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HomeMy WebLinkAboutOrdinance 22742-06-2017 ORDINANCE NO. 22742-06-2017 AN ORDINANCE AMENDING CHAPTER 32 (TAXATION) OF THE CODE OF THE CITY OF FORT WORTH (2015), AS AMENDED, BY ADDING ARTICLE V (WILL ROGERS VENUE ADMISSIONS TAX); PROVIDING DEFINITIONS RELATIVE THERETO; PROVIDING FOR THE IMPOSITION AND LEVY OF A TAX EQUAL TO TEN PERCENT (10%) OF EACH TICKET SOLD AS ADMISSION TO AN EVENT HELD AT THE APPROVED VENUE PROJECT CONSISTING OF A MULTIPURPOSE ARENA AT THE INTERSECTION OF HARLEY AVENUE AND GENDY STREET, OTHER ADJACENT SUPPORT FACILITIES, AND RELATED INFRASTRUCTURE; PROVIDING FOR COLLECTION, REPORTING, RECORDKEEPING, AND REMITTAL REQUIREMENTS AND PROCEDURES; PROVIDING THAT VIOLATIONS FOR FAILURE TO COLLECT OR REMIT TAXES, TO MAINTAIN REQUIRED RECORDS, OR SUBMIT REQUIRED REPORTS AND FOR SUBMISSION OF FALSE REPORTS ARE UNLAWFUL AND PUNISHABLE BY FINE OF UP TO FIVE HUNDRED DOLLARS ($500.00) PER OFFENSE; PROVIDING FOR LATE FEES, INTEREST, AND CIVIL PENALTIES; PROVIDING FOR CIVIL COLLECTION REMEDIES; AND FURTHER PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 334 of the Texas Local Government Code, as amended (the "Act"), authorizes the City Council to designate various sports- and community-related capital improvements as a "venue project" and to designate one or more methods of financing authorized by the Act that the City wants to use to finance the project, subject to approval of the voters in an election called for that purpose; and WHEREAS, in accordance with requirements in the Act, on July 15, 2014, the City Council adopted Resolution No. 4327-07-2014 authorizing a new multipurpose arena at the intersection of Harley Avenue and Gendy Street (the "Multipurpose Arena"), other adjacent support facilities, and related infrastructure, and designating the same as a venue project in accordance with the Act (collectively, the "Venue Project"), and designating each method of financing under the Act proposed to be used for the Venue Project, subject to voter approval at an election called for such purpose; and WHEREAS, by letter dated July 24, 2014, the Texas Comptroller of Public Accounts notified the City of the Comptroller's determination that approval and implementation of Resolution No. 4327-07-2014 would have no significant negative fiscal impact on state revenue; and WHEREAS, on August 12, 2014, the City Council adopted Ordinance No. 21374-08- 2014 calling for and ordering a special election to be held on November 4, 2014, at which all qualified voters of the City would have the opportunity to vote on the question of approving and implementing Resolution No. 4327-07-2014 designating the Multipurpose Arena, other adjacent support facilities, and any related infrastructure as a Venue Project and, in separate propositions, on each method of financing under the Act that the City wanted to use for the Venue Project; and WHEREAS, at the special election held on November 4, 2014, a majority of the voters of the City voting in the election voted in favor of the propositions authorizing the City to provide for the planning, acquisition, development, establishment, construction, renovation and financing of the Venue Project, and to impose (i) an admissions tax on each ticket sold as admission to an event held at the Venue Project, at a rate not to exceed ten percent (10%) of the price of the ticket; (ii) a livestock facility use tax on each stall or pen used or occupied by livestock during an event held on one or more consecutive days in which the Venue Project is used, not to exceed twenty dollars ($20.00) in the aggregate per stall or pen rental for any event; and (iii) a parking tax on each motor vehicle parking in a parking facility that serves or will serve the Venue Project, not to exceed five dollars ($5.00) for each motor vehicle, all for the purpose of financing the Venue Project, as verified in Resolution No. 4378-11-2014, adopted by the City Council on November 18, 2014 following the canvassing of the returns and declaring the results of the special election; and WHEREAS, in accordance with the wishes of the majority of voters of the City voting on the propositions presented in the special election on November 4, 2014, the City is working toward the planning, acquisition, development, establishment, construction, renovation and financing of the Venue Project; and WHEREAS, on December 9, 2014, the City Council adopted Resolution No. 4387-12- 2014, expressing the City Council's