HomeMy WebLinkAboutPart 07 Finance and Taxation
Finance and Taxation
PART 7
FINANCE AND TAXATION
CHAPTER 1
FINANCE AND BUDGET ADMINISTRATION
Section 7-101 Depositories Designated; Funds to be Deposited
Section 7-102 Purchases of Goods, Services and Capital
Section 7-103 Payments from Self Insurance
Section 7-104 Competitive Bidding
Section 7-105 When Competitive Bidding is Not Required
Section 7-106 Payroll Disbursements
Section 7-107 Debt Service
Section 7-108 Interfund Transfers
Section 7-109 Petty Cash and Imprest Accounts
Section 7-110 Financial Reporting
Section 7-111 Sales, Council to Declare Surplus or Obsolete; Competitive Bidding
Section 7-112 Sales, When Competitive Bidding is Not Required
Section 7-113 Applicability to Public Trusts
CHAPTER 2
SALES TAX
Section 7-201 Citation and Codification
Section 7-202 Definitions
Section 7-203 Tax Collector Defined
Section 7-204 Classification of Taxpayers
Section 7-205 Subsisting State Permits
Section 7-206 Effective Date
Section 7-207 Purpose of Revenues
Section 7-208 Tax Rate; Sales Subject to Tax
Section 7-209 Exemptions; Sales Subject to Other Tax
Section 7-210 Exemptions; Governmental and Nonprofit Entities
Section 7-211 Exemptions; General
Section 7-212 Exemptions; Agriculture
Section 7-213 Exemptions; manufacturers
Section 7-214 Exemptions; Corporations and Partnerships
Section 7-215 Tax Due When; Returns, Records
Section 7-216 Payment of Tax; Brackets
Section 7-217 Tax Constitutes Debt
Section 7-218 Vendor’s Duty to Collect Tax; Penalties
Section 7-219 Returns and Remittances; Discounts
Section 7-220 Interest and penalties; Delinquency
Section 7-221 Waiver of Interest and Penalties
Section 7-222 Erroneous Payments; Claim for Refund
Section 7-223 Fraudulent Returns
Page 7-1
Finance and Taxation
Section 7-224 Records Confidential
Section 7-225 Amendments
Section 7-226 Provisions Cumulative
Section 7-227 No Repeal of Tax
CHAPTER 3
UTILITIES TAX
Section 7-301 Tax Levied
Section 7-302 Tax to be Quarterly
Section 7-303 Failure to Pay Tax
Section 7-304 Tax to Constitute a Prior Lien
CHAPTER 4
TELEPHONE EXCHANGE TAX
Section 7-401 Inspection Fee and Service Charge
Section 7-402 Fee in Lieu of Certain Other Charges
CHAPTER 5
USE TAX
Section 7-501 Citation and Codification
Section 7-502 Definitions
Section 7-503 Excise Tax on Storage, Use or Other Consumption of Intangible,
Personal Property Levied
Section 7-504 Purpose of Revenues
Section 7-505 Exemptions
Section 7-506 Time When Due, Returns, Payment
Section 7-507 Tax Constitutes Debt
Section 7-508 Collection of Tax by Retailer or Vendor
Section 7-509 Collection of Tax by Retailer or Vendor Not Maintaining a Place of
Business within State or Both Within and Without State, Permits
Section 7-510 Revoking Permits
Section 7-511 Remunerative Deductions Allowed Vendors or Retailers of Other
States
Section 7-512 Interest and Penalties, Delinquency
Section 7-513 Waiver of Interest and Penalties
Section 7-514 Erroneous Payments, Claim for refund
Section 7-515 Fraudulent Returns
Section 7-516 Records Confidential
Section 7-517 Classification of Taxpayers
Section 7-518 Subsisting State Permits
Section 7-519 Provisions Cumulative
Page 7-2
Finance and Taxation
CHAPTER 6
HOTEL TAX
Section 7-601 Definitions
Section 7-602 Tax Rate
Section 7-603 Exemptions
Section 7-604 Tax to be Separately Designated on Bills
Section 7-605 Operators’ Duties
Section 7-606 Bond Required
Section 7-607 Assessment and Determination of Tax
Section 7-608 Refunds
Section 7-609 Notices
Section 7-610 Remedies Exclusive
Section 7-611 General Powers of the City Manager
Section 7-612 Certificates of Registration
Section 7-613 Use of Funds
Section 7-614 Records Confidential
Section 7-615 Criminal Penalties
Section 7-616 Civil Remedies
CHAPTER 7
AUDIT COMMITTEE
Section 7-701 Creation of Audit Committee
Section 7-702 Composition-Appointment-Compensation
Section 7-703 Qualifications
Section 7-704 Terms of Office
Section 7-705 Vacancies
Section 7-706 Removal of Members
Section 7-707 Officers
Section 7-708 Meetings
Section 7-709 Quorum
Section 7-710 General Powers and Duties
Section 7-711 Procedural Rules-Subcommittees
Section 7-712 Cooperation of City Officials
Section 7-713 Limitation and Liability
Page 7-3
Finance and Taxation
CHAPTER 1
FINANCE AND BUDGET ADMINISTRATION
Section 7-101 Depositories Designated; Funds to be Deposited
Section 7-102 Purchases of Goods, Services and Capital
Section 7-103 Payments from Self Insurance
Section 7-104 Competitive Bidding
Section 7-105 When Competitive Bidding is Not Required
Section 7-106 Payroll Disbursements
Section 7-107 Debt Service
Section 7-108 Interfund Transfers
Section 7-109 Petty Cash and Imprest Accounts
Section 7-110 Financial Reporting
Section 7-111 Sales, Council to Declare Surplus or Obsolete; Competitive Bidding
Section 7-112 Sales, When Competitive Bidding is Not Required
Section 7-113 Applicability to Public Trusts
SECTION 7-101 DEPOSITORIES DESIGNATED FUNDS TO BE DEPOSITED
All banks, trust companies, and savings and loan associations within this city which
are incorporated under federal or state law are hereby designated as depositories for
the funds of the city. The city treasurer shall deposit daily all public funds received by
him in such banks, trust companies, or savings and loan associations. Such institutions
where such funds are deposited shall be required to meet the requirements of state law
as depositories for public funds and such deposits shall be secured as set forth in Title 62
OS Sections 517.1 et seq “Security for Local Public Deposits Act”. (Ord. No. 323, 10/5/82; Ord.
No. 819, 07/05/2005)
SECTION 7-102 PURCHASES OF GOODS, SERVICES AND CAPITAL
A. The City designates department directors as purchasing officers empowered
to purchase or contract against budget appropriation accounts.
B. For all purchases of goods, services or capital (all purchases or disbursements
other than payroll and debt service related) over $5,000, requisition forms, purchase
orders or contracts shall be prepared and approved, in writing by a designated
purchasing officer prior to the time the purchase commitment is made.
C. For all purchases or contracts for goods, services or capital over $50,000,
governing body approval shall be obtained prior to the time the commitment is made,
and such approval shall be recorded in the minutes of the governing body. (Ord 1218
11/7/23)
D. For all purchases of goods, services or capital over $5,000, the approved
requisition, purchase order or contract shall be forwarded to an officer or employee
charged with keeping the appropriation and expenditure records (encumbering clerk)
who shall determine that there exists available unencumbered appropriation in the
accounts to be charged. Upon such determination, the encumbering clerk shall attest
Page 7-4
Finance and Taxation
to that fact in writing. If appropriation is not available for the proposed purchase or
commitment, the purchase or commitment shall not proceed until budget
amendments are authorized to provide sufficient appropriation.
Upon approval of the purchasing officer or encumbering clerk, an
encumbrance shall be recorded in the appropriation and expenditure records in the
amount or estimated amount of the commitment.
These encumbering requirements shall not apply to the following type of
purchases or commitments:
- Payroll and Personal Services
- Utility and Telephone Services (Governed by State Corporation
Commission)
- Insurance (Governed by contract)
- Debt Service
E. After satisfactory delivery of the merchandise or completion of contract
provision, an invoice or claim form shall be obtained adequately documenting request
for payment. The officer or employee receiving satisfactory delivery of merchandise or
contract service shall acknowledge such fact by signing the invoice, claim form,
delivery ticket or receiving advice.
The invoice or claims form, along with the written acknowledgment of
receipt, shall be forwarded to the officer or employee responsible for processing
accounts payable who shall review the invoice for accuracy and propriety, including
comparison to the authorized requisition, purchase order or contract, if applicable.
Upon completion of the accounts payable officer review, an invoice or
claims listing shall be submitted to the governing body for approval during the next
regular or special meeting.
F. Upon approval of invoices or claims for payment, checks or other payment
documents as authorized by state law (11 O.S., Section 17-102) shall be prepared and
submitted to the City Treasurer, along with a copy of the approved invoice or claims
listing.
The Treasurer shall compare the checks or other payment documents to the
invoice or claims listing and verify their accuracy. Upon verification, the Treasurer shall
sign the checks or other documents and prepare them for distribution. In addition, the
Treasurer shall prepare or caused to be prepared a check register.
G. The City Treasurer shall record or cause to be recorded in the appropriate
journals and ledgers the purchases and cash disbursements incurred and paid.
(Ord. No. 819, 7/05/05)
Page 7-5
Finance and Taxation
SECTION 7-103 PAYMENTS FROM SELF INSURANCE
A. Every contract for, or purchase of, supplies, materials, equipment or
contractual services for more than $50,000.00 shall require the prior approval of the City
Council; provided, however, the foregoing provisions shall not be applicable to
payments for medical services and supplies arising from claims against Workers
Compensation Self Insurance Fund or medical, dental and optical services and supplies
as well as administrative costs relating thereto from claims against the Health Care Self
Insurance Fund. (Ord 1218, 11/7/23)
B. The City Council hereby designates the City Treasurer and the City Manager,
or his Designee, as purchasing officers empowered to purchase or contract against the
budgeted Health Care Self Insurance Fund in accordance with the procedures set forth
below.
1. After satisfactory delivery of merchandise or completion of contract
provisions, an invoice or claim shall be obtained adequately documenting the
request for payment. The officer or employee receiving satisfactory delivery of
merchandise or contract service shall acknowledge such fact by signing the
invoice, claim form, delivery ticket or receiving advice. Further, such officer or
employee shall make certain that sufficient funds are available in the
appropriation for the proposed expenditure. If sufficient funds are not available at
such time, then, in such event, the payment shall not proceed. Otherwise, the
supportive documentation shall be submitted to the City Manager or the City
Manager’s designee for consideration and approval of payment, which shall be
approved in writing by the City Manager or the City Manager’s designee.
2. Upon approval of the invoices or claims for payment, a warrant, check,
wire transfer or other payment document as authorized by state law \[11 O.S. 17-
102 (A)\] shall be prepared and, along with a copy of the approved invoice or
claims listing, submitted to the City Treasurer for execution and issuance.
3. The City Treasurer shall record or cause to be recorded in the
appropriate journals and ledgers the purchases and cash disbursements incurred
and paid.
