HomeMy WebLinkAboutOrdinance No. 20278
ORDINANCE NO. 20278
AN O~iNANCE CONCEDING A BUSINESS LICENSE
TAX ON MOTOR VEHICLE FUEL DEALERS, PROVIDING
FOR ADMINISTRATION, ENFORCEMENT AND
COLLECTION OF THE TAX; ADDING SECTIONS 3.465,
3~466, 3.467~ 3~468~ 3.469, 3~470~ 3.471, 3.472, 3.473, 3~474, 3.475,
3.476, 32477, 3.478~ 3~47% 3°4802 3.481, 3.482, 3.483, 3~484, 3.485,
3~486, 3.487, 3.488 and 3.489 TO THE EUGENE CODE, 1971.
3.465
THE cITY OF EUGENE DOES ORDAIN AS FOLLOWS:
SeCtion 1. The following caption and sections are hereby added to the Eugene Code, 1971:
Motor Vehicle Fuel Dealer's Business Licenses
Definitions. As used in sections 3.465 through 3.489 of this chapter, unless the
context requires otherwise the following words and phrases shall mean:
CitS. The City of Eugene.
Dealer. Any person who:
(a) Imports or causes to be imported motor vehicle fuel fbr sale,
use or distribution in the city, bu~ "dealer" does not include any person who
impoas into the city motor vehicle fuel in quantities of 500 gallons or less
purchased from a supplier who is licensed as~ a dealer here-trader if that dealer
assumes liability for the payment of the applicable license tax to the city; or
(b) Produces, refines, manufactures or compounds motor vehicle
fuels in the city for use, distribution or sale in the city; or
(c) Acquires in the city fbr sale, use or distribution ~n the city
motor vehicle fuels with respect to which there has been no license tax
previously incurred.
Distribution. In addition to its ordinary meaning, the delivery of motor
vehicle fuel by a dealer to any service station or into any t&, storage facility or
series o£tanks or storage facilities connected by pipelines, from which motor vehicle
fuel is withdrawn directly for sale or for delivery into the'fuel tanks of motor vehicles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 denier.
. Every way, thoroughfare and place of wkhatever nature, open for
use of the PUblic for the purpose of vehicular travel.
Motor Vehicle. All vehicles, engines or machines, movable or immovable,
operated or ProPelled by the use of motor vehicle fuel.
Motor Vehicle Fuel. Includes gasoline, diesel, mogas, methanol and any
other flammable or combustible gas or liquid, by whatever name such gasoline,
diesel, mogas, methanol, gas or liquid is known or sold, usable as fuel for the
operation of motor vehicles, except gas, diesel, mogas, methanol or liquid, the chief
use of which, as determined by the tax administrator, is for purposes other than the
propulsion of motor vehicles upon the highways.
Pers . Includes every natural person, association, firm, partnership,
corporation, joint venture or other business entity.
Service Station. Any place operated for the purpose of retailing and
Ordinance- 1
delivering motor vehicle fuel into the fuel tanks of motor vehicles.
Tax Administrator. The city manager, the city manageFs designee, or any
person or entity with whom the city manager contracts to perform those duties.
3.466 Tax Imp~ed. A business license tax is hereby imposed on every dealer. The tax
imposed shall be paid monthly to the tax administrators The tax administrator is
authorized to exercise att supervisory and administrative powers w/th regard to the enforcement~
collection and administration of the business license tax~ including all powers specified in ORS
319~010 to 319.430.
Amount and Pa~.
In addition ro any fees or taxes otherwise provided for by law, every dealer engaging
in the cit) in the sale, use or distribution of motor vehicle fuel, shall:
(a) Not later than the 25th day of each calendar month, render a statement
to the tax administrator on forms prescribed~ prepared and furnished by the tax
admkfistrator of all motor vehicle fuel sold~ used or distribuIed by hira/her in the city
as well as all such fuel sold, used or distributed in the city by a purchaser thereof
upon which sale, use or distribution the dealer has assumed liability fbr the applicable
license tax during the preceding calendar month.
