Chapter 3.08
MOTOR VEHICLE FUEL DEALER TAX
Sections:
3.08.040 License requirements.
3.08.050 License applications and issuance.
3.08.060 Failure to secure license.
3.08.070 Cancellation of license.
3.08.080 Payment of tax and delinquency penalties.
3.08.090 Failure to file monthly statement.
3.08.100 Exemption of export fuel.
3.08.110 Sales to armed forces exempted.
3.08.120 Fuel in vehicles coming into city not taxed.
3.08.130 Fuel sold or delivered to dealers.
3.08.140 Examinations and investigations.
3.08.150 Limitation on credit for or refund of overpayment and on assessment of additional tax.
3.08.160 Examining books and accounts of carrier of motor vehicle fuel.
3.08.170 Records to be kept by dealers.
3.08.010 Definitions.
As used in this chapter, unless the context requires otherwise:
“City” means the city of Dundee, Oregon.
“Dealer” means any person who:
1. Imports or causes to be imported motor vehicle fuel for sale, use or distribution in the city, but not including anyone who imports motor vehicle fuel into the city in quantities of 500 gallons or less purchased from a dealer licensed under this chapter if said dealer assumes liability for payment of the license tax to the city;
2. Produces, refines, manufactures or compounds motor vehicle fuel in the city for export or for use, distribution or sale in the city; or
3. Acquires for sale, use or distribution in the city motor vehicle fuels with respect to which there has been no license tax previously incurred.
“Distribution” means, in addition to its ordinary meaning, the delivery of motor vehicle fuel by a dealer to any service station or into any tank, storage facility or series of tanks or storage facilities connected by pipelines, from which motor vehicle fuel is withdrawn directly for sale or delivery into the fuel tanks of motor vehicles whether or not the service station, tank or storage facility is owned, operated or controlled by the dealer.
“Motor vehicle” means all vehicles, engines or machines, movable or immovable, operated or propelled by the use of motor vehicle fuel.
“Motor vehicle fuel” means and includes gasoline, diesel, and any other flammable or combustible gas or liquid, by whatever name such gas or liquid is known or sold, usable as fuel for the operation of motor vehicles, except gas or liquid that is for purposes other than the propulsion of motor vehicles.
“Person” includes every natural person, association, firm, partnership, or corporation.
“Service station” means and includes any place operated for the purpose of retailing and delivering motor vehicle fuel into the fuel tanks of motor vehicles.
“Street” means every way, thoroughfare and place of whatever nature, open for use of the public for the purpose of vehicular travel within the jurisdiction of and under the authority of the city. [Ord. 436-2005 § 1; Ord. 417-2003 § 1(1)].
3.08.020 Tax imposed.
A business license tax is hereby imposed on every dealer. This business license tax is in addition to the business license fee required pursuant to Chapter 5.04 DMC. [Ord. 417-2003 § 1(2)].
3.08.030 Amount and payment.
A. Subject to subsection (B) of this section, every dealer in the city who engages in the sale, use or distribution of motor vehicle fuel whether in the dealer’s name, the name of another or the name of the dealer’s representative/agent is required to do the following:
1. Provide a statement (not later than the twenty-fifth of each month) to the city of all motor vehicle fuel sold, used or distributed by the dealer in the city as well as all such fuel sold, used or distributed in the city by a purchaser for which sale, use or distribution the dealer has assumed liability for the applicable license tax during the preceding month.
2. Pay a license tax computed on the basis of $0.02 per gallon of such motor vehicle fuel so sold, used or distributed as shown by such statement in the manner and within the time provided in this chapter. The council may revise the amount of the tax imposed by the terms of this chapter by resolution at any such time the council deems that appropriate.
B. In lieu of claiming a refund of the tax as provided in DMC 3.08.150 or of any prior erroneous payment of the license tax made to the city by the dealer, the dealer may show such motor vehicle fuel tax as a credit or deduction on the monthly statement and payment of tax.
