HomeMy WebLinkAbout2903 Food & Bev. TaxORDINANCE NO.
AN ORDINANCE AMENDING VARIOUS PROVISIONS OF
THE ASHLAND FOOD AND BEVERAGE TAX IN
ASHLAND MUNICIPAL CODE CHAPTER 4.34
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Section 4.34.050 of the Ashland Municipal Code is amended to read:
4.34.050 Reporting and remitting.
On or after July 1, 1993, every operator shall, on or before the last day of the month
following the end of each calendar quarter (in the months of April, July, October and
January), make a return to the director, on forms provided by the City, specifying the
total sales subject to this chapter and the amount of tax collected under this chapter. At
the time the return is filed, the full amount of the tax collected shall be remitted to the
director. A return shall not be considered filed until it is actually received by the director.
Payments received by the director for application against existing liabilities will be
credited toward the period designated by the taxpayer under conditions which are not
prejudicial to the interest of the City. A condition which is considered prejudicial is the
imminent expiration of the statute of limitations for a period or periods. Nondesignated
payments shall be applied in the order of the oldest liability first, with the payment
credited first toward any accrued penalty, then to interest, then to the underlying tax
until the payment is exhausted. Crediting of a payment toward a specific reporting
period will be first applied against any accrued penalty, then to interest, then to the
underlying tax. The director, when in the director's discretion determines that it will be
in the best interest of the City, may specify that a different order of payment credit
should be followed with regard to a particular tax or factual situation. The director may
establish shorter reporting periods for any operator if the director deems it necessary in
order to insure collection of the tax and the director may require further information in
the return relevant to payment of the liability. When a shorter return period is required,
penalties and interest shall be computed according to the shorter return period. Returns
and payments are due immediately upon cessation of business for any reason. All taxes
collected by operators pursuant to this chapter shall be held in trust for the account of
the City until payment is made to the director. A separate trust bank account is not
required in order to comply with this provision. (Ord 2885, Amended, 08/06/2002)
SECTION 2. Section 4.34.060 of the Ashland Municipal Code is amended to read:
4.34.060 Penalties and Interest.
A. Any operator who fails to remit any portion of any tax imposed by this chapter
within the time required, shall pay a penalty of ten percent of the amount of the tax, in
addition to the amount of the tax.
B. Any operator who fails to remit any delinquent remittance on or before a period of
60 days following the date on which the remittance first became delinquent, shall pay a
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second delinquency penalty of ten percent of the amount of the tax in addition to the
amount of the tax and the penalty first imposed.
C. If the director determines that the nonpayment of any remittance due under this
chapter is due to fraud, a penalty of 25% percent of the amount of the tax shall be
added thereto in addition to the penalties stated in subparagraphs A and B of this
section.
D. In addition to the penalties imposed, any operator who fails to remit any tax
imposed by this chapter shall pay interest at the rate of one percent per month or
fraction thereof on the amount of the tax, exclusive of penalties, from the date on which
the remittance first became delinquent until paid.
E. Every penalty imposed and such interest as accrues under the provisions of this
section shall become a part of the tax required to be paid. (Revised June 1993)
F. Notwithstanding subsection 4.34.020.C, all sums collected pursuant to the
penalty provisions in paragraphs A, B and C of this section shall be distributed to the
City of Ashland Centr;al Service Fund to offset the costs of auditing and enforcement of
this tax.
SECTION 3. Section 4.34.100 of the Ashland Municipal Code is amended to read:
4.34. !00 Refunds.
A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more
than once, or has been erroneously or illegally collected or received by the city under
this chapter, it may be refunded as provided in subparagraph B of this section, provided
a claim in writing, stating under penalty of perjury the specific grounds upon which the
claim is founded, is filed with the director within one year of the date of payment. The
claim shall be on forms furnished by the director.
B. The director shall have 20 calendar days from the date of receipt of a claim to review
the claim and make a determination in writing as to the validity of the claim. The
director shall notify the claimant in writing of the director's determination. Such notice
shall be mailed to the address provided by claimant on the claim form. In the event a
claim is determined by the director to be a valid claim, an operator may claim a refund,
or take as credit against taxes collected and remitted, the amount overpaid, paid more
than once or erroneously or illegally collected or received in a manner prescribed by the
director. The operator shall notify director of claimant's choice no later than 15 days
following the date director mailed the determination. In the event claimant has not
notified the director of claimant's choice within the 15 day period and the operator is still
in business, a credit will be granted against the tax liability for the next reporting period,
if the operator is no longer in business, a refund check will be mailed to claimant at the
address provided in the claim form.
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C. No refund shall be paid under the provisions of this section unless the claimant
established the right by written records showing entitlement to such refund and the
director acknowledged the validity of the claim.
SECTION 4. Section 4.34.150 of the Ashland Municipal Code is repealed.
SECTION 5. The amendments to Section 4.34.050 shall be considered effective as of
January 1, 2003. Any operator which may be entitled to a refund or a credit for
penalties assessed and paid due to the application of payments pursuant to AMC
Section 4.34.050 as it existed prior to enactment of this ordinance, but after January 1,
2003, must file a written claim within 30 days from the effective date of this ordinance
for a refund of such penalties with the director. Upon receipt of a written claim for
refund of penalties assessed, the director will, within 30 calendar days, make a
determination as to whether any refund is due. In the event a refund is due, an operator
may claim a refund, or take as credit against taxes collected and remitted, the amount
overpaid, paid more than once or erroneously or illegally collected or received in a
manner prescribed by the director. The operator shall notify director of the operator's
choice no later than 15 days following the date director mailed the determination. In the
event the operator has not notified the director of the operator's choice within the 15 day
period and the operator is still in business, a credit will be granted against the tax
liability for the next reporting period, if the operator is no longer in business, a refund
check will be mailed to claimant at the address provided in the claim form. Any operator
who fails to file a claim for refund as set forth in this subsection shall be deemed to have
waived any entitlement to refund of overpayment of penalties.
The foregoing ordinance was first read by title only in accordance with Article X,
Section 2(C) of the City Charter on the 16th
PA~DO~f
Barbara Christensen, City Recorder
__ dayof December
,2003, and duly
,2004.
SIGNED and APPROVED this '7'
day of
Alan W. DeBoer, Mayor
Paul Nolte, City Attorney
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