HomeMy WebLinkAboutItem 02 Utility Tax Code Update AGENDA ITEM SUMMARY Meeting Date: 6/1/2015
Meeting Type: Regular Meeting
Staff Contact/Dept.: Rhonda Rice/DPW Staff Phone No: (541)726-3655
Estimated Time: Consent Calendar
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and
Innovative Government Services
ITEM TITLE: UTILITY TAX CODE UPDATE
ACTION
REQUESTED: Conduct a second reading and adopt or not adopt AN ORDINANCE AMENDING
THE SPRINGFIELD MUNICIPAL CODE, SECTIONS, 4.707 “TAX
FOR PROVIDING UTILITY SERVICE,” 4.716 "AUDITS"AND ADOPTING A SEVERABILITY CLAUSE (SECOND READING).
ISSUE
STATEMENT:
During the 2014 update of the Utility Tax ordinance, the 4.716 Audit section
inadvertently omitted the inclusion of the new 4.707 section reference. Also, staff reviewed the 4.707 section and proposes adding language to give revenue remittance detail for the tax amount and calculation of payment. Staff have
prepared a new ordinance to rectify the omission and to give clarity.
ATTACHMENTS: 1. Proposed Ordinance
2. Gross Revenue Remittance Form-Utility Tax
DISCUSSION/ FINANCIAL IMPACT:
A first reading on this ordinance was held May 18, 2015. There is no financial impact as a result of this ordinance, which will correct an
omission when adopting ordinance 6323 on July 21, 2014. The ordinance will add language that will include text that will give the City the ability to audit Utilities
providing service under chapter 4.707 and will allow greater detail in the gross
revenue remittance to the City from these Utility License holders. The corrections include the following: 1. In the language of the title of Municipal Code 4.716, add “and Fee
Review”. 2. In the language of Municipal Code 4.716, ‘and section 4.707’ language
was omitted following the words ‘section 4.706’.
3. Staff have also adjusted section 4.707 paragraph 5 to give detail to the revenue remittance on the amount and calculation of the tax submitted.
Staff have rewritten these references to include the appropriate section and language.
Staff have prepared the attached an ordinance with the corrections and recommend that the Council adopt the ordinance.
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City of Springfield, Oregon Business Tax Reporting Revenue Return updated February, 2015
Quarterly Return
Telecommunications/Utility Company:
Address:
FEIN: Report of Business Tax due for the Quarter Ended:
Date From:
Date To:
Business Tax
SMC 4.707(1)All persons providing utility services in the city shall pay to the city of Springfield a utility tax in the
amount of five percent of gross revenues, as herein defined, subject to limitations in other state or federal laws.
(5)Unless otherwise agreed such tax shall be paid quarterly, on or before the 45th day following the end of the
calendar quarter. [Section 4.707 added by Ordinance No. 6323, enacted July 21, 2014.]
Reportable Revenue
Municipality of Springfield, Oregon
Reporting Period
(Organization) (Tax Identification Number)
Return Date:
Gross Sales
Less: Tax Exempt Sales
Less: Internet access
Less: Wholesale
Less: Other (please list)
Net Sales Subject to Tax ‐
Tax Rate 5%
Gross Tax ‐
Less: Tax Credits
Net Tax Amount to be Remitted ‐
I hereby declare that I have reviewed the information reported above, that this information agrees with the accounting
records of the company, and that they are true and accurate to the best of my knowledge and belief.
Signature Date:
Name:
Title:
Phone:
Attachment 2, Page 1 of 1