Public Notices IV

City of Staples Ordinance No. 511

ORDINANCE NO. 511

 

An ordinance for the City of Staples enacted to establish a local lodging tax pursuant to Minn. Stat. §469.190.

 

THE CITY COUNCIL FOR THE CITY OF STAPLES, TODD COUNTY, MINNESOTA DOES ORDAIN:

 

Section 10.12 - LODGING TAX

 

Sec. 10.12.01 Definitions.

Unless the language or context clearly indicates that a different meaning is intended, the following words, for the purpose of this Section 10.12, shall have the following meanings and inclusions:

“City” means the City of Staples, Minnesota, acting by or through its duly authorized representative.

“Lodger” means the person or entity obtaining lodging from an Operator.

“Operator” means any person or entity who has charge, care, or control of a building, or part thereof, in which dwelling units or rooming units are let.

“Person” includes all firms, partnerships, associations, corporations, and natural persons.

“Rent” means the total consideration valued in money charged for lodging whether paid in money or otherwise, but shall not include any charges for services rendered in connection with furnishing lodging other than the room charge itself.

“Taxable lodging and lodging-related services” means the furnishing for a consideration of the rental of a room or rooms for a temporary place to stay or live, as further defined in the Minnesota Department of Revenue Sales Tax Fact Sheet 141, as the same may be amended or revised from time to time.

Sec. 10.12.02  - 

Imposition of tax.

There is hereby imposed a tax of three percent (3%) on the rent charged by an Operator for providing taxable lodging and lodging-related services to any person after June 1, 2017. The  tax shall be stated and charged separately and shall be collected by the Operator from the Lodger. The tax collected by the Operator shall be a debt owed by the Operator to the City and shall be extinguished only by payment to the City. In no case shall the tax imposed by this section upon an Operator exceed the amount of tax, which the Operator is authorized and required by this article to collect from a Lodger.

Sec. 10.12.03 - 

Collections.

Each operator shall collect the tax imposed by this section at the time the rent is paid. The tax collections shall be deemed to 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 and those persons paying the tax shall receive a receipt of payment from the Operator.

Sec. 10.12.04 - 

Exemptions.

An exemption shall be granted to any person as to whom or whose occupancy it is beyond the power of the City to tax. Further, exemption may be granted for those sales and/or services as defined in Minnesota Department of Revenue Sales Tax Fact Sheet 141, as the same may be amended or revised from time to time. No exemption shall be granted except upon a claim therefore made at the time the rent is collected and such a claim shall be made in writing and under penalty of perjury on forms provided by the City. All such claims shall be forwarded to the City when the returns and collections are submitted as required by this chapter.

Sec. 10.12.05 - 

Prohibition Against Advertising No Tax.

It shall be unlawful for any Operator to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the Operator, or that it will not be added to the rent or that, if added, it or any part thereof will be refunded. In computing the tax to be collected, amounts of tax less than one cent shall be considered an additional cent.

Sec. 10.12.06 - 

Payments and Returns.

The Operator shall pay the taxes imposed by this Section 10.12 to the City monthly not later than 20 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) Total taxable general rate sales as reported on Operator’s state sales tax return.

(2) The total amount of rent collected for the lodging during the period covered by the return.

(3) The amount of tax required to be collected and due for the period.

(4) The signature of the person filing the return or that of his agent duly authorized in writing.

(5) The period covered by the return.

(6) The amount of uncollectible rental charges subject to the lodging tax.

(7) Lodging and/or lodging-related services not subject to tax as described in section 10.12.04.

Sec. 10.12.07 - 

Examination of Return, Adjustments, Notices, and Demands.

The City shall, after a return is filed, examine the same and make any investigation or examination of the records and accounts of the person making the return deemed necessary for determining its correctness. 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 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 days after determination of such refund.

Sec. 10.12.08  - 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 whereon 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 article from the claimant and the balance of said allowance, if any, will be paid by the City to the claimant.

Sec. 10.12.09 - 

Failure to File a Return.

(a) If any Operator required by this article 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 ten 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 based upon 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 upon within ten 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 the burden of proving to the contrary rests with any person in any action or proceeding in respect thereto.

(b) If any portion of a tax imposed by this article, including penalties thereon, is not paid within 30 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, penalties, the costs and disbursements of any action.

(c) Upon a showing of good cause the City may grant an Operator one 30-day extension of time within which to file a return and make payment of taxes as required by this article provided that interest during such period of extension shall be added to the taxes due at the rate of eight percent per annum.

Sec. 10.12.10 - Penalties.

(a) If any tax imposed by this article is not paid within the time herein specified for the payment, or an extension thereof, there shall be added thereto a specific penalty equal to ten percent of the amount remaining unpaid.

