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HomeMy WebLinkAbout699_Amend Section 7_Finance_Taxation_Chapter 6_Hotel TaxTulsa County Clerk - EARLENE WILSON Doc # 02013205 Fee 29.00 ORDINANCE NO. 699 AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXATION, OF THE CODE AND ORDINANCES OF THE CITY OF OW ASSO, OKLAHOMA, CREATING CHAPTER 6, HOTEL TAX, SECTIONS 7-601 ET SEQ., LEVYING AND ASSESSING AN EXCISE TAX OF THREE PERCENT (3%) UPON THE GROSS RECEIPTS DERIVED FROM RENT OF HOTEL/MOTEL ROOMS; PROVIDING EXCEPTIONS; PROVIDING FOR THE ADMINISTRATION AND COLLECTION OF TAX; REQUIRING THE FILING OF RETURNS AND THE KEEPING OF RECORDS; PROVIDING FOR INTEREST AND PENAL TIES; AUTHORIZING THE CITY COUNCIL TO MAKE ADMINISTRATIVE AND TECHNICAL CHANGES AND ADDITIONS EXCEPT AS TO THE TAX RATE AND PURPOSE; REQUIRING THE APPROV AL OF THIS ORDINANCE BY MAJORITY VOTE OF REGISTERED VOTERS VOTING AT AN ELECTION HELD FOR SUCH PURPOSE AS PROVIDED BY LAW; AND FIXING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OW ASSO, OKLAHOMA, TO-WIT: SECTION 1. PART 7, FINANCE AND TAXATION, OF THE CODE OF ORDINANCES, OF THE CITY OF OW ASSO, OKLAHOMA, IS HEARBY AMENDED BY ADDING CHAPTER 6, HOTEL TAX, SECTION 7-601, ET SEQ., WHICH SAID SECTION TO READ AS FOLLOWS: 7 -601 Definitions. As used in this ordinance: a. 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 tenn shall include hotels, apartmental hotels, motels, tourist courts, lodging houses, inns, bed & breakfasts, rooming houses and dorn1itory 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. b. 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 c. 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, pern1it, right of access, license to use, or other agreement. d. 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. e. 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 ninety (90) consecutive days during the CUlTent calendar year. f. Rent shall mean the consideration received for occupancy valued in money, whether received in money or otherwise, including all receipts, cash, credits, and propeliy or services of any kind or nature, and also which credit is allowed by the operator to the occupant, without any deduction therefrom whatsoever. g. Return shall mean any report filed or required to be filed as herein provided. h. 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. 1. Tax shall mean the tax levied pursuant to this ordinance. 7 -602 Tax Rate. There is hereby levied an excise tax of three percent (3 %) upon the gross proceeds or gross receipts derived from all the rent for every occupancy of a room or rooms in a hotel in this City, except that the tax will not be imposed where the rent is less than five dollars ($5.00) per day. 7 -603 Exemptions. a. Occupancy. The following shall be exempt from the tax levied 111 this ordinance: (1) Pern1anent residents; (2) Agents, employees and or officials of the United States Government or any agency or division thereof; (3) Agents, employees and or officials of the State of Oklahoma or any political subdivision. 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 officer and that their occupancy of the room is required in connection with the affairs of said exempt organization, association or corporation. 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. 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 fonn 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 30th, September 30l\ December 31 S\ and March 31 st of each year following the effective date of this ordinance. (3) The forn1 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 retums 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 be 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 fi led 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 period without regard to whether a return is filed or whether the return which is filed correctly shows the amount ofrents 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 0 f 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 pOliion of the deficiency is due to fraud with intent to evade tax, a penalty of fifty percent (50%) shall be added collected and paid. 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 detennination 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. 7 -607 Assessment and Detennination of Tax. If a return required by this Ordinance is not filed, or if a return when filed is incOlTect or insufficient, the amount of tax due shall be assessed by the City Manager, or designee, from such infonnation 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 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 detern1ination shall be final. 