C. Any person selling or delivering motor vehicle fuel to a dealer in the city which motor vehicle fuel is then intended for resale to the public by the dealer shall be responsible for collecting the license tax noted in subsection (A)(2) of this section on behalf of the dealer and remitting the said amount collected to the city not later than the twenty-fifth of each month (e.g., October 25th) for motor vehicle fuel sold or delivered to the importing dealer the month immediately prior (e.g., September). Any such person failing to collect the importing dealer’s license tax and remit it to the city in a timely fashion shall be jointly and severally liable for all said taxes and penalties otherwise due the city by the importing dealer. [Ord. 439A-2005 § 1; Ord. 417-2003 § 1(3)].
3.08.040 License requirements.
No dealer shall sell, use or distribute any motor vehicle fuel until the dealer has secured a dealer’s license as required herein. [Ord. 417-2003 § 1(4)].
3.08.050 License applications and issuance.
A. Every person before becoming or remaining a dealer in motor vehicle fuel in the city shall obtain a license authorizing said person to engage in business as a dealer.
B. Applications for the license shall be made on forms prescribed, prepared and furnished by the city, including (but not limited to) information on the following:
1. The business name under which the applicant transacts business.
2. The address of applicant’s principal place of business and location of distributing stations in the city.
3. The name and address of the managing agent, the names and addresses of the persons constituting the firm or partnership or, if a corporation, the name under which the corporation is authorized to transact business and the names and addresses of its principal officers and registered agent.
C. Once the application is complete and accepted for filing, the city shall issue the dealer a license to transact business in the city. A license is not assignable and is valid only for the dealer in whose name it is issued.
D. The city shall retain all completed applications together with a record of all licensed dealers for a minimum of five years. [Ord. 417-2003 § 1(5)].
3.08.060 Failure to secure license.
A. If a dealer fails to secure a license prior to becoming or remaining a dealer in the city, the tax on all motor vehicle fuel sold, distributed or used by that dealer shall be immediately due and payable.
B. The city shall proceed to determine from as many reliable and available sources as the city deems reasonable the amount of tax due, and shall assess the dealer for the amount found due, together with a penalty of 25 percent of the tax. In any suit or proceeding to collect the tax or penalty or both, the assessment shall be prima facie evidence that the dealer is indebted to the city in the amount of the tax and penalty stated. [Ord. 417-2003 § 1(6)].
3.08.070 Cancellation of license.
A. The city may, upon written request of a dealer, cancel a license issued to that dealer. The city shall, upon approving the dealer’s request for cancellation, set a date not later than 30 days after receipt of the written request, after which the license shall no longer be effective.
B. The city may, after 30 days’ notice has been mailed to the last known address of the dealer, cancel the license of the dealer upon finding that the dealer is no longer engaged in the business of a dealer. [Ord. 417-2003 § 1(7)].
3.08.080 Payment of tax and delinquency penalties.
A. The license tax imposed by this chapter shall be paid on or before the twenty-fifth day of each month.
B. Except as provided in subsections (C) and (D) of this section, if payment of the tax is not paid as required by subsection (A) of this section, a penalty of one percent of such license tax may be assessed by the city and shall be immediately due and payable.
C. Except as provided in subsection (D) of this section, if payment of the tax and penalty (if any) is not made on or before the first day of the next month following that month in which payment is due, the city may impose a further penalty of up to 10 percent of the tax. Said penalty shall be in addition to the penalty provided for in subsection (B) of this section and shall be immediately due and payable.
D. Penalties imposed by this section shall not apply if a penalty has been assessed pursuant to DMC 3.08.060.
E. The city may waive any penalties assessed under this section. [Ord. 417-2003 § 1(8)].
3.08.090 Failure to file monthly statement.
If a dealer fails to file the statement required by DMC 3.08.030, the city shall proceed to determine from as many available sources as the city determines reasonable the amount of motor vehicle fuel sold, distributed or used by such dealer for the period unreported, and such determination shall in any proceeding be prima facie evidence of the amount of fuel sold, distributed or used. The city shall immediately assess the dealer for the license tax upon the amount determined, adding thereto a penalty of 10 percent of the tax. [Ord. 417-2003 § 1(9)].
3.08.100 Exemption of export fuel.
A. The license tax imposed by DMC 3.08.020 and 3.08.030 shall not be imposed on motor vehicle fuel:
1. Exported from the city by a dealer; or
2. Sold by a dealer in individual quantities of 500 gallons or less for export by the purchaser to an area or areas outside the city in containers other than the fuel tank of a motor vehicle, but every dealer shall be required to report such exports and sales to the city.