4. Copies of the approved invoice or claims and/or check (warrant or other
payment instrument) shall be provided to the City Council for informational
purposes at its next regular meeting; however, the City Council approval is not
required prior to payment of the invoices or claims if incurred and paid in
accordance with the provisions above.
(Ord. No. 819, 7/05/05)
SECTION 7-104 COMPETITIVE BIDDING
A. The City shall adhere to the provisions of Oklahoma Statues (1991), Title 61,
Sections 101 et seq. when determining when competitive bidding is required and the
manner in which competitive bids are obtained.
Page 7-6
Finance and Taxation
B. If the City Charter provides for additional competitive bidding requirements,
such additional requirements shall be met.
C. In addition to the requirements of (A) above, public trusts created pursuant to
O.S. Title 60, Section 176, of which the City is beneficiary, shall also follow the
competitive bidding provisions of Section 176(g) of Title 60.
D. The City is authorized to employ, implement and utilize auction electronic
bidding in accordance with the provisions of 11 O.S. § 17-115. The Administration of the
City is hereby authorized to promulgate policies and procedures for implementation of
the auction electronic bidding as authorized by state law to the fullest extent thereof.
(Ord. No. 819, 7/05/05, Ord. No. 842, 2/21/06)
E. Before any purchase or contract for supplies, materials, equipment, or
contractual services are made, including lease contracts with options to purchase,
the City purchasing authority shall:
1. provide the opportunity to submit a bid, quote, or proposal to a minimum
of three (3) vendors, dealing in and able to supply the same; or publish
such opportunity in a newspaper of general circulation within the city;
and,
2. provide notice of the opportunity to submit a bid, quote, or proposal on
the City’s website
The purchasing authority shall favor a local vendor in the City when this can be
done without additional cost to the City; but, shall submit requests to those outside
the city when necessary to secure a submittal or to create competitive conditions,
or when by so doing can make a savings for the City.
The purchasing authority may purchase from the vendor whose submittal is most
advantageous to the City, considering the price, quality, date of delivery, and so
on; and, in case of a tie, may purchase from one of those tying, or may divide the
purchase among those tying, always accepting the submittal most advantageous
to the City.
The purchasing authority may repeatedly reject all submittals and again provide
notice of the opportunity to submit a quote, bid, or proposal from the same or
other vendors. (Ord. No. 819, 7/05/05; 842, 2/21/06; 893 5/15/07; 1055, 6/16/15; 1224, 9/17/24)
SECTION 7-105 WHEN COMPETITIVE BIDDING IS NOT REQUIRED
The following may be purchased without giving an opportunity for competitive
bidding:
1. Supplies, materials, equipment or contractual services whose cost does not
exceed Twenty Five Thousand Dollars ($25,000.00) in a single transaction; (Ord. No. 712,
06/18/2002, Ord. No. 819, 7/05/05)
2. Supplies, materials, equipment or contractual services which can be
furnished only by a single dealer, or which have a uniform price wherever bought;
Page 7-7
Finance and Taxation
3. Supplies, materials, equipment or contractual services purchased from
another unit of government at a price deemed below that obtainable from private
dealers, including war surplus;
4. Equipment to replace existing equipment which has become inoperable
when the council declares the purchase an emergency;
5. Contractual services, including but not limited to gas, electricity, telephone
service, purchased from a public utility at a price or rate determined by the State
Corporation Commission or other government authority;
6. Supplies, materials, equipment or contractual services when purchased at a
price not exceeding a price set therefore by the State purchasing agency or another
state agency hereafter authorized to regulate prices for things purchased by the State,
or any county purchasing agency or city purchasing agency wherein such county or
city has a population equal to or in excess of 50,000 persons, and; (Ord. No. 455, 01/05/93;
Ord. No. 520, 03/05/96; Ord. No.789, 6/15/04; Ord. No. 819, 7/05/05)
7. Contractual services of a professional nature, such as engineering,
architectural and medical services.
(Ord. No. 819, 7/05/05)
SECTION 7-106 PAYROLL DISBURSEMENTS
A. For all employees and officers of the City, a documented record shall be
maintained in a personnel file of the authorized rate of pay or salary for each employee
or officer.
B. For each pay period, a documented record of time worked and leave taken
shall be prepared, in the form of time sheets, cards or logs, for each employee and
officer to be paid. For employees exempt from the overtime provisions of the Fair Labor
Standards Act, the record may exclude time worked. Such record of time worked and
leave taken shall be verified as to its accuracy in writing by the employee or officer,
supervisor or department director if applicable.
C. Upon verification of the work record, a payroll statement or register, including
the amount of gross pay, authorized deductions and net pay, shall be prepared and
submitted to the City Manager or designee for review and written approval.
D. Upon approval of the payroll statement or register, the net payroll checks
shall be prepared along with checks for payment of related payroll taxes and other
payroll benefits, required by law or contract.
E. The checks shall be presented to the City Treasurer along with the approved
payroll statement or register. The Treasurer shall compare the checks to the payroll
statement or register and verify their accuracy. Upon verification, the Treasurer shall
sign the checks and prepare them for distribution. In addition, the Treasurer shall
prepare or caused to be prepared a check register.
Page 7-8
Finance and Taxation
F. No payroll encumbrances are required to be recorded in the budgetary
accounting records as long as the payroll costs are recorded as expenditures at the
time they become due and payable. However, no payroll costs may be incurred or
paid if they exceed the available appropriation for the accounts to be charged at the
legal level of control.
G. The City Treasurer shall record or cause to be recorded in the appropriate
journals and ledgers the payroll costs incurred and/or paid for the pay period.
H. A copy of the payroll statement, register or payroll check register shall be
provided to the governing body for informational purposes, however governing body
approval is not required prior to the payment of payroll related costs if incurred and
paid in accordance with the provisions above.
(Ord. No. 819, 7/05/05)
SECTION 7-107 DEBT SERVICE
A. All long-term indebtedness, in the form of bonds, notes or lease purchase
obligations, shall only be incurred in the manner provided by law.
B. Once lawfully incurred, payments of principal and interest on the bonds or
notes and payments on the lease purchase obligations shall be paid in accordance
with the terms as specified in the bond indenture, note agreement or lease purchase
contract by the City Treasurer without furthers approval of the governing body.
C. The manner of payment shall be consistent with the manner used for
payment of purchases of goods, services or capital as described in Section 7-102 (F)
above.
D. The City Treasurer shall record or cause to be recorded in the appropriate
journals and ledgers the debt service payments and maintain current records of the
remaining amount of indebtedness.
(Ord. No. 819, 7/05/05)
SECTION 7-108 INTERFUND TRANSFERS
A. All transfers of resources between funds (both operating and residual equity
transfers) shall only be made in accordance with governing body appropriations. Such
appropriations shall be contained in the original or amended budget of the
municipality.
B. Once lawfully appropriated, interfund transfer payments may be made by
the City Treasurer without further governing body approval. Such transfers, however,
may not exceed the amount lawfully appropriated.
C. The manner of payment shall be consistent with the manner used for the
payment of purchases of goods, services and capital as described in Section 7-102 (F)
above.
Page 7-9
Finance and Taxation
D. The City Treasurer shall record or cause to be recorded in the appropriate
journals and ledgers these interfund transfers.
(Ord. No. 819, 7/05/05)
SECTION 7-109 PETTY CASH AND IMPREST ACCOUNTS
A. Petty Cash
1. As provided for in 11 O.S., Section 17-102 (D) of the Oklahoma State
Statues, the municipality may have petty cash for use in making certain small
payments for costs incurred in operating the municipality.
2. Each petty cash account established shall require governing body
approval, including the amount of petty cash imprest balance. However, in no
case, should the imprest balance exceed $9,000.
3. The petty cash accounts shall be reimbursed by utilizing properly itemized
invoices or petty cash voucher slips and by then processing the reimbursement in
the manner used for payment or purchases of goods, services and capital as
described in Section 7-102.
(Ord. No. 819, 7/05/05; 838, 12/20/05)
B. Workers’ Compensation Imprest Account
1. The workers’ compensation imprest account shall require governing body
approval, including the amount of the workers’ compensation imprest balance.
However, in no case should the workers’ compensation imprest balance exceed
$50,000. A third party administrator shall be authorized to administer and sign
checks for the workers’ compensation imprest account.
2. The workers’ compensation imprest account shall be reimbursed by
utilizing properly itemized invoices which will be maintained in the confidential
Human Resources files, and by then processing the reimbursement in the manner
used for payment of purchases of goods, services and capital as described in
Section 7-102.
(Ord. No. 838, 12/20/2005)
SECTION 7-110 FINANCIAL REPORTING
The City Treasurer shall prepare a monthly budgeted status report. The report shall
be placed in the Agenda for the governing body acknowledgment at the first meeting
following the close of the previous month.
(Ord. No. 819, 7/05/05)
Page 7-10
Finance and Taxation
SECTION 7-111 SALES, COUNCIL TO DECLARE SURPLUS OR OBSOLETE; COMPETITIVE
BIDDING
No surplus or obsolete supplies, materials or equipment of a value of more than Five
Hundred Dollars ($500.00) may be sold until the council shall have declared them
obsolete or surplus. Before the City Manger sells any surplus or obsolete supplies,
materials or equipment, except otherwise provided below, he shall advertise them for
sale in a newspaper of general circulation in the city or give notice in such other
manner as he deems necessary adequately to reach prospective buyers to give them
the opportunity to make bids. All bids shall be sealed and shall be opened in public at
a designated time and place, except when the sale is by auction. The City Manager
may repeatedly reject all bids and advertise or give notice again. He shall sell such
supplies, materials or equipment to the highest responsible bidder for cash. In case of a
tie, he may sell to either of the bidders tying, or may divide the sale among two (2) or
more tying, always selling to the highest responsible bidder or bidders for cash.
(Ord. No. 819, 7/05/05)
SECTION 7-112 SALES, WHEN COMPETITVE BIDDING IS NOT REQUIRED
The City Manager may sell the following without giving opportunity for competitive
bidding:
1. Surplus or obsolete supplies, materials or equipment whose total value
does not exceed One Thousand Five Hundred Dollars ($1,500.00) in a single transaction;
and
2. Supplies, materials or equipment when sold at a price least as great as
that paid by the city for the same.
(Ord. No. 819, 7/05/05)
SECTION 7-113 APPLICABILITY TO PUBLIC TRUSTS
A. For all public trusts created pursuant to 60 O.S., Sections 176-180, for which the
City is beneficiary and for which the trust’s governing body (Trustees) are comprised
entirely of members of the City’s governing body, the above noted requirements of
section 7-101 through 7-112 shall apply.