(b) Pay a license tax computed on the basis of $~03 (three cents) 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 code
3.468
License Requirements. No deale~ shall sell, use or distribute any raotor vehicle fuel
until he/she has secured a dealer s license as required herein.
3.469 License Ap_l~lications and Issuance.
(1) Every person, befbre becoming a dealer in motor vehicle fuel in this city, shall
make application to the tax administrator for a license authorizing such person to engage in business
as a dealer.
(2) Applications for the license shall be made on forms prescribed, prepared and
furnished by the tax administrator.
(3) Applications shall be accompanied by a duly acknowledged certificate
co~aining:
(a) The business name under which the applicant transacts business.
(b) The address of applicant's principal place of business and location of
distributing stations in and within three miles of the city.
(c) The name and address of the managing agent, the names and
addresses of the several 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, as well as
primary transport carrier.
(4) If an application for a motor vehicle fuel dealer's license is complete and
accepted fbr filing, the tax administrator shall issue to the dealer a license in such form as the tax
adrninistrator may- prescribe to transac~ business in the city. A license issued hereunder is no~
assignable, and is valid only -for the dealer in whose name it is issued.
(5) The tax administrator shall retain all completed applications with an
alphabetical index thereof~ together with a record of all licensed dealers.
3.470 Failure to Secure License.
(1) If a dealer sells, distributes or uses any motor vehicle fuel without first filing
the certificate and obtaining the license required by section 3.469, the license tax on all motor vehicle
Ordinance - 2
fuel sold, distributed or used by that dealer shall be immediately due and payable.
(2) The tax administrator shall proceed forthwith to determine, from as many
available sources as the tax administrator determines reasonable, the arnount of tax due, shall assess
the dealer fbr the tax in the amount formd due, together with a penalty of 100 percent of the tax, and
shall make ks certificate of such assessment and penalty. In any suit or proceeding to collect the tax
or penalty or both, the certificate shall be prima facie evidence that the dealer therein named is
indebted to the city in the amount of the tax and penalty stated.
(3) Any tax or penalty assessed pursuant to this section may be collected in the
manner prescribed in section 3.474 with reference to delinquency in payment of the fee or by an
action at law,
(4) In the event any suit or action is instituted to emfbrce this section, if the City'
is the prevailing party, the City shall be entitled to recover from the person sued reasonable
attorney's fees at trial or upon appeal of such suit or action, in addition to all other sums provided
by law.
3.471 Revocation of License. The tax administrator may revoke the license of any
dealer ~o comply with any provision of sections 3.465 to 3.489. The tax
administrator shall mail, by certified mail addressed m the dealer at his/her last known address
appearing in the files of the tax administrator, a notice of intent to cancel. The notice of revocation
sh~ll prcJTcide all information required by section 2.018 of this code, and include the reason for
cancellation. A dealer has all appeal rights provided by section 2.021 of this code, The license
cancellation shall become effective when the local appeal process provided in section 2.021 of this
code is completed and a final decision has been rendered by the hearings official.
3.472 Cancellation of License.
(1) The tax administrator may, upon weitten request ora dealer, cancel a license
issued to that dealer. The tax administrator 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.
(2) The tax administrator may, after 30 days' notice has been mailed to the last
known address of the dealer, cancel the license of dealer upon finding that the dealer is no longer
engaged in the business of a dealer.
3.473 Remedies Cumulative. Except as othepMse provided in sections 3.474 and 3,475,
the remec~{'~s provided in sections 3.470 through 3.472 are cmnulative. No action
taken pursuant to those sections shall relieve any person from the penalty provisions of this code.
3.474 nr of Tax and Delinquency_~.
(1) The license tax imposed by sections 3.465 to 3.489 of this chapter shall be
paid to the tax adrrfinistrator on or before the 25th day of each month.
(2) Except as provided in subsections (3) and (4) of this section, if pa~Tnem of
the hcense tax is not paid as required by subsection (1) of this section, a penalty of 1 percent of such
license tax shall be assessed and be immediately due and payable.
