the premises for consumption elsewhere; 10. Advertising of all kinds, types and character, including any and all devices used for advertising purposes and the servicing of any advertising devices, except those specifically exempt by this chapter; 11. Dues of fees to clubs including free or complimentary dues or fees which shall have the value equivalent to the charge that would have otherwise been made, including any fees paid for the use of facilities or services rendered at a health spa or club or any similar facility or business; 12. Sales of tickets, fees or other charges made for admission to or voluntary contributions made to places of amusement, sports entertainment, exhibition, display or other recreational events or activities, including free or complimentary admissions which shall have the value equivalent to the charge that would have otherwise been made; 13. Charges made for the privilege of entering or engaging in any kind of activity, when no admission is charged spectators, such as tennis, racket ball or hand ball courts; 14. Charges made for the privilege of using items for amusement, sports, entertainment or recreational activity such as trampolines or golf carts; 15. The rental of equipment for amusement, sports, entertainment or other recreational activities, such as bowling shoes, skates, golf carts, or other sports and athletic equipment; 16. The gross receipts from sales through any vending machine, without any deduction for rental to locate the vending machine on the premises of a person who is not the owner or any other deductions therefrom; 17. Gross receipts or gross proceeds from the rental or lease of tangible personal property, including rental or lease of personal property when the rental or lease agreement requires the vendor to launder, clean, repair or otherwise service the rented or leased property on a regular basis, without any deduction for the cost of the service rendered. Provided if the rental or lease charge is based on the retail value of the property at the time of making the rental or lease agreement and the expected life of the property, and the rental or lease charge is separately stated from the service cost in the statement, bill or invoice delivered to the consumer, the cost of services rendered shall be deducted from the gross receipts or gross proceeds; 18. Any licensing agreement, rental, lease or other device or instrument whereby rights to possess or exhibit motion pictures or filmed performances or rights to receive images, pictures, or performances for telecast by any method are transferred. Provided, persons regularly engaged in the business of exhibiting motion pictures for which the sale of tickets or admissions is taxed under this chapter shall not be deemed to be consumers or users in respect to the licensing or exhibiting of copyrighted motion picture features, shorts, cartoons and scenes from copyrighted features and the sale or licensing of such films shall not be considered a sale within the purview of this chapter; 19. Flowers, plants, shrubs, trees and other floral items, whether or not same was produced by the vendor, sold by persons engaged in florist or nursery business in this state, including all orders taken by an Oklahoma business for delivery in another state. Provided, all orders taken outside this state for delivery within this state shall not be subject to the tax levied by this chapter; 20. Tangible personal property sold to persons, peddlers, solicitors or other salesmen, for resale where there is likelihood that this state will lose tax revenue due to the difficulty of enforcing this chapter because of: a. The operation of the business; b. The nature of the business; c. The turnover of independent contractors; d. The lack of place of business in which to display a permit or keep records; e. Lack of adequate records; f. The persons are minors or transients; g. The persons are engaged in service businesses; or h. Any other reasonable reason; 21. Any taxable services and tangible personal property including materials, supplies and equipment sold to contractors for the purpose of developing and improving real estate even though such real estate is intended for resale as real property are hereby declared to be sales to consumers or users and taxable; and 22. Any taxable services and tangible personal property sold to persons who are primarily engaged in selling their services, such