For the purposes of this chapter, every person who sells recreational
marijuana or recreational marijuanainfused products in the City of
Port Orford is exercising a taxable privilege. The purpose of this
chapter is to impose a tax upon the retail sale of recreational marijuana
and recreational marijuana-infused products.
(Ord. 2015-02 § 1, 2014)
When not clearly otherwise indicated by the context, the following
words and phrases as used in this chapter shall have the following
meanings:
means the Finance Director for the City of Port Orford or
designee.
means the total amount received in money, credits, property
or other consideration from the sale of recreational marijuana and
recreational marijuana-infused products that is subject to the tax
imposed by this chapter.
means all parts of the plant of the genus Cannabis as defined
under Oregon Revised Statute (ORS) 475.005(16).
means a natural person, joint venture, joint stock company,
partnership, association, club, company, corporation, business, trust,
organization, or any group or combination acting as a unit, including
the United States of America, the State of Oregon and any political
subdivision thereof, or the manager, lessee, agent, servant, officer
or employee of any of them.
means the retail acquisition or furnishing for consideration
of recreational marijuana by any person within the City and does not
include the acquisition or furnishing of marijuana by a grower or
processor to a seller.
means the transfer of goods or services in exchange for any
valuable consideration and does not include the transfer or exchange
of goods or services between a grower or processor and a seller.
means any person who is required to be licensed or has been
licensed by the State of Oregon to provide recreational marijuana
or recreational marijuana-infused products to purchasers for money,
credit, property or other consideration.
means either the tax payable by the seller or the aggregate
amount of taxes due from a seller during the period for which the
seller is required to report collections under this chapter.
means any person obligated to account to the Finance Director
for taxes collected, or to be collected, or from whom a tax is due,
under the terms of this chapter.
(Ord. 2015-02 § 1, 2014)
A.
There
is hereby levied and shall be paid a tax by every seller exercising
the taxable privilege of selling recreational marijuana as defined
in this chapter.
B.
The
amount of tax levied shall be established by a City Council resolution.
(Ord. 2015-02 § 1, 2014)
The following deductions shall be allowed against sales received
by the seller providing recreational marijuana:
A.
Refunds
of sales actually returned to any purchaser;
B.
Any
adjustments in sales which amount to a refund to a purchaser, providing
such adjustment pertains to the actual sale of recreational marijuana
and does not include any adjustments for other services furnished
by a seller.
(Ord. 2015-02 § 1, 2014)
The seller is responsible for reporting and paying all taxes
due as follows:
A.
Every
seller shall file a return on forms provided by the City.
B.
The
due date for filing a return with the City is the 15th day of each
month for the preceding month. A return shall not be considered filed
until it is actually received by the City.
C.
Returns
and the full amount of tax collected shall be remitted to the City
by the due date and shall specify the total sales subject to this
chapter, the amount of tax collected under this chapter, and other
relevant information as specified on the form.
D.
A payment
is delinquent on the last day of the month in which the payment is
due.
E.
Payments
received by the City for application against existing liabilities
will be credited toward the period designated by the taxpayer under
conditions that are not prejudicial to the interest of the City. A
condition considered prejudicial is the imminent expiration of the
statute of limitations for a period or periods.
F.
Non-designated
payments shall be applied in the order of the oldest liability first,
with the payment credited first toward any accrued penalty, then to
interest, then to the underlying tax until the payment is exhausted.
G.
Crediting
of a payment toward a specific reporting period will be first applied
against any accrued penalty, then to interest, then to the underlying
tax. If the Finance Director, in his or her sole discretion, determines
that an alternative order of payment application would be in the best
interest of the City in a particular tax or factual situation, the
Finance Director may order such a change.
H.
The
Finance Director may establish shorter reporting periods for any seller
if the Finance Director deems it necessary in order to insure collection
of the tax. The Finance Director also may require additional information
in the return relevant to payment of the liability. When a shorter
return period is required, penalties and interest shall be computed
according to the shorter return period.
I.
Returns
and payments are due immediately upon cessation of business for any
reason.
J.
All
taxes collected by sellers pursuant to this chapter shall be held
in trust for the account of the City until payment is made to the
City. A separate trust bank account is not required in order to comply
with this provision.
K.
