HomeMy WebLinkAbout2716 Food & Beverage TaxORDINANCE NO. 2716
AN ORDINANCE AMENDING SECTIONS 4.34.010, 4.34.020, 4.34.030,
4.34.040, 4.34.050 and 4.34.0?0 TO CLARIFY FOOD AND
BEVERAGES SUBJECT TO TAXATION AND MODIFYING COLLECTION,
REPORTING AND APPEAL REQUIREMENTS.
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Subsection 4.34.010.G of the Ashland Municipal Code is
amended to read:
"4.34.010 Definitions. The following words and phrases whenever
used in this chapter shall be construed as defined in this
section unless from the context a different meaning is intended."
"G. "Restaurant" means any establishment required to be
licensed as a restaurant, mobile unit or pushcart by the State of
Oregon Health Division and includes any establishment where food
or beverage is prepared for consumption by the public or any
establishment where the public obtains food or beverage so
prepared in form or quantity consumable then and there, whether
or not it is consumed within the confines of the premises where
prepared, and also includes establishments which prepare food or
beverage in consumable form for service outside the premises
where prepared. The term restaurant also includes establishments
where such food or beverage is prepared in a combination
facility. The term restaurant does not include a restaurant
licensed by the State of Oregon Health Division as a limited
service restaurant."
SECTION 2. Subsection 4.34.020.A of the Ashland Municipal Code is
amended to read:
"4.34.020 Tax imposed. A. The city imposes and levies, in
addition to all other taxes, fees and charges of every kind, a
tax upon:
3. The following items sold by combination facilities:
a. Salads from salad bars;
b. Dispensed soft drinks and coffee; and
c. Sandwiches or hot prepared foods ready for
immediate consumption.
d. Any other food mixed, cooked or processed on the
premises in form or quantity for immediate consumption whether or
not it is consumed within the confines of the premises where
prepared."
SECTION 3. The following subsection 4.34.020.A.4 is added to the
Ashland Municipal Code:
"4.34.020 Tax imposed. A. The city imposes and levies, in
addition to all other taxes, fees and charges of every kind, a
tax upon:
4. The following items sold by combination facilities
that are bakeries:
a. All those items listed in section
4.34.020.A.3.a-c;
b. All bakery products sold for consumption on
the premises; and
c. All "takeout" or "to go" orders except for
whole cakes, pies and loaves of bread and any order consisting of
six or more bakery products."
SECTION 4. Subsection 4.34.020.B of the Ashland Municipal Code is
amended to read:
"B. Such tax shall be imposed at a rate of one percent on
the total amount charged by the seller for the food and
beverages, or for the meal. In the computation of this tax any
fraction of one-half cent or more shall be treated as one cent."
SECTION 5. Subsections H, I, J and K are added to Section 4.34.030 of
the Ashland Municipal Code as follows:
"4.34.030 Exemptions. The tax levied by section 4.34.020 shall
not be collected or assessed on food or beverages:
H. Sold for resale to the public.
I. Sold in bulk to the public for non-immediate consumption
off the premises such as ice cream packed in a container of one-
half gallon or more.
J. Which are candy, popcorn, nuts, chips, gum or other
confections but not including ice cream, frozen yogurt, cakes,
pies or other desserts.
K. Sold after July 1, 1993, but before December 31, 1993,
pursuant to a contract for the sale of such food or beverages
signed and delivered to the operator prior to May 4, 1993,
provided that a copy of such contract is retained by the operator
for review by the director upon request."
SECTION 6.
to read:
Section 4.34.040 of the Ashland Municipal Code is amended
"4.34.040 Operator's Duties. Each operator shall collect the
tax imposed by this chapter, to the same extent and at the same
time as the amount for the food or beverage is collected from
every purchaser. The amount of tax need not be separately stated
from the amount of the food or beverage. Every operator required
to collect the tax imposed in this chapter shall be entitled to
retain five percent of all taxes collected to defray the costs of
collections and remittance."
SECTION 7.
to read:
Section 4.34.050 of the Ashland Municipal Code is amended
"4.34.050 Reportinq and remittinq. On or after July 1, 1993,
every operator shall, on or before the 25th 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. The director
may establish shorter reporting periods for any operator if the
administrator deems it necessary in order to insure collection of
the tax and the administrator may require further information in
the return relevant to payment of the liability. 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."
SECTION 8.
to read:
Section 4.34.070 of the Ashland Municipal Code is amended
"4.34.070 Failure to Collect and Report Tax--Determination of Tax
by Director. If any operator should fail to keep adequate
records or refuse to pay the tax imposed by this chapter, or to
make, within the time provided in this chapter, any report and
remittance of the tax or any portion required by this chapter,
the director shall proceed in such manner as deemed best to
obtain facts and information on which to base the estimate of tax
due. As soon as the director shall procure such facts and
information as is able to be obtained, upon which to base the
assessment of any tax imposed by this chapter and payable by any
operator who has failed or refused to collect the same and to
make such report and remittance, the administrator shall proceed
to determine and assess against such operator the tax, interest
and penalties provided for by this chapter. In case such
determination is made, the director shall give a notice of the
amount so assessed by having it served personally or by
depositing it in the United States mail, postage prepaid,
addressed to the operator so assessed at the last known place of
address. Such operator may make an appeal of such determinations
as provide in Section 4.34.080. If no appeal is filed, the
director's determination is final and the amount thereby is
immediately due and payable."
The foregoing Ordinance was first read by title only on the 1st day of
June, 1993 and duly PASSED and ADOPTED this 15th day of June, 1993.
Nan E. Franklin
City Recorder
SIGNED and APPROVED this
day of ~ ........ ~.~ , 1993.
~ Catherine M. Golden
Mayor