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. Detennination 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 detern1ination 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. 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. 7 -610 7 -611 7 -612 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. General Powers of the City Manager. In addition to all other powers granted to the City Manager, the Manager is hereby authorized: a. To make, adopt and amend rules and regulations appropriate to the execution of this Ordinance and for the purposes hereof; b. 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; c. To delegate functions hereunder to authorized designees for the City; d. To assess, reassess, and readjust the amount of taxes (but not the tax rate) imposed by this Ordinance; e. To prescribe methods for determining the taxable and nontaxable rents. f. To administer oaths and take affidavits concerning any matter or proceeding under this Ordinance. g. To subpoena and require the attendance of witnesses and the production of books, papers and documents to secure information pertinent to the perforn1ance and the enforcement of this Ordinance and to examine them in relation thereto. Certificates of Registration. Every operator shall file with the City Manager, or designee, a celiificate 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 celiificate 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 celiificate 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. 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 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 fourth in 7-613 (c) for the payment for delinquent taxes. 7 -614 Records Confidential. The confidential and privileged nature of the records file conceming 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 ifhere set forth. 7-615 Criminal Penalti. 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 Ow as so, 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 7 -616 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 ofthe Code of Ordinances of the City of Ow as so, Oklahoma. 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 propeliy, 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 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 ofreceiving 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. SECTION 11. The effective date ofthis Ordinance is the first day of the calendar month subsequent to the approval of this Ordinance by a majority of the voters of the City of Owasso, Oklahoma. SECTION II1. The people of Owasso, Oklahoma, by their approval of this Ordinance at the election, hereby authorize the City of Owasso, Oklahoma, by ordinances 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 for proper efficiency and fairness except that the rate of the tax and purposes of the tax as herein provided shall not be changed without the approval of the qualified electors of the City as provided by law. SECTION IV. The provisions hereof shall be cumulative, and in addition to any and all other taxing provisions of City Ordinances. The provisions hereof are several, and it is specifically declared to be the intention of the governing body and of the people to collect the tax, notwithstanding any court ruling concerning the invalidity of other sections or subsections of the ordinance. PASSED by the City Council of the City of Owasso, Oklahoma, this 8th day of January 2002. DATED this the 8th day of January 2002. City of Owasso, State of Oklahoma Ronald D. Cates, City Attorney (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 aller the end of each such month. C. Returns. 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 paya:ble thereon in such form as the City Manager or designee. may by regulation require. Such records shaH be available for insp~clicn MB ~xatl1inMIM M My lima upon dsmand 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. a. Operator Responsible for Collections. The operator shall be responsible for the collection of the lax 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. 7-605 Operators' Duties 7 -604 Tax to be Separately Designated on Bills. The operator shall separately designate, charge and show the tax on all bills, state- ments, 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. 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 lrom the tax. Prior to issuing such a Certificate, a certification from the said organization that the occupant is an agent, employee officer and that their occu- pancy of the room is required in connection with the affairs of said exempt organization, association or corporation. a. Occupancy. The following shall be exempt trom the tax levied in this ordinance: (1) Permanent residents; (2) Agents, employees and or officials of the United States Govern- ment or any agency or division thereof; (3) Agents, employees and or officiais of any political subdivision. the State of Oklahoma or 7-603 Exemptions. 