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HomeMy WebLinkAbout2017-01-01 ORDINANCE NO.a 1 -7-01-01 AN ORDINANCE LEVYING A TAX ON CERTAIN ACCOMMODATIONS, AUTHORIZING THE CREATION OF AN ADVERTISING AND PROMOTION COMMISSION, REPEALING ANY ORDINANCES IN CONFLICT; AND FOR OTHER PURPOSES. WHEREAS,the City of Batesville, Arkansas desires to create an Advertising and Promotion Commission in order to facilitate tourism and the promotion of the City of Batesville, and fund such a commission as well as fund improvements and facilities by leaving a tax as authorized by state law, specifically A.C.A 26-75-601, et seq. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS: Section 1: (a) This ordinance shall be known and may be cited as the City of Batesville A&P Tax. (b) There is hereby created by the City of Batesville, Arkansas an Advertising and Promotion Commission, which shall be composed of seven (7) members in accordance with and authorized pursuant to Arkansas Code Annotated § 26- 75-605. Section 2: (a) Each member of the commission shall file any oath required by law in the State of Arkansas public officials. (b) A commissioner appointed under the provision of this article may be removed for cause upon a two-thirds (2/3) vote of the council. Section 3: (a) The City of Batesville Advertising and Tourist Promotion Commission shall meet within two (2) weeks of its appointment and shall be organized by electing a chairman, a secretary and a treasurer. Thereafter, the commission shall meet as often as may be necessary and also shall be subject to special call by the chairman. (b) The commissioners shall adopt such rules and regulations as they may deem necessary and expedient for the proper operation of said commission, and they shall have the authority to alter, change or amend such rules and regulations at their discretion. Section 4: (a) The commissioners hereunder appointed in addition to their other powers enumerated by state law, shall have the exclusive right and power to make purchases of all supplies necessary for the management and operation of the commission. (b) The commissioners shall have authority to employ the necessary personnel to assist in the administration and operation of the advertising and tourist promotion fund and shall have the authority to fix the salary or salaries for such personnel. Any employee who shall handle funds for the commission shall be required to furnish the city a surety bond in an amount to be determined by the commission to insure the city against misappropriation of funds. (c) The commissioners shall make quarterly reports to the mayor and city council beginning three (3) months after their oath of office, reporting in full on the operations of the commission, including and accounting of receipts and disbursements and shall upon request of the city council furnish such other reports and data as may be required. The city shall select a recognized auditing firm to submit an annual audit of the operations of the commission to the mayor and city council. Section 5: (a) Hotel/Motel accommodations; Meeting or party-room facilities: A tax of three percent (3%) is hereby levied upon activities defined in Arkansas Code Annotated §26-75-602(c)(1), as may be amended from time to time, on the gross receipts or gross proceeds received from the renting, leasing, or otherwise furnishing hotel, motel, house, cabin, bed and breakfast, campground, condominium, or other similar rental accommodations for sleeping, meeting, or party-room facilities for profit to the to the extent taxable under state law in the city of Batesville. Arkansas, but such accommodations shall not include the rental or lease of such accommodations for periods of thirty (30) days or more; (b) (1) Collection by commission. The three percent (3%) tax described in this section hereof shall be paid by the persons, firms, and corporations liable therefore and shall be collected by the advertising and promotion commission of the city (hereinafter the "commission") or by a designated agent of the commission in the same manner and at the same time as the tax levied by the Arkansas Gross Receipts Act, A.C.A §26-52-101 et seq. The effective date for the collection of said tax shall be March 1, 2017. (2) Authorized collecting procedure. The person collecting the tax shall pay and report said tax on forms provided by the commission and as directed by the commission. The rules, regulations, forms of notice, assessment procedures, and the enforcement and collection of the tax under the Arkansas Gross Receipts Act, shall, so far as is practicable, be applicable with respect to the enforcement and collection of the tax described herein. However, the administration and enforcement and all actions shall be by and in the name of the commission through the proper commission officials or agents. (3) Collectors; report forms. The person furnishing such accommodations shall collect the tax levied by this article from the purchaser or user of accommodations. Such person shall pay to the city on the twentieth day of each month