CHAPTER 37: TAXATION AND FINANCE
Section
Transient Lodgings Tax
37.04 Registration of operator; form and contents
37.05 Due date; returns and payments
37.06 Deficiency determination; fraud; operator delay
37.08 Security for collection of tax
37.13 Review Committee; appeal; rules; procedure
Privilege Tax on Electric or Natural Gas Services
37.108 Rural enterprise zone agreements.
37.109 Rural enterprise zone agreements - Applicability.
Tax on Marijuana and Marijuana-Infused Products
37.204 Seller responsible for payment of tax
37.206 Failure to report and remit tax - Determination of tax by Director
37.212 Audit of books, records or persons
TRANSIENT LODGINGS TAX
37.01 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ACCRUAL ACCOUNTING. A method of accounting where the operator enters the rent due from a transient on his/her records when the rent is earned, whether or not it is paid.
CASH ACCOUNTING. A method of accounting where the operator does not enter the rent due from a transient on his/her records until rent is paid.
CHAMBER OF COMMERCE. The Prineville/Crook County Chamber of Commerce.
MOTEL. Any structure or any portion of any structure which is occupied or intended or designed for transient occupancy or any space designed for the temporary use of a mobile home or travel trailer for 30 days or less for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, public or private dormitory, fraternity, sorority, public or private club and also means space in mobile home or trailer parks, or similar structure or space or portions thereof so occupied, provided the occupancy is for a period of 30 days or less.
OCCUPANCY. The use or possession, or the right to the use or possession, for lodging or sleeping purposes of any room or rooms in a motel or space in a mobile home or trailer park or portion thereof.
OPERATOR. The person who is proprietor of the motel in any capacity. Where the operator performs his/her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this subchapter and shall have the same duties and liabilities as his/her principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall be considered to be compliance by both.
PERSON. Any individual, firm, partnership, joint venture, association, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit.
RENT. The consideration charged, whether or not received by the operator, for the occupancy of space in a motel, valued in money, goods, labor, credits, property or other consideration valued in money, without any deduction.
RENT PACKAGE PLAN. The consideration charged for both food and rent where a single rate is made for the total of both. The amount applicable to rent for determination of transient room tax under this subchapter shall be the same charge made for rent when not a part of a package plan.
TAX. Either the tax payable by the transient or the aggregate amount of taxes due from an operator during the period for which he/she is required to report his/her collections.
TAX ADMINISTRATOR. The City Manager/Recorder of the city, or his/her designees.
TRANSIENT. Any individual who exercises occupancy or is entitled to occupancy in a motel for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. The day a transient checks out of a motel shall not be included in determining the 30-day period if the transient is not charged rent for that day by the operator. Any individual so occupying space in a motel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy, or the tenancy actually extends more than 30 consecutive days. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this subchapter may be considered. A person who pays for lodging on a monthly basis, irrespective of the number of days in the month, shall not be deemed a transient, except in the case of subleasing and/or tacking.
TRANSIENT LODGINGS TAX REVIEW COMMITTEE. A committee composed of an accountant, an attorney, who may be a city employee and one lay member appointed by the Mayor with the advice and consent of the City Council.
YEAR. That period from July 1 through June 30.
(’91 Code, § 6-4.1) (Ord. 837, passed 6-24-80; Am. Ord. 938, passed 6-27-89)
37.02 TAX IMPOSED; EXEMPTIONS.
(A) Tax imposed.
(1) For the privilege of occupancy in any motel in the city, on and after September 1, 2003, each transient shall pay a tax in the amount of 8.5% of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city, which is extinguished only by payment by the operator to the city. The transient shall pay the tax to the operator of the motel at the time the rent is paid. The operator shall enter the tax on his/her records when rent is collected if the operator keeps his/her records on the cash accounting basis, and when earned if the operator keeps his/her records on the accrual accounting basis. If rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the operator with each installment. In all cases the rent paid or charged for occupancy shall exclude the sale of any goods, services and commodities, other than the furnishing of rooms, accommodations and space occupancy in mobile home parks or trailer parks, or in mobile homes and trailers.
(2) The tax proceeds collected under the provisions of this subchapter shall be divided between the city and the Chamber of Commerce, with 62.5% going to the city and 37.5% going to the Chamber of Commerce. Of the division of the proceeds going to the Chamber of Commerce, 25% will be allowed to go into the Chamber’s general operating fund with the remaining 75% being used for tourism. The Chamber will be allowed to carry over unspent funds from one year to the next without penalty or deduction by the city as regards the unspent funds.
(’91 Code, § 6-4.2)
(B) Exemptions. No tax imposed under this subchapter shall be imposed upon the following.
(1) Any occupant for more than 30 successive calendar days (a person who pays for lodging on a monthly basis, irrespective of the number of days in the month, shall not be deemed a transient, except in the case of subleasing and/or tacking).
(2) Any occupant whose rent is of a value less than $4 per day.
(3) Any occupant whose rent is paid for a hospital room or to a medical clinic, convalescent home or home for the aged.