7-602 Tax Rate. There is hereby levied an excise tax of three per- cent (3%) upon the gross proceeds or gross receipts derived from all the rent for every occupancy of a room or rooms in a hotel in this City, except that the tax will not be imposed where the rent is less than five dollars ($5.00) per day. Tax shall mean the tax levied pursuant to this ordinance. h. Room shall mean any room or suite of rooms of any kind in any part or portion of a hotel which is available lor or let out for use or possession for any purpose other than a place of assembly. g. Return shall mean any report filed or required to be filed as here- in provided f. 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 occu- pant, without any deduction therefrom whatsoever. e. Permanent Resident shall mean any occupant who has or shall have the right of occupancy of any room or rooms in a hotei for at least ninety (90) consecutive days during the current calendar year. Affidavit Of Publication OWASSO REPORTER STATE OF OKLAHOMA, TULSA COUNTY, ss: Bill R. Retherford, of lawful age, being duly sworn and authorized, says that he is the publisher of the Owasso Reporter, a weekly newspaper published in the City of Owasso, Tulsa County, Oklahoma, a news- paper qualified to publish legal notices, advertise- ments and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1983 as amended, and thereafter, and complies with aU other requirements of the laws of Oklahoma with reference to legal publications That said notice, a true copy of which is attached hereto, was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the foHowing dates: Subscribed and sworn to before me this 18th day of V, Tulsa County My Commission exPires:----i EXPiRES 8.11.2005 PUBLISHER'S FEE $ 20 d. Operator shail 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. c. Occupant shall be the person who, for a consideration, uses, pos- sesses, 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. b. 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 accommo- dation accompanying the use and possession of the room or rooms a. Hotel shall mean any building or buildings, structures, trailer or other facility in which the public may, for consideration, obtain sleep- ing 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, apartmen. tal hotels, motels, tourist courts, lodging houses, inns, bed & break- fasts, rooming houses and dormitory space where bed space is renled to individuals or groups, apartments not occupied by "per- manent residents", and all other facilities where rooms or sleeping facilities or space are furnished for a consideration. The term shan not include hospitals, sanitariums or nursing homes. As used in this ordinance: 7.601 Definitions. SECTION I. PART 7, FINANCE AND TAXATION, OF THE CODE OF ORDINANCES, OF THE CITY OF OWASSO, OKLAHOMA, IS HEARBY AMENDED BY ADDING CHAPTER 6, HOTEL TAX, SEC- TION 7-601, ET SEQ., WHICH SAID SECTION TO READ AS FOL- LOWS: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, TO-WIT: AN ORDINANCE RELATING TO PART 7, FINANCE AND TAXA- TION, OF THE CODE AND ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA. CREATING CHAPTER 6, HOTEL TAX, SECTIONS 7-601 ET SEQ., LEVYING AND ASSESSING AN EXCISE TAX OF THREE PERCENT (3%) UPON THE GROSS RECEIPTS DERIVED FROM RENT OF HOTEUMOTEL ROOMS; PROVIDING EXCEPTIONS; PROVIDING FOR THE ADMINISTRA- TION AND COLLECTION OF TAX; REQUIRING THE FILING OF RETURNS AND THE KEEPING OF RECORDS; PROVIDING FOR INTEREST AND PENAlTIES; AUTHORIZING THE CITY COUNCIL TO MAKE ADMINISTRATIVE AND TECHNICAL CHANGES AND ADDITIONS EXCEPT AS TO THE TAX RATE AND PURPOSE: REQUIRING THE APPROVAL OF THIS ORDINANCE BY MAJOR- ITY VOTE OF REGISTERED VOTERS VOTING AT AN ELECTION HELD FOR SUCH PURPOSE AS PROVIDED BY LAW; AND FiX- iNG AN EFFECTIVE DATE. Published in the Owasso Reporter. homa, January 17, 2001 ORDINANCE NO. 699 Owasso, Tulsa County, Okla- e. To prescribe methods for determining the taxable and nontaxable APPROVED AS TO FORM: Ronald D. Cates, City Attorney d. To assess, reassess, and readjust the amount the tax rate) imposed by this Ordinance; b. To extend for cause shown the time for filing any return for a peri. od not exceeding sixty (60) days; and for cause shown to waive, remit, or reduce penalties or interest; c. To delegate functions hereunder to authorized designees for the City; of taxes (but not Marcia Boutwell, City Clerk ATTEST: Mary Lou Barnhouse, Mayor City of Owasso, State of Okiahoma DATED this the 8th day of January 2002. a. To make, adopt and amend rules and regulations appropriate to the execution of this Ordinance and for the purposes hereof; PASSED by the City Council of the City at Owasso, Oklahoma, this 8th day of January 2002. 