HomeMy WebLinkAboutOrdinance 20-1998� c ��� �
ORDINANCE NO. 20-98
AN ORDINANCE AMENDING SECTION 2-59 OF THE REVISED ORDINANCES
OF THE CITY OF BROOKINGS, SOUTH DAKOTA, AND PERTAINING TO AN
INCREASE OF ONE (1%) PERCENT OF THE MUNICIPAL SALES AND SERVICE AND
USE TAX IN THE CITY OF BROOKINGS, SOUTH DAKOTA.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BROOKINGS,
SOUTH DAKOTA, AS FOLLOWS, TO-WIT:
I.
Sec. 2-59. Sales and service tax; use tax.
Section 1. Purpose. The purpose of this section is to provide needed revenue for the city
and for the purposes set forth in Section 6 hereof, by imposing a municipal retail sales and use
tax pursuant to the powers granted to the municipality by the state by SDCL 10-52 entitled
Uniform Municipal Non-Ad Valorem Tax Law, and acts amendatory thereto.
Section 2. Effective date. From and after the first day of January 1997, there is hereby
imposed as a municipal retail occupational sales and service tax upon the privilege of engaging
in business a tax of two (2%) percent on the gross receipts of all persons engaged in business
within the jurisdiction of the city who are subject to the South Dakota Retail Occupational Sales
and Service Tax, SDCL 10-45, and acts amendatory thereto.
Section 3. Use Tax. From and after the first day of January, 1997, there is hereby
imposed an excise tax on the privilege of the use, storage and consumption within the
jurisdiction of the city of tangible personal property purchased, at the same rate as the municipal
sales and service taY as provided in Section 2 upon all transactions or use, storage and
consumption which are subject to the South Dakota Use Tax Act, SDCL 1-46, and acts
amendatory thereto.
Section 4. Special tax rates.
(a) Sales tax on room rentals to transient guests and on sales of alcoholic beverages.
From and after the first day of January, 1997, there is hereby imposed, in addition to the two
(2%) percent tax imposed in Section 2 hereof, an additional tax of one (1%) percent upon the
sales or leases or rentals of hotel, motel, campsites or other lodging establishments within the
jurisdiction of the city for periods of less than twenty-eight (28) days and upon the sales of
alcoholic beverages as defined in SDCL 35-1-1. A lodging establishment shall mean any
building, structure, property or premises kept, used, maintained, advertised or held out to the
public to be a place where sleeping accommodations are furnished in two (2) or more rental units
to transient guests. A transient guest shall be any person who resides in a lodging establishment
less than twenty-eight(28) consecutive days.
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(b) Special tax rate on food. Notwithstanding the rate of tax established in Section 2
hereof, the rate of tax upon sales of food as defined by the Food Stamp Act of 1977, as amended,
is one (1%)percent.
Section 5. Collection. Such tax is levied pursuant to authorization granted by SDCL 10-
52 and acts amendatory thereto, and shall be collected by the South Dakota Department of
Revenue in accardance with the same rules and regulations applicable to the state sales tax and
under such additional rules and regulations as the Secretary of Revenue of the State of South
Dakota shall lawfully prescribe.
Section 6. Use of Revenue.
A. Any revenues received pursuant to Sections Two (2) and Three (3) of this Ordinance
in excess of the amount received if the rate of tax in Section Two (2) is one (1%) percent may be
used only in the following manner:
(1) Seventy-five (75%) percent of said revenues may be used only for capital
improvements which involve the construction and financing of public improvements designated
by Ordinance or Resolution of the City Commission following public hearing. The term
"construction and financing" as used herein shall include land acquisition, architectural and
engineering fees, construction costs and debt retirement. The term "public improvements" as
used herein shall include improvements owned by the city, joint county-municipal
improvements,joint school district-municipal improvements as authorized by SDCL Chapter 6-
3, and improvements constructed pursuant to a joint powers agreement with the State of South
Dakota and South Dakota State University as authorized by SDCL Chapter 1-24. Any
improvement project authorized by the City Commission under Section 6(a) shall be subject to
referendum.
(2) Twenty-five (25%) percent of said revenues may be used only for capital
improvements, including lease-purchase agreements of realty, land acquisition, the funding of
public ambulance and medical emergency response vehicles, public hospitals, or nonprofit
hospitals with fifty or fewer licensed beds, and other public health care facilities or nonprofit
health care facilities with fifty or fewer licensed beds, the transfer to the special 911 fund
authorized by §34-45-12, the purchasing of fire fighting vehicles and equipment, and debt
retirement.
B. Any revenues received under Section Four (4) in excess of the amount which would
have been received if the rate established in Section Four (4) were the same as the rate
established in Section Two (2) may be used only for the purpose of the promotion and
advertising of the city, its facilities, attractions and activities.
Section 7. Interpretation. It is declared to be the intention of this section and the t�es
levied hereunder that the same shall be interpreted and construed in the same manner as all
sections of SDCL Chapter 10-45, pertaining to the South Dakota Retail Sales and Service Tax,
and acts amendatory thereto, SDCL Chapter 10-52, the Municipal Non-Ad Valorem Tax Law,
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and acts amendatory thereto, the South Dakota Use Tax, SDCL Chapter 10-46 and acts
amendatory thereto, and that this shall be considered a similar t�except for the rate of that tax.
Section 8. Exemptions. Farm machinery and equipment, and irrigation equipment, and
parts or repairs thereof, used exclusively for agricultural purposes, and agricultural animal health
products and medicines, veterinarian services, intrastate trucking, solid waste collection and
disposal and air transportation services are hereby exempted from the provisions of this section,
the municipal sales tax ordinance, and from the computation of the amount of tax imposed by it.
Section 9. Penalty. Failing or refusing to make reports or payments prescribed by this
section and the rules and regulations relating to the ascertainment and collection of the tax herein
levied constitute a violation of this ordinance. In addition, all such collection remedies
authorized by SDCL 10-45, and acts amendatory thereto, and SDCL 10-46, and acts amendatory
thereto, are hereby authorized for the collection of any unpaid taxes.
Section 10. Separabiliry. If any provision of this section is declared unconstitutional or
the application thereof to any person or circumstances held invalid, the constitutionality of the
remainder of the section and applicability thereof to other persons or circumstances shall not be
affected thereby.
II.
All Ordinances in conflict herewith are hereby repealed.
FIRST READING: August 25, 1998
SECOND READING: September 8, 1998
PUBLISHED: September 14, 1998
CITY OF BROOKINGS
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Mayor
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Finance Officer