HomeMy WebLinkAboutOrdinance No. 19276ORDINANCE N0.~~p
AN ORDINANCE CONCERNING THE DOwNTO~lN DEVELOPMENT DISTRICT
USER FEES; AMENDING SECTIONS 3.700, 3.705, 3.750, 3.755,
AND 3.760 OF THE EUGENE CODE, 1971; RENUMBERING SECTION
3.745 OF THAT CODE; ADDING NEB SECTIONS 3.74. 3.743,
3.744, 3,745, 3.746, AND 3.765 T4 THAT CODE; AND PROVIDING
AN EFFECTIVE DATE.
THE CITY DF EUGENE DOES ORDAIN AS FDLLO~S:
Section 1. Sections 3.7D0, 3.7Q5, 3.750, 3.755 and 3.~6D of the Eugene
Code, 1971 are hereby amended; Section 3.745 is hereby renumbered 3.741, and
new Sections 3.742, 7.743, 3.744, 3~:7~45, and 3.746 are hereb added to that
Y
Code, all to read and provide:
Downtown De.vel o ment District Taxation
3.7Q0 Downtown Develo ment District Tax - Levy.
~1} Each professional who is not exempt under state law from
municipal taxation and who is not an owner or occu ant of ro erty exem t
from taxation under section 3.755 of this code, and who engages in a pro-
fession, occupation, or business in she Downtown Development District during
all or part of a quarter of a year shall pay to the city:
~a~ If the professional is a self-employed natural person, a
tax of $4D for that quarter for that person and a tax of $44 far
each natural person whom she or he employs during part or all of
that quarter in the Downtown .Development District as a
professional employe.
~b~ If the professional is a partnership, association, ar
corporation, a tax of $40 for that quarter for each professional
member, professional stockholder, or professional employe in or
of the partnership, association, or corporation in the Downtown
Development District during part or all of that quarter.
~Z~ As used in this section the word "professional" includes
generally all those engaged in a profession far private gain and includes
particularly, but is not limited ta, the following:
~a~ Attorneys.
fib} Physicians.
~c} Surgeons.
~d~ Dentists.
fie} Accountants.
~f~ Engineers as defined by the laws of Oregon.
~g~ Architects.
~h} Professional bondsmen.
~i} Contractors.
~j~ Manufacturers' and corporation representatives not
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i Huai ved i n retai 1 sales .
~k} Auditors,
~l} Artists.
gym} Chiropodists.
fin} Chiropractors.
~o} Financial brokers.
gyp} Lumber brokers.
~q} Financial consultants.
fir} Insurance consultants.
~s} Interior decorators.
(t} Investment advisors.
~u} Laboratory operators and technicians.
~v} Optometrists, opticians, and ophthalmologists,
~w} Orthaped~sts.
fix} osteopaths.
~y} Planning consultants.
(z} Psychologists.
~aa} Psychiatrists.
ebb} Public relations consultants.
(cc} Real estate loan brokers.
add} Tax consultants,
fee} Religious practitioners.
(ff} Industrial financing.
~3} Each nonprofessional person who is not exempt under state
law from municipal taxation, and who is not an owner ar occu ant of ro ert
exem t from taxation under section 3,755 of ~ ~ y
~_ ~ this code, and who engages in a
business ~n the Downtown Development District during part or all of a uarter
of a year shall a to the cit for t q
p Y y hat quarter a tax of $2.54 per $1,000
of the gross retail sales and receip~.`s from the business during that uarter
except that ersons en a in in a busi q '
. p g g g Hess of a bank, a savings and loan
assoc~at~on, or a consumer finance company shall pay on the basis designated
in subsections ~4} and ~5} of this section. A minimum tax of $10.Q0 shall
be charged each quarter of a year for each business.