(4) An employee of the federal government, while on federal business, whose room is procured and paid for directly by the federal government through a purchase order, a US government credit card, or other forms of procurement and with a government check. If the federal employee pays for the room personally, the employee is not exempt. The tax must be paid, even if the employee is in Prineville on federal business.
(’91 Code, § 6-4.5)
(Ord. 837, passed 6-24-80; Am. Ord. 938, passed 6-27-89; Am. Ord. 1001, passed 11-9-93; Am. Ord. 1082, passed 6-27-00; Am. Ord. 1084, passed 8-22-00; Am. Ord. 1105, passed 8-12-03) Penalty, see § 37.99
37.03 COLLECTION OF TAX.
(A) (1) Every operator renting rooms or space for lodging or sleeping purposes in this city, the occupancy of which is not exempted under the terms of this subchapter, shall collect a tax from the occupant. The tax collected or accrued by the operator constitutes a debt owing by the operator to the city.
(2) In all cases of credit or deferred payment of rent, the payment of tax to the operator may be deferred until the rent is paid, and the operator shall not be liable for the tax until credits are paid or deferred payments are made. Adjustments may be made for uncollectibles.
(3) The Tax Administrator shall enforce provisions of this subchapter and shall have the power to adopt rules and regulations not inconsistent with this subchapter which may be necessary to aid in the enforcement.
(4) For tax collected on portions of a dollar in rent, the operator shall round collection of the tax to the nearest penny and remit accordingly.
(’91 Code, § 6-4.3)
(B) Each operator shall collect the tax imposed by this chapter at the same time as the rent is collected from every transient. The amount of tax shall be separately stated upon the operator’s records and any receipt rendered by the operator. No operator of a motel shall advertise that the tax or any part of the tax will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, when added, any part will be refunded, except in the manner provided by this subchapter. (’91 Code, § 6-4.4)
(Ord. 837, passed 6-24-80) Penalty, see § 37.99
37.04 REGISTRATION OF OPERATOR; FORM AND CONTENTS.
Every person engaging or about to engage in business as an operator of a motel in the city shall register with the Tax Administrator on a form provided by him/her. Operators engaged in business at the time this subchapter is adopted must register not later than 20 calendar days after passage of this subchapter. Operators starting business after this subchapter is adopted must register within 15 calendar days after commencing business. The privilege of registration after the date of imposition of the tax shall not relieve any person from the obligation of payment or collection of tax regardless of registration. Registration shall set forth the name under which an operator transacts or intends to transact business, the location of his/her place or places of business and any other information to facilitate the collection of the tax as the Tax Administrator may require. The registration shall be signed by the operator. The Tax Administrator shall, within ten days after the registration, issue without charge a certificate of authority to the registrant to collect the tax from the occupants of the motel, together with a duplicate thereof for each additional place of business of the registrant. The certificate shall be nonassignable and nontransferable and shall be surrendered immediately to the Tax Administrator upon the cessation of business at the location named on the certificate or upon sale or transfer of the business. Each certificate and duplicate thereof shall state the place of business to which it is applicable and shall be prominently displayed so as to come to the notice readily of all occupants seeking occupancy therein. The certificate shall, among other things, state the following.
(A) The name of the operator.
(B) The address of the motel.
(C) The date when the certificate is issued.
(D) "This transient lodgings registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the transient lodgings tax ordinance of the city by registration with the Tax Administrator for the purpose of collecting from transients the room tax imposed by the city and remitting the tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, or to operate a motel without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department or office of the city. This certificate does not constitute a permit."
(’91 Code, § 6-4.6) (Ord. 837, passed 6-24-80) Penalty, see § 37.99
37.05 DUE DATE; RETURNS AND PAYMENTS.
(A) The tax imposed by this subchapter shall be paid by the transient to the operator at the time that rent is paid. All amounts of the taxes collected by any operator are due and payable to the Tax Administrator on a monthly basis on the fifteenth day of the following month for the preceding month, and are delinquent on the last day of the month in which they are due.
(B) On or before the fifteenth day of the month following each month of collection, a return for the preceding month’s tax collections shall be filed with the Tax Administrator. The return shall be filed in such form as the Tax Administrator may prescribe by every operator liable for payment of the tax.
(C) Returns shall show the amount of tax collected or otherwise due for the related period. The Tax Administrator may require returns to show the total rentals upon which tax was collected or otherwise due, gross receipts of the operator for the period and an explanation in detail of any discrepancy between the amounts and the amount of rents exempt, if any.
(D) The person required to file the return shall deliver the return, together with the remittance of the amount of the tax due, to the Tax Administrator at his/her office, either by personal delivery or by mail. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies.
(E) For good cause, the Tax Administrator may extend for not to exceed one month the time for making any return or payment of tax. No further extension shall be granted, except by the Transient Lodgings Tax Review Committee. Any operator to whom an extension is granted shall pay interest at the rate of 1% per month on the amount of tax due without proration for a fraction of a month. If a return is not filed and the tax and interest due is not paid by the end of the extension granted, then the interest shall become a part of the tax for computation of penalties described in § 37.15.