commitment to financial participation in the Venue Project in an amount equal to fifty percent of the costs of the Multipurpose Arena and certain immediately adjacent support facilities, not to exceed $225,000,000.00 (the "Public Contribution"); establishing a Venue Project Fund in accordance with Act, into which all tax proceeds imposed by the City under the Act and any other sums required by Section 334.042(b) of the Act will be deposited; and designating the area within the Will Rogers Memorial Center campus on which the Venue Project, including the specific adjacent support facilities comprising a part of the Venue Project, was anticipated to be located; and WHEREAS, on December 6, 2016, the City Council adopted Resolution No. 4706-12- 2016, expressing its intent to issue or incur obligations to provide the balance of the Public Contribution and directing City staff to take actions consistent with that intent; and WHEREAS, City staff has identified the specific improvements to the adjacent support facilities on the Will Rogers Memorial Center campus comprising a part of the Venue Project ("Support Facility Improvements") that are recommended for funding through issuance of revenue bonds or additional obligations supported by the Venue Project taxes; and WHEREAS, the City Council anticipates issuing revenue bonds before the end of 2017 to fund the balance of the Public Contribution as well as the Support Facility Improvements; Ordinance No.22742-06-2017 Page 2 of 9 WHEREAS, the City Council has found and determined that it is in the best interests of the City to impose the admissions tax authorized by the voters on each ticket sold for admission to an event held at the Venue Project with the revenue from the tax to be pledged as additional security for and payment of revenue bonds, the proceeds of which benefit the Venue Project. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Chapter 32 (Taxation) of the Code of the City of Fort Worth, Texas (2015) is hereby amended by adding Article V (Will Rogers Venue Admissions Tax) as follows: ARTICLE V WILL ROGERS VENUE ADMISSIONS TAX § 32-50 DEFINITIONS. In this Article: Act means Chapter 334, Texas Local Government Code, as it may be amended or recodified. Admission Ticket means any tangible or intangible ticket, pass, authorization, permit, voucher, coupon, license, or other instrument granting the privilege of admission to an Event. Business Day means a day that is not a Saturday, Sunday, legal holiday, or day on which commercial banks are not required or authorized to the close in the City or New York City. Catering Event means a gathering the primary purpose of which is the serving of a meal as determined in the discretion of the Venue Operator. City means the City of Fort Worth, Texas. Director means the Director of the City's Financial Management Services Department or such other Person designated by the City Manager to enforce and administer this Article, and any Person designated by the Director as his or her representative. Due Date means the first Business Day following the end of the monthly collection/reporting period. Event means any event or activity, other than a Catering Event, held at the Venue Project, including, but not limited to, a Livestock Event, as that term is defined in Section 32-60; a Ordinance No.22742-06-2017 Page 3 of 9 concert; theater performance; family show; athletic exhibition, meet, or game; or consumer or trade show. Event Sponsor means the tenant of the Venue Project or any group or association that organizes, presents, or sponsors an Event, including a political subdivision or nonprofit organization that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, as amended, by being listed as an exempt organization in Section 501(c)(3) of that code. Person means any individual, partnership, trust, company, corporation, association, or other entity. Venue Operator means a Person operating, managing, or controlling a portion of the Venue Project by or for the City and includes both a third party engaged under a lease or similar agreement as well as the Director and his staff. Venue Project means a multipurpose arena at the intersection of Harley Avenue and Gendy Street, other adjacent support facilities, and any related infrastructure, as approved by a majority of the voters of the City voting in the special election held November 4, 2014, which adjacent support facilities include the facilities now existing or hereafter constructed on the campus of the Will