BILL NO. __________ ORDINANCE NO. ______
AN ORDINANCE AMENDING ARTICLE VIII. TOURISIM TAX OF CHAPTER 140 FINANCES AND RECORDS.
ARTICLE VIII. TOURISM TAX
SECTION 140.350 Tourism Tax – Guest Tax
Pursuant to the authority granted by Sections 67.1360 and 67.1362, RSMo, a tax for tourism purposes is hereby imposed on charges for sleeping rooms to be paid by transient guests of hotels, motels, bed and breakfast inns, campgrounds and any docking facility which rents slips to recreational boats which are used for sleeping to the extent and in the manner provided for in Sections 67.1360 and 67.1362, RSMo. The rate of the tax shall be five percent (5%).
SECTION 140.360 Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Business includes any activity engaged in by any person or caused to be engaged in by him/her, with the object of gain, benefit or advantage, either direct or indirect, and the classification of which business is of such character as to be subject to the terms of this article. The isolated or occasional sale of any tangible personal property, service, substance or thing by a person not engaged in such business does not constitute engaging in business within the meaning of this article unless the total amount of gross receipts from such activity exceeds $1,000.00 in any calendar year. No tourism tax is charged on any sale of $1.00 or less. The provisions of this definition shall not be construed to exempt any sale of property because such sale is exempt from sales tax or use tax from the tourism tax levied pursuant to this article.
Gross receipts means the total amount of the sale price of sales at retail, including any services other than charges incident to extension of credit that are a part of such sales price, made by a business referred to in this article, capable of being valued in money, whether received in money or otherwise; except that gross receipts shall not include the sales for which the item is returned by the customer when the full sales price thereof is refunded either in cash or by credit. Also, any amount received by any reason of extensions of credit shall be specifically exempted. It shall also include the lease or rental consideration where the right of continuous possession or use of any property is granted for a definite interval of time.
Not-for-profit organization means an organization, including a not-for-profit corporation, no part of the income or property of which is distributable to its members, directors or officers; provided, however, that payment of reasonable compensation for service rendered and the making of distributions not representing pecuniary profits or gains upon dissolution or final liquidation are not deemed a distribution of income.
Person means any individual, firm, copartnership, joint adventure, association, corporation, municipal or private, and whether organized for profit or not, state, county, political subdivision, state department, commission, board, bureau, or agency, estate, trust, business trust, receiver or trustee appointed by the state or federal court, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular number.
Purchaser means a person who purchases tangible personal property or to whom are rendered services, receipts from which are taxable under this article.
Sale and sales include installment and credit sales, and the exchange of properties as well as the sale thereof for money, and every land transaction constituting a sale, and mean any transfer, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for valuable consideration and the rendering, furnishing or selling for a valuable consideration any of the substances, things, and services designated and defined as taxable under the terms of this article.
Sale at retail means any transfer made by any person engaged in business as defined in this section of the ownership of, or title to, tangible personal property to the purchaser, for use or consumption and not for resale in any form as tangible personal property, for valuable consideration. The term "sale at retail" shall be construed to include:
(1) Sales charges for all sleeping rooms (hotel, motel, inn, condominium units, timeshare interest in condominiums, campgrounds, tourist camp, tourist cabin, docking facility which rents slips to recreational boats which are used by transients for sleeping or other places in which rooms are used for sleeping).
Sales Tax Act means RSMo 144.010--144.800.
Seller means the person selling or furnishing tangible personal property or rendering services, on the receipts from which a tax is imposed pursuant to this article.
Tourism tax means either the tax payable by the purchaser of a commodity or services subject to the tourism tax or the aggregate amount of taxes due from the vendor of such commodities or service during the period for which he/she is required to report his/her collections, as the context may require.
