January 4, 2013
ORDINANCE NO 667, SECOND SERIES
ORDINANCE AMENDING CHAPTER 70 OF THE CODE OF ORDINANCES FOR THE CITY OF MARSHALL
ADOPTING A SALES AND USE TAX
Section 1. The Common Council of the City of Marshall does ordain as follows:
Article III. Marshall Sales and Use Tax.
Sec. 70-50. Authority.
The Minnesota Legislature has, by Laws of Minnesota 2011, 1st Special Session, Chapter 7, Article 4, Section 14 authorized the City to impose a one-half percent sales and use tax to assist in funding the new facilities of the Minnesota Emergency Response and Industry Training Center and the new facilities of the Southwest Minnesota Regional Amateur Sports Center. The City approved the Act in accordance with applicable law.
Sec. 70-51. Definitions.
The words, terms and phrases used in this Ordinance shall have the meaning ascribed to them in Minnesota Statues, Section 297A, except where the context clearly indicates otherwise. In addition, the following definitions shall apply:
Act means Laws of Minnesota 2011 Chapter 7, 1st Special Session, Article 4, Section 14.
Applicant means an individual if the license is issued to or in the name of an individual or the corporation, partnership or other entity if the license is issued to or in the name of a corporation, partnership or other entity.
City means the City of Marshall, Minnesota.
Commissioner means the Commissioner of Revenue for the State of Minnesota acting under the authority of an agreement entered into between the City and the State of Minnesota pursuant to the Act, or such other person or entity designated to administer and collect the Marshall Sales and Use Tax.
Marshall Sales and Use Tax means the sales and use tax imposed and collected pursuant to this Ordinance;
Ordinance means this ordinance in its present form and as subsequently codified in the Code of Ordinances of the City of Marshall.
Penalties and interest means penalties and interest due on taxes included in the definition of the Marshall Sales and Use Tax.
Retailer or any like term means any retailer having or maintaining within the City, directly or by a subsidiary or an affiliate, an office, place of distribution, sales or sample room or place, warehouse or other place of business, or having any representative, including an affiliate, agent, sales person, canvasser or solicitor operating in the City under the authority of the Retailer or its subsidiary, for any purpose, including the repairing, selling delivering, installation, or soliciting of order of the Retailer's goods or services, or the leasing of tangible personal property located in the City, whether the place of business or agent, representative, affiliate, sales person, canvasser, or solicitor, is located in the City permanently or temporarily, or whether or not the Retailer or subsidiary is authorized to do business within the City.
Sec. 70-52. Marshall sales and use tax.
Except as otherwise provided in this Ordinance, there is hereby imposed an additional excise tax in the amount of one-half of one percent on the gross receipts from the sales at retail, and the storage, use, distribution or consumption of goods or services which are taxable, pursuant to Minnesota Statutes, Chapter 297A and which occur within the City. The imposition, administration, collection and enforcement of this tax shall be governed by the provisions of Minnesota Statute Chapters 297A, 270C, and 289A.
Sec. 70-53. Separate statement; collection form purchaser; advertising no tax; minimum uniform tax collection methods.
The Marshall Sales and Use Tax shall be stated and charged separately from the sales price or charge for service insofar as practical, and should be a debt from the purchaser to the seller recoverable at law in the same manner as other debts. In computing the tax to be collected as a result of any transaction, any amount of tax less than one-half of one cent may be disregarded and amounts of tax one-half cent or more may be considered an additional cent. If the sales price of any sale at Retail is ninety-nine cents or less, no tax shall be collected.
Sec. 70-54. Exemption certificates.
A fully completed exemption certificate taken from a purchaser to the effect that the property purchased is for resale or that the sale is otherwise exempt from the application of the tax imposed by this Ordinance will conclusively relieve the Retailer from collecting and remitting the tax to the extent the seller is also relieved of liability for the sales tax under Minnesota Statutes, Section 297A.665. A person who has obtained from the Commissioner an exemption certificate pursuant to the Minnesota Statute Section 297A may use such exemption certificate for the purposes of the Marshall Sales and Use Tax imposed by the City.
Sec. 70-55. Presumption of purpose of sale.
For the purpose of the proper administration and enforcement of Section 70-52 of this Ordinance, it shall be presumed that all retail sales for delivery in the City are for storage, use, or other consumption in the City until the contrary is established.
Sec. 70-56. Collection of sales and use tax at time of sale.