Every
seller must keep and preserve for a period of three years, in an accounting
format established by the Finance Director, records of all sales made
by the dispensary, to include books, accounts, invoices and other
such records as may be required by the Finance Director. Seller shall
make all such records available to the Finance Director for inspection
at all reasonable times.
(Ord. 2015-02 § 1, 2014)
A.
Original
Delinquency. Any seller who fails to remit any portion of any tax
imposed by this chapter prior to delinquency shall pay in addition
to the amount of the tax, a penalty of 10% of the amount of the tax.
B.
Continued
Delinquency. On or before a period of 30 days following the date on
which the remittance first became delinquent, any seller who fails
to remit any delinquent remittance shall pay a second delinquency
penalty of 15% of the amount of the tax in addition to the amount
of the tax and the penalty first imposed.
D.
Interest.
Any seller who fails to remit any tax imposed by this chapter shall
pay, in addition to any penalties imposed, interest at the rate of
one percent per month, or fraction thereof, on the amount of tax owed,
exclusive of penalties and without proration for portions of a month,
from the date on which the remittance first became delinquent until
paid.
E.
Penalties
Merged With Tax. Every penalty imposed, and such interest as accrues
under the provisions of this section, shall become a part of the tax
required to be paid.
F.
Petition
for Waiver. Any seller who fails to remit any portion of any tax imposed
by this chapter prior to delinquency shall pay the penalties as provided
herein, however, the seller may petition the Port Orford City Council
for waiver and refund of the penalty or any portion thereof and the
Port Orford City Council may, if a good and sufficient reason is shown,
waive and direct a refund of the penalty or any portion thereof.
(Ord. 2015-02 § 1, 2014)
If any seller should fail to make, within the time provided in this chapter, any report of the tax required by this chapter, the Finance Director shall proceed in such manner as deemed best to obtain facts and information on which to base the estimate of tax due. The Finance Director shall, upon determining the estimate of tax due from the seller, assess said tax against the seller to include any interest and penalties provided for under this chapter. When such determination is made, the Finance Director shall give notice of the amount so assessed by having it served personally, or by depositing it in the United States mail, postage prepaid, and addressed to the seller so assessed at the last known place of address. Such seller may make an appeal of such determination as provided in Section 3.10.080 of this chapter. If no appeal is filed, the Finance Director's determination is final and the amount thereby is immediately due and payable.
(Ord. 2015-02 § 1, 2014)
A.
Any
person aggrieved by the decision of the Finance Director may make
written request for an informal hearing with the City Administrator
in the following manner:
1.
Written
notice shall be provided to the City Administrator any time within
15 days of the date upon which the Finance Director provided written
notice of determination to the aggrieved person.
2.
The
City Administrator shall, upon receipt of the written request for
hearing, schedule an informal hearing to be held at City Hall within
15 days of receipt of the request, at which hearing the person aggrieved
shall be given the opportunity to present evidence to support his
or her position.
3.
The
City Administrator shall take evidence from the Finance Director as
to the reasonableness, fairness, and validity of the determination,
and shall render his or her decision within 24 hours after closing
the hearing and shall notify the complainant of his or her decision.
B.
Any
person aggrieved by the decision of the City Administrator may appeal
to the City Council by filing notice of appeal with the City Recorder
in the following manner:
1.
The
aggrieved shall provide written notice to the City Recorder within
20 days of the serving or the mailing of the notice of the decision
given by the City Administrator.
2.
The
City Council shall give the appellant not less than 20 days' written
notice of the time and place of hearing of said appeal.
3.
Action
by the City Council on appeals shall be final, and shall be decided
by a majority of the members of the City Council present at the meeting
where such appeal is considered.
(Ord. 2015-02 § 1, 2014)
Whenever the amount of any tax, interest or penalty has been
overpaid or paid more than once, or has been erroneously collected
or received by the City under this chapter, it may be refunded based
upon the following provisions:
A.
A written
claim, stating under penalty of perjury the specific grounds upon
which the claim is founded, must be filed with the Finance Director
within one year of the date of payment. The claim shall be made on
forms furnished by the Finance Director.
B.
The
Finance Director shall have 20 calendar days from the date of receipt
of a claim to review the claim and make a determination in writing
as to the claim's validity. Notice of the Finance Director's determination
shall be provided to claimant in writing. Such notice shall be mailed
to the address provided by claimant on the claim form.
C.