as repairmen, are hereby declared to be sales to consumers or users and taxable. SECTION FOUR (4): PAYMENT OF TAX The tax levied by this Ordinance shall be paid to the Oklahoma Tax Commission in the manner and form prescribed by state sales tax law of the State of Oklahoma. SECTION FIVE (5): REPEALER All ordinances or parts of ordinances, in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION SIX (b): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portions shall not be affected and shall remain in full force and effect. SECTION SEVEN (7): DECLARING AN EFFECTIVE DATE The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. SECTION EIGHT (8): CODIFICATION The City of Owasso Code of Ordinances is hereby amended as shown above and codified in Part 7, Chapter 2, Section 7 -206, 7 -207 and 7 -208. PASSED by the City Council of the City of Owasso, Oklahoma on the 19th day of January, 2016. Jeri o erly, Mayor ATTEST: ` G\�y OF O Sherry Bisho , City Clerk 0 -1 CIA a 'u�o (S E A L) ';'��CAHOW' APPROVED as to form and legality this 171 , , day of January, 2016. L01V Julie ombardi, City Attorney Weekly:_ Group CITY OF OWASSO/LEGALS ATTN: JULIE STEVENS PO BOX 180 OWASSO, OK 74055 0,u xen A Lea .Caweuame,ican +y,o -m eep ad . wnanna, T,awna sana Sprang Le Laaen. SPaaououma NIU BUSineas6LegaI N¢xs OKLAHOMA WEEKLY GROUP P.O. BOX 26945 RICHMOND, VA 23261 -6472 Account Number 1015023 Date February 17, 2016 Dale Category Description Ad Size Total Cost 02117/2016 Legal Notices ORD NO. 1068 2 x 295.00 CL 377.60 Proof of Publication 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 qualified to publish legal notices, advertisements and publications as provided in Section 106 or 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 02/17/2016 Newspaper reference: 0000212607 Legal Repre ntative Sworn to and subscribed before me this date: l — 40N�Z�j. *L'C�M'- r'1 Notary Public in and for RN STATE OF OKLAHOMA Commission #08009333 ^' Expires: September 10, 2016, My Commission expires: THIS IS NOT A BILL. PLEASE PAY FROM INVOICE. THANK YOU OWASSO REPORTER Legal Notices THIS IISOU RIGHT KN This nSrPOper urges every citizen to read and study these notices. We strongly advise those citizens seeking further Information to exercise their right to access public records and attend public meeta1gs. To view current and past IS als Published In a searcl•abletarmm login to; www.al'rlahomanotices.com or aulegol mtkm DEADLINES FOR LEGAL ADVERTISING Deadline for submission of a IS ad is 5 p.m. four days before publication date. 212607 Published in the Owasso Reporter, Owasso, Tulsa Coun- ty, Oklahoma, February 17, MI16. CITY OF OWASSO, OKLAHOMA ORDINANCE 10M AN ORDINANCE AMENDING THE PROVISIONS OF PART 7. FINANCE AND TAXATION. CHAP- 194:1g42Y ■(- P1VSlliI AN DATE. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO WIT: The Owasso Code of Ordinances, Part 7, Finance and Taxation, Chapter 2, Sales Tax, Section 7 -206, Effective Dote, Section 7 -207, Purpose of Revenues, and Section 7- 208, Tax Rates; Sales Subject to Tax, shall be amended as folldws: SECTION ONE (1): Section 7 -206 shall be amended to read as follows: SECTION 7 -206 EFFECTIVE DATE The amended Provisions of this Ordinance shall become effective on and after January 1, 2017, sublect to appro- vol by a malorlty of the qualified electors of the City vot- ing an the same In the manner prescribed by law. SECTION TWO (2): Section 7 -207 shall be amended to read as follows: SECTION 7 -207 PURPOSE OF REVENUES 1. It is hereby declared to be the purpose of the first and second cent sales taxes to Provide revenues for the support of the functions of municipal government of the city. 2. It is hereby declared to be the purpose of the third cent tax to provide revenues to finance or fund capital Projects and related costs, to include debt service on ob Ilgations Issued to finance sold capital Protects; said Projects to be reviewed by the Capital Improvements Committee, approved by the City Council by resolution, with oversight given by the Citizens' Watchdog Commit- tee established by me City Council, and subject to com- petitive bidding as required by law. 3. If is hereby declared to be the purpose of the one -half cent tax to Provide revenues to fund appropriations as follows: A. Thirty -five Percent (35 %) of the one-half cent tax shall be restricted to Owasso Police Services; B. Thirty -five Percent (35 %) of the one-half cent tax shall be restricted to Owasso Fire Services, and C. Thirty Percent (30 %) of the one -half cent tax shall be restricted to Owasso Street Department. 