HomeMy WebLinkAboutOrdinance No. 19655ORDINANCE N0. I~'~-5~
AN ORDINANCE ESTABLISHING A BUSINESS PRIVILEGE TAX
FOR NATURAL GAS SUPPLIERS; ADDING SECTIONS 3.600,
3.605, 3.610, 3.615, 3.620, AND 3.625 TO THE EUGENE
CODE, 1971; AND DECLARING AN EMERGENCY.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Sections 3.600, 3.605, 3.610, 3.615, 3.620, and 3.625 are
hereby added to the Eugene Code, 1911, to provide:
3.600 Natural Gas Su lier Tax ~ Definitions. For purposes of sections
3.600 to 3.625 of this chapter, the following words and phrases
shall have the meanings ascribed to them by this section:
C t~man~a er. The city manager or his ar her designee.
Gross revenue. The amount of gross revenue derived from the
sale by the natural gas supplier of natural gas consumed within the
city, 1 ess net uncol 1 ecti bl es, and from the use, rental or 1 ease of
a natural gas distribution system located within the city for trans-
portat~on services except:
~a~ Revenues paid directly by the United States of
America or any of its agencies;
fib} Proceeds from the sale of bonds, mortgages or other
evidence of indebtedness, securities or stocks;
~c} Sales at wholesale by one pub1 i c uti 1 i ty to another
when the utility purchasing the service is not the ultimate
consumer; and
~d~ Revenues derived from the sale or transportation of
gas supplied under an interruptible tariff schedule.
Natural gas su,pp]ier. Any person who makes natural gas avail-
able for consumption within the city or who operates a natural as
g
distribution system which makes natural gas available for consump-
tion within the city.
atural as ,.,d~str
,g ,,,W ' ,,,_ i buti on ~s~stem. Real and personal property
of a natural gas suppler located within the city used for the
transportation, storage, or sale of natural gas.
Person. A natural person, firm, partnership, association,
corporation, joint venture or other business entity.
3.605 Natural Gas Su lier Tax - Lev ,
~1} Any person engaged in or carrying on the business, occupation
or pursuit of a natural gas supplier or operating a natural gas distribution
system within the corporate limits of the city during part ar all of a calen-
dar year shall comply with the provisions of sections 3.600 tv 3.625 of this
chapter and shall pay to the city for that year a tax of four percent ~4/} of
the gross revenues earned within the corporate limits of the city.
Ordinance x 1
~2} Payment shall be made within sixty X60} days after the close
of each calendar year.
~3} The amount of the tax to be paid under this section which is
in excess of the aperating expenses provided far under state law may be shown
as a separate item, computation or addition to the customer's bill by a nat-
ural gas supplier far its sales, services ar other charges which are revenues
used as a basis for computation of such city tax.
3.610 Natural Gas Su lier Tax -Administration.
~1} The city manager shall administer the tax imposed by section
3.605 of this code. The city manager may do sa in accordance with rules
adopted in the manner provided in section 3.oI2 of this code. The rules
shall include such provisions as are necessary or expedient for eliciting
information needed to administer the tax, inducing prompt and full payment
of the tax, preventing fraud or evasion related to the tax, affording sub-
jects of the tax ample notice of their obligations regarding the tax, re-
so1v~ng adm~n~strat~vely whatever controversies arise in administration of
the tax, and impaling sanctions conducive to compliance with the rules.
~2} Every natural gas supplier shall, at the time of payment of
the tax, deliver a report verified under oath by the chief financial officer
or other responsible designee of the natural gas supplier, setting forth the
amount and calculation of the payment and such ather detailed infarmation as
may be prescribed by rule. The report shall at a minimum detail the revenues
received by the natural gas supplier far its operations, and shall specify
the nature and amount of all exclusions and deductions from such revenue.
~3} ,The city manager may obtain information necessary or conven-
7ent far adm~n~ster~ng the tax. Each person or business subject to the tax
shall keep available and open to inspection by the city manager during regu-
lar office hours, all accounts and books necessary or convenient for ascerw
taining the tax liability under section 3.6o5. Any person operating a
natural gas distr~but~on system shall make available upon request the names
and addresses of all persons using or leasing the natural gas distribution
system.