(F) The Tax Administrator, if he/she deems it necessary in order to insure payment or facilitate collection by the city of the amount of taxes in any individual case, may require returns and payment of the amount of taxes for other than monthly periods.
(’91 Code, § 6-4.7) (Ord. 837, passed 6-24-80; Am. Ord. 1001, passed 11-9-93) Penalty, see § 37.99
37.06 DEFICIENCY DETERMINATION; FRAUD; OPERATOR DELAY.
(A) Deficiency determinations. If the Tax Administrator determines that the returns are incorrect, he/she may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns, or upon the basis of any information within his/her possession or that may come into his/her possession. One or more deficiency determinations may be made of the amount due for one, or more than one, period, and the amount so determined shall be due and payable immediately upon service of notice as herein provided, after which the amount determined is delinquent. Penalties on deficiencies shall be applied as set forth in § 37.15.
(1) In making a determination, the Tax Administrator may offset overpayments, if any, which may have been previously made for a period or periods, against any underpayment for a subsequent period or periods or against penalties and interest on the underpayments. The interest on the underpayments shall be computed in the manner set forth in § 37.15.
(2) The Tax Administrator shall give to the operator or occupant a written notice of his/her determination. The notice may be served personally or by mail. If by mail, the notice shall be addressed to the operator at his/her address as it appears on the records of the Tax Administrator. In case of service by mail of any notice required by this subchapter, the service is complete at the time of deposit in the United States Post Office.
(3) Except in the case of fraud or intent to evade this subchapter, or authorized rules and regulations, where seven years shall apply, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the monthly period for which the amount is proposed to be determined or within three years after the return is filed, whichever period expires the later.
(4) Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Tax Administrator has given notice thereof, provided, however, the operator may petition for redemption and refund if the petition is filed before the determination becomes final as herein provided.
(B) Fraud, refusal to collect, evasion. If any operator shall fail or refuse to collect the tax or to make, within the time provided in this subchapter, any report and remittance of the tax or any portion thereof required by this subchapter, or makes a fraudulent return or otherwise wilfully attempts to evade this subchapter, the Tax Administrator shall proceed in a manner as he/she may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the Tax Administrator has determined the tax due that is imposed by this subchapter from any operator who has failed or refused to collect the same and to report it and remit the tax, he/she shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this subchapter. In case the determination is made, the Tax Administrator shall give a notice in the manner aforesaid of the amount so assessed. The determination and notice shall be made and mailed within three years after discovery by the Tax Administrator of any failure or refusal to collect the tax, or failure to file return and within seven years after discovery of any fraud or intent to evade. Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Tax Administrator has given notice thereof, provided, however, the operator may petition for redemption and refund if the petition is filed before the determination becomes final as herein provided.
(C) Operator delay. If the Tax Administrator believes that the collection of any tax or any amount of tax required to be collected and paid to the city will be jeopardized by delay, or if any determination will be jeopardized by delay, he/she shall thereupon make a determination of the tax or amount of tax required to be collected, noting the fact upon the determination. The amount so determined as herein provided shall be immediately due and payable, and the operator shall immediately pay the determination to the Tax Administrator after service of notice thereof: provided, however, the operator may petition, after payment has been made, for redemption and refund of the determination, if the petition is filed within ten days from the date of service of notice by the Tax Administrator.
(’91 Code, § 6-4.9) (Ord. 837, passed 6-24-80; Am. Ord. 1001, passed 11-9-93) Penalty, see § 37.99
37.07 REDETERMINATIONS.
(A) Any person against whom a determination is made under § 37.06 or any person directly interested may petition for a redetermination and redemption and refund within the time required in § 37.06. If a petition for redetermination and refund is not filed within the time required in § 37.06, the determination becomes final at the expiration of the allowable time.
(B) If a petition for redetermination and refund is filed within the allowable period, the Tax Administrator shall reconsider the determination, and, if the person has so requested in his/her petition, shall grant the person an oral hearing and shall give him/her ten days notice of the time and place of the hearing. The Tax Administrator may continue the hearing from time to time as may be necessary.
(C) The Tax Administrator may decrease or increase the amount of the determination as a result of the hearing and, if an increase is determined, the increase shall be payable immediately after the hearing.
(D) The order or decision of the Tax Administrator upon a petition for redetermination of redemption and refund becomes final ten days after service upon the petitioner of notice thereof, unless appeal of the order or decision is filed with the Transient Lodgings Tax Review Committee within the ten days after service of the notice.
(E) No petition for redetermination or redemption and refund or appeal therefrom shall be effective for any purpose unless the operator has first complied with the payment provisions hereof.
(’91 Code, § 6-4.10) (Ord. 837, passed 6-24-80) Penalty, see § 37.99
37.08 SECURITY FOR COLLECTION OF TAX.
The Tax Administrator, whenever he/she deems it necessary to insure compliance with this subchapter, may require any operator subject hereto to deposit with him/her the security in the form of cash, bond or other security as the Tax Administrator may determine. The amount of the security shall be fixed by the Tax Administrator but shall not be greater than twice the operator’s estimated average monthly liability for the period for which he/she files returns, determined in such manner as the Tax Administrator deems proper, or $5,000, whichever amount is less. The amount of the security may be increased or decreased by the Tax Administrator, subject to the limitations herein provided.