B. For the purposes of the public trusts, as used above, the terms governing body
shall mean board of trustees of the trust, City Manager shall mean Trust Manager as
appointed by the trustees, City Treasurer shall mean Trust Treasurer as appointed by the
trustees or required by the trust indenture. (Ord. No. 819, 07/05/2005)
Page 7-11
Finance and Taxation
CHAPTER 2
SALES TAX
Section 7-201 Citation and Codification
Section 7-202 Definitions
Section 7-203 Tax Collector Defined
Section 7-204 Classification of Taxpayers
Section 7-205 Subsisting State Permits
Section 7-206 Effective Date
Section 7-207 Purpose of Revenues
Section 7-208 Tax Rate; Sales Subject to Tax
Section 7-209 Exemptions; Sales Subject to Other Tax
Section 7-210 Exemptions; Governmental and Nonprofit Entities
Section 7-211 Exemptions; General
Section 7-212 Exemptions; Agriculture
Section 7-213 Exemptions; manufacturers
Section 7-214 Exemptions; Corporations and Partnerships
Section 7-215 Tax Due When; Returns, Records
Section 7-216 Payment of Tax; Brackets
Section 7-217 Tax Constitutes Debt
Section 7-218 Vendor’s Duty to Collect Tax; Penalties
Section 7-219 Returns and Remittances; Discounts
Section 7-220 Interest and penalties; Delinquency
Section 7-221 Waiver of Interest and Penalties
Section 7-222 Erroneous Payments; Claim for Refund
Section 7-223 Fraudulent Returns
Section 7-224 Records Confidential
Section 7-225 Amendments
Section 7-226 Provisions Cumulative
Section 7-227 No Repeal of Tax
SECTION 7-201 CITATION AND CODIFICATION
This chapter shall be known and may be cited as “City of Owasso Sales Tax
Ordinance”. (Ord. No. 326, 4/19/83)
Ed. Note: Ordinance Number 103, effective October 1, 1968, levied a one cent
tax. Ordinance Number 153 levied an additional one cent tax. Ordinance Number
326, effective July 1, 1983, levied a third one cent tax, amended by Ord. No. 395 to
provide for purpose of the third cent, and effective date until October 31, 2007;
Ordinance No. 763, dated 8/5/2003 and approved by voters, amended the purpose of
the third one cent tax and removed the expiration date. Ord. 1039, approved by the
voters on January 13, 2014 levied an additional one-half cent for police, fire, and
streets. Ordinance 1068, approved by voters 4/5/2016, recaptured an expiring county
th
tax (Vision 2025) and levied 55/100 of one cent with an expiration date of December
31, 2023. Ordinance 1209, approved by voters 8/8/2023, removed the expiration date
th
on the 55/100 of one cent.
Page 7-12
Finance and Taxation
State Law Reference: Authority to levy (sales) taxes for municipal purposes, 68 O.S.
Section 2701; State Sales Tax Code 68 O.S. Sections 1350 et seq.
SECTION 7-202 DEFINITIONS
The definitions of works, terms and phrases contained in the Oklahoma Sales Tax Code,
Section 1352 of Title 68 of the Oklahoma Statues, are hereby adopted by reference and
made a part of this chapter. (Ord. No. 326, 4/19/83)
SECTION 7-203 TAX COLLECTOR DEFINED
The term “tax collector” as used in this chapter means the Department of the City or
the official agency of the State duly designated according to law or contract, and
authorized by law to administer the collection of the tax levied in this chapter. (Ord. 326,
4/19/83)
SECTION 7-204 CLASSIFICATION OF TAXPAYERS
For the purpose of this chapter, the classification of taxpayers hereunder shall be as
prescribed by state law for purposes of the Oklahoma Sales Tax Code. (Ord. 326, 4/19/83)
SECTION 7-205 SUBSISTING STATE PERMITS
All valid and subsisting permits to do business issued by the Oklahoma Tax Commission
pursuant to the Oklahoma Sales Tax Code are, for the purpose of this chapter, hereby
ratified, confirmed and adopted in lieu of any requirement for an additional city permit
for the same purpose. (Ord. 326, 4/19/83; Ord. 763, 8/5/03)
SECTION 7-206 EFFECTIVE DATE
The amended provisions of this Ordinance shall become effective on and after
December 31, 2023, subject to approval by a majority of the qualified electors of the
City voting on the same in the manner prescribed by law.
(Ord 326, 4/19/83; Ord 395, 8/18/88; Ord 553, 8/11/97; Ord 763, 8/5/03; Ord 1039, 1/13/14; Ord 1068,
4/5/2016; Ord 1209, 8/8/23)
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
obligations issued to finance said capital projects; said projects to be reviewed by the
Capital Improvements Committee, approved by the City Council by resolution, with
oversight given by the Citizens’ Watchdog Committee established by the City Council,
and subject to competitive bidding as required by law.
3. It is hereby declared to be the purpose of the one-half cent tax to provide revenues
Page 7-13
Finance and Taxation
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 (0.55) of one cent tax
to provide revenues to fund street improvements; adjoining infrastructure, right-of-way,
sidewalks, and trails, to include debt service on obligations issued to finance said
improvements.
(Ord 326, 4/19/83; Ord 395, 81/8/88; Ord 553, 8/11/97; Ord 763, 8/5/03; Ord 1039, 10/21/14; Ord 1068
1/19/2016; Ord 1209 9/5/2023)
SECTION 7-208 TAX RATE; SALES SUBJECT TO TAX
There is hereby levied d tax 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 any and all amendments to and revisions thereof.
(Ord. 326, 4/19/83; Ord 1039, 10/21/14; Ord 1068 1/19/2016; Ord 1209 9/5/2023)
SECTION 7-209 EXEMPTIONS; SALES SUBJECT TO OTHER TAX
There is hereby specifically exempted from the tax levied by this chapter the gross
receipts or gross proceeds exempted from the Oklahoma Sales Tax Code inclusive, but
not exclusive of, and derived from the:
1. Sales of non-intoxicating beverages on which the tax levied by state law has been
paid;
2. Sale of cigarettes and such tobacco products on which the tax levied by state law
has been paid;
3. Sale of gasoline or motor fuel on which the motor fuel tax, gasoline excise tax or
special fuels tax levied by state law has been paid;
4. Sale of motor vehicles or any optional equipment or accessories attached to motor
vehicles on which the Oklahoma Motor Vehicle Excise Tax levied by state law has been
paid;
5. Sale of crude petroleum or natural or casinghead gas and other products subject to
gross production tax under state law. This exemption shall not apply when such
products are sold to consumer or user for consumption or use, except when used for
injection in to the earth for the purpose of promoting or facilitating the prosecution of oil
or gas. This paragraph shall not operate to increase or repeal the gross production tax
levied by the laws of this state.
Page 7-14
Finance and Taxation
(Ord. 326, 4/19/83)
SECTION 7-210 EXEMPTIONS; GOVERNMENTAL AND NONPROFIT ENTITIES
There are hereby specifically exempted from the tax levied by this chapter:
1. Sale of tangible personal property or services to the United States government or to
the State of Oklahoma, any political subdivision of this state or any agency of a political
subdivision of the state; provided, all sales to contractors in connection with the
performance of any contract with the United States government, State of Oklahoma, or
any of its political subdivisions shall not be excepted from the tax levied by this chapter,
except as hereinafter provided;
2. Sales made directly by county, district or state fair authorities of this state, upon the
premises of the fair authority, for the sole benefit of the fair authority;
3. Sale of food in cafeterias or lunch rooms of elementary schools, high schools,
colleges or universities which are operated primarily for teachers and pupils and are not
operated primarily for the public or for profit;
4. Dues paid to fraternal, religious, civic, charitable or educational societies or
organizations by regular members thereof, provided such societies or organizations
operate under what is commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inures to the benefit of any
individual member or members thereof to the exclusion of other members;
5. Sale of tangible personal property or services to or by churches, except sales made in
the course of business for profit or savings, competing with other persons engaged in
the same or similar business;
6. The amount of proceeds received from the sale of admission tickets which is
separately stated on the ticket of admission for the repayment of money borrowed by
any accredited state-supported college or university for the purpose of constructing or
enlarging any facility to be used for the staging of an athletic event, a theatrical
production, or any other form of entertainment, edification or cultural cultivation to
which entry is gained with a paid admission ticket. Such facilities include, but are not
limited to, athletic fields, athletic stadiums, field houses, amphitheaters and theaters. To
be eligible for this sales tax exemption, the amount separately stated on the admission
tickets shall be a surcharge which is imposed, collected and used for the sole purpose
of servicing or aiding in the servicing of debt incurred by the college or university to
effect the capital improvements hereinbefore described;
7. Sales of tangible personal property or services to the council organizations or similar
state supervisory organizations of the Boy Scouts of America, Girl Scouts of U.S.A. and
the Campfire Girls shall be exempt from sales tax; or
8. Sale of tangible personal property or services to any county, municipality, public
school district, the institutions of the Oklahoma system of higher education and the
Grand River Dam Authority, or to any person with whom any of the above named
Page 7-15
Finance and Taxation
subdivisions or agencies of this state has duly entered into a public contract pursuant to
law, necessary for carrying out such public contract. Any person making purchases on
behalf of such subdivision or agency of this state shall certify, in writing, on the copy of
the invoice or sales ticket to be retained by the vendor that the purchases are made
for and on behalf of such subdivision or agency of this state and set out the name of
such public subdivision or agency. Any person who wrongfully or erroneously certifies
that purchases are for any of the above named subdivision or agencies of this state or
who otherwise violates this section shall be guilty of a misdemeanor and upon
conviction thereof shall be fined an amount equal to double the amount of the sales
tax involved or incarcerate for not more than sixty (60) days or both.
(Ord. 326, 4/19/83)
SECTION 7-211 EXEMPTIONS; GENERAL
There are hereby specifically exempted from the tax levied by this chapter:
1. Transportation of school pupils to and from elementary schools or high schools in
motor or other vehicles;
2. Transportation of persons where the fare of each person does not exceed One
Dollar ($1.00), or local transportation of persons within the corporate limits of a
municipality except by taxicab;
3. Carrier sales of newspapers and periodicals made directly to consumers. Other sales
of newspapers and periodicals where any individual transaction does not exceed
seventy-five ($0.75). A carrier is a person who regularly delivers newspapers or
periodicals to subscribers on an assigned route;
4. Sales for resale to persons engaged in the business of reselling the articles purchased,
whether within or without the state, provided that such sales to residents of this state are
made to persons to whom sales tax permits have been issued as provided in this
chapter. This exemption shall not apply to the sales of articles made to persons holding
permits when such persons purchase items for their use and which they are not regularly
engaged in the business of reselling; neither shall this exemption apply to sales of
tangible personal property to peddlers, solicitors and other salesmen who do not have
an established place of business and a sales tax permit;
5. Sales of advertising space in newspapers and periodicals and billboard advertising
service, and any advertising through the electronic media, including radio, television
and cable television;
6. Eggs, feed, supplies, machinery and equipment purchased by persons regularly
engaged in the business of raising worms, fish, any insect or any other form of terrestrial
or aquatic animal life and used for the purpose of raising same for marketing. This
exemption shall only be granted and extended to the purchaser when the items are to
be used and in fact are used in the raising of animal life as set out above. Each
purchaser shall certify, in writing, on the invoice or sales tickets retained by the vendor
that he is regularly engaged in the business of raising such animal life and that the items
Page 7-16
Finance and Taxation
purchased will be used only in such business. The vendor shall certify to the Oklahoma
Tax Commission that the price of the items has been reduced to grant the full benefit of
the exemption. Violation hereof by the purchaser or vendor shall be a misdemeanor;
7. Sales of medicine or drugs prescribed for the treatment of human beings by a person
licensed to prescribe the medicine or drugs. This exemption shall not apply to
proprietary or patent medicines as defined by Section 353.1 of Title 59 of the Oklahoma
Statutes; and
8. Nothing herein shall be construed as limiting or prohibiting the levy and collection of
taxes on the sale of natural or artificial gas and electricity, whether sold for residential or
other use after December 31, 1980. Any sales tax levied by the city on natural or
artificial gas and electricity shall be in effect regardless of ordinance or contractual
provisions referring to previously imposed state sales tax on such items.
