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HomeMy WebLinkAboutOrdinance 13245ORDINANCE NO ,3 S AN ORDINANCE AMENDING CHAPTER 32, ARTICLE II, "HOTEL OCCUPANCY TAX", OF THE CITY CODE BY AMENDING SECTION 32-17 TO INCREASE THE HOTEL OCCUPANCY TAX RATE TO NINE PERCENT (9%) AND PROVIDING FOR THE PERMISSIBLE USES OF THE REVENUES DERIVED FROM THE INCREASE IN THE RATE, AMENDING SECTION 32-21 AND ADDING NEW SECTIONS 32-22 AND TO PROVIDE FOR CIVIL COLLECTION PROCEDURES AND COLLECTION PROCEDURES ON PURCHASE OF HOTELS AS PROVIDED BY STATE LAW, PROVIDING THAT THE RATE INCREASE DOES NOT APPLY TO CERTAIN PREEXISTING CONTRACTS, PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF OTHER ORDINANCES, PROVIDING A SEVERABILITY CLAUSE, PROVIDING A SAVINGS CLAUSE, AND PROVIDING AN EFFECTIVE - DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT SECTION 1 Section 32-17 of Article II, "Hotel Occupancy Tax" of Chapter 32, "Taxation" of the Code of the City of Fort Worth, Texas (1986), as amended, is hereby amended to read as follows Sec 32-17 Levy; rate, disposition of revenues, exceptions (a) There is hereby levied a tax upon the cost of occupancy of any sleeping room or space furnished by any hotel, where the cost of occupancy is at the rate of two dollars ($2 00) or more per day, such tax to be equal to e~ nine 9 percent of the consideration paid by the occupant of such room or space to such hotel, exclusive of other occupancy taxes imposed by any other governmental agencies (b) All revenues from the hotel occupancy tax shall be expended as provided by state law (c) No tax under this article shall be imposed upon a permanent resident. (d) The amount of revenue from the tax that is derived from the application of the tax at a rate of more than seven (7) percent of the cost of a room. and any interest income therefrom shall be used only for the construction of an expansion of an existing convention center facility or pledging payment of revenue or revenue refunding bonds issued in accordance with state law for the construction of the expansion. The city shall attempt to include minority-owned businesses in the issuance of at least thirty-two (32) percent of the total dollar value of the bonds issued. and in at least thirty-two (32) percent of the total fees paid by the issuer. in connection with the construction. SECTION 2 Section 32-21 of Article II, "Hotel Occupancy Tax", of Chapter 32, "Taxation", of the Code of the City of Fort Worth, Texas (1986), as amended, is hereby amended to read as follows Sec. 32-21 Criminal Penalties If any person shall fail to collect the tax imposed in this article, or shall fail to file a report as required in this article, or shall fail to pay to the tax assessor-collector the tax as imposed in this article when report or payment is due, or shall file a false report, then such person shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished as provided in section 1-6 of this Code. , to rc~mi~ Oho }nv imnneo~ h~i ~hic+ nr}inlo ~~ii~hin +ho 4imo ron~ ~iroi-! hall fnrfoi4 Q,-^p„j ~ }{gyp .~ry~n~ ~n~ rl~ io n non i n-„/~ n hn fire +hirl~~i ~~71~GF~C~e'TZTT~CffT'IG~ITTTC~GQCTGrJ-Q"r7GTIT~t~GTfQ GffCGT~TTGT~C'ITTTTp ~ f n~~"vea°v°c-r, t~}ae--~ er~a~~ -$~~}al~-~e~P. r h~a°'-ic°~$ +h ~ n n n o i-I r~ l l n r / d' '1 n n~ t-~~~~~tC`~..e~-~~a~l-d•ra~'-f~te~J~+ nom} }h~c_{-n~}~r~f c~i /G:~ nernon~ r~or r SECTION 3 Article II, "Hotel Occupancy Tax" of Chapter 32, "Taxation" of the Code of the City of Fort Worth, Texas (1986), as amended, is hereby amended to add a new 2 Section 32-22 to read as follows Section 32-22. Civil Collection Procedures. The city attorney or other attorney acting for the city may bring suit against a person who is required to collect the tax imposed by this article and pay the collections over to the city and who has failed to file a tax report or pay the tax when due to collect the tax not paid or to enjoin the person from operating a hotel in the city until the tax is paid or the report filed, as applicable, as provided in the court's order In addition to the amount of any tax owed under this article, the person is liable to the city for the city's reasonable attorney's fees and a penalty equal to 15 percent of the total tax owed The remedies provided by this section are in addition to other available remedies SECTION 4. Article II, "Hotel Occupancy Tax" of Chapter 32, "Taxation" of the Code of the City of Fort Worth, Texas (1986), as amended,. is hereby amended to add a new Section 32-23 to read as follows Section 32-23. Collection Procedures on Purchase of Hotel (a) If a person who is liable for the payment of a tax under this article is the owner of a hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount due until the seller provides a receipt by a person designated by the city to provide the receipt showing that the amount has been paid or a certificate showing that no tax is due (b) The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price (c) The purchaser of a hotel may request that the person designated by the city to provide a receipt under Subsection (a) issue a certificate stating that no tax is due or issue a statement of the amount required to be paid before a certificate may be issued The person designated by the municipality shall issue the certificate or statement not later than the 60th day after the date that the person receives the request. (d) If the person designated by the city to provide a receipt under Subsection (a) fails to issue the certificate or statement within the period provided by 3 Subsection (c), the purchaser is released from the obligation to withhold the purchase price or pay the amount due SECTION 5. The increased tax rate does not apply to the tax imposed on the use or possession of a room under a contract executed before the effective date of this ordinance, that provides for the payment of the tax at the rate in effect when the contract was executed, unless the contract is subject to change or modification by reason of the tax rate increase The tax rate app{icable to the use or possession of a room under the contract is the rate in effect when the contract was executed SECTION 6 This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed SECTION 7 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such 4 'unconstitutional phrase, clause, sentence, paragraph or section SECTION 8 This ordinance shall be in full force and effect from and after January 1, 1998 ADOPTED BY CITY COUNCIL APPROVED AS TO FORM AND LEGALITY G~%~~ Assistant City Attorney Date //- /~'- 97 5 City of Fort Worth, Texas M,'Ayar and C,vunc~l C,ommunicAtian DATE REFERENCE NUMBER LOG NAME PAGE 11/18/97 G-12065 12HOTEL 1 of 2 SUBJECT AMEND CHAPTER 32, ARTICLE II OF THE CITY CODE TO INCREASE THE HOTEL OCCUPANCY TAX RATE TO 9% FOR THE PURPOSE OF FUNDING MODERNIZATION AND EXPANSION OF EXISTING CONVENTION CENTER FACILITIES AND TO PROVIDE FOR CERTAIN CIVIL TAX COLLECTION PROCEDURES It is recommended that the City Council adopt the attached Ordinance amending Chapter 32 of the City Code to increase- the hotel occupancy tax rate from seven percent (7%) to nine percent (9%) and to provide for certain civil collection procedures as provided by state law In 1993, the Texas Legislature adopted amendments to the Tax Code which allow an "eligible central municipality", including Fort Worth, to increase its hotel occupancy tax rate to nine percent (9%) provided the revenue resulting from the increased rate, and interest income thereon, is used for the following purposes: (1) the construction of an expansion of an existing convention center facility; and (2) pledging payment of revenue bonds and revenue refunding bonds for the construction of the expansion [Tax Code, § 351.003, § 351 1065] In addition, the legislation provides that the City shall attempt to include minority-owned businesses in the issuance of at least 32 percent of the total dollar value of the bonds issued, and in at least 32 percent of the total fees paid by the issuer, in connection with the construction [§ 351 1065(c)] As more specifically explained in Exhibit A, attached, there is a need for modemization and expansion of the Fort Worth -Tarr~ant~County Convention Center, recently purchased by the City Adoption of the Ordinance (Exhibit B) would provide funding for modemization and expansion under such plans as are finally approved by the City Council In addition, the Ordinance would amend the Code to provide for new civil enforcement mechanisms for collection of the tax, including: • A 15% penalty and collection of attorney's fees from hotel owners or operators who are delinquent or fraudulent in remittances. • The ability to seek hotel closure until the taxes are paid or reports filed • The requirement that a hotel purchaser retain out of the purchase price an amount sufficient to cover any delinquent hotel occupancy taxes. City of Fort Worth, ?'exas ~1'1J' Ayar And Council CammunicAt~an DATE REFERENCE NUMBER LOG NAME PAGE 11/18!97 G-12065 12HOTEL 2 of 2 SUBJECT AMEND CHAPTER 32, ARTICLE II OF THE CITY CODE TO INCREASE THE HOTEL OCCUPANCY TAX RATE TO 9% FOR THE PURPOSE OF FUNDING MODERNIZATION AND EXPANSION OF EXISTING CONVENTION CENTER FACILITIES AND TO PROVIDE FOR CERTAIN CIVIL TAX COLLECTION PROCEDURES FISCAL {NFORMATION/CERTIFICATION The Revenue Office of the Fiscal Services Department will be responsible for the collection and deposit of funds. CB:m ~:f,, . , .. ~..:. Submitted for City Manager's I'IJND ACCOUNT CENTER AMOUNT CITY SECRETARY ORice by: (to) GG04 412022 0241000 ~~ ~=~'j ~~~ Charles Boswell 8511 s°"- s ' < °"~ =' ~ i § ~ ~ ~a "~ " ~ ~ ~ L ~ "~ ~ ~ Originating Department Head: s `" '" ` '§ ''°~ Wade Adkins 7623 (from) ~ -~ ~~ tv~~1 1=` z? ~'?~ d ~~ ~ , . ..'' Additional Information Contact: i,j,.a~ c:+:'ry.:: ~--'.Mwf YM Sk l YR Wade Adkins 7623 ,;