~4} Each person engaged in banking or a savings and loan
assoc~at~an business ~n the Downtown Development District during part ar
all of a quarter of a year, shall pay to the city for that quarter a tax of
$2.50 per $1,OOD of one and three-quarters percent x.0175} of the total
demand deposits, and of $2.50 per $1,000 of five-tenths of one percent
x.005} of the total time deposits. Total time and demand deposits of banks
shall be the total daily average deposits during that quarter as re orted
on the Federal Reserve Cal1y and t p
otal time deposits of savings and loan
associations shall be the total daily average of all savings deposits
during that quarter. ~lhenever savings and loan associations receive -
demand-type deposits, the tax rate on those deposits shall be $2.50 er
$1,000 of one and three- carters er P
q p cent x.0175} of the da~1y average of
those deposits during that quarter.
~5} Each person engaged in a consumer finance business in the
Downtown Development District during part or all of a quarter of a year
shall pay to the city for that quarter a tax of $Z.50 per $1,000 of five
percent x,05} of the total principal balance of direct loans autstandin at
the end of that uarter excludin f' g
q g ~nance charges.
~6} Any person aggrieved by being erroneously classified in his
or her opinion for purposes of the tax imposed by this section may re uest
the city mono er to review the c1 q
g ossification. Within 15 days after
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receiving the request, the city manager or the manager`s designee, after
affording the person an opportunity to be heard with reference to his or her
grievance, shall determine haw the person shall be classified for ur oses
of the tax. Such determination sha p p
11 be f ~ nal .
~7~ The tax imposed by this section is due and payable by the
last day of the month immediately following the quarter to which the
tax applies, and becomes delinquent if not paid on the last day of the
month in which it becomes due, The date of the payment shall be the date
of its personal delivery to the finance officer or his or her desi nee or its
postmark date whichever i s the earl ' g '
per. The quarters to which the tax
applies begin July 1, X973, and every Qctober ~, January ~, A ri1 1 and
July ~ thereafter. A rafessia p '
p nal may, by Qctober 31 of the fiscal year,
pay the entire tax he or she expects to owe during that year. A tax that
becomes delinquent shall be subject to penalty as provided in sections
3.730, 3.735, 3.740, and 3.745.
3.705 Downtown Qevela ment district Tax ~- Gross Sales and ~ecei ts.
Within the meaning of section 3.700 of this Code, gross sales and
receipts shall include the amounts recorded as earned when the books are
kept on an accrual basis accounting, and the amounts recorded as collected
when the books are kept on a cash basis accounting, and
~a~ include:
1, The total amount charged or received from sales,
~nclud~ng sales to employes.
2. The total amount charged or received far the
performance of acts, services, ar employment of any nature,
whether or not done incidentally to the sale of goods.
3. Any amount, commonly referred to as "trade-in
value," for which a seller allows credit to a purchaser,
without deduction for cost of property sold, cost of
materials used, labor costs, or service costs.
~b~ Do not include;
1. Any cash discount allowed and taken by a purchaser.
2. Freight, delivery, or labor expenses of the
purchaser paid by the seller and billed to the purchaser at
cost.
3. Uncallectible balances on installment sales.
,4. Sales on the basis of competitive bid to hotels,
motels, medical institutions, apartment house owners or
operators, building contractors, schools, governmental
instrumentalities, or professional or business offices.
5. Sales of gaols shipped from a point outside the
state directly to the customer or to a common pick--up point,
5. Cash ar credit allowed a purchaser on merchandise
previously sold by the seller but returned by the purchaser
because defective or otherwise unsatisfactory.
7. Any tax which by law is required to be collected
from the purchaser by the seller on behalf of the taxing
agency.
8. Sales of alcoholic beverages.
9. Sales of prepared food sold as part of a catered
business and consumed off the premises by a can re ated
9 9
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gathering of people.
~0 Sale of oods or services on ro erty exem t from
taxation under section 3.755 of this code.
3.75 Downtown Develo ment District Tax -Administration.
~1} The finance officer shall administer the tax imposed by
section 3.700 of this code. ~S}He may do sa in accordance with rules
and regulations ~s~he promulgates consistently with the code. The
rules and regulations shall include such provisions as are necessary
or expedient far elicting information needed to administer the tax,
inducing prompt and full payment of the tax, preventing fraud ar evasion
related to the tax, affording subjects of the tax ample notice of their
obligations regarding the tax, resolving administratively whatever
controversies arise in administration of the tax, and imposing sanctions
conducive to compliance with the rules and regulations. All such rules
and regulations ~s~he shall promulgate in writing and make available to
the public after having first reviewed them with the Downtown Commission.