(Ord. 326, 4/19/83)
SECTION 7-212 EXEMPTIONS; AGRICULTURE
There are hereby specifically exempted from the tax levied by this chapter:
1. Sales of agricultural products produced in this state by the producer thereof directly
to the consumer or user when such articles are sold at or from a farm and not from
some other place of business, as follows:
a. Farm, orchard or garden products;
b. Dairy products sold by a dairyman or farmer who owns all the cows from which
the dairy products offered for sale are produced;
c. Livestock sold by the producer at a special livestock sale; or
d. The provisions of this paragraph shall not be construed as exempting sales by
florists, nurserymen or chicken hatcheries, or sales of dairy products by any other
business except as set out herein;
2. Sale of baby chicks, turkey poults and starter pullets used in the commercial
production of chickens, turkeys and eggs, provided that the purchaser certifies, in
writing, on the copy of the invoice or sales ticket to be retained by the vendor that the
pullets will be used primarily for egg production;
3. Sale of salt, grains, tankage, oyster shells, mineral supplements, limestone and other
generally recognized animal feeds for the following purposes and subject to the
following limitations:
a. Feed which is fed to poultry and livestock, including breeding stock and wool-
bearing stock, for the purpose of producing eggs, poultry, milk or meat for human
consumption;
b. Feed purchased in Oklahoma for the purpose of being fed to and which is fed
by the purchaser to horses, mules or other domestic or draft animals used directly in the
producing and marketing of agricultural products;
Page 7-17
Finance and Taxation
c. Any stock tonics, water purifying products, stock sprays, disinfectants or other
such agricultural supplies;
d. Poultry shall not be construed to include any fowl other than domestic fowl kept
and raised for the market or production of eggs;
e. Livestock shall not be construed to include any pet animals such as dogs, cats,
birds or such other fur-bearing animals; or
f. This exemption shall only be granted where the purchaser of feed that is to be
used and in fact is used for a purpose that would bring about an exemption hereunder
executes an invoice or sales ticket in duplicate on a form to be prescribed by the Tax
Commission. The purchaser may demand and receive a copy of the invoice or sales
ticket and the vendor shall retain a copy;
4. Sales of items to be and in fact used in the production of agricultural products. Sale
of the following items shall be subject to the following limitations:
a. Sales of agricultural fertilizer to any person regularly engaged, for profit, in the
business of farming or ranching. Each such purchaser shall certify, in writing, on the
copy of the invoice or sales ticket to be retained by the vendor, that he is so engaged
in farming or ranching and that the material purchased will be used only in such
business;
b. Sales of agricultural fertilizer to any person engaged in the business of applying
such materials on a contract or custom basis to land owned or leased and operated by
persons regularly engaged, for profit, in the business of farming or ranching. Each such
purchaser shall certify, in writing, on the copy of the invoice or sales tickets to be
retained by the vendor that he is engaged in the business of applying such materials to
lands owned or leased and operated by persons regularly engaged, for profit, in the
business of farming or ranching, and shall show in the certificate the name or names of
such owner or lessee and operator, the location of the lands on which the materials are
to be applied to each such land, and he shall further certify that his contract price has
been reduced so as to give the farmer or rancher the full benefit of this exemption;
c. Sales of agricultural fertilizer to persons engaged in the business of applying such
materials on a contract or custom basis shall not be considered to be sales to
contractors under this chapter, and the sales shall not be considered to be taxable
sales within the meaning of the Oklahoma Sales Tax Code. As used in this section,
“agricultural fertilizer” means any substance sold and used for soil enrichment or soil
corrective purposes or for promoting the growth and productivity of plants;
d. Sales of agricultural seed or plants to any person regularly engaged, for profit, in
the business of farming or ranching. This section shall not be construed as exempting
from sales tax, seed which is packaged and sold for use in noncommercial flower and
vegetable gardens;
e. Sales of agricultural chemical pesticides to any person regularly engaged, for
profit, in the business of farming or ranching. For the purposes of this chapter,
agricultural chemical pesticides shall include any substance or mixture of substances
Page 7-18
Finance and Taxation
intended for preventing, destroying, repelling or mitigating any insect, snail, slug, rodent,
bird, nematode, fungus, weed, or any other form of terrestrial or aquatic plant or animal
life or virus, bacteria or other microorganism, except viruses, bacterial or other
microorganisms on or in living man, or any substance or mixture of substances intended
for use as a plant regulator, defoliant or desiccant;
f. This exemption shall only be granted and extended to the purchaser where the
items are to be used and in fact are used in the production of agricultural products.
Each purchaser shall certify, in writing, on the copy of the invoice or sales ticket to be
retained by the vendor that the material purchased will only be used in his farming
occupation. The vendor shall certify to the Oklahoma Tax Commission that the contract
price of the items has been reduced to grant the full benefit of the exemption.
Violation hereof by the purchaser or vendor shall be a misdemeanor, and, upon
violation and conviction for a second offense the Oklahoma Tax Commission shall
revoke the vendor’s sales tax permit; or
5. Sale of farm machinery, repair parts thereto or fuel, oil, lubricants and other
substances used for operation and maintenance of the farm machinery to be used
directly on a farm or ranch in the production, cultivation, planting, sowing, harvesting,
processing, spraying, preservation or irrigation of any livestock, poultry, agricultural or
dairy products produced for such lands. Each purchaser of farm machinery, repair
parts thereto or fuel must certify, in writing, on the copy of the invoice or sales ticket to
be retained by the vendor, that he is engaged in farming or ranching and that the farm
machinery, repair parts thereto or fuel will be used only in farming or ranching. The
exemption provided for herein shall not apply to motor vehicles. Each purchaser shall
certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor
that the material purchased will only be used in his farming occupation. The vendor
shall certify to the Oklahoma Tax Commission that the price of the items has been
reduced to grant the full benefit of the exemption. Violation hereof by the purchaser or
vendor shall be a misdemeanor, and, upon violation and conviction for a second
offense the Oklahoma Tax Commission shall revoke the vendor’s sales tax permit.
(Ord. 326, 4/19/93)
SECTION 7-213 EXEMPTIONS; MANUFACTURERS
There are hereby specifically exempted from the tax levied by this chapter:
1. Goods, wares, merchandise and property purchased for the purpose of being used
or consumed in the process of manufacturing, compounding, processing, assembling
or preparing for sale a finished article and such goods, wares, merchandise or property
become integral parts of the manufactured, compounded, processed, assembled or
prepared products or are consumed in the process of manufacturing, compounding,
processing, assembling or preparing products for resale. The term “manufacturing
plants” shall mean those establishments primarily engaged in manufacturing or
processing operations and generally recognize as such;
2. Ethyl alcohol when sold and used for the purpose of blending same with motor fuel
on which motor fuel tax is levied by state law;
Page 7-19
Finance and Taxation
3. Sale of machinery and equipment purchased and used by persons establishing new
manufacturing plants in Oklahoma, and machinery and equipment purchased and
used by persons in the operation of manufacturing plants already established in
Oklahoma. This exemption shall not apply unless such machinery and equipment is
incorporated into, and is directly used in, the process of manufacturing property subject
to taxation under this chapter. The term “manufacturing plants” shall mean those
establishments primarily engaged in manufacturing or processing operations, and
generally recognized as such;
4. Sales of containers when sold to a person regularly engaged in the business of
reselling empty or filled containers or when purchased for the purpose of packaging
raw products of farm, garden or orchard for resale to the consumer or processor. This
exemption shall not apply to the sale of any containers used more than once and
which are ordinarily known as returnable containers, except returnable soft drink
bottles. Each and every transfer of title or possession of such returnable containers in this
state to any person who is not regularly engaged in the business of selling, reselling or
otherwise transferring empty or filled containers shall be taxable under this code. And,
this exemption shall not apply to the sale of labels or other materials delivered along
with items sold but which are not necessary or absolutely essential to the sale of the sold
merchandise; or
5. Sale of tangible personal property manufactured in Oklahoma when sold by the
manufacturer to a person who transports it to another state for immediate and
exclusive use in some other state.
(Ord. 326, 4/19/93)
SECTION 7-214 EXEMPTIONS; CORPORATIONS AND PARTNERSHIPS
There are hereby specifically exempted from the tax levied in this chapter:
1. The transfer of tangible personal property, as follows:
a. From one corporation to another corporation pursuant to a reorganization. As
used in this subparagraph the term “reorganization” means a statutory merger or
consolidation or the acquisition by a corporation of substantially all of the properties of
another corporation when the consideration is solely all or a part of the voting stock of
the acquiring corporation, or of its parent or subsidiary corporation;
b. In connection with the winding up, dissolution or liquidation of a corporation
only when there is a distribution in kind to the shareholders of the property of such
corporation;
c. To a corporation for the purpose of organization of such corporation where the
former owners of the property transferred are immediately after the transfer in control of
the corporation ,and the stock or securities received by each is substantially in
proportion to his interest in the property prior to the transfer;
Page 7-20
Finance and Taxation
d. To a partnership in the organization of such partnership if the former owners of
the property transferred are immediately after the transfer, members of such
partnership and the interest in the partnership, received by each, is substantially in
proportion to his interest in the property prior to the transfer; or
e. From a partnership to the members thereof when made in kind in the dissolution
of such partnership; or
2. Sale of an interest in tangible property to a partner or other person who after such
sale owns a joint interest in such tangible personal property where the state sales or use
tax has previously been paid on such tangible personal property.
(Ord. 326, 4/19/83)
SECTION 7-215 TAX DUE WHEN; RETURNS; RECORDS
The tax levied hereunder shall be due and payable at the time and in the manner and
form prescribed for payment of the state sales tax under the Oklahoma Sales Tax Code.
SECTION 7-216 PAYMENT OF TAX; BRACKETS
A. The tax herein levied shall be paid to the tax collector at the time and in the manner
and form prescribed for payment of state sales tax under the State Tax Law of the State
of Oklahoma.
