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HomeMy WebLinkAbout1986-08 08-25 CCO CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 22nd day of September, 1986 at 7:30 p.m. at City Hall, 6301 Shingle Creek Parkway, to of consider creating Chapter 22 of the City Ordinances Relating to a Tax Imposed upon Lodging. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please contact the Personnel Coordinator at 561 -5440 to make arrangements. ORDINANCE NO. 86 -08 AN ORDINANCE CREATING CHAPTER 22 OF THE CITY ORDINANCES RELATING TO A TAX IMPOSED UPON LODGING THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 22 is hereby created as follows: Section 22 -001. DEFINITIONS. For the nurnose of this Chapter. the following terms. phrases and words. and their derivations shall have the meaning, given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directorv. Subd. 1. The term "director" means the Finance Director of the Citv. Subd. 2. The term "City" means the Citv of Brooklvn Center. Subd. 3. The term "lodging" means the furnishing for a consideration of lodging by a hotel. motel or rooming house except where such lodging shall be for a continuous period of thirtv (30) days or more to the same lodeer(s). The furnishing of rooms by religious, educational or nonprofit organizations shall not constitute "lodging" for purposes of this Chapter. Subd. 4. The term "operator" means a person who provides lodging to others or anv officer. agent or emplovee of such person. Subd. 5. The term "person" means anv individual. corporation. DartnershiD. association. estate. receiver. trustee. executor. administrator. assignee'. svndicate. or anv other combination of individuals. Whenever the term "person is used in anv provision of this chapter nrescribing and imDosine a Denalty. the term as applied to a corporation, association. or vartnershiD. shall mean the officers. or partners thereof as the case may be. Subd. 6. The term "rent" means the total consideration valued in monevlw charged for lodging whether paid in money or otherwise. but shall not include anv charges for services rendered in connection with furnishing lodging other than the room charge itself. -1- ORDINANCE NO. 86 -08 Subd. 7. The term "lodger" means the person obtaining lod¢ine from an operator. Section 22 -002. IMPOSITION OF TAX. There is herebv imposed a tax of three (3%) percent on the rent charged by an operator for nrovi.ding lodging to anv person after the adoption of this ordinance and upon thirtv (30) days following its leeal publication. The tax shall be stated and charged senarateiv and shall be collected by the operator from the lodger. The nurnose of the tax must be made known to the lodger by either inserting the statement "Proceeds from this tax are used to fund a local convention or tourism bureau" on the lodger's receipt or by posting the statement at the registration desk where it can be clearly seen by the lodger. The tax collected by the operator shall be a debt owed by the operator to the Citv and shall be extinguished onlv by pavment to the Citv. In no case shall the tax imposed by this section upon an operator exceed the amount of tax which the operator is authorized and required by this chapter to collect from a lodger. Section 22 -003. COLLECTIONS. Each operator shall collect the tax imposed by this chapter at the time the rent is paid. The tax collections shall be deemed to be held in trust by the operator for the Citv. The amount of tax shall be separately stated from the rent charged for the lodeinz. Section 22 -004. EXCEPTIONS AND EXEMPTIONS. i Subd. 1. EXCEPTIONS. No tax shall be imposed on rent for lodging paid by anv officer or emnlovee of a foreign government who is exempt by reason of express provisions of federal law or international treaty. Subd. 2. EXEMPTIONS. An. exemnti.on shall be granted to anv person as to whom or whose occupancv it is bevond the power of the Citv to tax. No exemption shall be granted except upon a claim therefor made at the time the rent is collected. and such a claim shall be made in writing and under penalty of periury on forms provided by the Cites,. All such claims shall be forwarded to the Citv when the returns and collections are submitted as required by this chapter. Section 22 -005. ADVERTISING NO TAX. It shall be unlawful for anv operator to advertise or hold out or state to the public or v an customer, directly or indirectly. that the tax or anv Hart thereof_ will be assumed or absorbed by the operator. or that it will not be added to the rent or that, if added. it or anv part thereof will be refunded. In computing the tax to be collected. amounts of tax less than one cent shall be considered an additional cent. Section 22 -006. PAYMENT AND RETURNS. The taxes imposed by this chapter shall be paid by the operator to the Ct.ty monthly not later than 25 days after the end of the month in which the taxes were collected. At the time of navment the operator shall submit a return upon such forms and containing such information as the director may require, The return shall contain the following minimum information. -2- ORDINANCE NO. 86 -08 i 1 The total amount of re nt co ,lected for lodgi&g during the period covered by the return. 2. The amount of tax recuired to be collected and due for the period. 3 The signature of the Person filing the return or that of his agent dulv authorized in writing. 4. The Period covered by the return. 