140.370 Levy of tax.
There is hereby levied a municipal tourism tax (the "tourism tax") within the city, based upon the prices paid or charged for certain goods and services as follows:
(1) Hotel, motels, inns, condominium units, timeshare interest in condominiums, campgrounds, tourist camp, tourist cabin, docking facility which rents slips to recreational boats which are used by transients for sleeping or other places in which rooms are used for sleeping.
a. Amount of tax. Every person engaged in the business of renting, leasing or letting living quarters, sleeping accommodations, rooms or a part thereof in connection with any hotel, motel, condominium unit, timeshare interest in condominiums, campground or tourist court, all as defined in this subsection, shall collect at the time of sale or consumption and pay to the city a tourism tax equal to five percent (5%) of the price paid or charged by transient guests. Persons deriving receipts from room charges in connection with any hotel, motel, condominium unit, timeshare interest in condominiums, campground or tourist court, whether rented or leased on a daily, weekly or monthly basis, are subject to the tourism tax on these payments or charges unless the person renting or leasing is deemed to be a permanent resident. An educational institution which furnishes room and board to full-time students in pursuit of their educational objectives is not subject to the tourism tax on the payments or charges for these services. This tourism tax shall be in addition to all other license fee and taxes which are presently applicable to hotels, motels, condominium units, timeshare interests in condominiums, campgrounds and tourist courts operated as a business within the city.
b. Definitions. The terms used in this subsection (1) shall have the meanings ascribed to them in this subsection (1)b and shall be construed as indicated in this subsection.
Campground means real property, other than state-owned property, which contains parcels for rent to transient guests for pay or compensation, which may include temporary utility hookups for use by transient guests, and where such transient guests generally use tents, recreational vehicles or some other form of temporary shelter while on the rented premises.
Common elements means all portions of the property except the units.
Declaration means the instrument and amendments thereto by which the property is submitted to the provisions of RSMo 448.005--448.210.
Hotel, motel, inn, condominium unit, timeshare interest in condominium, campgrounds, tourist camp, tourist cabin, docking facility which rents slips to recreational boats which are used by transients for sleeping or other places in which rooms are used for sleeping mean any structure or building, under one management, which contains rooms furnished for the accommodation or lodging of guests with or without meals being provided, including bed and breakfast facilities, and kept, used, maintained, advertised or held out to the public as a place where sleeping accommodations are sought for pay or compensation to transient guests, and the use of the term "hotel" or "motel" alone shall also be deemed to include all such structures, buildings and facilities.
Parcel means the lot or lots, tract or tracts of land, including additional tracts added by subsequent amendment described in the declaration or amendments thereto.
Permanent resident means a person who contracts in advance for a room in a hotel, motel, condominium unit, campground or tourist court for a period of 30 consecutive days or more and who actually remains a guest of the hotel, motel, condominium unit, campground or tourist court for more than 30 consecutive days. The rental or lease receipts from letting such room are not subject to the tourism tax. The term "permanent resident" is not considered synonymous with a permanent room. Persons who rent or lease accommodations on a permanent basis to businesses for their employees' use are subject to the tourism tax on the receipts from all the accommodations.
Property means all the land, property or properties and space comprising the parcels, all improvements and structures erected, constructed or contained therein, including the building and all easements, rights and appurtenances belonging thereto, and all fixtures and equipment intended for mutual use, benefit or enjoyment of the unit owners, submitted to the provisions of RSMo 448.005--448.210.
Transient guest means any person who occupies a room in a hotel, motel, campground, or tourist court for 30 consecutive days or less.
140.380 Tourism tax trust fund.
(a) There is hereby established in the treasury of the city a tourism tax trust fund. All taxes levied and collected pursuant to this article shall be deposited by the City Clerk to the credit of such fund. Such fund shall be segregated and kept separate and apart from all other funds of the city and shall not be commingled with any other funds of the city, no matter from whatever source collected. The funds, net of the cost of collection, shall be collected, held and administered by the city in accordance with the terms and provisions of this article so that such funds on deposit in the tourism tax trust fund are to be expended and disbursed as required in this section:
(1) Except as provided in subsection (a)(2) of this section, 75 percent (75%) of the taxes collected shall be deposited in an "Infrastructure Account" within the tourism tax trust fund and shall be used upon appropriation solely for the purpose of constructing and maintaining infrastructure improvements, to include sidewalks, streets, highways, roads, waterworks, wastewater, including distribution and collection, and solid waste disposal facilities, the cost of which may be funded by issuing bonds which may be retired by revenues received from the funds on deposit in the tourism tax trust fund, and the costs of operation and maintenance of such infrastructure improvements.
(2) Notwithstanding the provisions of subsection (a)(1) of this section, 25 percent (25%) of the taxes collected shall be deposited into a tourism promotion account within the tourism tax trust fund and shall be held, administered and disbursed for use, upon appropriation as provided for in this section, for tourism marketing and promotional purposes.
