HomeMy WebLinkAboutOrdinance 6042 03/10/2003
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ORDINANCE NO. 6042
AN ORDINANCE IMPOSING A BUSINESS LICENSE TAX
ON MOTOR VEHICLE FUEL DEALERS, PROVIDING FOR
ADMINISTRA TION, ENFORCEMENT AND COLLECTION
OF THE TAX; ADDING SECTIONS 7.500, ET SEQ., TO THE
SPRINGFIELD MUNICIPAL CODE.
THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD DOES ORDAIN AS
FOLLOWS:
Section 1. The following caption and sections are hereby added to the Springfield Municipal
Code, following Section 7.476:
Motor Vehicle Fuel Dealer's Business Licenses
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7.500 Definitions. As used in sections 7.500 through 7.548 of this chapter, unless the
context requires otherwise, the following words and phrases shall mean:
City. The City of Springfield.
Dealer. Any person who:
(a) Imports or causes to be imported motor vehicle fuel for sale,
use or distribution in the city, but "dealer" does not include any person who
imports into the city motor vehicle fuel in quantities of 500 gallons or less
purchased from a supplier who is licensed as a dealer hereunder if that dealer'
assumes liability for the payment of the applicable license tax to the city; or
(b) Produces, refines, manufactures or compounds motor vehicle
fuels in the city for export or for use, distribution or sale in the city; or
(c) Acquires in the city for sale, use or distribution in the city
motor vehicle fuels with respect to which there has been no license tax
previously incurred.
Distribution. In addition to its ordinary meaning, the delivery of motor
vehicle fuel by a dealer to any service station or into any tank, storage facility or
series of tanks or storage facilities connected by pipelines, from which motor vehicle
fuel is withdrawn directly for sale or for delivery into the fuel tanks of motor vehicles
whether or not the service station, tank or storage facility is owned, operated or
controlled by the dealer.
Highway. Every street, road, way, thoroughfare and place of whatever nature, .
open for use of the public for the purpose of vehicular travel.
Motor Vehicle. All vehicles, engines or machines, movable or immovable,
operated or propelled by the use of motor vehicle fuel.
Motor Vehicle Fuel. Includes gasoline, diesel, mogas, methanol and any
other flammable or combustible gaseous, liquid, or solid substance, by whatever
name such substance is known or sold, usable as fuel for the operation of motor
vehicles, except a substance , the chief use of which, as determined by the tax
administrator, is for purposes other than the propulsion of motor vehicles upon the
highways.
Person. Includes every natural person, association, firm, partnership,
corporation, joint venture or other business entity.
Service Station. Any place operated for the purpose of retailing and
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delivering motor vehicle fuel into the fuel tanks of motor vehicles. .
Tax Administrator. The city manager, the city manager's designee, or any
person or entity with whom the city manager contracts to perform those duties.
7.502 Tax Imposed. A business license tax is hereby imposed on every dealer. The tax
imposed shall be paid monthly to the tax administrator. The tax administrator is authorized to
exercise all supervisory and administrative powers with regard to the enforcement, collection and
administration of the business license tax, including all powers specified in ORS 319.010 to 319.430.
7.504 Amount and Payment.
In addition to any fees or taxes otherwise provided for by law, every dealer engaging
in the city in the sale, use or distribution of motor vehicle fuel, shall:
(a) Not later than the 25th day of each calendar month, render a statement
to the tax administrator on forms prescribed, prepared and furnished by the tax
administrator of all motor vehicle fuel sold, used or distributed by himlher in the city
as well as all such fuel sold, used or distributed in the city by a purchaser thereof
upon which sale, use or distribution the dealer has assumed liability for the applicable
license tax during the preceding calendar month.
(b) Pay a license tax computed on the basis of $.03 (three cents) per
gallon of such motor vehicle fuel so sold, used or distributed as shown by such
statement in the manner and within the time provided in this code.
7.506 License Requirements. No dealer shall sell, use or distribute any motor vehicle fuel
until he/she has secured a dealer's license as required herein.
