[Amended 10-13-1977 by Ord. No. 2296]
This article shall be known and may be cited as the "City of El Reno Sales Tax Ordinance."
[Adopted 9-1-1972 as Ch. 31, Art. II, of the 1972 Code]
For the purposes of this article, the following definitions shall apply:
A.
Generally. The definitions of words, terms and phrases contained in the Oklahoma Sales Tax Code are hereby adopted by reference and made a part of this article.
B. OKLAHOMA SALES TAX CODE TAX COLLECTOR
Specifically. As used in this article, the following terms shall have the meanings indicated:
Such code as set out in 68 O.S. § 1350 et seq., as amended.
The department of the City government or the official agency of the state duly designated according to law or contract authorized by law to administer the collection of the tax levied by this article.
[Amended 10-13-1977 by Ord. No. 2296]
It is hereby declared to be the purpose of this article to provide revenues for the support of the functions of the municipal government of the City.
[Amended 10-13-1977 by Ord. No. 2296]
The provisions of this article shall be cumulative and in addition to any and all other taxing provisions of the City ordinances.
For the purpose of this article, the classification of taxpayers hereunder shall be prescribed by state law for purposes of the Oklahoma Sales Tax Code.
[Amended 10-13-1977 by Ord. No. 2296]
All valid and subsisting (existing) permits to do business issued by the Oklahoma Tax Commission pursuant to the Oklahoma Sales Tax Code are, for the purpose of this article, hereby ratified, confirmed and adopted in lieu of any requirement for an additional City permit for the same purpose.
[Amended 10-13-1977 by Ord. No. 2296]
This article shall become and be effective on and after December 1, 1977, subject to approval of a majority of the registered voters of the City voting on same in the manner prescribed by 11 O.S. § 16-101, as amended.[1]
[1]
Editor's Note: This ordinance was approved by a majority of registered voters of the City at an election as described in this section.
There is hereby levied an excise tax of 1% upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code, including but not exclusive of the following:
A.
Tangible personal property.
B.
Natural or artificial gas, electricity, ice, steam or any other utility or public service, except water.
C.
Transportation for hire of persons by common carriers, including railroads, both steam and electric, motor transportation companies, taxicab companies, Pullman car companies, airlines and all other means of transportation for hire.
D.
Service by telephone and telegraph companies to subscribers or users, including transmission of messages, whether local or long-distance. This shall include all services and rental charges having any connection with transmission of any message.
E.
Printing or printed matter of all types, kinds and characters and the service of printing or overprinting.
F.
Service of furnishing rooms by hotels, apartment hotels, public rooming houses and public lodging houses and tourist camps.
G.
Service of furnishing storage or parking privileges by auto hotels and parking lots.
H.
Food, confections and all drinks sold or dispensed by hotels, restaurants or other dispensers, and sold for immediate consumption upon the premises or delivered or carried away from the premises for consumption elsewhere.
J.
Dues or fees to clubs, and the sale of tickets or admission to places of amusement, to athletic, entertainment, recreational events, or dues or fees for the privilege of having access to or the use of amusement, entertainment, athletic or recreational facilities, including free or complimentary passes, tickets, dues or fees, are hereby declared to have a value equivalent to the sale price of tickets, passes, admissions, fees or dues of like kind or character.
K.
For the purpose of this article, sales of service and tangible personal property made for the purpose of developing real estate, even though such real estate is intended for resale as real property, are hereby declared to be sales to consumers or users. Sales of service and tangible personal property, including materials, supplies and equipment made to contractors who use same in the performance of any contract, are hereby declared to be sales to consumers or users and not sales for resale. Sales of tangible personal property to persons who are primarily engaged in selling their services shall be deemed sales to consumers or users and, therefore, taxable. Sales of tangible personal property to peddlers, solicitors and other salesmen who do not have established places of business shall be deemed to be sales to consumers or users, and, therefore, taxable.
There is hereby specifically exempted from the tax levied by this article the gross receipts or gross proceeds exempted from the Oklahoma Sales Tax Code, inclusive but not exclusive of, and derived from, the:
A.
Sale of nonintoxicating beverages taxed as provided by state law.
B.
Sale of cigarettes and such tobacco products as are taxed by state law.
C.
Sale of raw products from the farm, orchard or garden, where such sale is made by the producer of such raw products directly to the consumer or user; gross receipts or gross proceeds derived from the sale of livestock, poultry products and dairy products by the producers. Exemptions granted by this subsection shall not apply when such articles are sold, even though by the producer thereof, at or from an established business place not on a farm, nor shall this exemption apply unless said articles are produced or grown within the state. The provisions of this subsection are intended to exempt the sale by livestock producers of livestock sold at special livestock sales. The provisions of this subsection are intended to exempt the sale of dairy products when sold by a dairyman or farmer who owns all of the cows from which the dairy products he sells are produced. The provisions of this subsection shall not be construed to exempt sales of dairy products by any other business. The provisions of this subsection shall not be construed to exempt sales by florists, nurserymen and chicken hatcheries.
