1700 Bill No. 703 Removal of Non-Statutory Sales Tax Restrictions

BILL NO. 703                                                                                    ORDINANCE NO. 1700

AN ORDINANCE OF THE CITY OF RICH HILL, MISSOURI, REMOVING ALL NON-STATUTORILY IMPOSED RESTRICTIONS ON REVENUE GENERATED BY THE LOCAL GENERAL SALES TAX LEVIES, AND PROVIDING FOR SUBMISSION OF THE PROPOSAL TO THE QUALIFIED VOTERS OF THE CITY AT AN ELECTION TO BE HELD ON THE 7TH DAY OF APRIL, 2020.

WHEREAS, the City of Rich Hill, Missouri (the “City”), currently imposes two local sales tax levies, as defined in Section 32.805, RSMo, at a combined rate of two percent (2%); and

WHEREAS, pursuant to Ordinance No. 923 (1984), one of the local sales tax levies is imposed at a rate of one percent (1%); and

WHEREAS, pursuant to Ordinance No 1230 (2006), a second local sales tax levy is also imposed at a rate of one percent (1%); and

WHEREAS, Ordinance No. 923 (1984) provides that all of the revenue generated by the local sales tax levy it imposes shall only be spent on “major water improvements,” as well as, “purchasing asphalt, oil, and rock for street improvements and repairs;” and

WHEREAS, Ordinance No 1230 (2006) provides that all of the revenue generated by the local sales tax levy it imposes shall only be for “the continued operation and maintenance of the police department, the repair and replacement of fire department equipment and facility, and the maintenance of and improvements to the city park system;” and

WHEREAS, in an effort to improve the efficiency and versatility of the City’s sales tax revenue, the City now desires to remove all non-statutorily imposed restrictions on the revenues generated by the local sales tax levies imposed by Ordinance No. 923 (1984) and Ordinance No. 1230 (2006); and

WHEREAS, removing all non-statutorily imposed restrictions on the revenues generated by the local sales tax levies imposed by Ordinance No. 923 (1984) and Ordinance No 1230 (2006) requires approval by the qualified voters of the City at an election.

NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RICH HILL, MISSOURI, AS FOLLOWS:

Section 1.        There is no statutory basis for the restrictions that the City has imposed regarding how revenues generated by the local sales tax levies are spent.

Section 2.        Removing the restrictions on how revenues generated by the local sales tax levies are spent will not alter the rates at which the levies are imposed or collected, both of which are set at one percent (1%).

Section 3.        A proposal to remove all non-statutorily imposed restrictions on revenues generated by the local sales tax levies shall be submitted to the qualified voters of Rich Hill, Missouri, for their approval, at the election to be held on Tuesday, April 7th, 2020. The ballot of submission shall contain the following language:

Shall all non-statutorily imposed restrictions placed upon the revenue generated by the existing Rich Hill city sales taxes authorized by Ordinance Nos. 923 (1984) and 1230 (2004) be removed?  A “yes” vote for this ballot measure will not result in a tax rate increase and will keep the existing one percent (1%) sales tax rates in place.

YES             NO

If you are in favor of the question, place an “X” in the box opposite “YES”. 

If you are opposed to the question, place an “X” in the box opposite “NO”.

Section 4.        This Ordinance shall be in full force and effect from and after the date of its passage and approval.

PASSED BY THE BOARD OF ALDERMEN AND APPROVED BY THE MAYOR OF THE CITY OF RICH HILL, MISSOURI, THIS 8TH DAY OF JANUARY, 2020.

                                                                        ________________________________________

                                                                        Jason Rich, Mayor

ATTEST:

__________________________________

Casey Crews, City Clerk

Ayes:  Kassner, Humble, Tourtillott

Nays:  None

Absent:  Robb