(Ord. 326, 4/19/83; Ord. 763, 8/5/03)
SECTION 7-217 TAX CONSTITUTES DEBT
The taxes, penalty and interest due under this chapter shall at all times constitute a
prior, superior and paramount claim as against the claims of unsecured creditors, and
may be collected by suit as any other debt. (Ord. 326, 4/19/83)
SECTION 7-218 VENDOR’S DUTY TO COLLECT TAX; PENALTIES
A. The tax levied hereunder shall be paid by the consumer or user to the vendor. It is
the duty of each and every vendor in this city to collect from the consumer or user the
full amount of the tax levied by this chapter, or an amount equal as nearly as possible
or practicable to the average equivalent thereof.
B. Vendors shall add the tax imposed hereunder, or the average equivalent thereof, to
the sales price or charge, and when added such tax shall constitute a part of such
price or charge, shall be a debt from the consumer or user to vendor until paid, and
shall be recoverable at law in the same manner as other debts.
C. A vendor, as defined hereunder, who willfully or intentionally fails, neglects or refuses
to collect the full amount of the tax levied by this chapter, or willfully or intentionally
fails, neglects or refuses to comply with the provisions or remits or rebates to a consumer
or user, either directly or indirectly, and by whatsoever means, all or any part of the tax
herein levied, or makes in any form of advertising, verbally or otherwise, any statement
Page 7-21
Finance and Taxation
which infers that he is absorbing the tax, or paying the tax for the consumer or user by
an adjustment of prices or at a price including the tax, or in any many whatsoever, shall
be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined as
provided in Section 1-108 of this code.
D. Any sum or sums collected or required to be collected in accordance with this
chapter shall be deemed to be held in trust for the city. Any person, firm, corporation,
joint venture or association that willfully or intentionally fails, neglects or refuses to
collect the sums required to be collected or paid shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be fined as provided in Section 1-108
of this code. (Ord. 326, 4/19/83)
SECTION 7-219 RETURNS AND REMITTANCES; DISCOUNTS
Returns and remittances of the tax herein levied and collected shall be made to the tax
collector at the time and in the manner, form and amount as prescribed for returns and
remittances of tax collected hereunder and shall be subject to the same discount as
may be allowed by the Oklahoma Sales Tax Code for collection of state sales taxes.
(Ord. 326, 4/19/83)
SECTION 7-220 INTEREST AND PENALTIES; DELINQUENCY
Section 217 of Title 68 of the Oklahoma Statutes is hereby adopted and made a part of
this chapter, and interest and penalties at the rates and in amounts as therein specified
are hereby levied and shall be applicable in cases of delinquency in reporting and
paying the tax levied by this chapter. The failure or refusal of any taxpayer to make
and transmit the reports and remittances of tax in the time and manner required by this
chapter shall cause such tax to be delinquent. In addition, if the delinquency continues
for a period of five (5) days, the taxpayer shall forfeit his claim to any discount allowed
under this chapter. (Ord. 326, 4/19/83)
SECTION 7-221 WAIVER OF INTEREST AND PENALTIES
The interest or penalty or any portion thereof accruing by reason of a taxpayer’s failure
to pay the city tax herein levied may be waived or remitted in the same manner as
provided for the waiver or as applied in administration of the state sales tax provided in
Section 220 of Title 68 of the Oklahoma Statutes. To accomplish the purposes of this
section, the applicable provisions of Section 220 of Title 68 are hereby adopted by
reference and made a part of this chapter. (Ord. 326, 4/19/83)
SECTION 7-222 ERRONEOUS PAYMENTS; CLAIM FOR REFUND
Refund of erroneous payment of the city sales tax herein levied may be made to any
taxpayer making the erroneous payment in the same manner and procedure, and
under the same limitations of time, as provided for administration of the state sales tax
as set forth in Section 227 of Title 68 of the Oklahoma Statutes. To accomplish the
purpose of this section, the applicable provisions of Section 227 of Title 68 are hereby
adopted by reference and made a part of this chapter. (Ord. 326, 4/19/83)
Page 7-22
Finance and Taxation
SECTION 7-223 FRAUDULENT RETURNS
In addition to all civil penalties provided by this chapter, the willful failure or refusal of
any taxpayer to make reports and remittances herein required, or the making of any
false and fraudulent report for the purpose of avoiding or escaping payment of any tax
or portion thereof rightfully due under this chapter shall be an offense, and upon
conviction thereof the offending taxpayer shall be subject to a fine and imprisonment
as provided in Section 1-108 of this code. (Ord. 326, 4/19/83)
SECTION 7-224 RECORDS CONFIDENTIAL
The confidential and privileged nature of the records and files concerning the
administration of the city sales tax is legislatively recognized and declared, and to
protect the same the provisions of the State Sales Tax Code, Section 205 of Title 68 of
the Oklahoma Statutes, and each subsection thereof, are as if here set forth in full (Ord.
326, 4/19/83)
SECTION 7-225 AMENDMENTS
The people of the City of Owasso, Oklahoma, by their approval of this Ordinance at
the election hereinabove provided for, hereby authorize the City by Ordinance duly
enacted to make such administrative and technical changes or additions in the
method and manner of administration and enforcing this Ordinance as may be
necessary or proper for efficiency and fairness are in order to make the same consistent
with the Oklahoma Sales Tax Code, as amended, except that the rate of the tax herein
provided for shall not be changed without approval of the qualified electors of the City
as provided by law. (Ord. 326, 4/19/83; Ord. 763, 8/5/03)
SECTION 7-226 PROVISIONS CUMULATIVE
The provisions hereof shall be cumulative and in addition to any and all other taxing
provisions of city ordinances. (Ord. 326, 4/19/83; Ord. 763, 8/5/03)
SECTION 7-227 NO REPEAL OF TAX
The excise tax levied pursuant hereto shall not be repealed by the City Council of the
City or by referendum of the registered qualified voters of the City in the event the
proceeds of the referenced excise tax are being used for have been pledged by the
City or any public trust having the City as beneficiary for the purpose of paying debt
service on obligations issued by the City or any public trust having the City as
beneficiary.
Page 7-23
Finance and Taxation
CHAPTER 3
UTILITIES TAX
Section 7-301 Tax Levied
Section 7-302 Tax to be Quarterly
Section 7-303 Failure to Pay Tax
Section 7-304 Tax to Constitute a Prior Lien
SECTION 7-301 TAX LEVIED
There is hereby levied and assessed an annual tax upon all persons, firms,
associations and corporations engaged in the business of furnishing power, light, heat,
gas, electricity, or water, in the city, in an amount equal to two percent (2%) of the
gross receipts from residential and commercial sales. This tax shall not apply to any
person, firm or corporation operating under a valid franchise from the city. The tax shall
be in lieu of any other franchise, license, occupation or excise tax, levied by the city.
State Law Reference: Authority to levy tax on utilities, 68 O.S. Sections 2601 et seq.
SECTION 7-302 TAX TO BE QUARTERLY
The tax levied in Section 7-301 of this code shall be levied for a term of not less
than one year and is payable quarterly. All utility taxes levied shall be placed in the
general fund of the city.
SECTION 7-303 FAILURE TO PAY TAX
Any person, firm or corporation failing or refusing to pay such tax shall be regarded
as a trespasser, and may be ousted from the city. In addition thereto, an action will be
commenced and maintained against such person, firm or corporation for the amount
of the tax, and all expenses of collecting same, including reasonable attorney fees.
SECTION 7-304 TAX TO CONSTITUTE A PRIOR LIEN
The tax so imposed shall constitute a first and prior lien on all of the assets located
within the city, of any such person, firm or corporation engaged in the business of selling
power, light, heat, gas, electricity, or water.
Page 7-24
Finance and Taxation
CHAPTER 4
TELEPHONE EXCHANGE TAX
Section 7-401 Inspection Fee and Service Charge
Section 7-402 Fee in Lieu of Certain Other Charges
SECTION 7-401 INSPECTION FEE AND SERVICE CHARGE
There is hereby levied an annual inspection fee and service charge upon each
and every person, firm and corporation operating a telephone exchange in the city in
an amount equal to two percent (2%) of the gross revenues for each current year for
exchange telephone transmission service rendered wholly within the limits of the city to
compensate the city for the expenses incurred and services rendered incident to the
exercise of its police power, supervision, police regulation and police control of the
construction of lines and equipment of the telephone company in the city. The
inspection fee and charge shall be due and payable to the city on or before the first
day of May of each year, commencing with the first day of July of each year and shall
be paid into and appropriated and expended from the general revenue fund of the
city.
SECTION 7-402 FEE IN LIEU OF CERTAIN OTHER CHARGES
During the continued substantial compliance with the terms of this chapter by the
owner of any telephone exchange, the charge levied hereby shall be and continue to
be in lieu of all concessions, charges, excise, license, privilege and permit fees or taxes
or assessments except ad valorem taxes; provided, however, that it is not intended
hereby to extinguish or abrogate any existing arrangement whereby the city is
permitted to use underground conduit, duct space or pole contacts of the company
for the fire alarm or police call systems of the city.
Page 7-25
Finance and Taxation
CHAPTER 5
USE TAX
Section 7-501 Citation and Codification
Section 7-502 Definitions
Section 7-503 Excise Tax on Storage, Use or Other Consumption of Intangible,
Personal Property Levied
Section 7-504 Purpose of Revenues
Section 7-505 Exemptions
Section 7-506 Time When Due, Returns, Payment
Section 7-507 Tax Constitutes Debt
Section 7-508 Collection of tax by retailer or vendor.
Section 7-509 Collection of Tax by Retailer or Vendor Not Maintaining a Place of
Business within State or Both Within and Without State, Permits
Section 7-510 Revoking Permits
Section 7-511 Remunerative Deductions Allowed Vendors or Retailers of Other
States
Section 7-512 Interest and Penalties, Delinquency
Section 7-513 Waiver of Interest and Penalties
Section 7-514 Erroneous Payments, Claim for Refund
Section 7-515 Fraudulent Returns
Section 7-516 Records Confidential
Section 7-517 Classification of Taxpayers
Section 7-518 Subsisting State Permits
Section 7-519 Provisions Cumulative
SECTION 7-501 CITATION AND CODIFICATION
This chapter shall be known and may be cited as "City of Owasso Use Tax". (Ord. No.
355, 8/19/86)
SECTION 7-502 DEFINITIONS
The definitions of words, terms and phrases contained in the Oklahoma Use Tax
Code, Section 1401 of Title 68 of the Oklahoma Statutes, are hereby adopted by
reference and made a part of this chapter. In addition thereto, the following words
and terms shall be defined as follows:
1. "Tax collector" means the department of the city government or the official
agency of the state, duly designated according to law or contract authorized by law,
to administer the collection of the tax herein levied; and
2. "Transaction" means sale.
(Ord. No. 355, 8/19/86)
Page 7-26
Finance and Taxation
SECTION 7-503 EXCISE TAX ON STORAGE, USE OR OTHER CONSUMPTION OF
INTANGIBLE, PERSONAL PROPERTY LEVIED
1. 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 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.
