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HomeMy WebLinkAbout2014-04 Amending Chapter 20 ORDINANCE NO. 2014-04 AN ORDINANCE AMENDING CHAPTER 20 OF THE EDINA CITY CODE CONCERNING A LOCAL LODGING TAX THE CITY OF EDINA ORDAINS: Section 1. Section 20-384 of the Edina City Code is amended by adding the following definitions: Lodging means the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of thirty (30) calendar days or more. Operator means a person who provides lodging to others, or any office, agent or employee of such person. Section 2. Chapter 20, Article VII of the Edina City Code is amended by adding the following Section: Section 20-388. Lodging Tax (a) Imposition of Tax. There is hereby imposed a tax of three percent (3%) on the gross receipts from the furnishing for consideration of lodging. (b) Collection. Each operator shall collect the tax imposed by this Section at the time rent is paid. The tax collections shall be held in trust by the operator for the City. The amount of tax shall be separately stated from the rent charged for the lodging. (c) Payment and Returns. The taxes imposed by this Section shall be paid by the operator to the City not later than twenty-five (25) calendar days after the end of the month in which the taxes were collected. At the time of payment the operator shall submit a return upon such forms and containing such information as the City may require. The return shall contain the following minimum information: (1) The total amount of rent collected for lodging during the period covered by the return. (2) The amount of tax required to be collected and due for the period. (3) The signature of the person filing the return or that of his agent duly authorized in writing. (4) The period covered by the return. (5) The amount of uncollectible rental charges subject to the lodging tax. The operator may take a credit against taxes payable the amount of taxes previously paid for rent that was not actually collected. 175492v1 J Ordinance No. 2014-04 Page 2 (d) Examination of Returns, Adjustments, Notices, Demands and Audit. After a return is filed, the City shall examine it and make any investigation or examination of the records and accounts of the person making the return deemed necessary for determining its correctness including a formal audit. 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 City within ten (10) calendar days after receipt of a notice thereof given either personally 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 City within ten (10) calendar days after determination of such refund. (e) Refunds. Any person may apply to the City 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 year after such tax was paid, or within one year from the filing of the return, whichever period is the longer. The City shall examine the claim and make and file written findings thereon denying 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 City shall credit the amount of the allowance against any taxes due under this Section from the claimant and the balance of the allowance, if any, shall be paid by the City to the claimant. (f) Failure to File a Return. If any operator required by this Section to file a return shall fail to do so within the time prescribed, or shall make, willfully or otherwise, an incorrect, false, or fraudulent return, the operator shall, upon written notice and demand, file such return or corrected return within five (5) calendar days of receipt of such written notice and shall at the same time pay any tax due on the basis thereof. If such person shall fail to file such return or corrected return, the City shall make a return or corrected return, for such person from such knowledge and information as the City can obtain, and assess a tax on the basis thereof, which tax (less any payments theretofore made on account of the tax for the taxable period covered by such return) shall be paid within five (5) calendar days of the receipt of written notice and demand for such payment. Any such return or assessment made by the City shall be prima facie correct and valid, and such person shall have the burden of establishing its incorrectness or invalidity in any action or proceeding in respect thereto. If any portion of a tax imposed by this Section is not paid within thirty (30) calendar days after it is required to be paid, the City Attorney may institute such legal action as may be necessary to recover the amount due plus interest, and costs and disbursements. Upon a showing of good cause, the City may grant an operator one thirty (30) day extension of time within which to file a return and make payment of taxes as required by this Section provided that interest during such period of extension shall be added to the taxes due at the rate of one and one-half percent (1.5%) per month. (g) Interest. The amount of tax not timely paid shall bear interest at the rate of one and one-half percent (1.5%) per month from the time such tax should have been paid until paid. Any interest shall be added to the tax and be collected as part thereof. (h) Violations. 1754920 Ordinance No. 2014-04 Page 3 Any person who shall willfully fail to make a return required by this Section; or who shall fail to pay the tax after written demand for payment, or who shall fail to remit the taxes collected or any interest imposed by this Section after written demand for such payment or who shall refuse to permit the City to examine the books, records and papers under his or her control, or who shall willfully make any incomplete, false or fraudulent return shall be guilty of a misdemeanor. (i) Use of Proceeds. Ninety-five percent (95%) of the proceeds obtained from the collection of taxes pursuant to this Section shall be used in accordance with Minnesota Statutes, section 469.190 as the same may be amended from time to time to fund a local convention or tourism bureau for the purpose of marketing and promoting the City as a tourist or convention center. (j) Appeals. Any operator aggrieved by any notice, order or determination made by the