(a) Any Retailer making deliveries within the City, any Retailer maintaining a place of business in the City, or any other Retailer otherwise doing business within the City, upon making sales or any items described in Section 70-52 which are not exempted from the sales tax imposed under that section and which are to be delivered or caused to be delivered within the City to the purchaser, shall at the time of making such sales and collect the Sales and Use tax from the purchaser. The tax collected by such Retailer shall be remitted to the Commissioner on behalf of the City.
(b) Any Retailer required to collect the Marshall Sales and Use Tax and remit such tax to the Commissioner pursuant to this section shall register with the Commissioner and provide such other information as the Commissioner may require.
Sec. 70-57. Agent of retailer.
When in the opinion of the Commissioner it is necessary for the efficient administration of the tax, the Commissioner may regard any salesman, representative, trucker, peddler or canvasser as the agent of the dealer, distributor, supervisor, employer or other person under whom such salesman, representative, trucker, peddler or canvasser operated or from whom the tangible property is being sold is obtained, and may regard the dealer, distributor, supervisor, employer or other person as a Retailer for the purposes of this Ordinance.
Sec. 70-58. Effective date; transitional sales.
Except as otherwise provided herein, the Marshall Sales and Use Tax authorized by this Ordinance shall apply to sales made on or after April 1, 2013 and shall be in addition to all other taxes now in effect. The Marshall Sales and Use Tax shall not apply to the following:
(1) The gross receipts from the purchase or lease of tangible personal property made under an enforceable contract entered into before April 1, 2013, provided that delivery or possession of items is taken on or before December 31, 2013.
(2) The gross receipts from the purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after April 1, 2013. However, the Marshall Sales and Use Tax shall apply to all purchases of taxable services, including utility services, if the billing period begins with services furnished on or after April 1, 2013.
(3) The gross receipts from the purchase of construction materials used to complete a lump sum or fixed price construction contract that was signed and enforceable before April 1, 2013 and that does not provide for an allocation of future taxes, provided that the construction materials are used exclusively in performing the contract and the materials are delivered on or before October 1, 2013.
Sec.70-59. Collection and enforcement.
The Marshall Sales and Use Tax imposed by the City pursuant to this Ordinance shall be subject to the same interests, penalties, and other rules as are applicable to the State general sales tax imposed by Minnesota Statutes Chapter 289A and 297A. The Marshall Sales and Use Tax imposed by the City pursuant to this Ordinance may be collected by the State on behalf of the City as provided by an appropriate agreement with the Minnesota Commissioner or Revenue. The tax imposed under Sec. 70-52 expires at the earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines that the amount of revenues received from the tax to pay for the capital and administrative costs of the facilities listed in Sec. 70-50 first equals or exceeds the amount authorized to be spent for the facilities plus the additional amount needed to pay the costs related to issuance of the bonds authorized under Laws of Minnesota 2011, 1st Special Session, Chapter 7, Article 4, Section 14, subdivision 4, including interest on the bonds. Any funds remaining after payment of all such costs and retirement or redemption of the bonds shall be placed in the general fund of the city. The tax imposed under Sec. 70-52 may expire at an earlier time if the city so determines by ordinance.
Sec. 70-60. Tax clearance; issuance of licenses.
(a)The City may not issue or renew a license for the conduct of trade or business in the City if the Commissioner notifies the City that the Applicant for such license owes delinquent Marshall Sales and Use Taxes as provided in this Ordinance, or penalties or interest due on such taxes.
(b) Delinquent taxes do not include a tax liability if:
(1)an administrative or court action has been filed or served which contests the amount of validity or the liability;
(2)the appeal period to contest tax liability has not expired; or
(3) the Applicant has entered into a payment agreement and is current with the payments.
(c) A copy of the notice of delinquent taxes given to the City shall also be sent to the Applicant taxpayer. In the case of renewal of a license, if the Applicant requests a hearing in writing, within thirty (30) days of the receipt of the notice of delinquent taxes, then a contested case hearing shall be held by the Commissioner under the same procedures as provided in Minnesota Statutes, Section 270C.72 for the State sales and use tax imposed under Minnesota Statutes, Chapter 297A, provided that if a hearing must be held on the State sales and use tax, hearings may be combined.
Section 2. This Ordinance shall take effect from and after the adoption and publication.
THE COMMON COUNCIL
Robert J. Byrnes
Mayor of the City of Marshall, MN
Thomas M. Meulebroeck
Finance Director/City Clerk
Introduced on: December 4, 2012
Final Passage on: December 18, 2012
Published on: January 4, 2013
For any questions on this Ordinance please contact Ben Martig, City Administrator for the City of Marshall at 507-537-6760.