7.508 License Applications and Issuance.
(1) Every person, before becoming a dealer in motor vehicle fuel in this city, shall .
make application to the tax administrator for a license authorizing such person to engage in business
as a dealer.
(2) Applications for the license shall be made on forms prescribed, prepared and
furnished by the tax administrator.
(3) Applications shall be accompanied by a duly acknowledged certificate
containing:
(a) The business name under which the applicant transacts business.
(b) The address of applicant's principal place of business and location of
distributing stations in and within ten miles of the city.
(c) The name and address of the managing agent, the names and
addresses of the several persons constituting the firm or partnership or, if a
corporation, the name under which the corporation is authorized to transact business
and the names and addresses of its principal officers and registered agent, as well as
primary transport carrier. .
(4) If an application for a motbr vehicle fuel dealer's license is complete and
accepted for filing, the tax administrator shall issue to the dealer a license in such form as the tax
administrator may prescribe to transact business in the city, provided, however, that the tax
administrator may refuse to issue such license if it finds that the applicant meets any of the
conditions for refusal to issue a license under state law. A license issued hereunder is not assignable,
and is valid only for the dealer in whose name it is issued.
(5) The tax administrator shall retain all completed applications with an
alphabetical index thereof, together with a record of all licensed dealers.
7.510 Failure to Secure License. If a dealer sells, distributes or uses any motor vehicle fuel
without first filing the certificate and obtaining the license required by section 7.506 .
(a) the license tax on all motor vehicle fuel sold, distributed or used by that dealer
shall be immediately due and payable;
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(b) the tax administrator shall proceed forthwith to determine, from as many
available sources as the tax administrator determines reasonable, the amount of tax
due, shall assess the dealer for the tax in the amount found due, together with a
penalty of 100 percent of the tax, and shall make its certificate of such assessment
and penalty. In any suit or proceeding to collect the tax or penalty or both, the
certificate shall be prima facie evidence that the dealer therein named is indebted to
the city in the amount of the tax and penalty stated;
(c) any tax or penalty assessed pursuant to this section may be collected in the
manner prescribed in section 7.518 with reference to delinquency in payment of the
fee or by an action at law.
(d) In the event any suit or action is instituted to enforce this section, if the City is the
prevailing party, the City shall be entitled to recover from the person sued reasonable
attorney's fees at trial or upon appeal of such suit or action, in addition to all other
sums provided by law.
7.512 Suspension and Revocation of License. The tax administrator may, to the extent
permitted by law suspend, and upon 10 days written notice revoke the license of any dealer who fails
to comply with any provision of sections 7.500 to 7.548. The tax administrator shall mail, by
certified mail addressed to the dealer at his/her last known address appearing in the files of the tax
administrator, a notice of intent to cancel. The notice of revocation shall include the reason for
cancellation.
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7.514 Cancellation of License.
(1) The tax administrator may, upon written request of a dealer, cancel a license
issued to that dealer. The tax administrator shall, upon approving the dealer's request for
cancellation, set a date not'later than 30 days after receipt of the written request, after which the
license shall no longer be effective.
(2) The tax administrator may, after 30 days' notice has been mailed to the last
known address of the dealer, cancel the license of dealer upon finding that the dealer is no longer
engaged in the business of a dealer.
7.516 Remedies Cumulative. Except as otherwise provided in sections 7.518 and 7.520, the
remedies provided in sections 7.510 through 7.514 are cumulative. No action taken pursuant to
those sections shall relieve any person from the penalty provisions of this code.
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7.518 Payment of Tax and Delinquency.
(1) The license tax imposed by sections 7.500 to 7.548 of this chapter shall be
paid to the tax administrator on or before the 25th day of each month.
(2) Except as provided in subsections (3) and (4) of this section, if payment of
the license tax is not paid as required by subsection (1) of this section, a penalty of 1 percent of such
license tax shall be assessed and be immediately due and payable.
(3) Except as provided in subsection (4) of this section, if the payment of the tax
and penalty, if any, is not made on or before the 1st day of the next month following that month in
which payment is due, a further penalty of 10 percent of the tax shall be assessed. Said penalty shall
be in addition to the penalty provided for in subsection (2) of this section and shall be immediately
due and payable.