D.
Dues paid to fraternal, religious, civic, charitable or educational societies or organizations by regular members thereof, provided such societies or organizations operate under what is commonly termed the "lodge plan or system," and provided such societies or organizations do not operate for a profit which inures to the benefit of any individual member or members thereof to the exclusion of other members.
E.
Sale of tangible personal property or services to or by churches, except where such organizations may be engaged in business for profit or savings, competing with other persons engaged in the same or similar business.
F.
Gross receipts and gross proceeds deriving from the transportation of school children to and from schools and high schools in motor and other vehicles.
G.
Transportation of persons where the fare of each person does not exceed $0.15, or local transportation of persons within the corporate limits of the City, except by taxicabs.
H.
Sale of food in public, common, high school or college cafeterias and lunchrooms operated primarily for teachers and pupils, and not operated primarily for the public and not operated for profit.
I.
Carrier sales made directly to consumers or users of newspapers or any other periodicals where any individual transaction does not exceed $0.20.
J.
Sales to the United States government, State of Oklahoma or any of its political subdivisions.
K.
Sale of gasoline or motor fuel on which the motor fuel tax, gasoline excise tax or special fuels tax has been paid to the State of Oklahoma.
L.
Sale of crude petroleum or natural or casinghead gas and other products subject to gross production tax under the provisions of the laws of the State of Oklahoma. This exemption shall not apply when such products are sold to a consumer or user for consumption or use, except when used for injection into the earth for the purpose of promoting or facilitating the production of oil or gas.
M.
Sales of motor vehicles, attached optional equipment and accessories on which the Oklahoma motor vehicle excise tax has been paid.
N.
Sales by county, district and state fairs.
O.
Sale of advertising space in newspapers and periodicals and billboard advertising service, and sales of time for radio and television broadcasts of advertising.
P.
Sales for resale to persons regularly engaged in the business of reselling the articles purchased, whether within or without the state, provided that such sales to residents of this state are made to persons to whom sales tax permits have been issued by the State Tax Commission as provided by law. This exemption shall not apply to the sales of articles made to persons holding permits when such persons purchase items for their use and which they are not regularly engaged in the business of reselling, nor shall this exemption apply to sales of tangible personal property to peddlers, solicitors and other salesmen who do not have sales tax permits or established places of business.
Q.
Goods, wares, merchandise and property sold for use in manufacturing, compounding, processing, assembling or preparing for sale shall be classified as having been sold for the purpose of resale or the subject matter of resale only in the event:
(1)
Such goods, wares, merchandise or property are purchased for the purpose of being manufactured into a finished article and if it becomes a recognizable, integral part of the manufactured, compounded, processed, assembled or prepared products; or
(2)
It is consumed in the process of manufacturing, compounding, processing, assembling or preparing products for resale.
R.
Sale of machinery and equipment purchased and used by persons establishing new manufacturing or processing plants in Oklahoma, and machinery and equipment purchased and used by persons in the operation of manufacturing plants already established in Oklahoma. This exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation hereunder. The term "manufacturing plants" shall mean those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such.
S.
Sale of tangible personal property manufactured in Oklahoma when sold by the manufacturer to a person who transports it to another state for immediate and exclusive use in some other state.
T.
Sale of an interest in tangible personal property to a partner or other person who, after such sale, owns a joint interest in such tangible personal property where the Oklahoma sales or use tax has previously been paid on such tangible personal property.
U.
Sales of containers shall be exempt when sold to a person regularly engaged in the business of reselling empty or filled containers, or when he purchases such containers for the purpose of packaging raw products of farm, garden or orchard, for resale to the consumer or processor; provided that this exemption shall not apply to the sale of containers used more than once and which are ordinarily known as returnable containers, unless a tax under this article is collected and paid to the Tax Collector with respect to each and every transfer by such person of title or possession of such returnable container if made to any consumer or user within this state; nor shall it apply to the sale of labels or other materials delivered along with items sold but which are not necessary or absolutely essential to the sale of the sold merchandise.
V.
Exemptions of poultry and livestock feed, and farm machinery as prescribed by the Oklahoma Sales Tax Code, shall be equally applicable as exemptions from the tax levied by this article.
W.
Sales of agricultural fertilizer to persons regularly engaged for profit in the business of farming and/or ranching which are exempt from state sales taxes under the Oklahoma Sales Tax Code shall likewise be exempt from the City sales tax levied by this article.
There is hereby specifically exempted from the tax levied by this article the transfer of tangible personal property exempted from the Oklahoma Sales Tax Code, inclusive but not exclusive of the following:
A.
From one corporation to another corporation pursuant to a reorganization. As used in this subsection, the term "reorganization" means a statutory merger or consolidation; or the acquisition by a corporation of substantially all of the properties of another corporation when the consideration is solely all or a part of the voting stock of the acquiring corporation, or of its parent or subsidiary corporation.