7-611 General Powers of the City Manager. In addition to all other powers granted to the City Manager, the Manager is hereby autho- rized: 7-610 Remedies Exclusive. The remedies provided in this Ordi- nance shall be the exclusive remedies available to any person for the review of tax liability imposed by this Ordinance. SECTION IV. The provisions hereof shall be and in addition to any and all other taxing provisions ot City Ordinances. The provisions here- of are several, and it is speCifically declared to be the intention 01 the goveming body and of the people to collect the tax, notwithstanding any court ruling concerning the invalidity of othe' sections or sub- sections of the ordinance. 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 Uniled Stales 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. cumulative, SECTION III. The people of Owasso, Oklahoma, by their approval of this Ordinance at the election, hereby authorize the City of Owas- so, Oklahoma, by ordinances duly enacted to make such adminis- trative and technical changes or additions in the method and man- ner of administration and enforcing this ordinance as may be nec- essary for proper efficiency and fairness except that the rate of the tax and purposes of the tax as herein provided shall nol be changed without the approval of Ihe qualified electors of the City as provided by taw. 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. Aller such hearing the City Council shall give written notice of its decision to the applicant. SECTION the calendar month subsequent to the approval of this Ordinance by a the voters of the City of Owasso, Oklahoma. majority of The effective date of this Ordinance is the irst day of a. Procedure. The City Manager, or designee, shall direct the refund or credit of any tax erroneously, illegally or unconstitutionally cot- lected ff 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, sub- .iect 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 pay- ments due from the applicant. Whenever a refund is made, the rea- sons 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 01 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. 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/odging taxes, penalties and/or interest. 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 iodging taxes, inter. est and or penalties are not paid with filleen (15) days of receiving such notice. b. The liens shall, upon proper fiiing, attach to the real estate and/or personal property then owned or therealler acquired by the debtor, whether such property issued by the debtor in the operation of busi- ness 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 Tille 68 O.S. 1981, Section 2704. Refunds 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, compa. rable rents. types of accommodations and services. number of employees, minimum of sixty percent (60%) of full occupancy or oth- er 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 trrevocably fix and determine the tax (a) unless the person against whom it is assessed, shall apply in writ- ing to the City Council within ninety (SO) days after the City gives notice of such assessment, for a hearing, or (b) unless the City Man- ager, or designee, decides to reassess the same. After such hear- ing, the City Council shall give written notice of its determination to the person against whom the tax is assessed and such determina. tion shall be final. a. Whenever any operator. occupant or other person shall fail to coi- lect and/or pay over any tax, or to owe any tax, penaity or interest imposed by this chapter as herein provided, the Mayor may autho- rize the Director of Finance to fHe 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 Seclion 2704. 7-616 Civil Remedies 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 sep- arately state the tax on the bill or failure to coHect such tax from the occupanl shall be deemed an offense and punishable as provided under the provisions of 08 of the Code of Ordinances of the City oF Owasso, Oklahoma. a. The willful intent or refusal of any taxpayer to make reports and remittances therein required, or the making of any false and fraudu~ lent 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 provi- sions of 1-108 of the Code of Ordinances of the Cily of Owasso. Oklahoma. 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 pro- tect 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 Okla- homa 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. tn 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 Ie Iter 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 Ihe 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 deposit- ed 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 penal- ties due and for that purpose the securities may be sold at private or public sale. 7~615 Criminal Penalties. 