(b) The Board of Aldermen shall annually budget and appropriate the amounts necessary to provide for the payment of the necessary expenses for the administration and collection of the tourism tax imposed under this article, which shall in no event exceed two percent of the collected revenues.
140.390 Contracting for tourism promotion.
(a) The Board of Aldermen hereby finds that contracting with private persons to accomplish the requirements of the Municipal Tourism Act is in the best interest of citizens of the city, in providing for tourism marketing and promotion by persons experienced in providing such marketing and promotion thereby avoiding the duplication of efforts in attempting to accomplish these requirements. The Board of Aldermen does hereby find it necessary and desirable to accomplish the foregoing to approve contracting between the city and a duly qualified marketing vendor to implement the tourism, marketing and promotion. The Mayor is hereby authorized and directed to execute and deliver the contracts for and on behalf of the city and the City Clerk is hereby directed to attest and seal a contract, submitted to and considered by the Board of Aldermen at its regular meeting.
(b) The Finance Officer is hereby authorized to disburse the funds from the tourism tax trust fund to cover the cost of executing the contract in accordance with an approved budget. A copy of the budget when approved by the Board of Aldermen will serve as an operating plan for the administration of the contracts.
140.400 Licenses; payment of tax.
(a) No person shall operate a hotel, motel, inn, condominium unit, timeshare interest in a condominium, campground, tourist camp, tourist cabin, docking facility which rents slips to recreational boats which are used by transients for sleeping or other places in which rooms are used for sleeping without a current city business license. As a condition to obtaining a tourism tax license under this article, the person applying must show evidence of compliance with article VIII of chapter 140 and must have in his/her possession a retail sales license number issued by the state. Applications for such license shall be made to the City Clerk’s Department on forms prescribed for that purpose. The tourism tax due under this section shall be paid to the City Clerk’s Department monthly and shall be payable on or before the 20th day of the following month, except for the months following the end of each calendar quarter, when payments will be due on the last day of the following month.
140.410 Reports required.
(a) Every person engaged in the business of operating a hotel, motel, inn, condominium unit, timeshare interest in condominiums, campground, tourist camp, tourist cabin, docking facility which rents slips to recreational boats which are used by transients for sleeping or other places in which rooms are used for sleeping shall file with the City Clerk’s Department on prescribed forms, giving such information as may be necessary or required to determine the amounts paid or charged by the business to which the tourism tax shall apply for monthly period, which reports are to be submitted with monthly payments.
(b) Every such business shall file with the City Clerk’s Department, so that it shall be received by that office or postmarked on or before the 20th day of each month, beginning with July in each year, except for the months following the end of each calendar quarter, when the filings will be due on the last day of the following month, a statement, verified by the oath of the person, an officer or agent making the report, showing the entire receipts of the business done in the city by the person during the previous reporting period, including the portion of amounts paid or charged for business done by such person in connection with another person. The statement shall report as receipts all such sums earned or charged for business done within the city during the taxable reporting period whether actually received or not; and shall contain an abstract of the amount received under each business activity for which tourism tax is due and the total amount received for all business activities.
(c) If the person fails or refuses for more than 30 days after the 20th day of the month or the last day of the month following the end of each calendar quarter to render a statement showing an accurate account of its receipts as required in this section, or has failed to pay any tourism tax when due, such person shall be subject to all the penalties set forth in section 140.170 for each violation.
140.420 Examination of books and records.
(a) The City Clerk or an authorized representative shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of any business licensed pursuant to this article as may be necessary to determine the correctness of the reports required by this article. Such books and records shall be preserved for at least three years, unless the City Clerk in writing authorizes the earlier destruction.
(b) All business must furnish reasonably sufficient work space, lighting and working conditions for use by the City Clerk and his/her agents for conducting of tourism tax audits.
140.430 Cash bond, deposit and refund.
(a) If the City Clerk believes that the collection of any tourism tax or any amount of tourism tax required to be collected and paid pursuant to this article to the city by any seller who the City Clerk believes is about to discontinue business and dispose of his/her property or assets will be jeopardized by delay, the City Clerk shall thereupon make a determination of such amount of tourism tax to be collected and paid pursuant to this article, noting that fact on such determination, and the amount thereof shall be immediately due and payable. Failure to comply with the City Clerk's payment order shall result in automatic and immediate relinquishment of the establishment's city business license. Such person shall have the right to stay collection of such amount by filing, within ten days after the date of issuance of such notice, a request for reassessment accompanied by such reasonable security as the City Clerk may deem necessary to insure compliance with this article.