(b) In case of any failure to make and file a return within the time prescribed by this article, unless it is shown that such failure is not due to willful neglect, there shall be added to the tax in addition to the penalty provided in subsection (a) above, a penalty of five percent for each 30-day period or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. There shall be a minimum penalty assessed of ten dollars if penalties in the aggregate do not exceed that amount. The amount so added to any tax shall be collected at the same time and in the same manner and as part of the tax unless the tax has been paid before the discovery of the negligence, in which case the amount so added shall be collected in the same manner as the tax.

(c) If any person willfully fails to file any return or make any payment required by this article, or willfully files a false or fraudulent return or willfully attempts in any manner to evade or defeat any such tax or payment thereof, there shall also be imposed as a penalty an amount equal to 50 percent of any tax (less any amounts paid on the basis of such false or fraudulent return) found due for the period to which such return related. The penalty imposed by this section shall be collected as part of the tax, and shall be in addition to any other penalties provided by this article.

(d) All payments received shall be credited first to penalties, next to interest, and then to the tax due.

(e) The amount of tax not timely paid, together with any penalty provided by this section, shall bear interest at the rate of eight percent per annum from the time such tax should have been paid until payment is made. Any interest and penalty shall be added to the tax and be collected as part thereof.

Sec. 10.12.11 - 

Administration of tax.

The City shall administer and enforce the assessment and collection of the taxes imposed by this article. The City shall cause to be prepared blank forms for the returns and other documents required by this article and shall distribute the same throughout the City and furnish them an application, but failure to receive or secure them shall not relieve any person from any obligation required of him under this article.

Sec. 10.12.12 - 

Contract with the State.

The City Clerk or Administrator is authorized to confer with Minnesota Commissioner of Taxation to the end that an agreement between the City and the Commissioner of Taxation may be entered into for the purpose of providing for the administration and collection of taxes imposed by this section. Such an agreement shall not become effective until presented to the City Council for its approval and when so approved the tax imposed by this section shall be collected and administered the terms of said agreement.

Sec. 10.12.13 - 

Examination of 

Records.

Persons acting on behalf of the City and authorized in writing by the City may examine the books, papers, and records of any Operator in order to verify the accuracy of any return made, or if no return was made, to ascertain the tax as provided in this article. Every such Operator is directed and required to give to the City the means, facilities, and opportunity for such examinations and investigations as are hereby authorized.

Sec. 10.12.14 - 

Violations.

Any person who shall willfully fail to make a return by this article, or who shall fail to pay the tax after written demand for payment, or who shall fail to remit the taxes collected or any penalty or interest imposed by this article after written demand for such payment, or who shall refuse to permit the City’s authorized agents to examine the books, records, and papers under his control, or who shall willfully make any incomplete, false, or fraudulent return shall be guilty of a misdemeanor.

Sec. 10.12.15 - 

Use of proceeds.

Ninety-five percent of the proceeds obtained from the collection of taxes pursuant to this article shall be used in accordance with Minnesota Statutes Section 469.190 as the same may be amended from time to time to fund a Tourism Promotion Committee for the purpose of marketing and promoting the City as a tourist center. The City may use up to five percent of the proceeds obtained hereunder to defray the costs and expenses of collection and administration of such tax. The City may contract with organization(s), as it deems necessary and proper to achieve the desired ends.

Sec. 10.12.16 - Appeals.

(a) Any Operator aggrieved by any notice, order, or determination made by the City under this article may file a petition for review of such 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 notice, order or determination.

(b) The petition for review shall be filed with the City within ten days after the notice, order, or determination for which review is sought has been mailed or served upon the person requesting review.

(c) Upon receipt of the petition, the City or its authorized agent shall set a date for a hearing and give the petitioner at least ten days prior written notice of the date, time, and place of the hearing.

(d) At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order, or determination should be modified or withdrawn.

(e) The hearing shall be conducted by the City or its authorized agent, 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.

(f) The person conducting the hearing shall make written findings of fact and conclusions based upon the applicable section of this article and the evidence presented. The person conducting the hearing may affirm, reverse, or modify the notice, order, or determination made by the City.

(g) Any decision rendered by the City pursuant to this section may be appealed to the city council. A petitioner seeking to appeal a decision must file a written notice of appeal with the City within ten 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 City may modify, reverse, or affirm the decision of the City’s authorized agent under the same standards as set forth in subsection (f) above.

 

Approved: 

Chris Etzler, Mayor

 

Attest:

Phil Lindaman, City Clerk

 

First Reading: 

March 14, 2017

Second Reading: 

March 28, 2017

Adoption: March 28, 2017

Published: April 6, 2017

                                        14pnc

 

Advertising Deadlines

Deadline for advertisements and copy is Friday, noon.

Staples World

Mailing Address: P.O. Box 100 Staples, MN 56479 Telephone: (218) 894-1112 - Fax: (218) 894-3570 Toll Free: 1-888-894-1112 E Mail: office@staplesworld.com; editor@staplesworld.com

Deadline: Friday, noon

 

Sign Up For Breaking News

Stay informed on our latest news!

Manage my subscriptions

Subscribe to Breaking News feed