4. It is hereby declared to be the purpose of fifty -five hundredths (.55) of one cent tax to provide revenues to fund street Improvements and related expenditures, to include debt service on obligations issued to finance sold Improvements, on East 96th Street North from approxi- mately North 719th East Avenue to North 129th East Avenue and on East 116th Street North from approxi- mately US HWY 169 to Mingo Road with any excess rev- enue collected to be used far additional street improve- ments. The levy and collection of fifty -five hundredths of one cent shall commence on January 1, 2017, and shall expire on December 31, 2023. SECTION THREE (3): Section 7 -200 shall be amended to read as follows: SECTION 7 -205 TAX RATE; SALES SUBJECT TO TAX cetpts derived from all sales taxable under the Oklaho- ma Soles Tax Code. Beginning January 1, 2017 and end. ing December 31, 2023, there is hereby levied an addi- tional excise tax of fifty -five hundredths of one Percent (0.55%) for a total of four and five hundredths Percent (4.05 %) upon me gross proceeds or gross receipts de- rived from all sales taxable under the Oklahoma Sales Tax Code inclutling but not exclusive of the following: 1. Tangible Personal Property 2. Natural or artificial gas, electricity, Ice, steam, or any other utility or public service except water and those specifically exempt by this chapter; 3. Transportation far hire of persons by common carrl- ers, including rail roads, bath steam and electric, motor transportation companies, taxicab companies, Pullman car companies, airlines and all other means of transpor- tation far hire; 4. Service by telephone and telegraph companies to Sub- scribers or users, Including transmission of messages, whether local or long distance. This shall include all services and rental charge having any connection with transmission of any message; S. Printing or printed matter of all types, kinds, and characters and the service of printing or Overprinting, Including the copying of Information by mimeograph or mulfigraph or by otherwise duplicating written or Print- ed matter in any manner, or the production of microfi- che containing Information on magnetic tapes furnished by customers; 6. Service of furnishing rooms by hotel, apartment hotel, Public rooming house, motel, public lodging house or tou- rist camps; 7. Service of furnishing storage or parking privileges by auto hotels and parking lots; 8. Selling, renting or otherwise furnishing computer hardware or software or coding sheets, cards, or mog- neHc tapes on which prewriffen programs have been cod- ed, Punched, or otherwise recorded; 9. Food, confections and all drinks sold or dispensed by hotels, restaurants, or other dispensers, and sold for im- mediate consumption upon the premises or delivered or carried away from the premises for consumption else- where; 10. Advertising of all kinds, types and character, includ- ing any and all devices used far advertising Purposes and the servicing Of any advertising devices, except those specifically exempt by this chapter; 11. Dues of fees to clubs Including free or complimentary dues or fees which shall have the value equivalent to the charge that would have otherwise been made, including any fees paid for the use of facilifies or services ren- dered at a health spa or club or any similar facility or business; 12. Sales of tickets, fees Or other charges made for ad- mission to or voluntary contributions made to Places of amusement, sports entertainment, exhibition, display or other recreational events Or activities, including free Or complimentary admissions which shall have the value equivalent to the charge that would have otherwise been made; 13. Charges made for the privilege at entering or engag- ing in any kind of activity, when no admission is charged spectators, such as tennis, racket ball or hand ball courts; 14. Charges made for the privilege of using Items for amusement, sports, entertainment or recreational activi. ty such as trampolines or golf carts; 15. The rental of equipment for amusement, sports, en- tertainment or other recreational activities, such as bowling shoes, skates, golf carts, or other sports and ath- letic equipment, 16. The gross receipts from sales through any vending