(b) If a request for reassessment, accompanied by the required security deposit, is filed within the ten-day period, the City Clerk shall reconsider the assessment. The City Clerk's action on the request for reassessment becomes final upon the expiration of 30 days from the date when the City Clerk mails notice of such action to the person, unless within that 30-day period, such persons file a petition for review with the Board of Aldermen.
(c) If the security filed with the City Clerk is in cash, the City Clerk shall deposit such security in the city's general fund and such security shall be released to the person from funds appropriated by the Board of Aldermen for such purpose. If appropriate funds are available, the Finance Officer shall cause such refunds to be paid within 30 days of the receipt of a warrant requesting such payment by the City Clerk.
140.440 Collection; violations.
(a) The tourism tax levied pursuant to this article shall be paid by the purchaser or user to the seller, and it shall be the duty of each and every seller in this city to collect from the purchaser or user the full amount of the tourism tax levied by this article, or an amount equal as nearly as possible or practicable to the average equivalent thereof.
(b) The seller shall add the tourism tax imposed pursuant to this article, or the average equivalent thereof, to the sale price or charge, and when added, such tourism tax shall constitute a part of such price or charge, shall be a debt from the purchaser or user to the seller until paid and shall be recoverable at law in the same manner as other debts.
(c) A seller who willfully or intentionally fails or refuses to collect the full amount of the tourism tax levied in this article, or willfully or intentionally fails, neglects or refuses to comply with the provisions of this article or remits or rebates to a purchaser or user, either directly or indirectly, and by whatsoever means, all or any part of the tourism tax levied in this article, or makes in any form of advertising, verbally or otherwise, any statement which infers that the seller is absorbing the tourism tax, or paying the tourism tax for the purchaser or user by an adjustment of prices or at a price including the tourism tax, or any manner whatsoever, shall be subject to the penalties set forth in section 140.470, plus costs, for each violation.
140.450 Confidential records.
The confidential and privileged nature of the records and files concerning the administration of the tourism tax is legislatively recognized and declared and to protect the same the provisions of the Sales Tax Act, RSMo 144.010--144.800, are adopted by reference and made fully effective and applicable to the administration of the tourism tax levied in this article as if set forth in full.
140.460 Administrative changes.
The Board of Aldermen hereby authorizes the City Clerk to make administrative and technical changes or additions in the method and manner of administration and enforcing this article as may be necessary and proper for efficiency and fairness, except the rate of the tourism tax and the classification of businesses shall not be changed without approval of the Board of Aldermen.
140.470 Delinquency fees and penalties for nonpayment.
(a) Delinquency fee. For any amount of tourism tax due under provisions of this article that was not paid for the period owed, there shall be added to that amount a delinquency fee of ten percent of the delinquent tourism tax as the sum required to compensate for the collection of delinquent tourism taxes (the "collection charge"). Interest at the rate of 12 percent per annum shall be assessed on all unpaid amounts and collection charges.
(b) Penalty. Any person subject to the provisions of this article who fails to obtain a license, file a statement or pay the tourism tax or files a false or fraudulent statement, as required by this article or within the time required by this article, shall, upon conviction thereof, be punished by the provisions of section 100.200 and 100.210. Each day after the first day that an action is required to be taken under this article and such action is not taken shall constitute a separate offense. Any person failing to pay the city tourism tax for 45 days past the due date shall be subject to having his/her city business license revoked by a revocation order issued by the City Clerk.
(c) Revocation of licenses. When a revocation order is issued for nonpayment of tourism tax by the City Clerk, the tourism tax license and all business licenses issued by the city to such delinquent sellers shall be deemed void at that point in time. Before the tourism tax license can be reissued, all such delinquent tourism tax, collection charges and accrued interest must be paid.
140.480 Adoption of state sales tax rules.
All sales tax rules pertaining to sales tax imposed and collected by the state under RSMo 144.170, 144.220 and 144.230 shall apply to the tourism tax except to the extent such rules may be inconsistent herewith.
READ THIS FIRST AND SECOND TIME AND PASSED BY THE BOARD OF ALDERMEN OF THE CITY OF HOLLISTER, MISSOURI THIS _______ DAY OF ___________________, 2007.
ATTEST: David G. Tate, Mayor
Sheryl Brashear, City Clerk