7-614 Records Confidential. The confidential and privileged nature of the records file concerning the administration 01 the Hotel Tax is legislatively recognized and declared and, in order to protect the same, the provisions 01 68 O.S. (1991), See 205 of the State Sales Tax Code, and each subsection thereof and all amendments there- to, are hereby adopted by reference and made fully effective and applicable to the administration of the Owasso, Oklahoma, Hotei Tax as if here set forth. 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 percenl (1%) of the total collected taxes for the cur. rent tax period. The operator shall not be allowed the compensation set fourth in 7-613 (c) for the payment tor delinquenl taxes. 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 Owas- so, Oklahoma. e. tnterest 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 coilected. If any oortion of the deficiency is due to fraud with intent to evade tax, a ~~nalty of fifty percent (50%) shall be added collected and paid. <:1. All taxes collected pursuant to this Ordinance shall be set aside and used exclusively to encourage, promote and foster economic development and cultural enhancement, tourism and pursue region- al promotion for the City of Owasso, Oklahoma: and the cost of enforcing this Ordinance. 7-613 Use of Funds. 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 be 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 retum for such 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. 7-612 Certificates of Registration. Every operator shaii file with the City Manager, or designee, a certificate of registration in a form pre- scribed by the City Manager within ten (10) days after the effective date of the ordinance, or in the case of operators commencing busi- ness 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 empower- ing 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 il is applicable. Such certificate of authority shall be permanently displayed by the operator in such manner that it may be seen and wiii come to the notice of aii occupants and per- sons seeking occupancy. Such certificates shall be non-assignable, non-transferable, and shall be surrendered immediateiy to the City Manager upon the cessation of business at the hotel named, or upon its sale or transfer. (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. (2) Each operator shaii further file with the City Manager, or designee, a copy of their completed Oklahoma State Sales Tax form within ten (10) days after June 30th, September 30th, December 31st, and March 31st of each year foiiowing the effective date of this ordinance g. 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 Ordjri'~nce and to examine them in relation thereto. f. To administer oaths and take affidavits concerning any matter or proceeding under this Ordinance. rents. MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: STAN EWING DIRECTOR, COMMUNITY & ECONOMIC DEVELOPMENT SUBJECT: REQUEST FOR ADOPTION OF ORDINANCE #699 ESTABLISHING THE FRAMEWORK FOR A HOTEL/MOTEL TAX, AND RESOLUTION #2002 -02 CALLING FOR AN ELECTION TO SUBMIT SUCH ORDINANCE TO THE OWASSO VOTERS. DATE: January 2, 2002 BACKGROUND: It is my understanding that there have been discussions by the Owasso Economic Development Authority since the opening of the Best Western Motel in 1985, to institute a Hotel/Motel tax in the City of Owasso for the purpose of funding economic development. Since the adoption of the Downtown District Redevelopment Land Use Master Plan this fall, the OEDA has been looking at various implementation tools. The question of the hotel/motel tax has came to the surface again. OEDA Chairman Dee Sokolosky visited with hotel owners Robert and Sonny Patel in early December. The Patels' position was that they preferred to make a $60,000.00 annual donation to the City in lieu of the hotel/motel tax. The OEDA was concerned that the voluntary donation might go away and, subsequently, the potential loss of revenue. There was also concern by the OEDA that when another hotel opens, the tax would be the only tool to accomplish expansion of the revenue. Subsequently, I met with Robert and Sonny Patel on two occasions regarding the proposed hotel/motel tax. At our last meeting, they agreed to the adoption of a 3% hotel/motel sales tax. They believe that this will still give them a competitive edge over Tulsa hotels and motels, all of which already have a 5% city tax. The anticipated annual revenue will be $60,000. The uses of the