(’91 Code, § 6-4.11(a)) (Ord. 837, passed 6-24-80; Am. Ord. 1001, passed 11-9-93)
37.09 LIMITATION OF ACTIONS.
Except in the case of fraud or intent to evade this subchapter, in which case seven years shall apply, at any time within three years after any tax or any amount of tax required to be collected becomes due and payable or at any time within three years after any determination becomes final, the Tax Administrator may bring an action in the courts of this state, any other state or of the United States in the name of the city to collect the amount delinquent together with penalties and interest.
(’91 Code, § 6-4.11(b)) (Ord. 837, passed 6-24-80)
37.10 LIENS.
The tax imposed by § 37.02 of this subchapter, together with the interest and penalties provided by § 37.15 and the filing fees paid to the Department of Records of Crook County, and advertising costs which may be incurred when the tax becomes delinquent under § 37.05 shall be, and until paid remain, a lien from the date of recording with the Department of Records of Crook County, and superior to all subsequent recorded liens on all real and tangible personal property used in the motel of an operator within the city and may be seized and foreclosed on in accordance with state law as necessary to discharge the lien, if the lien has been so recorded. Notice of lien may be issued by the Tax Administrator whenever the operator is in default in the payment of the tax, interest and penalty, and shall be recorded with the Department of Records and a copy sent to the delinquent operator. Any lien as shown on the records of the Department of Records shall, upon the payment of the taxes, penalty and interest for which the lien has been imposed, be released by the Tax Administrator when their full amount has been paid to the city. The operator or person making the payment shall receive a receipt therefor stating that the full amount of the taxes, penalties and interest have been paid and that the lien is thereby released and the record of lien satisfied.
(’91 Code, § 6-4.11(c)) (Ord. 837, passed 6-24-80)
37.11 REFUNDS.
(A) Refunds by the city to operator. Whenever the amount of any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this subchapter, it may be refunded, provided a verified claim in writing therefor, stating the specific reason upon which the claim is founded, is filed with the Tax Administrator within three years from the date of payment. The claim shall be made on forms provided by the Tax Administrator. If the claim is approved by the Tax Administrator, the excess amount collected or paid may be refunded or may be credited on any amounts then due and payable from the operator from whom it was collected or by whom paid, and the balance may be refunded to the operator, his/her administrators, executors or assignees.
(B) Refunds by operator to tenant. Whenever the tax required by this subchapter has been collected by the operator and it is later determined that the tenant occupied the motel for a period exceeding 30 days without interruption, the operator shall refund to the tenant the tax previously collected by the operator from that tenant as a transient. The operator shall account for the collection and refund to the Tax Administrator. If the operator has remitted the tax prior to refund or credit to the tenant, he/she shall be entitled to a corresponding refund under this section.
(’91 Code, § 6-4.12) (Ord. 837, passed 6-24-80)
37.12 ADMINISTRATION.
(A) Records required from operators. Every operator shall keep guest records of room sales and accounting books and records of the room sales. All records shall be retained by the operator for a period of three years and six months after they come into being.
(B) Collection fee. Every operator liable for the collection and remittance of the tax imposed by § 37.02 may withhold 6% of the net tax due to cover his/her expense in the collection and remittance of the tax.
(C) Examination of records; investigations. The Tax Administrator, or any person authorized in writing by him/her, may examine during normal business hours the books, papers and accounting records relating to room sales of any operator, after notification to the operator liable for the tax, and may investigate the business of the operator in order to verify the accuracy of any return made or, if no return is made by the operator, to ascertain and determine the amount required to be paid.
(D) Confidential character of information obtained; disclosure unlawful. It shall be unlawful for the Tax Administrator or any person having an administrative or clerical duty under the provisions of this subchapter to make known, in any manner whatever, the business affairs, operations or information obtained by an investigation of records and equipment of any person required to file a return or pay a transient occupancy tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures or any particular thereof set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof, to be seen or examined by any person; provided that nothing in this subsection shall be construed to prevent the following.
(1) The disclosure to or the examination of records and equipment by another city official, employee or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this subchapter or collecting taxes imposed hereunder.
(2) The disclosure, after the filing of a written request to that effect, to the taxpayer himself, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to any paid tax, any unpaid tax or amount of tax required to be collected, together with interest and penalties thereon; further provided, however, that the City Attorney approves each disclosure and that the Tax Administrator may refuse to make any disclosure referred to in this division (D)(2) when in his/her opinion the public interest would suffer thereby.
(3) The disclosure of the names and addresses of any persons making returns.
(4) The disclosure of general statistics regarding taxes collected or business done in the city.
(’91 Code, § 6-4.13) (Ord. 837, passed 6-24-80) Penalty, see § 37.99
37.13 REVIEW COMMITTEE; APPEAL; RULES; PROCEDURE.
(A) A Transient Lodgings Tax Review Committee is hereby created to be composed of an accountant, an attorney, who may be a city employee, and one lay member. The Committee shall select from its members a Chairman who shall serve at its pleasure. The three members of the Committee shall constitute a quorum. The Committee shall keep a record of its transactions. The Committee shall be deemed to be in the office of the Tax Administrator and shall meet and keep its files in his/her office. The Committee shall be appointed by the Mayor of the city with the advice and consent of the City Council and shall serve at the pleasure of the Council.