~Z~ The f i Hance officer or his ar her designees may obtai n
information necessary or convenient for administering the tax. Each
person subject to the tax shall keep available and open to inspection
by the finance officer or any such designee during regular office
hours, all accounts and books necessary or convenient for ascertainw
ing the person's tax liability under section 3.700.
~3~ The finance officer shall see that all information about
gross sales and receipts, deposits, and loans that is furnished under
subsection ~Z~ of this section, and all information about the amount
o any tax based on such sales and receipts, deposits, and loans is
kept in strict confidence within the department and becomes known only
to persons responsible for administering the tax. Na person may
divulge any of the information to any other person than those just mentioned.
3.720 Downtown Develo ment District Tax -Security for Payment.
~~~ Any amount due the city as a tax under section 3.700 or as a
penalty under section 3.730, 3.735, 3.74D, 3.745, or 3.996 of this Code
shall constitute a debt of the person from whom the amount is due. The
city may bring action i n a court of competent jurisdiction to enforce
payment of the debt.
~Z~ Any such amount may also, by declaration of the director of
the department of finance 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.
3.730 Downtown Development District Tax interest on Delinquency.
Any person who fai 1 s to f i 1 e ~~~the ~~~tax return and make payment as
required under section 3.700 shall be charged interest at a rate
established pursuant to section Z.OZZ of this code on the amount of tax
due from the date of delinquency as determined by section 3.700~7~
until the date of payment,
_ w p nt District Tax - Extension of Time. Prior
. 7 3 5 D o w n t o n ^Develo m,e.,.. .,_, _„r..,, ., ._,__._..,_..._. ...,_..._ .~_.._
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to the delinquency of a tax under section 3.7007}, the finance
officer or his designee may, for goad cause, extend for not more than one
month the time far filing a return and making payment of a tax due under
sectian 3.700~~}, ~3~, (4), or ~5}. A person to whom such an extension is
granted shall pay interest at the rate of one and one-half percent ~~-1/2%~
per month an the amount of tax due, without proration for a fraction of a
month. ~f a return is not filed ar the tax and interest due is not paid by
the end of the extended time, then the interest shall become a part of the
tax for computation of late penalty under sectian 3.740.
3.740 Downtown Develo ment~District Tax - Late Penalty, A person
who has not been granted an extension of time under sectian 3.735
and who fails to pay the tax due under sectian 3.700~~~, ~3}, ~4~, or ~5
pr7or to the date of delinquency, or at the end of a granted extended time
fails to remit the tax and interest due, shall pay a late penalty of an
additional ten percent ~10~~ on the total of the amount of tax, plus
interest due.
------3.741 Downtown Deve1 o ment District Tax - Penalty for Fraud.
~~~ Tf the finance officer determines, in accordance with this
section, that the nonpayment of a remittance due under sections 3,700 to
3.740 of this Cade is due to fraud or intent to evade a requirement of
those sections, there shall be added to the tax a fraud penalty of twent -
five percent ~5~ of the amount of t ~ ~
~ ~ he tax due under sections 3.700 to
3.735 far the quarter during which the fraud or intent to evade occurs, in
add~t~on to the late penalty due under section 3.740.
~2~ If a person fails or refuses to pay the business tax, makes
a fraudulent return, or otherwise attempts to evade the requirements of the
Code or the rules and regulations of the finance officer regarding the
tax, the finance officer shall obtain facts and information an which to
base a determination of the amount of business tax due f ram the person.
As soon as the finance officer determines that amount, he shall determine
and assess against the person the tax, interest thereon, and penalties
therefore due from the person under this Code.