funds are as follows from the Ordinance: 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 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. PROPOSED HOTEL/MOTEL TAX JANUARY 2, 2002 PAGE 2 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 discount compensation set fourth in 7 -613 (c) for the payment for delinquent taxes. The Owasso Economic Development Authority met in Special Session on Thursday, December 20, 2001, and voted unanimously to support the proposition and request the inclusion of the proposition on the March 2002 Primary Election ballot. The Council's approval of Ordinance #699 would outline the procedures to be followed in administering the Tax. Ordinance #699 can only be ratified by a majority of the citizens of Owasso participating in the election. Approval of Resolution #2002 -02 by the City Council calls for the proposition to be place on the March 5, 2002 Primary election ballot. The request has been rushed in order to save the expense of a separate election that is estimated to be in excess of $10,000.00. Should the City Council choose to have a separate election in the future, the revenue from the tax can be utilized to pay for the election. RECOMMENDATION: The OEDA and the Staff recommend the City Council adopt Ordinance #699 establishing the mechanics of the Hotel/Motel Tax, such ordinance requiring ratification by amajority of the voters casting votes in the March 5, 2002 Primary Election; as well as adoption of Resolution # 2002 -02- calling for an Election, for the purpose of submitting Ordinance #699 to the Owasso voters for their approval or rejection. ATTACHMENTS: 1. Ordinance #699 2. Resolution #2002 -02 CITY OF OWASSO, OKLAHOMA RESOLUTION NO. 2002-02 A RESOLUTION AUTHORIZING THE CALLING AND HOLDING OF AN ELECTION IN THE CITY OF OWASSO, STATE OF OKLAHOMA, FOR THE PURPOSE OF SUBMITTING TO THE REGISTERED, QUALIFED VOTERS OF THE SAID CITY THE QUESTION IF CHAPTER 6 SECTIONS 7 -601 ET SEQ., HOTEL TAX, SHOULD BE ADDED TO PART 7, FINANCE AND TAXATION OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, LEVYING AND ASSESSING AN EXCISE TAX AT THREE PERCENT (3 %) UPON THE GROSS RECEIPTS DERIVED FROM RENT OR OCCUPANCY OF HOTEL/MOTEL ROOMS SHOULD BE APPROVED; Whereas, the Owasso Economic Development Authority supports taxation which will encourage, promote, and foster economic development and cultural enhancement, tourism and pursue regional promotion for the City of Owasso, Oklahoma; and, Whereas, it is deemed advisable by the City Council of the City of Owasso, State of Oklahoma, to submit to the registered, qualified voters of said City, the question of whether Ordinance No. 699 of the City of Owasso, State of Oklahoma, adopted by the City Council the City of Owasso, State of Oklahoma, on the eighth day of January, 2002, should be approved. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, STATE OF OKLAHOMA: SECTION I. The Mayor of the City of Owasso, State of Oklahoma, is hereby authorized and directed to call for an election to be held in the City of Owasso, State of Oklahoma, on the StA_ day of March, 2002, for the purpose of submitting to the registered qualified electors of said City the following proposition, to -wit: PROPOSITION I. SHALL ORDINANCE NO. 699 RELATING TO PART 7, FINANCE AND TAXATION, OF THE CODE AND ORDINANCES OF THE CITY OF OWASSO, STATE OF OKLAHOMA, CREATING CHAPTER 6, HOTEL/MOTEL SECTIONS 7 -601 ET SEQ., LEVYING AND ASSESSING AN EXCISE TAX OF THREE PERCENT (3 %) UPON THE GROSS RECEIPTS DERIVED FORM THE RENT FOR OCCUPANCY OF HOTEL/MOTEL ROOMS; PROVIDING FOR EXCEPTIONS; PROVIDING FOR ADMINISTRATION AND COLLECTION OF TAX; REQUIRING THE FILING OF RETURNS AND THE KEEPING OF RECORDS; PROVIDING FOR INTEREST AND PENALTIES; AUTHORIZING THE CITY COUNCIL TO MAKE ADMINISTRATION AND TECHNICAL CHANGES AND ADDITIONS EXCEPT AS TO THE TAX RATE AND PURPOSE; REQUIRING THE APPROVAL OF THIS ORDINANCE BY THE MAJORITY OF REGISTERED VOTERS AT AN ELECTION HELD FOR SUCH PURPOSE AS PROVIDED BY LAW; AND FIXING EFFECTIVE DATE BE APPROVED. SECTION II. That the City Council of the City of Owasso, State of Oklahoma, hereby states that all precincts within the City of Owasso, State of Oklahoma, shall be open for the purpose of the aforesaid election. SECTION III. That a copy of this resolution shall be personally delivered to the office of the County Election Board of Tulsa County, State of Oklahoma, at least forty - five (45) days prior to the date of said election. Y OF 8 3,y� ArL �i.:r �u..A ! of a Adopted and approved this the eighth day of January, 2002. RECEIVED: TULSA COUNTY ELECTIION BOARD BY: DATE: i -& —/ z City of Owasso, State of Oklahoma M)"'Ij in'i/ LAIX-1 /1— Mary L8u Barnhouse, Mayor €ICED Tulsa Counly tledon Board ]� ,t;.,l i 7 BY