machine, without any deduction far rental to locate the vending machine on the premises of a Person who is not the owner or any other deductions therefrom; 17. Gross receipts or gross Proceeds from the rental or lease of tangible Personal property, including rental or lease of Personal property when the rental or lease agreement requires the vendor to launder, clean, repair or otherwise service the rented or leased Property on a regular basis, without any deduction far the cost of the service rendered. Provided if the rental or lease charge is based on the retail value of the property at the time of making the rental or lease agreement and the expected life of the property, and me rental or lease charge Is sep- arately stated from the service cost in the statement, bill or invoice delivered to the consumer, the cost of services rendered shall be deducted from the gross receipts or gross Proceeds; There is hereby levied an excise tax of three and one - half Percent (3.5 %) upon the gross proceeds or gross re- 1 18. Any licensing agreement, rental, lease or Other de- vice or Instrument whereby rights to possess or exhibit motion Pictures or filmed performances or rights to re- ceive Images, Pictures, or Performances for telecast by any method are transferred. Provided, Persons regular. ly engaged in the business of exhibiting motion Pictures for which the sale of tickets or admissions Is taxed under this chapter shall not be deemed to be consumers or users in respect to the licensing or exhibiting of copy - righted motion picture features, shorts, cartoons and scenes from copyrighted features and the sale or licens- Ing of such films shall not be considered a sale within the Purview of this chapter; 19. Flowers, plants, shrubs, trees and other floral Items, whether or not same was produced by the vendor, sold by Persons engaged in florist or nursery business in this state, including all orders taken by an Oklahoma bust- new for delivery In another state. Provided, all orders taken outside this state for delivery within this state shall not be subject to the tax levied by this chapter; 20. Tangible Personal property sold to Persons, Peddlers, solicitors or other salesmen, for resale where there is likelihood that this state will lose tax revenue due to the difficulty of enforcing this chapter because of: a. The operation of the business; b. The nature of the business; c. The turnover of Independent contractors; d. The lack of Place of business in which to display a Permit or keep records; e. Lack of adequate records; f. The Persons are minors or transients; g. The persons are engaged In service businesses; or h. Any other reasonable reason; 21. Any taxable services and tangible Personal property Including materials, supplies and equipment sold to con- tractors for the purpose of developing and Improving re- al estate even though such real estate is Intended for re- sale as real property are hereby declared to be sales to consumers or users and taxable; and M. Any taxable services and tangible personal property sold to persons who Ore primarily engaged in selling their services, such as repairmen, are hereby declared to be sales to consumers or users and taxable. SECTION FOUR (4): PAYMENT OF TAX The tax levied by this Ordinance shall be paid to the Oklahoma Tax Commission in the manner and form Pre- scribed by state sales tax law of the State of Oklahoma. SECTION FIVE (5): REPEALER All ordinances or parts of ordinances, In conflict with this ortlinance are hereby repealed to the extent of the conflict only. SECTION SIX (6): SEVERABILITY If any Part or parts of this ordinance are deemed uncon- stitutional, invalid or Ineffective, the remaining portions shall not be affected and shall remain in full force and effect. SECTION SEVEN (7)t DECLARING AN EFFECTIVE DATE The provisions of this Ordinance shall became effective thirty (30) days from the date of final passage as provid. So by state law. SECTION EIGHT (81: CODIFICATION The City of Owasso Code of Ordinances is hereby amend- ed as shown above and codified In Part 7, Chapter 2, Sec- tion 7 -206, 7,207 and 7 -2a8. PASSED by the City Council of the City of Owasso, Okla- homa on the 19th day of January, 2016. A/ Jeri Moberly, Mayor ATTEST: /s/ Sherry Bishop, City Clerk APPROVED as to form: /s/ Julie Lombardi, City Attorney 212620 Published in the Owasso Reporter, Owasso, Tulsa Coun- ty, Oklahoma, February 17, 2016. CITY