4. Any person liable for payment of the tax authorized herein may deduct from
such tax 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.
(Ord. 355, 8/19/86; 1047, 2/17/15; 1080, 5/17/16)
SECTION 7-504 PURPOSE OF REVENUES
It is hereby declared to be the purpose of this chapter to provide revenues for the
support of the functions of the municipal government of the city, and any and all
revenues derived hereunder may be expended by the governing body of the city for
any purpose for which funds may be lawfully expended as authorized. (Ord. No. 355,
8/19/86)
SECTION 7-505 EXEMPTIONS
The provisions of this chapter shall not apply:
1. In respect to the use of an article of tangible, personal property brought into
the city by a nonresident individual visiting in this city for his or her personal use or
enjoyment while within the city;
2. In respect to the use of tangible, personal property purchased for resale
before being used;
3. In respect to the use of any article of tangible, personal property on which a
tax, equal to or in excess of that levied by both the Oklahoma Use Tax Code and the
City of Owasso Use Tax, has been paid by the person using such tangible, personal
Page 7-27
Finance and Taxation
property in the city, whether such tax was levied under the laws of Oklahoma or some
other state or municipality of the United States. If any article of tangible, personal
property has already been subjected to a tax by Oklahoma or any other state or
municipality in respect to its sale or use, in an amount less than the tax imposed by both
the Oklahoma Use Tax Code and City of Owasso Use Tax, the provision of this chapter
shall also apply to it by a rate measured by the difference only between the rate
provided by both the Oklahoma Use Tax Code and the City of Owasso Use Tax, and
the rate by which the previous tax upon the sale or use was computed. Provided, that
no credit shall be given for taxes paid in another state or municipality, if that state or
municipality does not grant like credit for taxes paid in Oklahoma and the city;
4. In respect to the use of machinery and equipment purchased and used by
persons establishing new manufacturing or processing plants in the city, and machinery
and equipment purchased and used by persons to the operation of manufacturing
plants already established in the city. Provided, this exemption shall not apply unless
such machinery and equipment is incorporated into, and is directly used in, the process
of manufacturing property subject to taxation under the sales tax code of the city. The
term "manufacturing plants" means those establishments primarily engaged in
manufacturing or processing operations, and generally recognized as such;
5. In respect to the use of tangible, personal property now specifically
exempted from taxation under the sales tax code of the city;
6. In respect to the use of any article of tangible, personal property brought into
the city by an individual with intent to become a resident of this city where such
personal property is for such individual's personal use or enjoyment;
7. In respect to the use of any article of tangible, personal property used or to
be used by commercial airlines or railroads; or
8. In respect to livestock purchased outside Oklahoma and brought into this city
for feeding or breeding purposes, and which is later resold.
(Ord. No. 355, 8/19/86)
SECTION 7-506 TIME WHEN DUE, RETURNS, PAYMENT
The tax levied by this chapter is due and payable at the time and in the manner
and form prescribed for payment of the State Use Tax under the Use Tax Code of the
State of Oklahoma. (Ord. No. 355, 8/19/86)
SECTION 7-507 TAX CONSTITUTES DEBT
Such taxes, penalty and interest due hereunder shall at all times constitute a prior,
superior and paramount claim as against the claims of unsecured creditors, and may
be collected by suit as any other debt. (Ord. No. 355, 8/19/86)
Page 7-28
Finance and Taxation
SECTION 7-508 COLLECTION OF TAX BY RETAILER OR VENDOR
Every retailer or vendor maintaining places of business both within and without the
state, and making sales of tangible, personal property from a place of business outside
this state for use in this city shall at the time of making such sales collect the use tax
levied by this chapter from the purchaser and give to the purchaser a receipt therefore
in the manner and form prescribed by the Tax Commission, if the Tax Commission shall,
by regulation, require such receipt. Each retailer or vendor shall list with the Tax
Commission the name and address of all his agents operating in this city and location
of any and all distribution or sales houses or offices or other places of business in the city.
(Ord. No. 355, 8/19/86)
SECTION 7-509 COLLECTION OF TAX BY RETAILER OR VENDOR NOT MAINTAINING A
PLACE OF BUSINESS WITHIN STATE OR BOTH WITHIN AND WITHOUT
STATE, PERMITS
The Tax Commission may, in its discretion, upon application, authorize the
collection of the tax herein levied by any retailer or vendor not maintaining a place of
business within this state but who makes sales of tangible, personal property for use in
this city and by the out-of-state place of business of any retailer or vendor maintaining
places of business both within and without this state and making sales of tangible,
personal property such out-of-state place of business for use in this city. Such retailer or
vendor may be issued, without charge, a permit to collect such taxes by the Tax
Commission in such manner and subject to such regulations and agreements as it shall
prescribe. When so authorized, it shall be the duty of such retailer or vendor to collect
the tax upon all tangible, personal property sold to his knowledge for use within this city.
Such authority and permit may be cancelled when at any time the Tax Commission
considers that such tax can more effectively be collected from the person using such
property in this city. Provided, however, that in all instances where such sales are made
or completed by delivery to the purchaser within this city by the retailer or vendor in
such retailer's or vendor's vehicle, whether owned or leased (not by common carrier),
such sales or transactions shall continue to be subject to applicable city sales tax at the
point of delivery and the tax shall be collected and reported under taxpayer's sales tax
permit number accordingly. (Ord. No. 355, 8/19/86)
SECTION 7-510 REVOKING PERMITS
Whenever any retailer or vendor not maintaining a place of business in this state,
or both within and without this state, and authorized to collect the tax herein levied, fails
to comply with any of the provisions of this chapter of the Oklahoma Use Tax Code or
any orders, rules or regulations of the Tax Commission, the Tax Commission may, upon
notice and hearing as provided for in Section 1408 of Title 68 of the Oklahoma Statutes,
by order revoke the use tax permit, if any, issued to such retailer or vendor, and if any
such retailer or vendor is a corporation authorized to do business in this state may, after
notice and hearing above provided, cancel the corporation's license to do business in
this state and shall issue a new license only when such corporation has complied with
the obligations under this chapter, the Oklahoma Use Tax Code, or any orders, rules or
regulations of the Tax Commission. (Ord. No. 355, 8/19/86)
Page 7-29
Finance and Taxation
SECTION 7-511 REMUNERATIVE DEDUCTIONS ALLOWED VENDORS OR RETAILERS OF
OTHER STATES
Returns and remittances of the tax herein levied and collected shall be made to
the Tax Commission at the time and in the manner, form and amount as prescribed for
returns and remittances required by the Oklahoma Use Tax Code; and remittances of
tax collected hereunder shall be subject to the same discount as may be allowed by
the code for the collection of state use taxes. (Ord. No. 355, 8/19/86)
SECTION 7-512 INTEREST AND PENALTIES, DELINQUENCY
Section 217 of Title 68 of the Oklahoma Statutes is hereby adopted and made a
part of this chapter, and interest and penalties at the rates and in the amounts as
herein specified are hereby levied and shall be applicable in cases of delinquency in
reporting and paying the tax levied by this chapter. Provided, that the failure or refusal
of any retailer or vendor to make and transmit the reports and remittances of tax in the
time and manner required by this chapter shall cause such tax to be delinquent. In
addition, if such delinquency continues for a period of five (5) days, the retailer or
vendor shall forfeit his claim to any discount allowed under this chapter. (Ord. No. 355,
8/19/86)
SECTION 7-513 WAIVER OF INTEREST AND PENALTIES
The interest or penalty or any portion thereof accruing by reason of a retailer's or
vendor's failure to pay the city tax herein levied may be waived or remitted in the same
manner as provided for the waiver or remittance as applied in administration of the
State Use Tax provided in Section 227 of Title 68 of the Oklahoma Statutes, and to
accomplish the purposes of this section the applicable provisions of Section 220 are
hereby adopted by reference and made a part of this chapter. (Ord. No. 355, 8/19/86)
SECTION 7-514 ERRONEOUS PAYMENTS, CLAIM FOR REFUND
Refund of erroneous payment of the city use tax herein levied may be made to
any taxpayer making such erroneous payment in the same manner and procedure,
and under the same limitations of time, as provided for administration of the State Use
Tax as set forth in Section 227 of Title 68 of the Oklahoma Statutes, and to accomplish
the purpose of this section, the applicable provisions of Section 227 are hereby
adopted by reference and made a part of this chapter. (Ord. No. 355, 8/19/86)
SECTION 7-515 FRAUDULENT RETURNS
In addition to all civil penalties provided by this chapter, the willful failure or refusal
of any taxpayer to make reports and remittances herein required, or the making of any
false and fraudulent report for the purpose of avoiding or escaping payment of any tax
or portion thereof rightfully due under this chapter shall be an offense, and upon
conviction thereof the offending taxpayer shall be punished as provided in Section 1-
108 of this code. Each day of noncompliance with this chapter shall constitute a
separate offense. (Ord. No. 355, 8/19/86)
Page 7-30
Finance and Taxation
SECTION 7-516 RECORDS CONFIDENTIAL
The confidential and privileged nature of the records and files concerning the
administration of the city use tax is legislatively recognized and declared, and to
protect the same the provisions of Section 205 of Title 68 of the Oklahoma Statutes, of
the State Use Tax Code, and each subsection thereof, is hereby adopted by reference
and made fully effective and applicable to administration of the city use tax as is herein
set forth in full. (Ord. No. 355, 8/19/86)
SECTION 7-517 CLASSIFICATION OF TAXPAYERS
For the purpose of this chapter, the classification of taxpayers hereunder shall be as
prescribed by state law for purposes of the Oklahoma Use Tax Code. (Ord. No. 355,
8/19/86)
SECTION 7-518 SUBSISTING STATE PERMITS
All valid and subsisting permits to do business issued by the Tax Commission pursuant to
the Oklahoma Use Tax Code are for the purpose of this chapter hereby ratified,
confirmed and adopted in lieu of any requirement for an additional city permit for the
same purpose. (Ord. No. 355, 8/19/86)
SECTION 7-519 PROVISIONS CUMULATIVE
The provisions hereof shall be cumulative, and in addition to any and all other taxing
provisions of the city ordinances. (Ord. No. 355, 8/19/86)
Page 7-31
Finance and Taxation
CHAPTER 6
HOTEL TAX
Section 7-601 Definitions
Section 7-602 Tax Rate
Section 7-603 Exemptions
Section 7-604 Tax to be Separately Designated on Bills
Section 7-605 Operators’ Duties
Section 7-606 Bond Required
Section 7-607 Assessment and Determination of Tax
Section 7-608 Refunds
Section 7-609 Notices
Section 7-610 Remedies Exclusive
Section 7-611 General Powers of the City Manager
Section 7-612 Certificates of Registration
Section 7-613 Use of Funds
Section 7-614 Records Confidential
Section 7-615 Criminal Penalties
Section 7-616 Civil Remedies
SECTION 7-601 DEFINITIONS
As used in this ordinance:
1. “Hotel” shall mean any building or buildings, structures, trailer or other facility
in which the public may, for consideration, obtain sleeping accommodations, and in
which five (5) or more rooms are used for the accommodation of such occupant
whether such rooms are in one or several structures. The term shall include hotels,
apartmental hotels, motels, tourist courts, lodging houses, inns, bed & breakfasts,
rooming houses and dormitory space where bed space is rented to individuals or
groups, apartments not occupied by “permanent residents”, and all other facilities
where rooms or sleeping facilities or space are furnished for a consideration. The term
shall not include hospitals, sanitariums or nursing homes.