(B) The Committee shall have the power and it shall be the duty to do the following.
(1) To hear and determine appeals of orders and decisions of the Tax Administrator made upon petitions for redetermination of tax. The Committee may affirm, modify or reverse the orders or decisions or dismiss the appeals therefrom, as may be just, and shall prescribe the forms, rules and regulations relating to appeals as it may deem necessary. In the review of the Tax Administrator decision or order, the Committee may take the evidence and make the investigation as it may deem necessary. It shall give notice of its determinations in the manner prescribed for service of notice of a Tax Administrator’s decision and shall file a copy of each determination with the Tax Administrator with certification thereon of the date of service thereof. The determination shall become final ten days thereafter and shall thereupon become due and payable, subject to interest and penalties, and enforceable by the Tax Administrator in like manner as an order or decision of the Tax Administrator.
(2) To approve, modify or disapprove all forms, rules and regulations prescribed by the Tax Administrator, if the forms, rules and regulations are challenged in the administration and enforcement of this subchapter.
(3) To hear and determine, in a manner as shall be just, any protest, which may be made by any person who may be interested, to any form, rule or regulation approved or prescribed by the Tax Administrator.
(4) To grant, for good cause, applications for extensions of time in excess of one month for making any return or payment of tax, and to prescribe rules therefor.
(5) To make investigations as it deems advisable regarding the imposition and administration of the transient lodgings tax and report its finding to the City Council; to act in an advisory capacity to the Council on matters pertaining to the transient lodgings tax and enforcement problems; and to recommend to the Council the adoption, amendment or repeal of legislation pertaining thereto.
(’91 Code, § 6-4.14) (Ord. 837, passed 6-24-80)
37.14 APPEALS.
(A) Appeal to Transient Lodgings Tax Review Committee. Any person aggrieved by any decision of the Tax Administrator may appeal to the Transient Lodgings Tax Review Committee by filing a notice of appeal with the Tax Administrator within ten days of the serving or mailing of the notice of a decision given by the Tax Administrator. The Tax Administrator shall fix a time and place for hearing the appeal as prescribed by the Transient Lodgings Tax Review Committee in its rules and regulations and shall give the appellant ten days written notice of the time and place of hearing. (’91 Code, § 6-4.15)
(B) Appeals to City Council. Any person aggrieved by any decision of the Transient Lodgings Tax Review Committee may appeal to the City Council by filing a notice of appeal with the Tax Administrator within ten days of the serving or the mailing of the notice of the decision given by the Transient Lodgings Tax Review Committee. The Tax Administrator shall transmit the notice of appeal, together with the file of the appealed matter, to the City Council, who shall fix a time and place for hearing the appeal from the decision of the Transient Lodgings Tax Review Committee. The City Council shall give the appellant not less than ten days written notice of the time and place of the hearing of the appealed matter. Action by the Council on appeals shall be decided by a majority of the members present at the meeting where the appeal is considered. (’91 Code, § 6-4.16)
(Ord. 837, passed 6-24-80)
37.15 VIOLATIONS.
(A) Original delinquency. Any operator who has not been granted an extension of time for remittance of tax due and who fails to remit any tax imposed by this subchapter prior to delinquency shall pay a penalty of 10% of the amount of the tax due in addition to the amount of the tax.
(B) Continued delinquency. Any operator who has not been granted an extension of time for remittance of tax due and who failed to pay any delinquent remittance on or before a period of 30 days following the date of which the remittance first became delinquent shall pay a second delinquency penalty of 15% of the amount of the tax due plus the amount of the tax and the 10% penalty first imposed.
(C) Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under this subchapter is due to fraud or intent to evade the provisions hereof, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B) of this section.
(D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of one-half of one percent per month or fraction thereof, without proration for portions of a month, on the amount of the tax due, exclusive of penalties, 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 be merged with and become a part of the tax herein required to be paid.
(F) Petition for waiver. Any operator who fails to remit the tax herein levied within the time herein stated shall pay the penalties herein stated, provided, however, the operator may petition the Transient Lodgings Tax Review Committee for waiver and refund of the penalty or any portion thereof and the Transient Lodgings Tax Review Committee may, if a good and sufficient reason is shown, waive and direct a refund of the penalty or any portion thereof.
(’91 Code, § 6-4.8) (Ord. 837, passed 6-24-80) Penalty, see § 37.99
37.99 PENALTY.
Any operator or other person who shall fail or refuse to register as required herein, or who shall fail or refuse to furnish any return, supplemental return or other data required herein, or by the Tax Administrator, or, with intent to defeat or evade the determination of any amount due hereunder, shall make, render, sign or verify any false or fraudulent report, commits an offense which constitutes a violation of this § 37.01 et seq., punishable by a fine of not more than $500, to be fixed by the cognizant court, or by imprisonment for not more than six months, or by both a fine and imprisonment.
