[Adopted 9-1-1972 as Ch. 31, Art.
II, of the 1972 Code]
[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."
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.