Rogers Memorial Center and a livestock support building and landscaped event plaza in the immediate vicinity of the arena. The area designated as the Venue Project is depicted in the shaded portion of Diagram VPI I. Diagram VPI r Venue Project Fund means the fund established by the City Council under Resolution No. 4387-12-2014 or any account within such fund. Ordinance No.22742-06-2017 Page 4 of 9 § 32-51 TAX IMPOSED. (a) There is hereby levied and imposed a tax at the rate of ten percent (10%) of the price paid for an Admission Ticket to or in connection with an Event at the Venue Project. (b) The tax imposed under this Article shall be calculated based on and be added to the full cost, excluding the amount of any other tax that may apply, of an Admission Ticket. The tax is a part of the price for the Admission Ticket, is a debt owed to the Person required to collect the tax by the Person receiving the Admission Ticket, and is recoverable at law in the same manner as the charge for the Admission Ticket. (c) The tax shall be collected for each Event held, in whole or in part, at the Venue Project, beginning on the date as of which the multipurpose arena in the Venue Project is issued a certificate of occupancy and continuing so long as bonds or other obligations, including revenue or refunding obligations, for the planning, acquisition, establishment, development, construction, or renovation of the Venue Project are outstanding and unpaid. §32-52 TAX COLLECTION. (a) (1) The City Manager shall have the authority to establish any rules and regulations necessary to implement and collect the tax, including, but not limited to, the establishment of procedures for the allocation of revenues and imposition and collection of the tax; the development of record-keeping, reports, and filing requirements related to the number of Admission Tickets sold for Events at the Venue Project during a given period of time; the development of tax collection procedures and protocols, and auditing requirements to ensure that the proper amount of tax has been collected and deposited with the City. (2) A Venue Operator or other Person required to maintain records under the rules shall be required to allow inspection of such records by the City and its internal or external auditors on request. (3) It is anticipated that items and services that are taxable and nontaxable under this Article may be bundled together and sold as a unit for a single, undifferentiated payment. The rules for allocation of revenues and imposition of the tax shall include, at a minimum, methods for unbundling such items and services and imputing a reasonable portion of such a payment to each individual item and service with tax to be imposed on the imputed portion of the payment. (4) Rules for record-keeping and reporting shall require, at a minimum, the following information be made available: Ordinance No.22742-06-2017 Page 5 of 9 a. The total revenue generated from sale of Admission Tickets in connection with Events during the reporting period, which shall be a period of no less than one month; b. The aggregate amount of all tax proceeds collected from Events during the reporting period, which shall be a period of no less than one month; and C, Any other information that the Director reasonably requires. (b) A Venue Operator shall be responsible for (i) ensuring the tax imposed under this Article is collected for and remitted to the city on or before the Due Date in accordance with this Article and any rules and regulations established by the City Manager pursuant to Section 32-52(a) and (ii) filing reports and otherwise making available information concerning collection and remittance of tax in accordance with rules adopted under Section 32-52(a). A Venue Operator may delegate the duty of collecting taxes and reporting data for a specific Event to an Event Sponsor. Neither the Person collecting the tax nor the Event Sponsor will be entitled to retain any percentage of the tax as reimbursement for any costs associated with collection of the tax. (c) (1) A Venue Operator is responsible for remitting tax revenues and filing required reports for a monthly collection/reporting period as of the Due Date. (2) A delinquency occurs if, by the twenty-fifth day of the month after the end of the monthly collection/reporting period: a. The tax is not remitted or postmarked; or b. The report is not filed or postmarked. (3) If the twenty-fifth day of the month does not fall on a Business Day, then the