(’91 Code, § 6-4.17) (Ord. 837, passed 6-24-80)
PRIVILEGE TAX ON ELECTRIC OR NATURAL GAS SERVICES
37.101 DEFINITIONS.
The following definitions apply unless inconsistent with the context:
CITY means the City of Prineville.
PERSON means any individual, corporation, general or limited partnership, limited liability company, or any other legal entity.
UTILITY means any person that provides electric or natural gas service to customers or themselves, within the boundaries of the City of Prineville by means of facilities permanently located within, under, or above any city rights-of-way, whether or not the person owns such facilities.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.102 TAX IMPOSED.
City levies a privilege tax in the amount of 5% of the gross revenues for every utility with operations within the boundaries of the city or within, under, or above the rights-of-way in the city, for a period of 30 days or more, without an authorized franchise from the city. The calculation of the privilege tax shall be subject to all applicable limitations imposed by federal or state law.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.103 DUE DATE.
A privilege tax is for each 30 days or longer in duration that the utility operates without a franchise, and is due no later than 30 days after the end of each calendar quarter in which the utility operates without a franchise. Any past due payments under this subchapter are subject to the interest rate as set by city resolution.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.104 REVENUE STATEMENT.
The utility paying the privilege tax shall furnish to the city with each payment of such tax a statement showing the amount of gross revenue for the period covering the payment.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.105 BOOKS OF ACCOUNTS.
So long as a utility is subject to the privilege tax, it shall keep books of financial accounts of the amount of electricity or natural gas provided to customers within the boundaries of the city and the amount of payments received by the utility for providing such electricity or natural gas. The utility shall produce the books of financial accounts for inspection by representatives of the city at any time during normal business hours.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.106 AUDITS.
The city shall have the right to have an audit made of utilities’ books, and records used to determine the amount of electric or natural gas services to customers within the boundaries of the city and the amounts the utility received for providing such electric or natural gas services. If the tax for the period of the audit is found to be incorrect to an extent of more than 5% over the tax paid by the utility to city, the utility shall pay for the audit; otherwise, the city shall pay for the audit. The utility shall promptly pay to city any deficiency or city shall immediately issue a credit to the utility for any overpayment, as the case may be, which is established by the audit. Any credit issued to the utility shall be applied toward the next tax payment payable by the utility to city. If there are no further tax payments owed by the utility to city, city shall promptly pay the utility the amount of the overpayment.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.107 APPLICABILITY.
Any person who:
(A) Owns improvements on real property located within the city, which improvements are exempt from real property taxes because they are included in the Prineville/Crook County Enterprise Zone; and
(B) Except for testing of auxiliary or back up power source, produces more than two megawatts annually of electric power on or off site, which electric power is used at the improvements described in subsection (A) of this section; and
(C) Is not subject to a franchise fee payable to the city for the transmission of such electricity;
shall pay to city a privilege tax at the rate of 5%, computed on the basis of tariffed rates applicable to nonrenewable power, for the amount of power produced by such person. Such tax shall be paid quarterly, not later than 30 days after the end of calendar quarter in which the person operates without a franchise.
(Ord. 1204, passed 5-27-14; Am. Ord. 1220, passed 1-28-16)
37.108 RURAL ENTERPRISE ZONE AGREEMENTS.
If a person and city enter into a long-term rural enterprise zone agreement described in ORS 285C.403(3)(c) that references this subchapter, and the agreement includes a commitment by the person to use 100% renewable energy at the facility site, the agreement may require the person to pay an amount equal to the amount of tax with respect to electric service at the facility site that could be levied by § 37.102, except that such amount shall be computed on the basis of tariffed rates applicable to nonrenewable power and reduced by any franchise fee payable to city by a franchisee utility with respect to electric service at the facility site. Payment of this amount shall be made by February 28 and shall cover the prior calendar year. Notwithstanding any provision of this subchapter or the agreement, the maximum amount to be received by city with respect to the facility site for any calendar year:
(A) In franchise fee payable by an electric utility;
(B) In payments from a person pursuant to an agreement to pay an amount equal to potential tax pursuant to § 37.102 and this section;
(C) In payments from a person pursuant to § 37.107;
(D) For any other franchise fee, privilege tax or similar charge imposed by city with respect to electricity used at the facility site; or
(E) For any combination, or the aggregate, of any amounts pursuant to subsections (A), (B), (C) or (D) of this section;
shall be the greater of (1) the franchise fee payable pursuant to subsection (A) of this section or (2) $850,000. City intends hereby that this section will not change any amounts due or recoverable pursuant to any franchise agreement with a utility. Any amount paid by the person pursuant to subsection (B) of this section, or if applicable the maximum payment specified herein, shall fully satisfy the liability for any tax that otherwise would be owed by a nonfranchisee utility pursuant to § 37.102 with respect to the facility site. Nothing in this section describes a minimum amount such a person would pay for items listed in subsections (A) through (E) of this section; if the total amount of payments owed pursuant to subsections (A) through (E) of this section is less than the maximum payment amount, the person shall be responsible for only that lower amount. If the total amount received by the city with respect to the facility site in a calendar year exceeds the maximum amount allowed by this section (e.g., the person errs in calculating the amount to be paid by February 28 for the prior calendar year), such excess shall be refunded to the person. A person who is subject to this section shall provide to the city, with any payment required by this section, documentation showing the amount paid to a utility with respect to the facility site and the amount of electricity consumed at the facility site for the same time period covered by the payment (i.e., the prior calendar year).