~3~ After the determination is made, the finance officer shall
give the person written notice of the amount so assessed. The
determination shall be made and the notice mailed within three years after
discovery by the finance officer of any fraud, intent to evade, or failure
or refusal to make payment of the tax. The amount so determined becomes
due upon receipt of the notice, and the determination becomes final within
~0 days after the receipt of the notice, After expiration of the ~0 days,
if the person fails to pay the amount due, he may be fined fifty dollars
x$50.00} per day so long as the failure continues.
(4~ A person against whom a determination is made under this
section or a person financially interested in the determination may petition
the finance officer fora review of the determination, if the petition is
fled before the determination becomes final. ~f the petition is so filed,
the finance officer shall reconsider the determination, and, if the person
has so requested in his petition, shall grant the person an oral hearin
g
and give him ~0 days' notice of the time and place of the hearing. The
finance officer may increase or decrease the amount of the determination as
a result of the hearing. If an increase is determined, it shall be paid
immediately after the hearing.
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~5~ The decision of the finance officer upon a petition for
review is final.
~6} No petition for such a review may be filed unless the
petitioner first pays the amount to which the petition pertains.
3.742 Downtown Develo ment District User Fee - Pur ose. The purpose of
the user fee hereby established is to require occupants of prop-
erty within the Downtown Development District who are otherwise exempt fram
taxation by the district, and whose patrons are substantial users of the
benefits of the District, to contribute to the maintenance and enforcement
of District programs fram which patrons using these exempt properties bene-
fit.
3.743 Downtown Develo meat District User Fee - Established.
{~} A quarterly user fee is hereby imposed on all occupants of
Class ~~~ property with an average number of daily patrans which exceeds two
hundred. The fee imposed herein shall be computed by multiplying the avera e
9
number of daily patrons using such property during the quarter by X1.50,
The average number of daily patrons shall be calculated by dividing the
total number of patrons using the premises during the quarter by the number
of business days during the quarter that the premises were used to provide
goods or services to the public.
~~~ Occupants of Class 1II property with an average of two hundred
daily patrons or less shall pay a fee of $1x.00 per quarter.
~3} The following are exempt from the user fee: the federal gov-
ernment; the State of Oregon and its political subdivisions which are char-
tered under the Oregon Constitution; occupants of Class 1, 11 and ~v prop-
erty; and any mass transit district farmed under ORS 267.010 to 267.390.
(4} The classes of property referred to herein are defined in
section 3.755 of this code.
3.744 Downtown Develo ment District User Fee - Payment.
~1} The user fee imposed by section 3.743 is due and payable by
the last day of the month immediately following the quarter to which the
user fee applies, and becomes delinquent if not paid on the last day of the
month in which it becomes due. The date of the payment shall be the date of
its personal delivery to the finance officer or his or her designee, or its
postmark date, whichever is the earlier. The quarters to which the user fee
applies begin July 1, 1984, and every October 1, January 1, April 1, and
July 1 thereafter.
~Z} Any occupant who fails to make payment as required under sec-
tion 3.743 shall be charged interest at a rate established pursuant to sec-
tion 2.022 of this code on the amount due from the date of delinquency as
determined under subsection ~1} of this section until the date of payment.
~3~ Any amount due the city as a user fee under section 3.743,
as interest under this section, ar as a penalty under section 3.745 of this
code shall constitute a debt of the occupant from wham the amount is due.
The city may bring action in a court of competent jurisdiction to enforce
payment of the debt. Any such amount may also, by declaration of the
finance officer be made alien on the personal property of the occupant
from whom the amount is due. The city may enforce payment of the amount
by foreclosure of the lien in any manner authorized by law.
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3.145 Downtown Develo meat District User Fee - Penalty for Fraud.
(1} If the finance officer determines, in accordance with this
section, that the nonpayment of a remittance due under section 3.743 of
this code is due to fraud or intent to evade a requirement of this section,
there shall be added to the user fee a fraud penalty of twenty-five ercent
(~5,°0~ of the amount of the fee due p
under section 3.743 far the quarter dur-
ing which the fraud or intent to evade occurs.
