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HomeMy WebLinkAboutO-1440-7-96ORDINANCE NO. 1440-7-96 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ESTABLISHING AND LEVYING A HOTEL OCCUPANCY TAX TO BE LEVIED WITHIN THE CITY OF ALLEN, AT THE RATE OF 7% OF THE COST OF OCCUPANCY OF ANY SLEEPING ROOM FURNISHED BY ANY HOTEL IN THE CITY; DEFINING TERMS AND PHRASES; PROVIDING A SAVINGS CLAUSE, A PENALTY CLAUSE, A SEVERABILITY CLAUSE; PROVIDING FOR THE USE OF REVENUES DERIVED FROM THE TAX LEVY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, under the provisions of V.T.C.A., Tax Code Chapter 351, municipalities are authorized to levy and establish a hotel occupancy tax upon the cost of occupancy of any sleeping room furnished by any hotel in the City, where the cost of occupancy is at the rate of two dollars ($2.00) or more per day; with the rate of such tax not to exceed seven percent (7%) of the consideration paid by the occupant of the sleeping room to the hotel; and WHEREAS, the funds derived from the levying of this tax may be expended by the City only in a manner prescribed in said chapter; and WHEREAS, the City Council is of the opinion that the general welfare and well-being of the City of Allen and its citizens will be furthered by the levying and establishing of a hotel occupancy tax, with the funds derived therefrom to be expended in accordance with provisions of Chapter 351, Texas Tax Code; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS: SECTION 1: There is hereby established and levied a tax upon the cost of occupancy of any room ordinarily used for sleeping (herein after referred to as a "sleeping room") furnished by any hotel in the City, where the cost of occupancy is at the rate of two dollars ($2.00) or more per day. Such tax is hereby levied at the rate of seven percent (7 %) of the consideration paid by the occupant of the sleeping room to the hotel. SECTION 2: As used in this Ordinance, the following words, terms and phrases are defined as follows: a. Hotel shall mean any building in which the public may, for a consideration, obtain sleeping accommodations. The term shall include hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, or other buildings where rooms are furnished for a consideration, but shall not include hospitals, sanitariums, or nursing homes. b. Consideration shall mean the cost of the room in such hotel only if the room is one ordinarily used for sleeping, and shall not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the occupant of such room except for those services related to the cleaning and readying of the room for use or possession. C. Occupancy shall mean the use or possession, or the right to use or possession, of any room in a hotel if the room is one ordinarily used for sleeping. d. Occupant shall mean anyone, who, for a consideration uses, possesses, or has a right to use, or possess any room in a hotel if the room is one ordinarily used for sleeping. e. Finance Director shall mean the finance director of the City of Allen, Texas or their designee. SECTION 3: The tax levied pursuant to this Ordinance upon hotel occupancy shall be collected by each hotel within the City, at the time of collection by said hotel of the consideration paid by the occupant of the sleeping room. Such revenue shall be paid by the hotel to the City of Allen through its Finance Department, on a monthly basis, and shall be paid for each month within thirty (30) days following the last day of each month. A hotel may retain one (1) percent of the revenues collected on a monthly basis, pursuant to this Section provided that: a. The gross amount collected is reported and the retainage calculated accordingly. b. No retainage will be permitted on any amount paid after thirty (30) days following the last day of each month. C. Reports are filed in a form(s) prescribed by the City of Allen and all information required by that report is complete and accurately provided. A hotel not filing a report in a complete and accurate manner in a form(s) prescribed by the City of Allen shall forfeit the right for retainage as provided by this Section, and shall not deduct said retainage from the amount due the City of Allen for any given month for which a complete and accurate reporting is not made. Complete and accurate shall mean provision of each and every element contained or required, in a form(s) prescribed by the City of Allen or in a substitute form as approved in advance by the Finance Director for the City of Allen. A copy of the report filed with the State Comptroller's office reporting taxes collected for the State shall be included with the monthly report sent to the City of Allen. SECTION 4: A penalty of five (5) percent of the tax due shall be imposed on a hotel which fails to pay a tax imposed by this