5 The amount of uncollectable rental. charges subiect to the lodging tax. The operator may offset agrainst the taxes payable with respect to anv reporting Period, the amount of taxes imposed by this chapter previously Paid as result of any transaction the consideration for which became uncollectable during such reporting Period. but onl.v in Proportion to the Portion of such consideration which became uncollectable. Section 22 -007. EXAMINATION OF RETURN, ADJUSTMENTS. NOTICES AND DEMANDS. The director may rely upon the Minnesota sales tax return filed by the operator with the state of Minnesota in determining_ the accuracv of a return filed under this ordinance. However, the director shall be authorized to make anv investigation or examination of the records and accounts of the person making the return if the director reasonably determines that such steps are necessary for determining the correctness of the return. The tax computed on the basis of such examination shall be the tax to be paid. If the tax due is found to be greater than that paid, such excess shall be paid to the Citv within ten (10) days after receipt of a notice thereof, given either Personallv or sent by registered mail to the address shown on the return. If the tax paid is greater than the tax found to be due, the excess shall be refunded to the Person who Paid the tax to the Citv within ten (10) days after determination of such refund. Section 22 -008. REFUNDS. Anv Person may anPly to the director for a refund of taxes paid for a prescribed Period in excess of the amount legally due for that Period. Provided that no application for refund shall be considered unless filed within one vear after such tax was paid, or within one vear from the filing of the return, whichever period is the longer. The director shall examine the claim and make and file written findings thereon denving or allowing the claim in whole or in part and shall mail a notice thereof by registered mail to such person at the address stated upon the return.. If such claim is allowed in whole or in Part, the director shall credit the amount of the allowance against anv taxes due under this chapter from the claimant and the balance of said allowance. if anv, shall be Paid by the director to the claimant. Section 22 -009. FAILURE TO FILE A RETURN. a Subd.. 1. If anv operator reoui.xed by this chapter to file a return shall fail to do so within the time pr_escr.i,bed, or shall make, willfull.v or otherwise. -3- ORDINANCE NO. 86 -08 an incorrect. false. or fraudulent return, the operator shall. upon written notice and demand, file such return or corrected return within five (5) days of receipt of such written notice and shall at the same time pay anv tax due on the basis thereof. If such person shall fail to file such return or corrected return. the director shall make a return or corrected return. for such person from such knowledge and information as the director can obtain. and assess a tax on the basis thereof. which tax (less anv Pavments theretofore made on account of the tax for the taxable period covered by such return) shall be Paid upon within five (5) days of the receipt of written notice and demand for such Pavment. Anv such return or assessment made by the director shall be prima facie correct and valid, and such person shall have the burden of establishing its incorrectness or invaliditv in anv action or Proceeding in respect thereto. Subd,, 2,. If anv norti.on of a tax imposed by this chanter, including penalties thereon, is not Paid within thirty (30) days after it is required to be Paid. the Citv Attornev may institute such legal action as may be necessary to recover the amount due plus interest. Penalties, the costs and disbursements of anv action. Subd. 3. Upon a showing of Rood cause, the director may grant an operator one thirtv (30) days extension of time within which to file a return and make Pavment of taxes as required by this chanter Provided that interest during such Period of extension shall be added to the taxes due at the rate of ten (10%) Percent per annum. Section 22 -010. PENALTIES. Subd. 1. If anv tax imposed by tbis chapter is not paid within the time herein specified for the Pavment, or anv extension thereof, there shall be added thereto a specific penalty equal to ten (10%) percent of the amount remainin,i� unpaid. Subd. 2. In case of any failure to make and file a return within the time Prescribed by this chanter. unless it is shown that such failure is not due to willful neglect. there shall be added to the tax in addition to the ten (10%) Percent specific Penalty Provided in subdivision l above. ten (10 Percent if the failure. is for not more than thirty (30) days with an additional five (5%) Percent for each additional thirty (30) days or fraction thereof during which such failure continues. not exceeding twenty -five (25 Percent in the aggregate. If the Penalty as computed does not exceed 510, a minimum penaltv of 910 shall be assessed.. The amount so added to anv tax shall be collected at the same time and the same manner and as a part of the tax unless the tax has been paid before the discovery of the neeliPence, in which case the amount so added shall be collected in the same manner as the tax.. Subd. 3. If anv Person willfully fails to file anv return or make anv pavment reouired by this chanter, or willfully files a false or fraudulent return or willfully attempts in any manner to evade or defeat anv such a tax or pavment thereof, there shall also be imposed as a penalty an amount equal to fifty (SQ%) Percent of any tax (less anv amounts paid on the basis of such false -4- ORDINANCE NO. 86 -08 or fraudulent return) found due for the period to which such return related. The Denaltv imposed by this subdivision shall be collected as Dart of the tax. and shall be in addition to anv other penalties Drovided by this chanter. Subd. 4. All Davments received shall be credited first to penalties. next to