(3) Except as provided in subsection (4) of this section, if the payment of the tax
and penalty, if any, is not made on or before the 1 st day of the next month following that month in
a, hidh payment is due. a further penalty of 10 percent of the tax shall be assessed. Said penalty shall
be in addition to the penalty provided for in subsection (2) of this section and shall be immediately
due and payable.
(4) Penalties imposed by this section shall not apply ifa penalty has been assessed
and paid pursuant to section 3.470. The tax administrator may fbr good cause shown waive any
penalties assessed under this section.
Ordinance - 3
(5) If any person fails 'to pay the license tax or any penalty provided for by this
section, the tax and/or penalty shall be collected from that person for the use of the cky. The tax
administrator shall commence and prosecute m final determination in any co'tm of competent
jurisdiction an action at law to collect the same.
(6) In the event any suit or action is instituted to collect the business license tax
or any penalty provided t~ior by this section~ if the City is the prevailing party, the Cky shall be
entitled to recover from the person sued reasonable attorney' s fees at trial or upon appeal of such suit
or action, in addition to all other sums provided by law~
3.475 Monthly Statement of Dealer. Every dealer in motor vehicle fuel shall provide
to the tax administrator on or before the 25th da5' of each month, on t'orms prescribed,
prepared and furnished by the tax administrator, a statement of the number of gallons of motor
;:et{icle fi~tel sold, distrib~tted or used by the dealer during the preceding calendar month. The
statement shall be signed by the dealer or the dealer's agent.
3.476 File Monthl ~nt. Ifa dealer fhils to file any statement required by
section 3.475, the tax-administrator shall proceed ibrthwith to determine t?om as
many available sources as the tax administrator determines reasonable the amount, of motor vehicle
fuel sold distributed or used by such dealer ibr the period unreported, and such determination shall
in any proceeding be prima facie evidence of the amount of fuel sold, distribmed or used. The tax
administrator sh~ll irnmediately assess the dealer for the license tax -UPon the amount determined,
adding thereto a penalty of 10 percent of the tax The penalty shall be cumulative to other penalties
provided in this code.
3 ~477 Bill . Dealers in motor vehicle fuel shall render bills to all purchasers
of motor vehicle fuel. The bills shall separately state and describe th~ different
products sold or shipped thereunder and shall be serially numbered except where other sales invoice
controls acceptable to the tax administrator are maintained.
3.478 Failure to Provide Invoice or Deliveo' Tag. No person shall receive and accept motor
vehicle filel from any' dealer, or pay for the same, or sell or of~kr the motor vehicle
fuel for sale, unless the motor vehicle fuel is accompanied by an invoice or delivery tag showing the
date upon which motor vehicle fuel was delivered, purchased or sold and the name of the dealer in
motor vehicle fuel.
3.479 Transporting Motor Vehicle Fu_el in Bulk. Every' person operating any conveyance
for the purpose of hauling, transporting or delivering motor vehicle ~el in bulk shall,
before entering upon the public highways of the city with such conveyance, have and possess during
the entire tim~ o~ the hauling or transporting of such motor vehicle t~el, an invoice, bill of sale or
other written statement showing the number of gallons, the true name and address of the seller or
consignor, and the true handle and address of the buyer or consignee, if any, of the same. The person
hauling such motor vehicle fuel shall, at the request of any officer authorized by taw to inquire into
or investigate such marl:ers, produce and offer for inspection the invoice, bill of sale or other
statement.
3 ~480
vehicle fuel:
Exemption of Export Fuel.
