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049-07 - Ordinance - Amending Chapter 5.22 by Increasing Admissions TaxORDINANCE NO. 049-07 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON AMENDING PORT ORCHARD MUNICIPAL CODE CHAPTER 5.22 BY INCREASING THE ADMISSIONS TAX FROM ONE TENTH OF ONE PERCENT TO FIVE PERCENT; EXEMPTING CERTAIN START UP BUSINESSES; AND AMENDING THE COLLECTION AND PAYMENT METHODS WHEREAS, RCW 35.21,280 authorizes the City of Port Orchard to levy and fix an admissions tax; and WHEREAS, Port Orchard Municipal Code 5.22.040 currently provides for an admissions tax of one tenth of one percent; and WHEREAS, several neighboring jurisdictions have adopted a admissions taxes of four and five percent; and WHEREAS, at least one of the major theatre chains doing business in Port Orchard prices movie tickets in Port Orchard the same as in locations where admissions taxes of four and five percent are imposed; and WHEREAS, in order to help new businesses become established in locations where similar activities have not recently occurred, the City Council deems it to be in the public interest to levy a lower admissions tax for the first year that a new qualifying business is in operation; and WHEREAS, the City Council desires to increase funding for recreational activities by designating the proceeds of the admissions tax to be set aside in a fund to be used for that purpose; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Port Orchard Municipal Code 5.22.030 is hereby amended to read as follows: 5.22.030 Definitions. For purposes of this chapter, words and phrases shall have the following meanings: (1) "Admissions Charge," in addition to its usual and ordinary meaning, includes but shall not be limited to a charge made for use of seats and tables, reserved or otherwise and other similar accommodations. (2) "City" means the City of Port Orchard, state of Washington. (3) "Nonprofit Organization" means any organization organized and operated for charitable, educational or other purposes, which is exempt from Ordinance No, 049-07 Page 2of4 taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1954, as amended. (4) "Person" means any individual, receiver, assignee, firm, partnership, joint stock company, association, society, corporation or any group of individuals acting as a unit whether mutual, cooperative, fraternal, nonprofit, or otherwise. (5) "Place" means and includes but is not restricted to, theaters, dancehalls, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks, circuses, side shows, swimming pools, outdoor amusement parks and carnivals. (6) "Treasurer" means the City treasurer's office. (7) "Start up business" means an activity, occupation, pursuit or profession located and/or engaged in within the City with the object of gain, benefit or advantage to another person, directly or indirectly, whether part time or full time, and which has not operated for the prior 12 months or more at any location within the City. A change in ownership of a business shall not create a new start up business unless the business has not operated for the prior 12 months or more. SECTION 2, Port Orchard Municipal Code 5.22.040 is hereby amended to read as follows: 5.22.040 Imposition and use, (1) There is levied and imposed upon any person (including children, without regard to age) who pays an admission charge to any place, including persons who are admitted at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations, a tax which shall be in the amount of: (a) For start up businesses during the first 12 months of operation, one percent (1.0%) of the admission charge. (b) For all other persons, unless otherwise exempt, five percent (5%) of the admission charge. (2) No admissions tax shall be levied on any person who is admitted free of charge and from whom no compensating payment is obtained. The tax on reduced admission charges shall be charged on such reduced charge and not on the regular admission charge. (3) The revenue received by the City from the admissions tax shall be dedicated to the funding of recreational programs, activities, or capital projects within the City, SECTION 3. Port Orchard Municipal Code 5.22.070 is hereby amended to read as follows: 5.22.070 Collection and payment. (1) Any person, including any municipal or quasi -municipal corporation, who receives any payment for admissions on which a tax is levied under this chapter shall collect the amount of the tax imposed from the person making the admission payment and shall remit the same as provided for in this section. The tax imposed under this chapter shall be deemed to be held in trust by that person required to collect the tax until it is paid to the Ordinance No. 049-07 Page 3 of 4 City as herein provided. Any person required .to collect the tax imposed under this chapter who fails to collect the same, or having collected the same, fails to remit the same to the City in the manner prescribed in this chapter, whether such failure be the result of his or her own act or the result of acts or conditions beyond his or her control, shall nevertheless be personally liable to the City for the amount of such tax, and shall, unless remittance is made as required in this section, be guilty of a violation of this chapter. The tax imposed shall be collected at the time admission charge is paid by the person seeking admission to any place and shall be reported and remitted by the person receiving the tax to the City Treasurer monthly on or/before the fifteenth (15t") day of the following month if the amount collected exceeds $100 (One Hundred Dollars) collected in one month. Amounts less than $100 (One Hundred Dollars) collected in one month may be remitted quarterly as follows: January, February, March to be received by April 15th April, May, June to be received by July 15" July, August, September to be received by October 151" October, November, December to be received by January 15tn The treasurer may extend the time for making and filing the return and remittance of the tax for a period not to exceed 30 days. Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the treasurer. Checks should be made payable to the City. Payment by check shall not relieve the person collecting the tax from liability for payment and remittance of the tax unless the check is honored and in the full and correct amount. Any person receiving any payment for admissions shall make out a return upon such forms providing information as required by the treasurer. Whenever any theater, circus show, exhibition, entertainment or amusement makes an admission charge which is subject to the tax levied in this chapter, and the same is of a transitory or temporary nature, of which the treasurer shall be the judge, the treasurer shall require the report and remittance of the admissions tax immediately upon the collection of the tax at the conclusion of the performance or exhibition, or at the conclusion of a series of performances or exhibitions, or at such other time as the treasurer shall determine. The treasurer may require the applicant to deposit a sum of money or bond in advance of any performance, show or amusement. This deposit or bond shall be returned upon the faithful compliance with the provisions of this chapter. (2) Failure to comply with any requirements of the treasurer as to reporting and remitting the tax shall be a violation of this chapter. (3) The books, records and accounts of every person collecting a tax levied in this chapter shall, as to admission charges and tax collections, be subject to examination and audit by the treasurer at all reasonable times SECTION_ 4. This ordinance shall be in full force and effect January 1, 2008, and shall be published as required by law. A summary of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law. Ordinance No. 049-07 Page 4 of 4 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 19th day of December 2007. ATTEST: Michelle Merlino, City Clerk APPROVED AS TO FORM: ApT-. City Attorne /U-1-'t" - � - '/�' " KIM E. ABEL, MAYOR Sponsored by: 46 Rita Dilenno Council Member NOTICE OF CITY OF PORT ORCHARD ORDINANCE The following is a summary of Ordinances approved by the Port Orchard City Council at their regular Council meeting held December 19, 2007. ORDINANCE NO. 049-07 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON AMENDING PORT ORCHARD MUNICIPAL CODE CHAPTER 5.22 BY INCREASING THE ADMISSIONS TAX FROM ONE TENTH OF ONE PERCENT TO FIVE PERCENT; EXEMPTING CERTAIN START UP BUSINESSES; AND AMENDING THE COLLECTION AND PAYMENT METHODS Copies of Ordinance No. 049-07 are available for review at the office of the City Cleric of the City of Port Orchard. Upon written request a statement of the full text of the Ordinance will be mailed to any interested person without charge. Thirty days after publication, copies of Ordinance No. 049-07 will be provided at a nominal charge, City of Port Orchard Patti Kirkpatrick Deputy City Clerk Publish: Port Orchard Independent December 29, 2007