CITY OF CLOQUET ORDINANCE NO. 418A
AN ORDINANCE AMENDING CHAPTER 3 OF THE CITY CODE AS IT RELATES TO SPECIAL TAXES
The City Council of the City of Cloquet hereby ordains:
Section 1. That Section 3.4, Special Taxes, be amended by adding the following:
3.4.02 Sales and Use Tax.
Subd. 1 Authority. At the general election held November 6, 2012, the voters of the City of Cloquet approved the imposition of a one-half of one percent sales and use tax to finance the costs of improvements to City parks, trails and recreation areas and street and utility infrastructure as authorized in City Resolution 12-56 approved April 3rd, 2012.
The Minnesota legislature has, by the laws of Minnesota for 2011, 1ST Special Session, chapter 7, article 4, section 10, subdivision 1, authorized the city to impose an additional sales and use tax within the City to provide revenues to finance the costs of improvements to City parks, trails and recreation areas and street and utility infrastructure. The amount of revenue from the tax imposed that may be used to finance the improvements and any associated costs is limited to $16,500,000.00. The city approved the act in accordance with applicable law.
Subd. 2 Definitions. The words, terms and phrases used in this chapter shall have the meaning ascribed to them in Minnesota Statutes § 297A except where the context clearly indicates otherwise. In addition, the following definitions shall apply:
A. "Act" shall mean the laws of Minnesota for 2011, chapter 7, article 4, section 10, or as may be amended.
B. "Chapter" shall mean this chapter in its present form and as subsequently codified in the city code.
C. "City" shall mean the City of Cloquet.
D. "Commissioner" shall mean the commissioner of revenue for the state acting under the authority of an agreement entered into between the city and the state pursuant to the act, or such other person or entity designated to administer and collect the city's sales and use tax.
E. "Director" shall mean the Finance Director of the City.
F. "Retailer Maintaining a Place of Business in the City or any like term" shall mean 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.
G. "Cloquet Sales and Use Tax" shall mean the sales and use tax imposed and collected pursuant to this chapter.
Subd. 3 Sales and Use Tax. Except as otherwise provided in this chapter, there is hereby imposed an additional sales and use tax in the amount of one-half of one percent of 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 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.
Subd. 4 Separate Statement; Collection from Purchaser, Advertising No Tax, Minimum Uniform Tax Collection Methods. The Cloquet 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.
Subd. 5 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 chapter will conclusively relieve the retailer from collecting and remitting the tax to the extent the seller is also relieved of liability for the sales and use tax under Minnesota Statutes §297A.665. A person who has obtained from the Commissioner an exemption certificate pursuant to the Minnesota Statute §297A may use such exemption certificate for the purposes of the sales tax imposed by the City.
Subd. 6 Presumption of Purpose of Sale. For the purpose of the proper administration and enforcement of §12.03 of this chapter, 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.
Subd. 7 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 of any items described in 3.4.02, Subd. 3 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 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 Cloquet 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.
Subd. 8 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 chapter.
Subd. 9 Effective Date, Transitional Sales. Except as otherwise provided herein, the Cloquet sales and use tax authorized by this chapter shall apply to sales made on or after April 1, 2013 and shall be in addition to all other taxes now in effect. The Cloquet sales and use tax shall not apply to the following:
A. 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 June 1, 2013.
B. The gross receipts from the purchase of taxable services, including utility services, if billing period includes charges for services furnished before and after April 1, 2013. However, the 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.
C. 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 before September 1, 2013.
Subd. 10 Collection and Enforcement. The Cloquet sales and use tax imposed by the City pursuant to this chapter 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 Cloquet sales and use tax imposed by the City pursuant to this chapter may be collected by the State on behalf of the City as provided by an appropriate agreement with the Minnesota Commissioner or Revenue. The Cloquet sales and use tax imposed by the City pursuant to the chapter shall expire either upon a determination by the Cloquet City Council that sufficient funds have been received from the taxes to finance improvements and to prepay or retire at maturity the principle, interest, and premium due on any bonds, including refunding bonds, issued by the City of Cloquet; or, a maximum collection of $16,500,000.00 of the sales and use tax collected pursuant to this Chapter. Any funds remaining after completion of improvements and retirement or redemption of the bonds may be placed in the General Fund of the City of Cloquet.