~4} The city manager shall see that all information about gross
revenues furnished under subsection ~3} of this section, and all information
about the amount of any tax based on such gross revenues, is kept in strict
confidence and becomes known only to persons responsible for administering
the tax. Except as otherwise provided by law, no person may divulge any of
the ~nformat~on contained in these reports to any person except as is neces-
sary for administering and collecting the tax.
~5} The city manager shall have the authority to:
~a} Administer oaths;
fib} Audit records to assure conformance with section 3.600
to 3.625;
~c} Certify official acts;
d} Subpoena and require attendance of witnesses at meetings
or hearings to determine compliance with section 3.600 to 3.625;
fie} Require production of relevant documents;
~f} Swear witnesses;
fig} Take testimony of any person by deposition; and
~h} Perform all other acts necessary to administer or
enforce the provisions of sections 3.600 to 3.625.
Ordinance .. 2
Natural Gas,,.Su leer Tax A,,_
3.615 _ ~ ~ pp,,, ~ ,~~,~... ..,. - ud i t .
~1} The acceptance of any payment required by the city shall not
be construed as an acknowledgment that the amount paid is the correct amount
due, nor shall such acceptance of payment be construed as a release of any
c1 ai m the city may have for additional sums due and payable.
~2} All tax payments shall be subject to audit by the city and an
assessment or refund if the payment is found to be in error. Any assessment
requiring additional payment and all interest and penalties shall be immedi-
ately due and payable.
. ~3} In the event that such audit results in an assessment by and
an add~t~onal payment due to the city, such additional payment shall be sub-
ject to interest at the rate of eight percent ~8%} per year from the date the
original tax payment was due.
. ~4} In the event that such audit results in an assessment by and
an add~t~onal payment due to the city which the city manager finds to have
been the result of intentional acts seeking to avoid payment of the full
amount due the city, the natural gas supplier shall be subject to an addi-
tional penalty of ten percent X10%} of the total amount of the additional
tax payments due.
~5} Any amount due the city as a tax, interest or penalty under
section 3,605 or this section shall constitute a debt of the person from whom
the amount is due. The city may bring action in a court of competent juris-
diction to enforce payment of the debt.
~6} Any amount due the city as a tax, interest ar penalty under
section 3.605 of this code or this section may, by declaration of the city
manager, be made alien on the personal property of the person from wham the
amount is due. The city may enforce payment of the amount by foreclosure
of the lien in any manner authorized by law,
3.620 Natural Gas Su lier Tax - Other Obli ations Unaffected. Except as
provided in section 3.625, any amount due the city as a tax under
section 3.605 of this code is in addition to any other payment required by
law, and shall not be considered as payment in lieu of or as a credit toward:
~a} Any franchise fee paid to the city for the use of the
public ways and places of the city;
fib} The payment of any general ad valorem taxes levied or
imposed upon the properties of the natura] gas supplier;
~c} Any local improvement assessment impaled on the natural
gas supplier;
~d} Any permit fees or inspection fees required by the con-
struction codes or other ordinances of the city which are or may
hereafter be adapted; or
fie} Any similar fee or charge imposed by law.
3.625 Natural Gas Su lier Tax - Credit for Franchise Fees. A natural
gas supplier which is required to pay a franchise fee to the city
for the use of the public, ways and places of the city may subtract the amount
of the franchise fee paid for the same year or part of the year in which the
tax is in effect from the total amount due as a tax under section 3.605 of
this code. In no event shall a natural gas supplier pay to the city in an
one calendar ear an mo e y
.y , a unt more than four percent X4/0} of gross revenues ~ n
combined business pr~v~lege taxes and franchise fees.
Ordinance - 3
Section ~. This Ordinance shall apply to all gross revenues collected
by natural gas suppliers on or after December 1, X959.
5ectivn 3. That the matters contained herein concern the public health,
safety and Welfare and therefore, an emergency is hereby declared to exist,
and this Ordinance shall become effective immediately upon its passage by
the City Council and approval by the Mayor.
Passed by the City Council this
7 ~ day of December, 1989
City Recorder
Approved by the Mayor this
~ day of December, 1989
Ma r
Ordinance - 4