City under this Section 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 subject to the order, notice or determination. The petition for review shall be filed with the City Clerk within ten (10) calendar days after the notice, order or determination for which review is sought has been mailed or served upon the person requesting review. Upon receipt of the petition the City Manager, or the Manager's designee, shall set a date for a hearing and give the petitioner at least five (5) calendar days' prior written notice of the date, time and place of the hearing. At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order or determination should be modified or withdrawn. The petitioner may be represented by counsel of petitioner's choosing at petitioner's own expense. The hearing shall be conducted by the City Manager or the Manager's designee, provided only that the person conducting the hearing shall not have participated in the drafting of the order, notice or determination for which review is sought. The person conducting the hearing shall make written findings of fact and conclusions based upon the applicable sections of this Section and the evidence presented. The person conducting the hearing may affirm, reverse or modify the notice, order or determination made by the City. Any decision rendered by the City Manager pursuant to this subdivision may be appealed to the City Council. A petitioner seeking to appeal a decision must file a written notice of appeal with the City Clerk within ten (10) calendar 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 they were correct. Upon a determination by the Council that the findings and conclusions were incorrect, the Council may modify, reverse or affirm the decision of the City Manager or his designee upon the same standards as set forth in this subdivision. Section 3. This ordinance is effective on July 1, 2014 following its passage nd publication. First Reading: April 1, 2014 Second Reading: April 22, 2014 Published: May 8, 2014 Attest I'" /)/Sw". Debra A. Mangen, y Clerk ames B. nd, ayor 175492v1 AFFIDAVIT OF PUBLICATION City of Edina refunded to the person who paid the the tax after written demand for tax to the City within ten(10)calen- payment, or who shall fail to remit STATE OF MINNESOTA (Official Publication) dar days after determination of such the taxes collected or any interest )ss ORDINANCE NO.2014-04 refund, imposed by this Section after writ- COUNTY OF HENNEPIN ) AN ORDINANCE AMENDING (e)Refunds. ten demand for such payment or CHAPTER 20 OF THE EDINA Any person may apply to the who shall refuse to permit the City Charlene Vold being duly sworn on an oath, CITY CODE CONCERNING City for a refund of taxes paid for a to examine the books, records and A LOCAL LODGING TAX prescribed period in excess of the papers under his or her control, or states or affirms that they are the Authorized THE CITY OF EDINA ORDAINS: amount legally due for that period, who shall willfully make any incom- Agent of the newspaper(s)known as: Section 1.Section 20-384 of the provided that no application for re- plete,false or fraudulent return shall Edina City Code is amended by fund shall be considered unless filed be guilty of a misdemeanor. SC Edina adding the following definitions: within one year after such tax was (i)Use of Proceeds. Lodging means the furnishing for paid,or within one year from the fil- Ninety-five percent(95%)of the consideration of lodging at a hotel, ing of the return, whichever period proceeds obtained from the Gol- and has full knowledge of the facts stated motel,rooming house,tourist court, is the longer. The City shall examine lection of taxes pursuant to this or resort, other than the renting or the claim and make and file written Section shall be used in accor- below: leasing of it for a continuous period findings thereon denying or allow- dance with Minnesota Statutes, (A)The newspaper has complied with all of of thirty(30)calendar days or more. ing the claim in whole or in part and section 489.190 as the same may the requirements constituting qualifica- Operator means a person who shall mail a notice thereof by regis- be amended from time to time to tion as a qualified newspaper as provided provides lodging to others, or any tered mail to such person at the ad- fund a local convention or tourism office, agent or employee of such dress stated upon the return.If such bureau for the purpose of marketing by Minn. Stat. §331A.02, §331A.07, and person. claim is allowed in whole or in part, and promoting the City as a tourist other applicable laws as amended. Section 2.Chapter 20,Article VII the City shall credit the amount of or convention center. (B)This Public Notice was printed and pub- of the Edina City Code is amended the allowance against any taxes due 0)Appeals. lished in said newspaper(s) for 1 succes- by adding the following Section: under this Section from the claimant Any operator aggrieved by any Section 20-388. Lodging Tax and the balance of the allowance,if notice, order or determination sive issues; the first insertion being on (a)Imposition of Tax. any,shall be paid by the City to the made by the City under this Sec- 05/08/2014 and the last insertion being on There is hereby imposed a tax claimant. tion may file a petition for review 05/08/2014. of three percent(3%)on the gross (f)Failure to File a Return. of such notice,order or deterina- receipts from the furnishing for con- If any operator required by this tion detailing the operator's reasons sideration of lodging. Section to file a return shall fail to for contesting the notice, order or (b)Collection. do so within the time prescribed, determination. The petition shall ^ � Each operator shall collect the or shall make,willfully or otherwise, contain the name of the petitioner, tax imposed by this Section at the an incorrect,false,or fraudulent re- the petitioner's address and the lo- By: time rent is paid.The tax collections turn,the operator shall, upon writ- cation of the lodging subject to the shall be held in trust by the operator ten