(Z~ If an occupant fails or refuses to pay the user fee makes
a fradulent application far exemption under section 3.765 of this code ar
otherwise attempts to evade the requirements of this code or the rules and
regulations of the finance officer regarding the user fee, the finance
officer shall obtain facts andrinformatian on which to base a determination
of the amount of user fee due from the occupant. As soon as the finance
officer determines that amount, (s}he shall determine and assess a ainst
the occupant the fee interest the g
neon, and penalties therefore due from
the accupant under this code.
(3~ After the determination is made, the finance officer shall
give the accupant written notice of the amount so assessed. The determina-
tion shall be made and the notice mailed within three years after discover
by the finance officer of an fraud intent y
Y to evade, or failure or refusal
to make payment of the user fee. The amount so determined becomes due u an
receipt of the notice, and the determinat'a ~ P
i n becomes final w~th~n 1D days
after receipt of the notice. After the expiration of the ~D days if the
occupant fails to pay the amount due, a fine of fifty dollars ~5D er
( ~P
day may be imposed against the occupant so long as the failure continues.
(4~ An occupant against wham a determination is made under this
section, or an occupant financially interested in the determination, may
petition the finance officer fora review of the determination, if the
pet~t~on is Bled before the determination becomes final. ~f a petition
is so filed, the finance officer shall reconsider the determination and
if the occupant has so requested in the petition, shall grant the occu ant
an oral hearin and ive ten da s notice P
. g g Y of the time and place of the hear-~
Eng. The finance officer may increase or decrease the amount of the de-
termination as a result of the hearing. ~f an increase is determined, it
shall be paid ~mmed~ately after the hearing.
.(5} The decision of the finance officer upon a petition for re-
v~ ew ~ s f ~ na1.
(6} No petition for review may be filed unless the petitioner
first pays the amount to which the petition pertains.
3.746 Downtown Devela meat District User Fee - Administration.
(1} The finance officer shall impose user fees on the basis of
the various classes of real property specified in section 3.755 of this
code and in accordance with the steps prescribed by section 3.143 of this
code. (5~he shall prepare and retain in the files of the department of
finance for public inspection, certificates of exemption issued in accord-
ance with section 3.155 of this code. The finance officer shall collect
all such fees by appropriate legal action in the name of the city.
(~3 The finance officer shall administer the user fee im osed
by section 3.743 of this code in a p
ccordance with rules and regulations
(she promulgates consistent with this code . The rut es and re ul ati ons
shall include such rovisions as g
p are necessary or expedient far eliciting
information needed to insure prompt and full payment of all fees revent-
=p
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ing fraud ar evasion related to the fee, affording subjects of the fee
ample notice of their obligations regarding the fee, resolving administra.~-
tively whatever controversies arise in administration of the fee, and i~-
posing sanctions conducive to compliance with the rules and regulations.
All such rules and regulations ~s}he shall promulgate in writing and make
available to the public after having first reviewed them with the Downtown:
Commission .
3.750 Ad valorem Taxation in Downtown Develo meet District - Adminis~
tration. Far a fiscal year for which the council levies a spe-
cial ad valorem tax on the ownership of real property in the Downtown
Development District, the finance officer shall apportion the levy to
the ownership of the parcels of property in the district on the basis
of the various classes specified in section 3.755 and in accordance
with the steps prescribed by section 3.760. ~S}He shall then prepare
and retain in the files of the department of finance for public inspec-
tion a certificate that the levy has been so apportioned. The certifi-
cate sha11 indicate the tax rates far the various classes of ownership
of property as effected by the apportionment. The finance officer
shall collect all such taxes by appropriate legal action in the name
of the city.
3.755 Ad valorem Taxation in Downtown Develo ment District - Classes
of Pro erty. Far special ad valorem taxation on the ownership
of real property in the Downtown Development District far any fiscal
year, real property in the district is hereby classified:
~a} C1ass ~ - All real property that is not otherwise
classified.
fib} Class I~ - That part of property which is devoted
to automobile parking facilities open to the general public
and under the control of the Downtown Commission.