next Business Day shall be the date by which the tax must be remitted or postmarked and the report must be filed or postmarked. § 32-53 USE OF TAX PROCEEDS. The proceeds of the tax shall be deposited into the Venue Project Fund and may be used only for purposes authorized by the Act. § 32-54 ENFORCEMENT AND PENALTIES. (a) A Person commits an offense if that Person: Ordinance No.22742-06-2017 Page 6 of 9 (1) has an obligation to collect the tax under this Article or under rules adopted by the City Manager in accordance with Section 32-52(a); and (2) fails to collect the tax imposed under this Article on any Admission Ticket sold in connection with an Event. (b) A Person commits an offense if that Person is obligated to remit collected tax proceeds under this Article or under rules adopted by the City Manager in accordance with Section 32-52(a) and fails to remit any tax proceeds as and when required. (c) A Person commits an offense if that Person is obligated to maintain records under this Article or under rules adopted by the City Manager in accordance with Section 32- 52(a) and fails to produce such records as and when required. (d) A Person commits an offense if that Person is obligated to submit reports under this Article or under rules adopted by the City Manager in accordance with Section 32- 52(a) and fails to submit a report as and when required. (e) A Person commits an offense if that Person is obligated to submit reports under this Article or under rules adopted by the City Manager in accordance with Section 32- 52(a) and submits a report containing false information. (f) An offense under this Section shall constitute a misdemeanor criminal offense punishable by a fine not to exceed Five Hundred Dollars ($500.00). (g) The Director shall have authority to enforce the provisions of this Article. (h) In addition to any criminal penalties imposed under this Section, if a Person is obligated to remit tax proceeds under this Article or under rules adopted by the City Manager in accordance with Section 32-52(a) and is delinquent in doing so, that Person shall pay a late fee equal to the greater of(i) five percent (5%) of the outstanding amount then due or (ii) $25.00. The person or owner will also be personally liable for the full amount of any taxes not remitted to the City. (i) A Person obligated to remit tax proceeds under this Article or under rules adopted by the City Manager in accordance with Section 32-52(a) who is delinquent in remitting tax proceeds shall also be liable for paying interest in the amount of 10%per annum, with imposition of interest commencing on the day after the Due Date. 0) In addition to any criminal penalties and late fees imposed under this Section, an attorney acting on behalf of the City may bring suit against any Person who fails to collect any tax or to remit to the City any tax as required by this Article in order to collect any amounts due. Ordinance No.22742-06-2017 Page 7 of 9 SECTION 2. This Ordinance shall be cumulative of all ordinances of the City, except where the provisions of this Ordinance are in direct conflict with the provisions of such other ordinances, in which case the conflicting provisions of such other ordinances are hereby repealed. SECTION 3. The sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable. If any portion of this Ordinance is declared illegal or unconstitutional by the valid final judgment or decree of any court of competent jurisdiction, such illegality or unconstitutionality shall not affect the legality and enforceability of any of the remaining portions of this Ordinance. SECTION 4. After the adoption of this Ordinance and in accordance with Section 2 of Chapter XXV of the City Charter of the City of Fort Worth, Texas,the City Secretary of the City of Fort Worth is hereby directed to have this Ordinance published in its entirety two (2) times in the official newspaper of the City. In lieu thereof, the City Secretary of the City of Fort Worth may have descriptive captions or titles that summarize the purpose of this Ordinance and the penalty for violations thereof published two (2) times in the official newspaper of the City. SECTION 5. This Ordinance shall be in full force and effect following its adoption and publication as specified herein. Ordinance No.22742-06-2017 Page 8 of 9 ATTEST: Mary J. Kayser, (;t S) etXriy APPROVED AS TO FORM AND LEGALITY: Peter Vaky, Deputy CgAttomey ADOPTED: June 6, 2017 EFFECTIVE: c;Z,,5— X/ Ordinance No.22742-06-2017 Page 9 of 9