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Home My WebLink About1080_Use Tax°K+.nxoN`P TULSA COUNTY CLERK - PAT KEY Doc N 2016048019 Page(s): 2 05/23/2016 02:24:30 PM Receipt # 16 -27890 Fee: $ 15.00 CITY OF OWASSO, OKLAHOMA ORDINANCE 1080 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, CHANGING a THE USE TAX RATE LEVIED TO A RATE EQUAL TO THE SALES TAX. THIS ORDINANCE AMENDS PART 7, CHAPTER 5, SECTION 7 -503, OF THE CITY OF 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 same rate as the sales tax, as set out in Chapter 2 of Part 7 of the purchase price of such property. 2. 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. 3. 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 fax 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. 4. Any person liable for payment of the tax authorized herein may deduct from such tax any local or municipal sales fax 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 provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. 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 May 2016. FF ,sy of fi�?0 ICIAL (SEAL) SEAL a" AHOV A�ILJ �I�;� Sherry Vo p -�/,� # Ly dell unn, Mayor APPROVED as to form and legality this 14 day of 2016. Jul i Lombardi, City Attorney • , \vjp�p �c . Group CITY OF OWASSO/LEGALS Attn JULIE STEVENS PO BOX 180 OWASSO, OK 74055 GOkv A, R Ld r . f uPmenrm OwuwPm, •WRul .- LMTuha Lll4f. pity loumal iuha BuaNCSa 6 Lerpl Mews OKLAHOMA WEEKLY GROUP P.O. BOX 26945 RICHMOND, VA 23261 -6472 Account Number 1015023 Date June 01, 2016 Date Category Description Ad Size Total Cost 06/0112016 Legal Notices ORD NO. 1080 2 x 98.00 CL 12544 z5epa3 Puy, Okl ho the Owasso Reporter, Owasso, Tulsa Coun- ty, Oklahoma, June 1, 2016. CITY OF OWASSO, OKLAHOMA ORDINANCE 10M AN ORDINANCE RELATING TO PART 7, FI. NANCE AND TAXATION, AMENDING CHAPTER 5, USE TAX, SECTION 7 -503, EXCISE TAX ON STORAGE, USE OR OTHER CONSUMPTION OF IN- TANGIBLE, PERSONAL PROPERTY LEVIED, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, CHANGING THE USE TAX RATE LEVIED TO A RATE EQUAL TO THE SALES TAX. THIS ORDINANCE AMENDS PART 7, CHAPTER 5, SECTION 7 -503, OF THE CITY OF 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 Tox aX on, Chapter Five, Use Tax. Section 7 -503, Excise T on Storage, Use Or Other Consumption Of Intangible, Per - sonol Property Levied, of the Code of Ordinances of the City of Owasso, Oklahoma, shall bs amended to read as follows: SECTION 1 -503 EXCISE TAX ON STORAGE�USE OR OTKER-CONSUMPTIONOF TROPER ILIE PhKbomAl 1. There is hereby levied and there shalt be Paid by every person storing, usln or otherwise consuming within the city, tangible, personal property PUr- chased or brought Into this city, an excise Tax on the storage, use or other consuming within the city of such Property at the same rate as the sales tax, as set out in Chapter R of Part 7 of the purchase price Of such property. 2. Such tax shall be sold by every person staring, us, Ing, or otherwise consuming, within the city, tangi- ble, personal property Purchased or brought Into the city. 3. The additional tax levied hereunder shall be mid at the time of Importation or storage of the Property within the city and shall he assessed to onty PrOp- erty purchased outside Oklahoma; Provided, that the tax levied herein shall not be levied against tan- gible, personal property intended solely for use out - side 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, pIteration, maintenance or other service. 4. Any Person liable for payment of the tax authorized herein may deduct from such tax any local or mu- nicipal soles tax Previously mid on such goons or services; provided that the amount tleduttetl shall not exceed the amount that would have been tlue 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 con- flict only. SECTION THREE (3): SEVERABILITY If any part or parts of this ordinance are deemed uncon. stltufional, invalid or Ineffective, the remaining portion shall not be affected but shall remain in full force and ef- fect. SECTION FOUR (4): DECLARING AN EFFECTIVE DATE The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as pmvid- ed by state law. SECTION FIVE (5): CODIFICATION The Chapter and Ordinonoe5 above shall be amended and codified In Part 7, Chapter 5, Section 7 -503 to the Owasso Code of Ordinances. PASSED AND APPROVED this 17th day of May, 2016. /s/ Lyndell Dunn, Mayor ATTEST: /sl Sherry Bishop, City Clerk APPROVED AS TO FORM: W Julie Lombardi, City Attorney 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 2S, 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 DATE(S) LISTED BELOW 06/01/20)6 Newspaper reference: 000025064433 ' Legal f�pr-esentative Sworn to and au scribed before me this date: Note DON. � 3 r`,�•. Notary Public in ;. STATE OF OKI N! Commission M Expires: Sep, My Commission expires: THIS IS NOT A BILL. PLEASE PAY FROM INVOICE. THANK YOU O—T City Wit lout Limits. TO: The Honorable Mayor and City Council City of Owasso FROM: Sherry Bishop Assistant City Manager SUBJECT: Ordinance 1080 - Use Tax DATE: May 13, 2016 BACKGROUND: APPROVED By COUNCIL IIIA1 17 ZU10 Oklahoma statutes require that the use tax rate be equal to the sales tax rate. This was established as part of the Streamline Sales Tax legislation to improve the collectability of taxes on catalog and online sales. The Owasso code of ordinances sets the use tax rate at 3.50% which is equal to the sales tax rate. The voter approved Vision for Owasso sales tax will change the sales fax rate to 4.05% on January 1. 2017 through December 31, 2023 at which time the rate will change to 150%. Rather than amend the use tax ordinance to mirror the language in the sales tax ordinance, this proposal would amend the ordinance to state that the use tax rate is the "same rate as the sales tax." Any future sales tax rate changes would no longer necessitate an amendment to the use tax ordinance. PROPOSED ORDINANCE 1080: The Ordinance 1080 amends Chapter 5 of Part 7 of the code or ordinances, specifically, Section 7 -503, Excise Tax on Storage, Use or Other Consumption of Intangible, Personal Property Levied. This section levies an excise tax "at the rate of three and one -half percent (3.5 %) ...." The proposed amendment changes to an excise tax "at the some rate as the sales tax, as set out in Chapter 2 of Part 7." RECOMMENDATION: Staff recommends approval of Ordinance 1080, changing the use tax rate levied to a rate equal to the sales tax. ATTACHMENT: Ordinance 1080