~ C1ass ~I~ - All real rp aperty ex_ empt from taxation under
ORS 3D7.D4D to 3D7.~6D for which a~certificate of exem tion has been
issued under section 3.765 of this code.
~ Class ~v w All real ro erty used or held out for non-
transient residential occu ancy for which a certificate of exem flan
has been issued under section 3.765 of this code. For the ur ases~
of this section the ward "transient" has the meanin set forth un~er
section 3.770 k of this code.
3.760 Ad valorem Taxation in Downtown Develo ment District - A or-
tianment.
~1} For purposes of this section, ;'owner" means the owner of
record on the Lane County tax rolls on July ~ of the year in which the
tax is assessed, unless the finance officer receives a written notifi-
cation of a change in ownership subsequent to that date.
~~} The finance officer sha11 apportion as follows a special
ad valorem tax levied for a fiscal year on the ownership of real
property in the Downtown Development District:
~a} The finance officer shall ascertain from the tax
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rolls of Lane County for that year the total assessed valua-
tion of the taxable real property in the district and deduct
the assessed valuation of Class II, III, and Class IV property
f ram the tota 1.
fib} The amount thus ascertained shall be divided into
the amount of the levy to obtain the rate.
~c~ This rate shall be multiplied by the assessed valu-
ation of each parcel of taxable real property, excluding
Class II, III, and IV property, The owner of a parcel of prop-
erty in Class I shall be liable for the tax in an amount equal
to the product obtained under subparagraph ~c} of this subsec-
tion.
~3~ The tax for which the owner of a parcel is liable on the
basis of the computations prescribed by this section shall be due and
payable an the fallowing dates: one-third on November 15 of the fiscal
year for which the tax is levied, one-third on February 15 of that
fiscal year, and one-third on May 15 of that fiscal year. A discount
of three percent shall be allowed if the total tax for the year is paid
prior to November 16 of that year. Any portion of the tax not paid
when it becomes due under this schedule shall bear interest at a rate
established pursuant to section Z.flZZ of this code until the portion is
paid. The date of payment, for purposes of timeliness, shall be the
date of its personal delivery to the finance officer or his or her
designee, or its postmark date, whichever is the earlier.
~4} If an adjustment made by the finance officer in a tax
assessed under this section results in an overpayment of taxes, the
finance officer shall apply the amount thereof to other taxes due and
owing from the owner who paid the taxes, and refund the balance, if any,
or the entire overpayment if no other taxes are due, to that owner.
Interest, at a rate established pursuant to section Z.OZZ of this code,
shall be paid on any amount refunded, and shall accrue from the date
of the original payment to the date of refund.
3.765 Ad Valorem Taxation in Downtown Devely ment District - Exem bons.
Before an exemption from taxation is allowed far any year, the
owner of any property for which an exemption is claimed shall file with the
finance officer, on or before September 1st in such year, or within 30
days of the date of acquisition of such property, whichever is later, a
statement listing all property claimed to be exempt and showing the purpose
for which such property is used, If the finance officer finds that such
property qualifies for an exemption, a certificate of exemption shall be
issued.
3,767 Ad Valorem Taxation in Downtown Development District - Rules.
In administering the ad valorem taxation program in the Downtown
Development District, the finance officer shall develop rules and
regulations, consistent with other provisions of this code, that provide
far the resolution by administrative action of matters such as, but not
limited to, a determination of adjustments in taxes based on changes in
assessed valuations, and such other matters as the finance officer deems
necessary for the proper administration of the program. The rules and
regulations shall be in writing, and reviewed and approved by the Downtown
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Commission prior to their adopti an or i mp1 ementati an . A copy sha 11 be
maintained in the finance department and sha11 be available to the public.
Section 2. That the matters contained herein concern the public we1-
fare, and in order to insure the orderly implementation of the procedures
provided for herein it is necessary to establish a date that those proce-
dures become effective. Therefore, this Ordinance shall become effective
on X84. ~~-~~~ e!~' l~ ~ 1G.$~'.
Passed by the City Council this
_,~~ day of 1984
/~Ss~, City Recorder
Approved by the Mayor this
day of 1984
Mayor
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