(Ord. 1220, passed 1-28-16)
37.109 RURAL ENTERPRISE ZONE AGREEMENTS - APPLICABILITY.
The amendments adopted in § 37.108 apply to all taxes levied or potentially levied on or after the effective date of the long-term rural enterprise zone agreement referred to therein.
(Ord. 1220, passed 1-28-16)
TAX ON MARIJUANA AND MARIJUANA-INFUSED PRODUCTS
37.200 PURPOSE.
For the purposes of this subchapter, every person who sells marijuana, medical marijuana or marijuana-infused products in the city is exercising a taxable privilege. The purpose of this subchapter is to impose a tax upon the retail sale of marijuana, medical marijuana, and marijuana-infused products.
(Ord. 1207, passed 10-28-14)
37.201 DEFINITIONS.
When not clearly otherwise indicated by the context, the following words and phrases as used in this subchapter shall have the following meanings:
CITY means City of Prineville.
DIRECTOR means the Director of Finance for the City of Prineville or his/her designee.
GROSS TAXABLE SALES means the total amount received in money, credits, property or other consideration from sales of marijuana, medical marijuana and marijuana-infused products that is subject to the tax imposed by this subchapter.
MARIJUANA means all parts of the plant of the Cannabis family Moraceae, whether growing or not; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its resin, as may be defined by Oregon Revised Statutes as they currently exist or may from time to time be amended. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
OREGON MEDICAL MARIJUANA PROGRAM means the office within the Oregon Health Authority that administers the provisions of ORS 475.300 through 475.346, the Oregon Medical Marijuana Act, and all policies and procedures pertaining thereto.
PERSON means natural person, joint venture, joint stock company, partnership, limited liability company, 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.
PURCHASE OR SALE means the acquisition or furnishing for consideration by any person of marijuana within the city.
REGISTRY IDENTIFICATION CARDHOLDER means a person who has been diagnosed by an attending physician with a debilitating medical condition and for whom the use of medical marijuana may mitigate the symptoms or effects of the person’s debilitating medical condition, and who has been issued a registry identification card by the Oregon Health Authority.
RETAIL SALE means the transfer of goods or services in exchange for any valuable consideration.
SELLER means any person who is required to be licensed or has been licensed by the State of Oregon to provide marijuana or marijuana-infused products to purchasers for money, credit, property or other consideration.
TAX 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 subchapter.
TAXPAYER 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 subchapter.
(Ord. 1207, passed 10-28-14)
37.202 LEVY OF TAX.
(A) There is hereby levied and shall be paid a tax by every seller exercising the taxable privilege of selling marijuana and marijuana-infused products as defined in this subchapter.
(B) The amount of tax levied is as follows:
(1) Five percent of the gross sale amount paid to the seller by a registry identification cardholder.
(2) Ten percent of the gross sale amount paid to the seller of marijuana and marijuana-infused products by individuals who are not purchasing marijuana under the Oregon Medical Marijuana Program.
(Ord. 1207, passed 10-28-14)
37.203 DEDUCTIONS.
The following deductions shall be allowed against sales received by the seller providing 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 marijuana or marijuana-infused products and does not include any adjustments for other services furnished by a seller.
(Ord. 1207, passed 10-28-14)
37.204 SELLER RESPONSIBLE FOR PAYMENT OF TAX.
(A) Every seller shall, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October and January), make a return to the Director, on forms provided by the city, specifying the total sales subject to this subchapter and the amount of tax collected under this subchapter. The seller may request or the Director may establish shorter reporting periods for any seller if the seller or Director deems it necessary in order to insure collection of the tax and the Director may require further information in the return relevant to payment of the tax. A return shall not be considered filed until it is actually received by the Director.
(B) At the time the return is filed, the full amount of the tax collected shall be remitted to the Director. Payments received by the Director 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, then to the current tax owed, until the payment is exhausted. If the 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 Director may order such a change.
(C) The Director may establish shorter reporting periods for any seller if the Director deems it necessary in order to insure collection of the tax. The 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. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by sellers pursuant to this subchapter shall be held in trust for the account of the city until payment is made to the Director. A separate trust bank account is not required in order to comply with this provision.
(D) Every seller required to remit the tax imposed in this subchapter shall be entitled to retain 5% of all taxes due to defray the costs of bookkeeping and remittance.
(E) Every seller must keep and preserve in an accounting format established by the Director records of all sales made by the dispensary and such other books or accounts as may be required by the Director. Every seller must keep and preserve for a period of three years all such books, invoices and other records. The Director shall have the right to inspect all such records at all reasonable times.