B. Any motor vehicle fuel carried from the city in the fuel tank of a motor vehicle shall not be considered as exported from the city.
C. In support of any exemption from taxes on account of sales of motor vehicle fuel in individual quantities of 500 gallons or less for export by the purchaser, the dealer shall retain in the dealer’s files for at least two years an export certificate executed by the purchaser in such form and containing such information as is prescribed by the city. This certificate shall be prima facie evidence of the exportation of the motor vehicle fuel to which it applies only if accepted by the dealer in good faith. [Ord. 417-2003 § 1(10)].
3.08.110 Sales to armed forces exempted.
The license tax imposed by DMC 3.08.020 and 3.08.030 shall not be imposed on any motor vehicle fuel sold to the Armed Forces of the United States but every dealer shall be required to report such sales to the city. A certificate by an authorized officer of such Armed Forces shall be accepted by the dealer as sufficient proof that the sale is for the purpose specified in the certificate. [Ord. 417-2003 § 1(11)].
3.08.120 Fuel in vehicles coming into city not taxed.
Any person coming into the city in a motor vehicle may transport in the fuel tank of such vehicle motor vehicle fuel for the person’s own use only and for the purpose of operating such motor vehicle without securing a license or paying the tax provided in this chapter. [Ord. 417-2003 § 1(12)].
3.08.130 Fuel sold or delivered to dealers.
A. A dealer selling or delivering motor vehicle fuel to dealers is not required to pay a license tax thereon unless the selling dealer has assumed liability for the payment of the applicable license tax to the city.
B. The dealer in rendering monthly statements to the city as required by DMC 3.08.030 shall show separately the number of gallons of motor vehicle fuel sold. [Ord. 417-2003 § 1(13)].
3.08.140 Examinations and investigations.
The city, or its authorized agents, may make an examination of accounts, records, stocks, facilities and equipment of dealers, service stations and other persons engaged in storing, selling or distributing motor vehicle fuel within this city and such other investigations as it considers necessary in carrying out the provisions of this chapter. If the examination discloses that reports of dealers or other persons have shown incorrectly the amount of motor vehicle fuel distributed or the tax accruing thereon, the city may make changes in subsequent reports and payments of such dealers or other persons or may make such refunds as may be necessary to correct the errors disclosed. [Ord. 417-2003 § 1(14)].
3.08.150 Limitation on credit for or refund of overpayment and on assessment of additional tax.
A. Except as otherwise provided in this chapter, any credit for erroneous overpayment of tax made by a dealer taken on a subsequent return or any claim for refund of tax erroneously overpaid filed by a dealer must be so taken or filed within three years after the date on which the overpayment was made to the city.
B. Except in the case of a fraudulent report or neglect to make a report, every notice of additional tax proposed to be assessed under this chapter shall be served on dealers within three years from the date upon which such additional taxes become due, and shall be subject to penalty as provided in DMC 3.08.080. [Ord. 417-2003 § 1(15)].
3.08.160 Examining books and accounts of carrier of motor vehicle fuel.
The city or duly authorized agents of the city may at any time during normal business hours examine the books and accounts of any carrier of motor vehicle fuel operating within the city for the purpose of enforcing the provisions of this chapter. [Ord. 417-2003 § 1(16)].
3.08.170 Records to be kept by dealers.
Every dealer in motor vehicle fuel shall keep a record in such form as may be prescribed by the city of all purchases, invoices, bills of lading, receipts, sales and distribution of motor vehicle fuel for a period of not less than three years. The records shall include copies of all invoices or bills of all such sales and shall at all times during the business hours of the day be subject to inspection by the city or authorized officers or agents of the city. [Ord. 417-2003 § 1(17)].
3.08.180 Use of tax revenues.
A. The city administrator and his or her designated representative shall be responsible for the disposition of the revenue from the tax and penalties imposed by this chapter in the manner provided by this section.
B. For the purpose of this section, “net revenue” shall mean the revenue from the tax and penalties imposed by this chapter remaining after providing for the cost of administration and any refunds and credits authorized herein.
C. The net revenue shall be used for the planning, design, construction, maintenance, repair, operation and use of city streets within the city. [Ord. 417-2003 § 1(18)].