AN ORDINANCE TO COMPLY WITH STATE LEGISLATION REGARDING SIMPLIFICATION OF MUNICIPAL TELECOMMUNICATIONS TAXES
WHEREAS, the City ofRich Hillcollects business license gross receipts taxes for telecommunications services; and
WHEREAS, pursuant to Sections 92.074 to 92.098 RSMo., adopted in 2005 by the 93rd Missouri General Assembly, cities must comply with the Municipal Telecommunications Business License Tax Simplification Act; and
WHEREAS, the City of Rich Hill desires to comply with any mandatory provisions of the Act, but in the event that said Act is not in effect for any reason, the City desires that its Ordinance remain unchanged except as compelled by the Act; and
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RICH HILL, MISSOURI, AS FOLLOWS:
Section 1. Definitions
1. the term “gross receipts” shall be construed to mean all receipts from the retail sale of telecommunications service taxable under Section 144.020 RSMo, and from any retail customer now or hereafter exempt from state sales tax; and
2. the terms “telephone service”, “telecommunications service”, “telecommunications”, “local exchange service”, “local exchange telephone transmission service”, “exchange telephone service”, and similar terms shall be construed to mean telecommunications service as defined in Section 92.077 RSMo, which as of the date of adoption hereof provides that “telecommunications service” has the same meaning as such term is defined in Section 144.010 RSMo, which in turn as of the date of adoption hereof provides that “telecommunications service” means the transmission of information by wire, radio, optical cable, coaxial cable, electronic impulses, or other similar means, further provides that as used in this definition, “information” means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols, and further provides that “telecommunications service” does not include the following if such services are separately stated on the customer’s bill or on records of the seller maintained in the ordinary course of business:
(a) Access to the Internet, access to interactive computer services or electronic publishing services, except the amount paid for the telecommunications service used to provide such access;
(b) Answering services and one-way paging services;
(c) Private mobile radio services which are not two-way commercial mobile radio services such as wireless telephone, personal communications services or enhanced specialized mobile radio services as defined pursuant to federal law; or
(d) Cable or satellite television or music services.
3. The phrase “to the extent required by law” shall mean that the action is required or permitted by State law in order for the City to continue to receive municipal telecommunications tax revenues under this Article.
Section 2. Tax levied
Every person now or hereafter engaged in the business of selling telephone or telegraph service, for compensation for any purpose in the City shall pay to the City, as a license or occupation tax, six percent (3%) of the gross receipts from such business in the City.
To the extent required by law, the City Clerk of the City is hereby authorized and directed to promulgate and publish the revenue neutral rates to be applied in the City ofRich Hillfor bills to be rendered on or afterJuly 1, 2006, based on the rate
information supplied by the Director of Revenue of the State ofMissouri.
Effective July 1, 2006, to the extent required by law, notwithstanding the provisions of any municipal business license tax (as defined in Section 92.077 RSMo) ordinance, this tax shall be based solely and exclusively on those gross receipts of telecommunications companies (being any company doing business in the State of Missouri that provides telecommunications service) for the retail sale of telecommunications services which are subject to taxation under sections 144.010 and 144.020 RSMo.
To the extent required or permitted by law, for bills rendered on and afterJuly 1, 2006, the tax rate shall be two percent (2%) or the revenue neutral rates as promulgated and published herein, whichever is higher. To the extent required by law, for bills rendered on and afterJuly 1, 2007the tax rate shall be adjusted as promulgated and published by the Director of the Department of Revenue for the State ofMissouripursuant to Section 92.086 RSMo. The City shall notify the Director of the Department of Revenue in writing within 30 days of any change in the tax rate to the extent required by Section 92.086 RSMo.
Section 3. Statement of gross receipts required; payment of tax; credit for service rendered City.
All persons engaged in the businesses described Section 1 are hereby required to file with the Finance Director a sworn statement showing the gross receipts of such business within the City. For the business transacted and the gross receipts each month, a statement shall be due and filed by the last day of the following month. At the same time the statement is required to be filed, payment of the tax due on the gross receipts reported in the statement shall be made to the City ofRich Hillat the rate set forth in Section 2. The payment shall be a license to operate for the month immediately succeeding the month in which the payment is made.
EffectiveJuly 1, 2006, to the extent required by law the Director of the Department of Revenue for the State ofMissourishall collect, administer, and distribute telecommunications business license tax revenues in accordance with the provisions of Sections 92.074 to 92.098 RSMo. and returns filed by telecommunications companies with the Director and tax payments made by such companies to the Director pursuant to such statutes shall take the place of the statements and payments described above.
Section 4. Tax to be in lieu of other occupation taxes
The tax required to be paid under Section 2 shall be in lieu of any other occupation tax required of any person engaged in any of the businesses described in Section 1. Except as otherwise required by Sections 92.074 to 92.098 RSMo, nothing contained in this article shall be construed to exempt any person to which this article is applicable from payment to the City of any taxes, other than occupation license taxes, levied by the City upon such person or the real or personal property of such person.
Section 5. Investigation of gross receipts statement
The Finance Director and such other persons may be designated by the Board of Alderman, from time to time, is and are hereby authorized to investigate the correctness and accuracy of any statement filed under the provisions of Section 2, and for that purpose shall have access at all reasonable times to the books, documents, papers and records of any person filing such statement. EffectiveJuly 1, 2006, any audit of a telecommunications company for purposes of sections 92.074 to 92.098 shall be conducted pursuant to such statutes and any rules promulgated thereunder.
Section 6. Violations; penalties
(a) Any person engaged in any of the businesses described in this ordinance who shall violate any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be subject to a fine of up to $500.00 for each violation.
(b) Delinquent taxes under this article shall be subject to the penalties as provided for by other ordinances of the City, now or hereafter enacted, relating to penalties upon delinquent taxes.
(c) To the extent required by law, unless specifically stated otherwise in Sections 92.074 to 92.098 RSMo., taxpayer remedies, enforcement mechanisms, tax refunds, tax protests, assessments, and all other procedures regarding the tax imposed by this article shall be the same as those provided in Chapter 144 RSMo.
Section 7. Construction
To the extent required by law, in all respects this article shall be interpreted, construed and applied consistent with the requirements of Sections 92.074 to 92.098 RSMo.
Section 8. Severability
It is hereby declared to be the intention of the Board of Alderman that each and every part, section and subsection of this Ordinance shall be separate and severable from each and every other part, section and subsection hereof and that the Board of Alderman intends to adopt each said part, section and subsection separately and independently of any other part, section and subsection. In the event that any part of this Ordinance shall be determined to be or to have been unlawful or unconstitutional, the remaining parts, sections and subsections shall be and remain in full force and effect. In the event that the Municipal Telecommunications Business License Tax Simplification Act shall be repealed or shall be declared unconstitutional in total or in substantial part, it is the intent of the City to continue in effect the provisions of Sections 1 through 7 of the Ordinance as they existed prior to the effective date of the Act, unaffected by the provisions of the Act to the greatest extent possible without preventing the City from receiving tax revenues under this Article.
Section 9. Effective Date
This ordinance shall take effect and be in full force following its passage and being signed as provided by law.
Read two times and passed this 15th day of May 2006.
Tammy Williams, Mayor
Rose Entrikin, City Clerk
Ayes: Humble, Turner, Miller, Wills