interest. and then to the tax due. Subd. 5. The amount of tax not timelv paid, together with anv Denaltv Drovided by this section, shall bear interest at the rate of eight (8 Dercent Der annum from the time such tax should have been paid until Daid. Anv interest and Denaltv shall be added to the tax and be collected as part thereof. Section 22 -011. ADMINISTRATION OF TAX,. The director shall administer and enforce the assessment and collection of the taxes im -Dosed by this chapter. The director shall cause to be pre -Dared blank forms for the returns and other documents reouired by this chanter and shall distribute the same throughout the Citv and furnish them on annlication. but failure to receive or secure them shall not relieve anv nerson from anv obliPation reouired of him under this chanter. unless it can be established that the required forms were not available from the Citv. Section 22 -012. EXAMINE RECORDS.. The director and those nersons acting on behalf of the director authorized in writing by the director mav examine the books. DaDers and records of anv operator in order to verifv the accuraev of anv return made. or if no return was made, to ascertain the tax as Drovided in this chanter. Every such operator -is directed and reouired to give to the said director or to his duly authorized aeer.t or emnlovee the means: facilities and oDDortunity for such examinations and investiFations as are herebv authorized. Section 22 -013. CONTRACT WITH STATE. The Citv Manager is authorized to confer with the Minnesota Commissioner of Taxation to the end that an agreement between the Citv and the Commi_ssioner of Taxation mav be entered into for the purpose of Drovidine for the administration and collection of the taxes imDosed by this chapter. Such an agreement shall not become effective until uresented to the Council for its approval, and when so aD -Droved the tax imDosed by this chanter shall be collected and administered pursuant to the terms of said agreement. Section 22 -014. VIOLATIONS,. Anv nerson who shall willfullv fail to make a return reouired by this chanter: or who shall fail to Dav the tax after written demand for Davment: or who shall_ fail.. to remit the taxes collected or anv Denaltv or interest imioosed by this chanter after written demand for such Davment: or who shall refuse to permit_ the director or anv duly authorized agents or emDlovees to examine the books, records and vaners under his or her control: or who shall willfully make anv incomn_lete._ false or fraudulent return shall be guilty of a misdemeanor. Section 22 -015. USE OF PROCEEDS.. The ninety -five (95 Dercent Droceeds obtained from the collection of taxes nuxsuant to this chatter shall.. be used in accordance with Minnesota Statutes Section 477A.018 as the same mav be amended -5- r, i ORDINANCE NO. 86 -08 i from time to time to fund a local convention or tourism bureau for the purpose of marketing and promoting the Citv as a tourist or convention center. Section 22 -016. APPEALS. Subd. 1. Anv operator aggrieved by anv notice, order or determination made by the director under this chapter may file a Petition for review of such notice. order or determination detailing' the operator's reasons for contesting the notice. order or determination. The petition shall contain the name of the Petitioner. the Petitioner's address -_and the location of the lodging subiect to the order. notice or determination. Subd. 2. The Petition for review shall be filed with the City Clerk within ten (10) days after the notice, order or determination for which review is sought has been mailed or served upon the Person reauesting review. Subd. 3. Upon receipt of the petition the Citv Manager. or his designee. shall set a date for a hearing and give the Petitioner at least five (5) days Prior written notice of the dale, tioe and place of the hearing Subd. 4. At the hearing, the petitioner shall be given an ovPortunity to show cause why the notice. order. or determination should be modified or withdrawn. The Petitioner may be xenresented by counsel of petitioner's choosing at Petitioner's own expense. Subd. 5. The hearing shall. be conducted by the Citv Manager or his designee_ Provided onlv that the person conducting the hearing shall not have Participated in the drafting of the order, notice or determination for which review is sought. Subd. 6. The Person conductinP the hearing shall make written findings of fact and conclusions based upon the applicable sections of this chapter and evidence Presented. The Person conducting the hearing may affirm. reverse or modifv the notice. order or determination made by the director. Subd. 7. Anv decision rendered by the Citv Manager Pursuant to this subdivision may be appealed to the City Council. A Petitioner seeking to aDPeal a decision must file a written notice of appeal with the Citv Clerk within ten (10) days after the decision has been mailed to the Petitioner. The matter will thereupon be Placed on the Council agenda as soon as is practical. The Council shall then review the findings of fact and conclusions to determine whether thev were correct. Upon a determination by the Council that findings and conclusions were incorrect. the Council may modifv, reverse or affirm the decision of the City Manager or his designee upon the same standards as set forth in subdivision 6. Section 2. This ordinance shall become effective after adoption and upon thirty (30) days following its legal publication. Adopted this 25th day of August 1986. -6- I ORDINANCE NO. 86 -08 Mayo Y ATTEST:_ 1 .2 City Clerk Date of Publication July 24, 1986 and September 4, 1986 Effective Date October 4. 1986 (Underline indicates now matter,) L, -7-