all collections of the tax for the preceding month, accompanied by reports on forms to be prescribed by the commission. (c) (1) Uses of tax revenue. All funds credited to the city advertising and promotion fund pursuant to this ordinance shall be used for advertising and promoting the city and its environs or for the construction, reconstruction, extension, equipment, improvement, maintenance, repair, and operation of a convention center, or for any other use as authorized by state law, in the manner as shall be determined by the city advertising and promotion commission. (2) Commission determines use. The commission is the body that determines the use off the city advertising and promotion fund. Pursuant to this section, if the commission determines that funding of the arts is necessary for or supporting of its City's advertising and promotion endeavors, it can use its funds and/or funds derived from the hotel tax. (A.C.A)§26-75-606 (a)(2)). (3) Taxes Credited to Fund. All local taxes levied as authorized by this ordinance shall be credited to the city advertising and promotion fund and shall be used for the purposes prescribed by state law and this ordinance. (A) Prohibited use of taxes. Such taxes shall not be used: 1. for general capital improvements within the city; 2. for the costs associated with the general operations of the city; 3. for general subsidy of any civic groups or the chamber of commerce. (B) However, the advertising and promotion commission may contract with such groups to provide to the commission actual services that are connected with tourist events or conventions; (C) The authorization and limitations contained herein shall be reasonably constructed so as to provide funds for promoting and encouraging tourism and conventions while not allowing such special revenues to be utilized for expenditures that are normally paid from general revenues of the city. (A.C.A. §26-75-606 (c)(4)). (d) (1) Uses for tourist-oriented facilities. Any city of the first class which is authorized to levy and does levy a tax as authorized in A.C.A 26-75-601, et seq. is authorized to use or pledge all, or any part of, the revenues derived from the tax for the purposes prescribed and authorized by state law and this ordinance, including, but not limited to, the operation of tourist-oriented facilities. (2) Use for public recreation. Funds credited to the city advertising and promotion fund pursuant to this ordinance may be used, spent or pledged by the commission in addition to all other purposes prescribed in this ordinance on and for the construction, reconstruction, repair, maintenance, improvement, equipping and operation of public recreation facilities in Batesville, including but not limited to facilities constituting city parks, and for any and all purposes authorized by state law and this ordinance. (A.C.A.§26-75-606(b)(2)). Section 6: Persons or entities liable for payment of the taxes levied by this chapter shall be subject to the assessment of penalties and interests as follows: (a) A penalty equal to five percent(5%) of the unpaid tax amount per month not to exceed a total assessment of thirty-five (35%) of the unpaid tax. Simple interest on unpaid taxes shall be assessed at the rate of ten percent (10%)per annum. (b) In addition to any civil penalties provided or imposed by statute or ordinance. Any person or entity liable for payment of said tax which fails to file the said report or which fails to pay the said tax for a period of sixty (60) days or more after the end of any month for which a report or payment of tax is due, shall be guilty of a violation and shall be fined in a sum not to exceed one hundred dollars ($100.00). If said violation continues, said person or entity shall be fined in a sum not to exceed one hundred dollars ($100.00) for each additional thirty-day period said violation continues. Section 7: That any ordinances in conflict herewith are hereby repealed to the extent of that conflict. Section 8: Severability: The provisions of this Ordinance shall be deemed severable and the invalidity, unenforceability, or unconstitutionality of any section, clause, phrase, sentence, or part thereof, shall not affect the validity, enforceability, or constitutionality of any other section, clause, phrase, sentence, or part thereof. Section 9: Emergency Clause: It has been found and it is hereby declared that the city requires the revenues to be derived from the tax levied hereunder to be used by the commission in the discharge if its duties and responsible to the city in accordance with state law and the ordinances adopted by the City from time to time. Said duties and responsibilities of the Commission are essential to the continued development of the City and to the welfare of its citizens. Because this ordinance is necessary for the preservation of the public peace, health, and safety, an emergency is declared to exist and this ordinance shall be effect from and after its passage and approval. PASSED this-?�day of 2017. APPROVED: Mayor R k Elumbau ATTEST: Denise Johnsto , City Clerk