B.
In connection with the winding up, dissolution or liquidation of a corporation only when there is a distribution in kind to the shareholders of the property of such corporation.
C.
To a corporation for the purpose of organization of such corporation where the former owners of the property transferred are, immediately after the transfer, in control of the corporation, and the stock or securities received by each is substantially in proportion to his interest in the property prior to the transfer.
D.
To a partnership in the organization of such partnership if the former owners of the property transferred are, immediately after the transfer, members of such partnership and the interest in the partnership received by each is substantially in proportion to his interest in the property prior to the transfer.
E.
From a partnership to the members thereof when made in kind in the dissolution of such partnership.
The tax levied by this article shall be due and payable at the time prescribed for payment of the state sales tax under the Oklahoma Sales Tax Code.
A.
The tax levied by this article shall be paid to the Tax Collector in the form and manner provided for payment of the state sales tax under the Oklahoma Sales Tax Code.
B.
The bracket system for the collection of the City sales tax by the Tax Collector shall be as the same is hereafter adopted by the agreement of the City and the Tax Collector, in the collection of both the City sales tax and the state sales tax.
A.
The tax levied by this article shall be paid by the consumer or user to the vendor, and it shall be the duty of each and every vendor in this City to collect from the consumer or user the full amount of the tax levied by this article, or an amount equal as nearly as possible or practicable to the average equivalent thereof.
B.
Vendors shall add the tax imposed hereunder, or the average equivalent thereof, to the sales price or charge, and when added such tax shall constitute a part of such price or charge, shall be a debt from the consumer or user to the vendor until paid, and shall be recoverable at law in the same manner as other debts.
C.
A vendor who willfully or intentionally fails, neglects or refuses to collect the full amount of the tax levied by this article, or willfully or intentionally fails, neglects or refuses to comply with the provisions or remits or rebates to a consumer or user, either directly or indirectly, and by whatsoever means, all or any part of the tax herein levied, or makes in any form of advertising, verbally or otherwise, any statement which infers that he is absorbing the tax, or paying the tax for the consumer or user by an adjustment of prices or at a price including the tax, in any manner whatsoever, shall be deemed guilty of an offense.
Returns and remittances of the tax levied and collected under this article shall be made to the Tax Collector at the time and in the manner, form and amount as prescribed for returns and remittances required by the Oklahoma Sales Tax Code, and remittances of taxes collected hereunder shall be subject to the same discount as may be allowed by such code for collection of state sales taxes.
A.
Section 217 of Title 68 of the Oklahoma Statutes is hereby adopted and made a part of this article, and interest and penalties at the rates and in amounts as therein specified are hereby levied and shall be applicable in cases of delinquency in reporting and paying the tax levied by this article; provided that the failure or refusal of any taxpayer to make and transmit the reports and remittances of the tax in the time and manner required by this article shall cause such tax to be delinquent. In addition, if such delinquency continues for a period of five days, the taxpayer shall forfeit his claim to any discount allowed under this article.
B.
The interest or penalty or any portion thereof accruing by reason of a taxpayer's failure to pay the City tax levied by this article may be waived or remitted in the same manner as provided for such waiver or remittance as applied in the administration of the state sales tax provided in 68 O.S. § 220, and to accomplish such purposes, the applicable provisions of such section are hereby adopted by reference and made a part of this article.
In addition to all civil penalties provided by this article, the willful failure or refusal of any taxpayer to make reports and remittances required by this article, or the making of any false and fraudulent report for the purpose of avoiding or escaping payment of any tax or portion thereof rightfully due under this article, shall constitute a misdemeanor.
Taxes, penalties and interest due under this article shall at all times constitute a prior, superior and paramount claim as against the claims of unsecured creditors, and may be collected by suit as any other debt.
Refund of erroneous payment of the sales tax levied by this article may be made to any taxpayer making such erroneous payment in the same manner and procedure, and under the same limitations of time, as provided for the administration of the state sales tax as set forth in 68 O.S. § 227, and to accomplish such purpose, the applicable provisions of such section are hereby adopted by reference and made a part of this article.
The confidential and privileged nature of the records and files concerning the administration of the City sales tax is legislatively recognized and declared and, to protect the same, the provisions of 68 O.S. § 205, and each subsection thereof, are hereby adopted by reference and made fully effective and applicable to the administration of the City sales tax as if here set forth in full.
[Amended 10-13-1977 by Ord. No. 2296]
The people of the City, by their approval of this article at the election provided for herein, authorize the City Council to make such administrative and technical changes or additions in the method and manner of administration and enforcing this article as may be necessary or proper for efficiency and fairness, except that the rate of the tax and limitation of time for collection of the tax herein provided shall not be changed without approval of the qualified electors of the City as provided by law.