(Ord. 1207, passed 10-28-14)
37.205 PENALTIES AND INTEREST.
(A) Any seller who fails to remit any portion of any tax imposed by this subchapter within the time required shall pay a penalty of 10% of the amount of the tax, in addition to the amount of the tax.
(B) Any seller who fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent, shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the penalty first imposed.
(C) If the Director determines that the nonpayment of any remittance due under this subchapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (A) and (B) of this section.
(D) In addition to the penalties imposed, any seller who fails to remit any tax imposed by this chapter shall pay interest at the rate of 1% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
(E) 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.
(Ord. 1207, passed 10-28-14)
37.206 FAILURE TO REPORT AND REMIT TAX - DETERMINATION OF TAX BY DIRECTOR.
If any seller should fail to make, within the time provided in this subchapter, any report of the tax required by this subchapter, the Director shall proceed in such manner as deemed best to obtain facts and information on which to base the estimate of tax due. As soon as the Director shall procure such facts and information as is able to be obtained, upon which to base the assessment of any tax imposed by this subchapter and payable by any seller, the Director shall proceed to determine and assess against such seller the tax, interest and penalties provided for by this subchapter. In case such determination is made, the Director shall give a notice of the amount so assessed by having it served personally or by depositing it in the United States mail, postage prepaid, 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 § 37.207. If no appeal is filed, the Director’s determination is final and the amount thereby is immediately due and payable.
(Ord. 1207, passed 10-28-14)
37.207 APPEAL.
Any seller aggrieved by any decision of the Director with respect to the amount of such tax, interest and penalties, if any, may appeal to the City Manager or his or her designee. The appeal shall be filed within 30 days of the serving or mailing of the determination of tax due. The City Manager shall hear and consider any records and evidence presented bearing upon the Director’s determination of amount due, and make findings affirming, reversing or modifying the determination. The findings of the City Manager shall be final and conclusive, and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.
(Ord. 1207, passed 10-28-14)
37.208 REFUNDS.
(A) 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 subchapter, it may be refunded as provided in subsection (B) of this section, provided a claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director within one year of the date of payment. The claim shall be on forms furnished by the Director.
(B) The 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 validity of the claim. The Director shall notify the claimant in writing of the Director’s determination. Such notice shall be mailed to the address provided by claimant on the claim form. In the event a claim is determined by the Director to be a valid claim, in a manner prescribed by the Director, a seller may take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously collected or received. If the seller is no longer in business, a refund check will be mailed to claimant at the address provided in the claim form.
(C) No refund shall be paid under the provisions of this section unless the claimant established the right by written records showing entitlement to such refund and the Director acknowledged the validity of the claim.
(D) No interest shall be due on the refund amount.
(Ord. 1207, passed 10-28-14)
37.209 ACTIONS TO COLLECT.
Any tax required to be paid by any seller under the provisions of this subchapter 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 subchapter shall be liable to an action brought in the name of the city for the recovery of such amount. In any such action by the city for the recovery of monies owed under the provisions of this subchapter, the city shall be entitled to recover from the person owing money to the city the city’s attorney’s fees for such action. In lieu of filing an action for the recovery, the city, when taxes due are more than 30 days delinquent, can submit any outstanding tax to a collection agency. So long as the city has complied with the provisions set forth in ORS 697.105, 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 fees, not to exceed the greater of $50 or 50% of the outstanding tax, penalties and interest owing.
(Ord. 1207, passed 10-28-14)
37.210 PENALTY.
(A) All violations of this subchapter are punishable by a fine of not more than $1,000. It is a violation of this subchapter for any seller or other person to:
(1) Fail or refuse to comply as required herein;
(2) Fail or refuse to furnish any return required to be made;
(3) Fail or refuse to permit inspection of records;
(4) Fail or refuse to furnish a supplemental return or other data required by the Director;
(5) Render a false or fraudulent return or claim; or
(6) Fail, refuse or neglect to remit the tax to the city by the due date.
(B) The remedies provided by this section are not exclusive and shall not prevent the city from exercising any other remedy available under the law, nor shall the provisions of this subchapter prohibit or restrict the city or other appropriate prosecutor from pursuing criminal charges under state law.
(Ord. 1207, passed 10-28-14)
37.211 CONFIDENTIALITY.
Except as otherwise required by law, it shall be unlawful for the city and any officer, employee, or agent of the city to divulge, release or make known in any manner any financial information submitted or disclosed to the city under the terms of this subchapter. 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 Director or an appeal from the Director for amount due the city under this subchapter; 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 a business’s failure to report and remit the tax when the report or tax is in arrears for over six months or the tax exceeds $5,000. 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. 1207, passed 10-28-14)
37.212 AUDIT OF BOOKS, RECORDS OR PERSONS.
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 Director or an authorized agent of the Director. If any taxpayer refuses to voluntarily furnish any of the foregoing information when requested, the Director may immediately seek a subpoena from the Crook County Circuit 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. 1207, passed 10-28-14)
37.213 FORMS AND REGULATIONS.
The 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 medical 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;
(B) The records which sellers providing marijuana and marijuana-infused products are to keep concerning the tax imposed by this subchapter.
(Ord. 1207, passed 10-28-14)