OF OWASSO RESOLUTION 2016 -01 A RESOLUTION CALLING A SPECIAL ELECTION IN THE CITY OF OWASSO, STATE OF OKLAHO- MA, FOR THE PURPOSE OF SUBMITTING TO THE REGISTERED, QUALIFIED VOTERS OF SAID CITY THE QUESTION OF THE APPROVAL OR DISAPPROVAL BY SAID VOTERS OF ORDI. NANCE 1068 OF SAID CITY, LEVYING AND AS- SESSING A SALES TAX OF FIFTY -FIVE HUN. DREDTHS OF ONE PERCENT (0.55 %) IN ADDI- TION TO ALL OTHER EXCISE TAXES LEVIED AND ASSESSED UPON THE GROSS PROCEEDS OR GROSS RECEIPTS DERIVED THEREFROM; PROVIDING THAT THE PROCEEDS OF SAID 0Th-0s� C-tdyW!t,-- ut Limits. CORRECTED TO: The Honorable Mayor and City Council City of Owasso FROM: Warren Lehr City Manager SUBJECT: Sales Tax Recapture Election Ordinance 1068 Resolution 2016 -01 DATE: January 15, 2016 ACTION REQUESTED: APPROVRD Bar COUNCIL JAN 1 y Curti Staff is requesting Council action related to a Resolution and accompanying Ordinance calling for an election to be conducted on Tuesday, April 5, 2016. The purpose of the election is to submit a project- specific question to voters, which if approved, will recapture a portion of the expiring county sales tax, known as Vision 2025. PURPOSE: Approved by voters in 2003, the Tulsa County initiative Vision 2025 sales tax is scheduled to expire in December 2016. This sales tax is currently collected at a rate of sixty- hundredths (0.60 %) of one percent. Staff is proposing to call an election to seek voter approval to recapture a portion of the expiring sales tax in the amount of fifty -five hundredths (0.55 %) of one percent and apply the funds directly towards Owasso transportation infrastructure projects, using the recently adopted 2015 Transportation Master Plan as a guideline. If approved, the resulting tax rate would be less than the current assessed tax rate and the recaptured portion of sales tax would "sunset" or expire in seven years. PROPOSITION: Staff is proposing to recapture of portion of the expiring sales tax in the amount of fifty -five hundredths of one percent (0.55 %) beginning January 1, 2017 and expiring December 31, 2023. The revenue collected from the fifty -five hundredths of one percent is to be designated for the specific purpose of street improvements and adjoining infrastructure and right -of -way expenditures on E 96th St N from approximately N 119th E Ave to N 129th E Ave and on E 116th St N from approximately US HWY 169 to Mingo Road. Any excess funds collected during that seven year period will be used only for additional street improvements. ORDINANCE: If approved by the voters, Ordinance 1068 would effectively change the city sales tax rate beginning January 1, 2017 and expiring December 31, 2023 by including the fifty -five hundredths of one cent tax to the current city sales tax rate. In addition, the Ordinance designates the revenue generated from the fifty -five hundredths of one cent to fund street improvements and related expenditures, to include debt service on obligations issued to finance said improvements, on East 96th Street North from approximately North 119th East Avenue to North 129th East Avenue and on East 116th Street North from approximately US HWY 169 to Mingo Road with any excess revenue collected to be used for additional street improvements. RESOLUTION: Resolution 2016 -01 calls the election and creates the ballot language. In addition, the resolution identifies the process to be followed in order to meet all legal requirements, and allows for proper notification to the Tulsa County and Rogers County Election Boards. OTHER CITIES: In October and November 2015, voters in Sand Springs, Bixby, and Broken Arrow approved a similar sales tax initiative that recaptured fifty -five hundredths (0.55) of the expiring county sales tax. It is anticipated that other Tulsa County communities will call elections for the April ballot seeking voter approval to recapture the expiring sales tax, allowing each city the freedom to seek funding for specific municipal needs. RECOMMENDATION: Staff recommends Council approval of Ordinance 1068 amending the sales tax rate, providing a designated purpose for the revenue generated, and setting a "sunset" of seven years, if approved by voters. Staff further recommends approval of Resolution 2016 -01 calling a special election for April 5, 2016, submitting to the voters the question of recapturing a portion of the expiring county sales tax. ATTACHMENTS: Ordinance 1068 Resolution 2016 -01