(1) The licenke tax imposed by section 3.466 shall not be imposed on motor
(a) Exported fi:om the city by a dealer; or
(b) 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 comainers other than
the fuel tm~ of a motor vehicle, but every dealer shall be required to report such
Ordinance - 4
exports and sales to the city in such detail as may be require&
(2) In support of any exemption from license taxes claimed under this section
other than in the case of stock transfers or deliveries in the dealer% o,~m equipment, every dealer
must execute and file with the tax administrator an export certificate in such ~¥rrn as shall be
prescribed~ prepared and furnished by the tax administrator~ containing a statemem, made by some
~erson ha~ihg ~ctual knowledge oftl~e fact of such exportafion, that th~ motor vehicle fuel h~s been
exported from the city, and giving such details with reference m such shipment as the mx
administrator may require. The tax administrator may demand of any dealer such additional dam as
is deemed necess;arY ih support of any such certificate} and failure to supply such data will constitute
a waiver of alt right to exer~ption claimed by virtue of such certificate, The tax administrator may~
in a case where ~e tax administrator belim)es no useful purpose would be served by filing of in
export certificate, -waive the filing of the certificate.
(3) Any' motor vehicle fuel carried from the city in the fuel tank ora motor vehicle
shall not be considered as exported fi:orn the city.
(4) No person shall, through false statement~ trick or device, or otherwise, obtain
motor vehicle fuel for export as to which the ~ity tax has not been paid and fa~l to export the samq
or any portion thereof, or cause the motor vehicle fuel or any portion thereof not to be exported~ or
divert or cause to be diverted the motor vehicle fuel or any portion thereof to be used, distributed
ur sold in the city and fail to notify' the tax administrator and the dealer from ,~Vhom the motor vehicle
el was originally purchased o{ his/her act.
(5) No dealer or other person shall conspire with any person to witl-fhold from
export~ or divert fi:om export or to return motor vehicle fuel to the city for sale or use so as to avoid
an~ of the ~es imposed herein~
(6) In support of any exemption from taxes on account of sales of motor vehicle
~el in ind~viduhl quantifies ~ 500 gatl~ns or i~ss for export by the purchaser~ the dealer shall retain
~n his/her files for at least three yea-rs, an export certifichte e>~ecuted by the t~urchaser in such form
and containing such informatio~ as iS prescribed by the tax administrator. This certificate shall be
prima f:acie evidence of the exportation of the motor vehicle fuel to which it applies only if accepted
by the dealer in good faith~
3~481 Sales to Armed Forces E_xemr>ted. The license tax ~mposed by sections 3~466
and 3.467 shall not be imposed-on any motor vehicle fuel sold to the Armed Forces
of the United States for use in ships~ aircraft or for export from the city; but every dealer shall be
required to report such sales to the tax administrator in such detail as may be required, 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.
3.482 Fuel ~rt 'Vehicles Coming Into City Not Taxed, Any person coming into the city in
a motor vehicle ma:y transport in the fuel tank of such vehicle~ motor vehicle fuel ~br
his/her own use only and ~br the purpose of operating such motor vehicle without sec~ing a license
or paying the tax l~rovided in s~ctions 3.466 and 3.467 or complying with any of the provisions
imposed ~pon dealers herein, but if the motor vehicle fuel so brought into the city is removed from
th~ fuel ta~rk of the vehicle or used for any purpose other than the propulsion (~f the vehicle~ the
person so importing the fuel into the city }hall be subject to all the provisions herein applying to
dealers.
3.483 Refunds. Refunds will be made pursuam to applicable Chapter 3 t9 of the Oregon
Revised laws. Claim ~brms for refunds may be obtained from the Tax
AdministratoFs office.
3.484
Examinations and lnvesti~. Pursuant to section 2.019 of this code, the tax
adminis~tor, or duly autl~orize~ agems~ may make any examination of accounts~
Ordinance - 5
records, stocks, facilities and equipment of dealers, service stations and other persons engaged in
storing, selling or distributing motor vehicle fuel or other petroleum product or products within this
city, a~d such ~ther investigations as it considers necessar) in carrying out the prbvisions of sections
3.465 through 3.489. If tt~ examinations or investigatkJns disclb, s~ that ans) reports of dealers or
other persorTs theretofore filed with the tax administrator Pursuant to the reqhirements herein, have
showr~ incorrectly the amount of gallonage of motor ve~icle fuel distributed or the tax accruing
thereon, the tax administrator may' make such changes in subsequent reports and payments of such
dealers or other Persons, or ma~ make such refunds, as may be nec4ssary to ~.ofrect the errors
disclosed by its examinations or investigation. The dealer shall reimburse the city for the reasonable
costs of the examination or investigation if the action discloses that the dealer pald 95 percent or tess
of the tax owing for the period (~f the examination or investigation, In the event that such an
examination or ihvestigatibn results in an assessment by and an ~tdditional payment due to the city,
such additional payment shall be subject to interest at fiae rate of 18 perceni l~er year from the date
the original tax payment was due.