In the
event a claim is determined by the Finance Director to be valid, a
seller may, in a manner prescribed by the Finance Director, collect
the amount of such claim as a refund or as credit against taxes collected.
The seller shall notify the Finance Director of claimant's choice
no later than 15 days following the date the Finance Director mailed
the determination. In the event the claimant has not notified the
Finance Director of claimant's choice within the 15-day period and
the seller is still in business, a credit will be granted against
the tax liability for the next reporting period. If the seller is
no longer in business, a refund check will be mailed to claimant at
the address provided in the claim form.
D.
No refund
shall be paid under the provisions of this section unless the claimant
has established the right by written records showing entitlement to
such refund and the Finance Director has acknowledged the validity
of such claim.
(Ord. 2015-02 § 1, 2014)
Any tax required to be paid by any seller under the provisions
of this chapter shall be deemed a debt owed by the seller to the City.
Any such tax collected by a seller which has not been paid to the
City shall be deemed a debt owed by the seller to the City.
Any person owing money to the City under the provisions of this
chapter shall be liable to an action brought in the name of the City
of Port Orford for the recovery of such amount. In lieu of filing
an action for the recovery, the City may, when taxes due are more
than 30 days delinquent, submit any outstanding tax to a collection
agency. In the event the City turns over a delinquent tax account
to a collection agency, it may add to the amount owing an amount equal
to the collection agency fee, so long as the fee does not to exceed
the limits as set by State statute and the City complies with the
provisions set forth in ORS 697.105.
(Ord. 2015-02 § 1, 2014)
It is unlawful for any seller or other person so required, to
fail or refuse to register as required herein, or to furnish any return
required to be made, or fail or refuse to furnish a supplemental return
or other pertinent information required by the Finance Director, or
to render a false or fraudulent return. No person required to make,
render, sign or verify any report shall make any false or fraudulent
report with intent to defeat or evade the determination of any amount
due as required by this chapter.
(Ord. 2015-02 § 1, 2014)
Violations will be fined under a civil penalty of not more than
$750.00.
(Ord. 2015-02 § 1, 2014)
Except as otherwise required by law, it is unlawful for the
City, any officer, employee or agent to divulge, release or make known
in any manner any financial information submitted or disclosed to
the City under the terms of this chapter. Nothing in this section
shall prohibit:
A.
The
disclosure of the names and addresses of any person who is operating
a licensed establishment from which marijuana is sold or provided;
or
B.
The
disclosure of general statistics in a form which would not reveal
an individual seller's financial information; or
C.
Presentation
of evidence to the court, or other tribunal having jurisdiction in
the prosecution of any criminal or civil claim by the Finance Director
or an appeal from the Finance Director for amount due the City under
this chapter; or
D.
The
disclosure of information when such disclosure of conditionally exempt
information is ordered under public records law procedures; or
E.
The
disclosure of records related to the failure of a seller to report
and remit the tax when the report or tax is in arrears for over six
months or the tax exceeds $5,000.00. The City Council expressly finds
and determines that the public interest in disclosure of such records
clearly outweighs the interest in confidentiality under ORS 192.501(5).
(Ord. 2015-02 § 1, 2014)
The City, for the purpose of determining the correctness of
any tax return, or for the purpose of an estimate of taxes due, may
examine or may cause to be examined by an agent or representative
designated by the City for that purpose, any books, papers, records,
or memoranda, including copies of seller's State and Federal income
tax return, bearing upon the matter of the seller's tax return. All
books, invoices, accounts and other records shall be made available
within the City limits and be open at any time during regular business
hours for examination by the Finance Director or an authorized agent
of the Director. If any taxpayer refuses to voluntarily furnish any
of the foregoing information when requested, the Finance Director
may immediately seek a subpoena from the Port Orford Municipal Court
to require that the taxpayer or a representative of the taxpayer attend
a hearing or produce any such books, accounts and records for examination.
(Ord. 2015-02 § 1, 2014)
The Finance Director is hereby authorized to prescribe forms
and promulgate rules and regulations to aid in the making of returns,
the ascertainment, assessment and collection of said marijuana tax
and in particular and without limiting the general language of this
chapter, to provide for:
A.
A form
of report on sales and purchases to be supplied to all vendors; and
B.
The
records which sellers providing recreational marijuana and recreational
marijuana-infused products are to keep concerning the tax imposed
by this chapter.
(Ord. 2015-02 § 1, 2014)