Ordinance when due, and, if the hotel fails to pay the tax within 30 days after the day on which it is due, an additional five (5) percent shall be imposed. Such penalty shall never be less than One and No/100 Dollar ($1.00). The tax imposed by this Ordinance that is not paid to the City of Allen when it is due shall draw interest at a rate of twelve (12) percent compounded monthly, beginning 60 days from the due date. The penalty provided for herein, is in addition to other remedies and/or actions for collection available to the City by law. Ordinance No. 1440-7-96 Page 2 SECTION 5: Every hotel within the City shall keep and maintain accurate records of the consideration and hotel occupancy tax paid by the occupant of each sleeping room in the hotel. Such records shall include, but not be limited to, at a minimum, guest folios, tax exemption certificates, and any original documents such as posting ledgers and rate and stay adjustment reports. These records may be retained in any retrievable format, including but not limited to micro form; shall be maintained for a period of not less than four (4) years; and shall be available for inspection upon request by any employee, agent, officer or representative of the City of Allen at all reasonable times. Any adjustments or allowances made or granted shall be reported to the City of Allen on a form prescribed by the City of Allen. SECTION 6: Under the provisions of the Texas Tax Code, Hotel Occupancy Tax is levied on all occupants not exempted in Section 7. Those not exempted include the following: a. Educational institutions (including State of Texas colleges and universities). b. Religious and charitable organization. C. Local government entities. d. Contract employees of exempt organizations. SECTION 7: Under the provisions of the Texas Tax Code, Hotel Occupancy Tax is not levied on the following: a. The United States Government agencies and their officers or employees when traveling or otherwise engaged in the course of official duties. b. Military personnel traveling on official military business. C. The State of Texas, or an agency, institution (excluding State educational institutions), board, or commission of the State of Texas and their officers or employees when traveling or otherwise engaged in the course of official duties. d. Diplomatic personnel who present a Tax Exemption Card issued by the United States Department of State. e. Occupants whose use, possession, or whose right to use or possession of a hotel sleeping room extends for at least 30 consecutive days. Any exemption claimed shall be supported by a signed Hotel Occupancy Tax Exemption Certificate and reported to the City of Allen on a form prescribed by the City of Allen. SECTION 8: Under the provisions of V.T.C.A., Tax Code Section 351.0041, if a hotel is sold, the purchaser shall withhold an amount sufficient to pay any amount due under this Ordinance until the seller produces a receipt showing that any amount due has been paid. If the purchaser fails to Ordinance No. 1440-7-96 page 3 withhold an amount, the purchaser is liable to the City of Allen for the amount required to be withheld. SECTION 9: Revenues derived from the Hotel Occupancy Tax imposed and levied by this Ordinance may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following: a. The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both; b. The furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants; C. Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; d. The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms; and e. Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums: 1. At or in the immediate vicinity of convention center facilities or visitor information centers; 2. Located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates. f. Any and all other limitations or requirements as set forth in Section 351.101 of the Texas Tax Code. g. Revenue derived from the Hotel Occupancy Tax shall be expended only in a manner which directly enhances and promotes tourism and the convention and hotel industry as hereinbefore delineated. Such revenue shall not be used for the general revenue purposes or general governmental operations of the municipality. h. Hotel occupancy tax revenue spent for a purpose authorized by this section may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized under Section 351.101 (a). If a Ordinance No. 1440-7-96 Page 4 municipal or other public or private entity that conducts an activity authorized under this section conducts other activities that are not authorized under this section, the portion of the total administrative costs of the entity for which hotel occupancy tax revenue may be used may not exceed the portion of those administrative costs actually incurred in conducting the authorized activities. SECTION 10: It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable; and if any phrase, clause, sentence or section of this Ordinance shall be declared unconstitutional or invalid by any judgment or decree of a court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any other remaining phrase, clause, sentence, paragraph or section of this Ordinance; and the City Council hereby declares it would have passed the remaining portions even though it had known the affected parts would be held unconstitutional or invalid. SECTION 11: This Ordinance shall become effective on July 18, 1996. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 18TH DAY OF JULY , 1996. APPROVED: Kevin L. Lilly, MAYOR APPROVED AS TO FORM: ATTEST: n r, CITY ATTORNEY dy M rison, CMC, CITY SECRETARY Ordinance No. 1440-7-96 Page 5 AFFIDAVIT AND PROOF OF PUBLICATION THE STATE OF TEXAS COUNTY OF COLLIN BEFORE ME, the undersigned authority, on this day personally appeared DEBBIE TACKETT, who having been by me duly sworn, on oath deposes and says: That she Is the General Manager of THE ALLEN AMERICAN, a newspaper published in COLLIN COUNTY, TEXAS, not less frequently than once a week, having a general circulation in said county, and having been published regularly and continousiy for more than twelve (12) months prior to publishing Ordinace #1440-7-96 of which the attached is a true and written copy, and which was published In THE ALLEN AMERICAN on July 24 & July 27, 1996 and which was Issued on July 24. 1996 by City D f Allen of COLLIN COUNTY, TEXAS A printed copy of said publication is attached hereto. ta 1,� 7'. W SUBSCRIBED AND ORN to before me this _ day A.D. 19?61A NOTARY PUBLIC in and for COLLIN COUNTY, TEXAS Publishers fee $ 5 7 . 7 6 ?tip" V. A. TODD MY COMMISSION EXPIRES Decombu 5, 1C,96 CITY OF ALLEN PUBLIC NOTICE Notice is hereby given that the Allen City Council adopted the following ordinance at their regular meeting held on Thursday, July 18, 1996 (Title and Penalty Clause only): Ordinance No. 1440'-7-96: An Or mance o t eU1W ounce o t e City of Allen, Collin County, Texas, Establish- ing and Levying a Hotel Occupancy Tax to be Levied within the City of Allen, at the Rate of 7% of the Cost of Occupancy of any Sleeping Room Furnished by any Hotel in the City; Defining Terms and Phrases; Providing a Savings Clause, a Penalty Clause, a Severability Clause; Providing for the Use of Revenues Derived from the Tax Levy; and Providing for an Effective Date. A penalty of five percent (5%) of the tax due shall be imposed on a hotel which fails to pay a tax imposed by this Ordi- nance when due, and if the hotel fails to pay the tax within 30 days after the day on which it is due, an additional five percent (5%) shall be imposed. Such penalty shall never be less than One and no/100 Dollar r($1). The tax imposed by this Ordinance that is not paid to the City of Allen when it is due shall draw interest at a rate of twelve percent (12%) compounded monthly, beginning 60 days from the due date. The penalty provided for herein, is in addition to other remedies and/or actions for collection available to the City by law. A copy of this ordinance may be read or purchased in the office of the City Secretary, City of Allen, One Butler Circle, Allen, Texas 75013. /s/Judy Morrison City Secretary CITY OF ALLEN PUBLIC NOTICE Notice is hereby given that the Allen City Council adopted the following ordinance at their regular meeting held on Thursday, July 18, 1996 (Title and 1 Penalty Clause only): Ordinance No. 1440-7-96: An Or inance o t e qty ounce o t e City of Allen, Collin County, Texas, Establish- ing and Levying a Hotel Occupancy Tax to be Levied within the City of Allen, at the Rate of 7% of the Cost of Occupancy of any Sleeping Room Furnished by any Hotel in the City; Defining Terms and Phrases; Providing a Savings Clause, a Penalty Clause, a Severability Clause; Providing for the Use of Revenues Derived from the Tax Levy; and Providing for an Effective Date.. A penalty of five percent (5%) of the tax due shall be imposed on a hotel which fails to pay a tax imposed by this Ordi- nance when due, and if the hotel fails to pay the tax within 30 days after the day on which it is due, an additional five percent (5%) shall be imposed. Such penalty shall never be less than One and no/100 Dollar ($1). The tax imposed by this Ordinance that is not paid to the City of Allen when it is due shall draw interest at a rate of twelve percent (12%) compounded monthly, beginning 60 days from the due date. The penalty provided for herein, is in addition to other remedies and/or actions for collection available to the City by law. A copy of this ordinance may be read or purchased in the office of the City Secretary, City of Allen, One Butler Circle, Allen, Texas 75013• /s/Judy Morrison City Secretary