notice and demand, file such order, notice or determination. The Authorized Agent for the City.The amount of tax shall return or corrected return within five petition for review shall be filed with be separately stated from the rent (5)calendar days of receipt of such the City Clerk within ten(10)calen- Subscribed and sworn to or affirmed before charged for the lodging. written notice and shall at the same dar days after the notice, order or me on 05/08/2014. (c)Payment and Returns. time pay any tax due on the basis determination for which review is The taxes imposed by this Sec- thereof. If such person shall fail to sought has been mailed or served tion shall be paid by the operator to file such return or corrected return, upon the person requesting review. the City not later than twenty-five the City shall make a return or cor- Upon receipt of the petition the City (25)calendar days after the end of rected return,for such person from Manager, or the Manager's desig- �� the month in which the taxes were such knowledge and information nee, shall set a date for a hearing Notary Public collected. At the time of payment as the City can obtain,and assess and give the petitioner at least five Y the operator shall submit a return a tax on the basis thereof, which (5)calendar days' prior written no- upon such fors and containing tax(less any payments theretofore tice of the date, time and place of such information as the City may made on account of the tax for the the hearing.At the hearing,the peti- require. The return shall contain the taxable period covered by such tioner shall be given an opportunity va�v�pwiwvwArvV`WVrVNWWVS following minimum information: return) shall be paid within five (5) to show cause why the notice,order nitfYl�1OlE1�f1UQ� (1)The total amount of rent col- calendar days of the receipt of writ- or determination should be modi- lected for lodging during the period ten notice and demand for such fied or withdrawn. The petitioner NOWN PsJbtio SPInNI to covered by the return. payment. Any such return or as- may be represented by counsel of Myconme,gttaq,amJan31,20'I3 (2)The amount of tax required to sessment made by the City shall be petitioner's choosing at petitioner's WW be collected and due for the period. prima facie correct and valid, and own expense.The hearing shall be (3)The signature of the person such person shall have the burden conducted by the City Manager or filing the return or that of his agent of establishing its incorrectness or the Manager's designee, provided duly authorized in writing. invalidity in any action or proceed- only that the person conducting the (4) The period covered by the ing in respect thereto. If any portion hearing shall not have participated return. of a tax imposed by this Section is in the drafting of the order, notice (5) The amount of uncollectible not paid within thirty(30)calendar or determination for which review is rental charges subject to the lodg- days after it is required to be paid, sought.The person conducting the ing tax. the City Attorney may institute such hearing shall make written findings The operator may take a credit legal action as may be necessary of fact and conclusions based upon against taxes payable the amount to recover the amount due plus the applicable sections of this Sec- of taxes previously paid for rent that interest, and costs and disburse- tion and the evidence presented. was not actually collected. ments. Upon a showing of good The person conducting the hearing (d) Examination of Returns, Ad- cause,the City may grant an opera- may affirm, reverse or modify the justments, Notices, Demands and for one thirty(30)day extension of notice,order or determination made Audit. time within which to file a return and by the City.Any decision rendered After a return is filed, the City make payment of taxes as required by the City Manager pursuant to this shall examine it and make any in- by this Section provided that inter- subdivision may be appealed to the vestigation or examination of the est during such period of extension City Council.A petitioner seeking to records and accounts of the person shall be added to the taxes due at appeal a decision must file a written making the return deemed neces- the rate of one and one-half percent notice of appeal with the City Clerk sary for determining its correct- (1.5%)per month. within ten (10) calendar days after ness including a formal audit. The (g)Interest. the decision has been mailed to the Rate Information: tax computed on the basis of such The amount of tax not timely petitioner.The matter will thereupon (1)Lowest classified rate paid by commercial users examination shall be the tax to be paid shall bear interest at the rate be placed on the Council agenda for comparable space: paid. If the tax due is found to be of one and one-half percent(1.5%) as soon as is practical. The Coun- greater than that paid,such excess per month from the time such tax cil shall then review the findings of $34.45 per column inch shall be paid to the City within ten should have been paid until paid. fact and conclusions to determine (10)calendar days after receipt of a Any interest shall be added to the whether they were correct. Upon a notice thereof given either person- tax and be collected as part thereof. determination by the Council that ally or sent by registered mail to (h)Violations. the findings and conclusions were the address shown on the return.If Any person who shall willfully incorrect, the Council may modify, the tax paid is greater than the tax fail to make a return required by reverse or affirm the decision of the Ad ID 212058 found to be due,the excess shall be this Section;or who shall fail to pay City Manager or his designee upon the same standards as set forth in this subdivision. Section 3. This ordinance is ef- fective on July 1,2014 following its passage and publication. First Reading:April 1,2014 Second Reading:April 22,2014 Published:May 8,2014 Attest Debra A.Mangen,City Clerk James B.Hovland,Mayor 5/8/14,3SC1,Ord 2014-04 CVB Lodging Tax,212058