2. “Occupancy” shall mean the use or possession, or the right to the use or
possession of any room or rooms in a hotel, or the right to the use or possession of the
furnishings or the service and accommodation accompanying the use and possession
of the room or rooms
3. “Occupant” shall be the person who, for a consideration, uses, possesses, or
has the right to the use or possession of any room or rooms in a hotel under any lease,
concession, permit, right of access, license to use, or other agreement.
4. “Operator” shall mean any person operating a hotel within the City, included,
but not limited to, the owner, proprietor, manager, lessee, sublessee, or mortgagee
operating such hotel.
Page 7-32
Finance and Taxation
5. “Permanent Resident” shall mean any occupant who has or shall have the
right of occupancy of any room or rooms in a hotel for at least thirty (30) consecutive
days during the current calendar year.
6. “Rent” shall mean the consideration received for occupancy valued in
money, whether received in money or otherwise, including all receipts, cash, credits,
and property or services of any kind or nature, and also which credit is allowed by the
operator to the occupant, without any deduction therefrom whatsoever.
7. “Return” shall mean any report filed or required to be filed as herein
provided.
8. “Room” shall mean any room or suite of rooms of any kind in any part or
portion of a hotel which is available for or let out for use or possession for any purpose
other than a place of assembly.
9. “Tax” shall mean the tax levied pursuant to this ordinance.
(Ord. No. 699, 1/08/02; Ord. No. 1033, 6/3/14)
SECTION 7-602 TAX RATE
There is hereby levied an excise tax of five percent (5%) upon the gross proceeds or
gross receipts derived from all the rent for every occupancy of a room or rooms in a
hotel or motel in the City of Owasso, except that the tax will not be imposed where the
rent is less than five dollars ($5.00) per day. (Ord. No. 699, 1/08/02; Ord. No. 925, 8/26/2008
election)
SECTION 7-603 EXEMPTIONS
A. Occupancy. The following shall be exempt from the tax levied in this
ordinance:
1. Permanent residents;
2. Agents, employees and/or officials of the United States Government or
any agency or division thereof conducting official business;
3. Agents, employees and/or officials of the State of Oklahoma or any
political subdivision conducting official business.
B. Certificate of Exemption Required. Anyone claiming to be exempt from the
tax must obtain a Certification from the City Manager, or designee, that the person,
organization, association or corporation with which the occupant is affiliated is exempt
from the tax. Prior to issuing such a Certificate, a certification from the said organization
that the occupant is an agent, employee or officer and that their occupancy of the
room is required in connection with the affairs of said exempt organization, association
or corporation.
(Ord. No. 699, 1/08/02; Ord. No. 1033 6/3/14)
Page 7-33
Finance and Taxation
SECTION 7-604 TAX TO BE SEPARATELY DESIGNATED ON BILLS
The operator shall separately designate, charge and show the tax on all bills,
statements, receipts or other evidence of charge or payment of rent for occupancy
issued or delivered by the operator. In the absence of a Certificate of Exemption as
specified above it shall be presumed that the rent on all occupancies is taxable, and
the burden of proof shall be on the operator. (Ord. No. 699, 1/08/02)
SECTION 7-605 OPERATORS’ DUTIES
A. Operator Responsible for Collections. The operator shall be responsible for
the collection of the tax from the occupant and shall be liable to the City for the tax,
which shall be held in trust by the operator until paid to the City. The operator shall join
the City as a party to any action brought by the operator to enforce collection of the
tax.
B. Records to be Kept. Every operator shall keep records of every occupancy
and of all rent paid, charged, or due thereon and of the tax payable thereon in such
form as the City Manager or designee, may by regulation require. Such records shall be
available for inspection and examination at any time upon demand by the City
Manager, or a duly authorized agent or employee of the City, and shall be preserved
for a period of three (3) years.
C. Returns.
1. Every operator shall file with the City Manager, or designee, a report of
occupancy and of rents, and of the taxes payable thereon for the period ending
on the last day of each month following the effective date of this Ordinance.
Such return shall be filed within the first fifteen (15) days after the end of each
such month.
2. Each operator shall further file with the City Manager, or designee, a copy
of their completed Oklahoma State Sales Tax form within ten (10) days after June
ththstst
30, September 30, December 31, and March 31 of each year following the
effective date of this ordinance.
3. The form of return shall be prescribed by the City Manager, or designee,
and shall contain such information as may be deemed necessary for the proper
administration of this Ordinance. The City Manager, or designee, may require
amended returns to be filed within twenty (20) days after notice and to contain
the information specified in the notice.
D. Payment of Tax. At the time of filing a return of occupancy and of rents,
each operator shall pay to the City Director of Finance, or designee, the taxes imposed
by the Ordinance upon the rents included in such return. All taxes not paid with a
timely return shall be delinquent. All the taxes for the period for which a return is
required to be filed shall be due from the operator and payable to the City’s Director of
Finance, or designee, on or before the date fixed for the filing of the return for such
Page 7-34
Finance and Taxation
period without regard to whether a return is filed or whether the return which is filed
correctly shows the amount of rents and the taxes due thereon.
E. Interest and Penalties. If any tax levied by this Ordinance becomes more
than 15 days delinquent, the person responsible and liable for such tax shall pay interest
on such unpaid tax at the rate of ten percent (10%) per month on the unpaid balance
from the date of delinquency. In the case of failure or refusal to file within ten (10) days
after written demand has been served upon the operator by the City Manager, or
designee, by registered or certified letter with return receipt requested, a penalty of
twenty five percent (25%) may be assessed and collected. If any portion of the
deficiency is due to fraud with intent to evade tax, a penalty of fifty percent (50%) shall
be added collected and paid.
(Ord. No. 699, 1/08/02)
SECTION 7-606 BOND REQUIRED
Where the City Manager, or designee, believes that any operator is about to cease
business, leave the state, or remove or dissipate assets, or for any other similar reason
the City Manager, or designee, deems it necessary in order to protect revenues under
this Ordinance the City Manager, or designee, may require such operator to file with
the City a bond issued by a surety company authorized to transact business in the State
of Oklahoma in such amount as the City Manager, or designee, may fix to secure the
payment of any tax or penalties and interest due, or which may become due from
such operator. In the event that the City Manager, or designee, determines that an
operator is to file such bond, the City shall give notice to such operator specifying the
amount of security required. The operator shall file such security as a performance
bond or irrevocable letter of credit within five (5) days after the filing of such notice
unless within such five (5) days the operator shall request in writing a hearing before the
City Council, at which time the necessary propriety and amount of the bond shall be
determined by the City Council. Such determination shall be final and shall be
complied with within fifteen (15) days thereafter. In lieu of such bond, a cash or
securities escrow, in an amount and under terms approved by the City Manager, or
designee, may be deposited with the City Manager, or designee, who may at any time
after (5) days notice to the depositor, apply them to any tax and/or any penalties due
and for that purpose the securities may be sold at private or public sale. (Ord. No. 699,
1/08/02)
SECTION 7-607 ASSESSMENT AND DETERMINATION OF TAX
If a return required by this Ordinance is not filed, or if a return when filed is incorrect or
insufficient, the amount of tax due shall be assessed by the City Manager, or designee,
from such information as may be obtainable and, if necessary, the tax may be
estimated on the basis of external indices, such as number of rooms, location, scale of
rents, comparable rents, types of accommodations and services, number of
employees, minimum of sixty percent (60%) of full occupancy or other factors. Written
notice of such assessments shall be given to the person liable for the collection and
payment of the tax. Such assessment shall finally and irrevocably fix and determine the
tax (a) unless the person against whom it is assessed, shall apply in writing to the City
Page 7-35
Finance and Taxation
Council within ninety (90) days after the City gives notice of such assessment, for a
hearing, or (b) unless the City Manager, or designee, decides to reassess the same.
After such hearing, the City Council shall give written notice of its determination to the
person against whom the tax is assessed and such determination shall be final. (Ord. No.
699, 1/08/02)
SECTION 7-608 REFUNDS
A. Procedure. The City Manager, or designee, shall direct the refund or credit of
any tax erroneously, illegally or unconstitutionally collected if written application to the
City Manager, or designee, for such refund is made within six (6) months from the date
of payment thereof. For like causes, and in the same period, a refund may be so made
upon the initiative of the City Manager, or designee, subject to existing limits on the
authority of the City Manager, or designee, as to amount. The City Manager, or
designee, in lieu of any refund required to be made, may allow credit thereof on
payments due from the applicant. Whenever a refund is made, the reasons therefore
shall be stated in writing. Such application may be made by the person who has
collected and paid such tax to the City Finance Director or designee; however, no
refund of money shall be made to the operator until the operator has repaid to the
occupant the amount for which the application for refund is made.
B. Determination and Hearing. Upon application for a refund the City Manager,
or designee, may receive evidence with respect thereto, and make such investigation
as is deemed necessary. After making a determination as to the refund, the City
Manager, or designee, shall give written notice thereof to the applicant. Such
determination shall be final unless the applicant, within ninety (90) days after such
notice shall apply in writing to the City Council for a hearing. After such hearing the
City Council shall give written notice of its decision to the applicant.
(Ord. No. 699, 1/08/02)
SECTION 7-609 NOTICES
Notices provided for under this Ordinance shall be deemed to have been given when
such notice has been delivered personally to the operator or deposited in the United
States mail, postage prepaid, to the last known address of the operator. In the
absence of written evidence received by the City to the contrary, the last known
address shall be presumed to be the address shown on the Certificate of Registration as
required by 7-612. (Ord. No. 699, 1/08/02)
SECTION 7-610 REMEDIES EXCLUSIVE
The remedies provided in this Ordinance shall be the exclusive remedies available to
any person for the review of tax liability imposed by this Ordinance. (Ord. No. 699, 1/08/02)
Page 7-36
Finance and Taxation
SECTION 7-611 GENERAL POWERS OF THE CITY MANAGER
In addition to all other powers granted to the City Manager, the Manager is hereby
authorized:
1. To make, adopt and amend rules and regulations appropriate to the
execution of this Ordinance and for the purposes hereof;
2. To extend for cause shown the time for filing any return for a period not
exceeding sixty (60) days; and for cause shown to waive, remit, or reduce penalties or
interest;
3. To delegate functions hereunder to authorized designees for the City;
4. To assess, reassess, and readjust the amount of taxes (but not the tax rate)
imposed by this Ordinance;
5. To prescribe methods for determining the taxable and nontaxable rents.
6. To administer oaths and take affidavits concerning any matter or proceeding
under this Ordinance.