Subd. 11 Tax Clearance; Issuance of Licenses. 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 Cloquet sales and use taxes as provided in this chapter, or penalties or interest due on such taxes. For the purposes of this section, the following terms have the following meanings:
A. Cloquet sales and use taxes include sales and use tax as provided in this chapter including all penalties and interest due on said sales and use taxes.
B. Delinquent taxes do not include a tax liability if:
1. In administrative or court action which contests the amount or validity of the liability has been filed or served;
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. Applicant shall mean 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.
D. 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.
Subd. 12 Termination of Taxes. The taxes imposed expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount of revenues received from the taxes to finance the improvements first equal or exceeds $16,500,000, plus additional amounts needed to pay the costs related to issuance of bonds, including interest on the bonds. Any funds remaining after completion of the project and retirement or redemption of the bonds may be placed in the general fund of the city. The taxes imposed may expire at an earlier time if the city so determines by ordinance.
Section 3.4.03 Motor Vehicle Excise Tax.
Subd. 1 Authority. The Minnesota legislature has, by the laws of Minnesota for 2011, chapter 7, article 4, section 10, subd. 2, authorized the city to impose an excise tax of up to $20 per motor vehicle from any person engaged within the city in the business of selling motor vehicles at retail.
Subd. 2 Definitions. The words, terms and phrases used in this chapter shall have the meaning ascribed to them in Minnesota Statutes §297A except where the context clearly indicates otherwise. In addition, the following definitions shall apply:
A. "Act" shall mean the laws of Minnesota for 2011, chapter 7, article 4, section 10, subd 2. or as may be amended.
B. "Chapter" shall mean this chapter in its present form and as subsequently codified in the city code.
C. "City" shall mean the City of Cloquet.
D. "Director" shall mean the Finance Director of the City.
E. "Motor vehicle" shall mean any of the following as otherwise defined by Minnesota Statutes, Section 168.011: a. passenger automobile; b. bus or intercity bus; c. truck; d. truck-tractor; e. motorcycle; f. van; g. pickup truck; h. recreational vehicle.
F. "Dealer" shall mean a person as defined by Minnesota Statutes, Section 168.011, subd 21, and licensed by the commissioner of public safety pursuant to Minnesota Statutes, Chapter 168, and engaged in the city in the business of selling motor vehicles at retail.
G. "Sale, sells, selling, purchase or acquired" shall mean the acts described in Minnesota Statutes, Section 297B.01, subd. 7.
Subd. 3 Excise Tax Imposed: Certain Motor Vehicle Sales by Dealers. There is hereby imposed pursuant to the Act an excise tax of up to $20 per motor vehicle sold by a dealer in the city.
Subd. 4 Collection of Tax: Dealer's Responsibility. A dealer who sells a motor vehicle shall collect from the purchaser, at the time of the sale, the tax imposed herein shall be a person obligation of the dealer and the proceeds of such tax collected shall be thereafter paid over to the city under such circumstances as may be established from time to time by the director.
Subd. 5 Authority of Director; Investigatory Powers; Enforcement.
A. The director is authorized to establish rules and procedures to implement the collection of the excise tax imposed by Section 3.4.03.
B. For the purpose of determining the correctness of any return or of determining whether any person should have made a return or paid taxes or for the purpose of collection of any such taxes hereunder, the director shall have poser to examine, or cause to be examined, any books, papers, records, or memoranda, which may be relevant to making such determinations, whether such books, papers, records, or memoranda, are the property of or in the possession of such person or any other person. They shall have power to require the attendance of any person having knowledge or information which may be relevant, to compel the production of book, papers, records, or memoranda by persons so required to attend, to take testimony on matters material to such determination, and to administer oaths or affirmations.
C. Any unpaid obligation of a dealer to the city under Section 3.4.03 may be collected by a judicial proceeding brought in the name of the city in the district court of Carlton County.
Subd. 6 Penalties. It is a misdemeanor for a dealer to violate Section 3.4.03.
Subd. 7 Termination of Taxes. The taxes imposed expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount of revenues received from the taxes to finance the improvements first equal or exceeds $16,500,000, plus additional amounts needed to pay the costs related to issuance of bonds, including interest on the bonds. Any funds remaining after completion of the project and retirement or redemption of the bonds may be placed in the general fund of the city. The taxes imposed may expire at an earlier time if the city so determines by ordinance.
Section 2. Effective Date. This ordinance shall take effect and be in force from and after its passage and publication in accordance with law.
Passed this 2nd day of January 2013.
CITY OF CLOQUET
By: Bruce Ahlgren
Its City Administrator