3.485 on Credit fbr or Refund of Overpayment and on Assessment of Addifional
Tax.
(1) Except as otherwise provided in this code, any credit for erroneous
overpayment of tax made by a dealer taken on a subsequent return or any claim fbr retired of tax
erroneously Overpaid filed by a dealer must be so taken or filed within three years after the date on
which the 0verp~yment was made to the c~ty~
(2) Except in the case of a fi:audulent report or neglect to make a report, every
notice of additional tax proposed to be assessed, under this code shall be served on dealers within
three years from the date upon which such additional taxes become due, and shall be sub~iect to
penalty as provided in section 3.474.
3.486 Examining Books and Acc~oun_ts of Carrier of Motor.. Vehi_cle Fuet. The tax
administrator or duly authorized agents of the tax administrator 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 code.
3.487 Records to be Kel~t by Dealers. Every dealer in motor vehicle fuel shall keep
a record in such form ak may be prescribed by the tax administrator of all p'urchases,
receipts, sales and distribution of motor vehicle fuel. 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 tax administrator or authorized officers or agents of the tax administrator.
3.488 Records to be Kept Three Years. Every dealer shall maintain and keep, for a period
of three years~ all records of motor vehlcle fuel used, sold and distributed within the
c~ty by such dealer, together with stock records, invoices, bills of lading and other pertinent papers
as may be required by the tax administrator. In the event such records ~re not kept wkhin the state
of Orbgon, the deai~r shall reimburse the tax administrator for all travel, lodging, and related
expenses incurred by the tax administrator in examining such records. The amount of such expenses
sh~ll be assessed in addition to the tax imposed by section 3.466.
3.489 Use of Tax Revenue__s.
(1) For the purpose of this section, net revenue shall mem~ the revenue from the
tax and penalties imposed by sections 3,465 through 3.489 remaining after providing fbr the cost of
admini~i[ration and any refuhds and credits authorized herein.
(2) The net revenue shall be used only for the reconstruction~ repair, maimenance~
operation, and preservation of city-owned roads and streets within the city, roads and streets for
Which the city is contractually or legally obligated to operate and maintain, or roads and streets for
Ordinance - 6
which the city has accepted responsibility under intergovernmental agreemenr~ No revenue shall be
used for capacity-enhancing street improvements.
_Seetion 2~ l~he tax imposed pursuant to Section 3.466 shaJl rake effect only after the Tax
Administrator has developed the necessary forms and documents to administer the tax~ The Tax
Administrator shall declare when the tax shall take effecr~ and give not less than 15 days not~ce of
that date before the tax may take effect. The Tax Administrator's deci sion as to the effective date
of the tax and the type of notice to provide shall be final and not subject to review.
S__eetion 3~ If any portion of this ordinance is for any reason held invalid or'tmconstitutional
by a court of competent jurisdiction, such portion shall be deemed a separate~ distinct and
independent provision and such holding shall not affect the validky of the remaining portions of this
ordinance~
Seet~ jori 4~ The Cky Recorder~ at the request of~ or with the concurrence of the City Attorney.~
is authorized to administratively correct any reference errors contained herein or in other provisions
of the Eugene Code~ 1971~ to the provisions added, amended or repealed herein.
Section~ This Ordinance shall become effective thirty days after its adoption by the
Council and approval by the Mayor.
Passed by the C~ty Council this
27th day of January~ 2003
Approved by the Mayor this
27ta day of January, 2003
Ordinance- 7
MEMO DUM
Date: May 14, 2003
HARRANG LONG GARY RUDNICK PC
YS