7. To subpoena and require the attendance of witnesses and the production of
books, papers and documents to secure information pertinent to the performance and
the enforcement of this Ordinance and to examine them in relation thereto.
(Ord. No. 699, 1/08/02)
SECTION 7-612 CERTIFICATES OF REGISTRATION
Every operator shall file with the City Manager, or designee, a certificate of registration
in a form prescribed by the City Manager within ten (10) days after the effective date
of the ordinance, or in the case of operators commencing business or opening new
hotels after such effective date, within three (3) days after such commencement or
opening. The City Manager, or designee, shall, within five (5) days after such
registration, issue, without charge, to each operator a certificate of authority
empowering such operator to collect the tax from the occupant and duplicates
thereof for each additional hotel. Each certificate or duplicate shall state the hotel to
which it is applicable. Such certificate of authority shall be permanently displayed by
the operator in such manner that it may be seen and will come to the notice of all
occupants and persons seeking occupancy. Such certificates shall be non-assignable,
non-transferable, and shall be surrendered immediately to the City Manager upon the
cessation of business at the hotel named, or upon its sale or transfer. (Ord. No. 699, 1/08/02)
SECTION 7-613 USE OF FUNDS
A. All taxes collected pursuant to this Ordinance shall be set aside and used
exclusively to encourage, promote and foster economic development and cultural
Page 7-37
Finance and Taxation
enhancement, tourism and pursue regional promotion for the City of Owasso,
Oklahoma; and the cost of enforcing this Ordinance.
B. The City of Owasso, Oklahoma, is authorized to retain from the initial
proceeds of the Hotel Tax an amount equal to the costs of the election concerning this
Ordinance and borne by the City of Owasso, Oklahoma.
C. In order to compensate an operator for keeping tax records, filing reports,
and remitting the tax when due, the operator may retain a discount of one percent
(1%) of the total collected taxes for the current tax period. The operator shall not be
allowed the compensation set forth in 7-613 (c) for the payment for delinquent taxes.
(Ord. No. 699, 1/08/02)
SECTION 7-614 RECORDS CONFIDENTIAL
Records Confidential. The confidential and privileged nature of the records file
concerning the administration of the Hotel Tax is legislatively recognized and declared
and, in order to protect the same, the provisions of 68 O.S. (1991), Sec 205 of the State
Sales Tax Code, and each subsection thereof and all amendments thereto, are hereby
adopted by reference and made fully effective and applicable to the administration of
the Owasso, Oklahoma Hotel Tax as if here set forth. (Ord. No. 699, 1/08/02)
SECTION 7-615 CRIMINAL PENALTIES
A. The willful intent or refusal of any taxpayer to make reports and remittances
therein required, or the making of any false and fraudulent report for the purpose of
avoiding or escaping payment of any tax or portion thereof rightfully due under this
Ordinance shall be deemed an offense and punishable as provided under the
provisions of 1-108 of the Code of Ordinances of the City of Owasso, Oklahoma.
B. The failure by an operator 1) to file a security bond as required or 2) to register
or to display the certificate of registration, or 3) to separately state the tax on the bill or
failure to collect such tax from the occupant shall be deemed an offense and
punishable as provided under the provisions of 1-108 of the Code of Ordinances of the
City of Owasso, Oklahoma.
(Ord. No. 699, 1/08/02)
SECTION 7-616 CIVIL REMEDIES
A. Whenever any operator, occupant or other person shall fail to collect and/or
pay over any tax, or to owe any tax, penalty or interest imposed by this chapter as
herein provided, the Mayor may authorize the Director of Finance to file Notice of Liens
on behalf of the City of Owasso, Oklahoma against all franchises, property and rights to
property, whether real or personal, then belonging to or thereafter acquired by the
person owing the tax pursuant to Title 68 O.S. 1981, Section 2701 and Section 2704.
B. The liens shall, upon proper filing, attach to the real estate and/or personal
property then owned or thereafter acquired by the debtor, whether such property
Page 7-38
Finance and Taxation
issued by the debtor in the operation of business or is under the authority of an
assignee, trustee, or receiver for the benefit of creditors, from the date such taxes are
due and payable as allowed by Title 68 O.S. 1981, Section 2704.
C. The City Manager, or designee, shall notify the person owing the tax by
personal service or by certified mail that the City of Owasso, Oklahoma, will file such
liens if any delinquent lodging taxes, interest and or penalties are not paid with fifteen
(15) days of receiving such notice.
D. The City Manager may also authorize the City Attorney to institute an action
in personam and in rem to enforce payment and collect any delinquent lodging taxes,
penalties and/or interest.
(Ord. No. 699, 1/08/02)
Page 7-39
Finance and Taxation
CHAPTER 7
AUDIT COMMITTEE
Section 7-701 Creation of Audit Committee
Section 7-702 Composition-Appointment-Compensation
Section 7-703 Qualifications
Section 7-704 Terms of Office
Section 7-705 Vacancies
Section 7-706 Removal of Members
Section 7-707 Officers
Section 7-708 Meetings
Section 7-709 Quorum
Section 7-710 General Powers and Duties
Section 7-711 Procedural Rules-Subcommittees
Section 7-712 Cooperation of City Officials
Section 7-713 Limitation and Liability
SECTION 7-701 CREATION OF AUDIT COMMITTEE
An audit committee is established in and for the City of Owasso. The purpose of the
audit committee is to help oversee the audit of financial statements, ensure the auditor
is independent of management and address control and compliance weaknesses.
(Ord. No. 872, 8/15/06)
SECTION 7-702 COMPOSITION—APPOINTMENT—COMPENSATION
A. The audit committee shall consist of five (5) voting members and two (2) non-
voting ex-officio members. All members shall be appointed by the council and shall
serve without compensation.
B. The five (5) voting members shall include one city councilor and not less than
one person from each of the following groups, provided, however, that one group,
which may vary from time to time may be represented by not more than two (2)
members:
(1) Bankers, or other financial institutions;
(2) Businessperson; and
(3) Non-practicing certified public accountants.
C. The two (2) ex-officio, non-voting members shall be the city manager and the
director of finance.
(Ord. No. 872, 8/15/06)
SECTION 7-703 QUALIFICATIONS
The city councilor appointed to the audit committee shall be a city councilor who is
serving the second year of the three-year term of office. If no councilor is serving the
second year of the three-year term of office, the council may appoint a councilor in
Page 7-40
Finance and Taxation
the third year of the term of office. If no councilor meets these qualifications, then the
council may appoint another experienced councilor. However, no city councilor may
succeed himself/herself on the audit committee.
Each appointed member of the audit committee shall be a resident within the city
fence line or own a business or be employed in the city at the time of appointment and
throughout incumbency. All members of the audit committee shall be persons with
knowledge of accounting, auditing and financial reporting and relevant experience
such as a corporate officer, auditor, attorney or professional consultant to business,
government or organizations.
(Ord. No. 872, 8/15/06)
SECTION 7-704 TERMS OF OFFICE
All members of the audit committee shall be appointed for a term of three (3) years
except for the city councilor who will be appointed for a one year term or until their
successors shall be qualified and appointed. The appointment of members shall be for
staggered terms:
The five (5) voting positions on the audit committee shall be divided into seats
numbered one through five. Seat No. 1 shall be held by a city councilor. The term of
st
office for Seat No. 1 shall expire on July 1, 2007, and every July 1, thereafter. No city
councilor may succeed himself/herself in office. Seat No. 2 may be held by any of the
remaining categories of members and shall expire on July 1, 2007, and on every third
year thereafter. Seats No. 3 and 4 may be held by any of the remaining categories of
members and shall expire on July 1, 2008, and on every third year thereafter. Seat No. 5
may be held by any of the remaining categories of members and shall expire on July 1,
2009, and on every third year thereafter.
(Ord. No. 872, 8/15/06)
SECTION 7-705 VACANCIES
Should a vacancy occur on the audit committee for any reason, such vacancy shall be
filled for the unexpired term by an appointment by majority of the council. A vacancy
shall be deemed to have occurred when an audit committee member resigns or
otherwise becomes unqualified to serve. (Ord. No. 872, 8/15/06)
SECTION 7-706 REMOVAL OF MEMBERS
Whenever, in the sole discretion of the city council, the council believes that the best
interests of the city shall be served; any appointed member of the audit committee
may be removed from office by majority vote of the council. (Ord. No. 872, 8/15/06)
SECTION 7-707 OFFICERS
Annually, the audit committee shall elect a chairperson and a secretary who shall hold
st
office until July 1 the following year or until expiration of the term of appointment
whichever shall first occur. In the absence of the chairperson at any meeting, the
members shall select a chairperson pro tempore who shall preside over the meeting of
Page 7-41
Finance and Taxation
the audit committee. (Ord. No. 872, 8/15/06)
SECTION 7-708 MEETINGS
The audit committee shall meet at least twice annually at a time and place as called
by the chair. Written notice of each meeting shall be provided to all members.
Special meetings of the audit committee may be called by the chairperson or any
three members. Written notice of the special meeting shall be provided to all
members.
(Ord. No. 872, 8/15/06)
SECTION 7-709 QUORUM
Three members of the audit committee shall constitute a quorum. (Ord. No. 872, 8/15/06)
SECTION 7-710 GENERAL POWERS AND DUTIES
The committee shall be responsible to:
1. Recommend to the council an independent firm of certified public
accountants to perform the annual audit of the city.
2. Analyze and report to the council significant findings in the annual audit
report and make recommendations regarding such findings.
3. Make recommendations, if any, to the council regarding the following
financial documents:
a. Annual financial statements,
b. Management letter submitted by the independent auditor, and
c. Response to management letter submitted by city staff.
(Ord. No. 872, 8/15/06)
SECTION 7-711 PROCEDURAL RULES—SUBCOMMITTEES
A. The audit committee may adopt, from time to time, such rules or procedures
as it may deem necessary to properly exercise its powers and duties. All such rules shall
be reviewed by the city attorney as to form and legality, and shall, after adoption, be
kept on file in the office of the finance director.
B. The chairperson of the audit committee may form ad hoc subcommittees
among its various members to research and analyze those issues which are within the
committee’s jurisdiction.
(Ord. No. 872, 8/15/06)
Page 7-42
Finance and Taxation
SECTION 7-712 COOPERATION OF CITY OFFICIALS
The director of finance or his or her designee, the city manager or his or her designee
shall attend each meeting and provide advice or assistance as requested by the audit
committee. The director of finance or his or her designee shall provide clerical or other
assistance as is necessary to maintain records of the audit committee proceedings. All
other officers, departments and department directors of the city shall cooperate with
the audit committee within the scope of the audit committee’s duties. (Ord. No. 872,
8/15/06)
SECTION 7-713 LIMITATION AND LIABILITY
Neither the audit committee nor any individual member thereof shall incur any financial
liability or responsibility in the name of, or on behalf of, the city by virtue of their activities
as audit committee members. (Ord. No. 872, 8/15/06)
Page 7-43