(4) Penalties imposed by this section shall not apply if a penalty has been assessed
and paid pursuant to section 7.510. The tax administrator may for good cause shown waive any
penalties assessed under this section.
(5) If any person fails to pay the license tax or any penalty provided for by this
section, the tax and/or penalty shall be collected from that person for the use of the city. The tax
administrator shall commence and prosecute to final determination in any court of competent
jurisdiction an action at law to collect the same.
(6) In the event any suit or action is instituted to collect the business license tax
or any penalty provided. for by this section, if the City is the prevailing party, the City shall be
entitled to recover from the person sued reasonable attorney's fees at trial or upon appeal of such suit .
or action, in addition to all other sums provided by law.
7.520 Monthly Statement of Dealer. Every dealer in motor vehicle fuel shall provide to the
tax administrator on or before the 25th day of each month, on forms prescribed, prepared and
furnished by the tax administrator, a statement of the number of gallons of motor vehicle fuel sold,
distributed or used by the dealer during the preceding calendar month. The statement shall be signed
by the dealer or the dealer's agent.
7.522 Failure to File Monthly Statement. If a dealer fails to file any statement required by
section 7.520 , the tax administrator shall proceed forthwith to determine from as many available
sources as the tax administrator determines reasonable the amount of motor vehicle fuel sold
distributed or used by such dealer for the period unreported, and such determination shall in any
proceeding be prima facie evidence of the amount of fuel sold, distributed or used. The tax
administrator shall immediately assess the dealer for the license tax upon the amount determined,
adding thereto a penalty of 10 percent of the tax. The penalty shall be cumulative to other penalties
provided in this code.
7.524 Billing Purchasers. Dealers in motor vehicle fuel shall render bills to all purchasers
of motor vehicle fuel. The bills shall separately state and describe the different products sold or
shipped thereunder and shall be serially numbered except where other sales invoice controls
acceptable to the tax administrator are maintained.
7.526 Failure to Provide Invoice or Delivery Tag. No person shall receive and accept motor
vehicle fuel from any dealer, or pay for the same, or sell or offer the motor vehicle fuel for sale,
unless the motor vehicle fuel is accompanied by an invoice or delivery tag showing the date upon .
which motor vehicle fuel was delivered, purchased or sold and the name of the dealer in motor
vehicle fuel.
7.528 Transporting Motor Vehicle Fuel in Bulk. Every person operating any conveyance
for the purpose of hauling, transporting or deli vering motor vehicle fuel in bulk shall, before entering
upon the public highways of the city with such conveyance, have and possess during the entire time
of the hauling or transporting of such motor vehicle fuel, an invoice, bill of sale or other written
statement showing the number of gallons, the true name and address of the seller or consignor, and
the true name and address of the buyer or consignee, if any, of the same. The person hauling such
motor vehicle fuel shall, at the request of any officer authorized by law to inquire into or investigate
such matters, produce and offer for inspection the invoice, bill of sale or other statement.
7.530
Exemption of Export Fuel.
(1) The license tax imposed by section 7.502 shall not be imposed on motor
(a) Exported from the city by a dealer; or
(b) Sold by a dealer in individual quantities of 500 gallons or less for
export by the purchaser to an area or areas outside the city in containers other than
the fuel tank of a motor vehicle, but every dealer shall be required to report such
exports and sales to the city in such detail as may be required.
(2) In support of any exemption from license taxes claimed under this section
other than in the case of stock transfers or deliveries in the dealer's own equipment, every dealer
must execute and file with the tax administrator an export certificate in such form as shall be
prescribed, prepared and furnished by the tax administrator, containing a statement, made by some
person having actual knowledge of the fact of such exportation, that the motor vehicle fuel has been
exported from the city, and giving such details with reference to such shipment as the tax .
administrator may require. The tax administrator may demand of any dealer such additional data as
vehicle fuel:
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is deemed ne'cessary in support of any such certificate, and failure to supply such data will constitute
a waiver of all right to exemption claimed by virtue of such certificate. The tax administrator may,
in a case where the tax administrator believes no useful purpose would be served by filing of an
export certificate, waive the filing of the certificate.
(3) Any motor vehicle fuel carried from the city in the fuel tank of a motor vehicle
shall not be considered as exported from the city.
(4) . No person shall" through false statement, trick or device, or otherwise, obtain
motor vehicle fuel for export as to which the city tax has not been paid and fail to export the same,
or any portion thereof, or cause the motor vehicle fuel or any portion thereof not to be exported, or
divert or cause to be diverted the motor vehicle fuel or any portion thereof to be used, distributed
or sold in the city and fail to notify the tax administrator and the dealer from whom the motor vehicle
fuel was originally purchased of hislher act.
(5) No dealer or other person shall conspire with any person to withhold from
export, or divert from export or to return motor vehicle fuel to the city for sale or use so as to avoid
any of the fees imposed herein.
(6) In support of any exemption from taxes on account of sales of motor vehicle
fuel in individual quantities of 500 gallons or less for export by the purchaser, the dealer shall retain
in hislherfiles for at least three years, an export certificate executed by the purchaser in such form
and containing such information as is prescribed by the tax administrator. This certificate shall be
prima facie evidence of the exportation of the motor vehicle fuel to which it applies only if accepted
by the dealer in good faith.
7.532 Sales to Armed Forces Exempted. The license tax imposed by sections 7.502 and
7.504 shall not be imposed on any motor vehicle fuel sold to the Armed Forces ofthe United States
for use in ships, aircraft or for export from the city; but every dealer shall be required to report such
sales to the tax administrator in such detail as may be required. A certificate by an authorized officer
of such Armed Forces shall be accepted by the dealer as sufficient proof that the sale is for the
purpose specified in the certificate.
7.534 Fuel in Vehicles Coming Into City Not Taxed. Any person coming into the city in
a motor vehicle may transport in the fuel tank of such vehicle, motor vehicle fuel for hislher own use
only and for the purpose of operating such motor vehicle without securing a license or paying the
tax provided in sections 7.502 and 7.504 or complying with any of the provisions imposed upon
dealers herein, but if the motor vehicle fuel so brought into the city is removed from the fuel tank
of the vehicle or used for any purpose other than the propulsion of the vehicle, the person so
importing the fuel into the city shall be subject to all the provisions herein applying to dealers.
7.536 Refunds. Refunds will be made pursuant to applicable Chapter 319 of the Oregon
Revised laws. Claim forms for refunds may be obtained from the Tax Administrator's office.
7.538 Examinations and Investigations. The tax administrator, or duly authorized agents,
may make any examination of accounts, records, stocks, facilities and equipment of dealers, service
stations and other persons engaged in storing, selling or distributing motor vehicle fuel or other
petroleum product or products within this city, and such other investigations as it considers necessary
in carrying out the provisions of sections 7.500 through 7.548 . If the examinations or investigations
disclose that any reports of dealers or other persons theretofore filed with the tax administrator
pursuant to the requirements herein, have shown incorrectly the amount of gallonage of motor
vehicle fuel distributed or the tax accruing thereon, the tax administrator may make such changes
in subsequent reports and payments of such dealers or other persons, or may make such refunds, as
may be necessary to correct the errors disclosed by its examinations or investigation. The dealer
shall reimburse the city for the reasonable costs of the examination or investigation if the action
discloses that the dealer paid 95 percent or less of the tax owing for the period of the examination
or investigation. In the event that such an examination or investigation results in an assessment by
and an additional payment due to the city, such additional payment shall be subject to interest at the
rate of 12 percent per year from the date the original tax payment was due.
7.540
Tax.
Limitation on Credit for or Refund of Overpayment and on Assessment of Additional
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(1) Except as otherwise provided in this code, any credit for erroneous
overpayment of tax made by a dealer taken on a subsequent return or any claim for refund of tax
erroneously overpaid filed by a dealer must be so taken or filed within three years after the date on
which the overpayment was made to the city.
(2) . Except in the case of a fraudulent report or neglect to make a report, every
notice of additional tax proposed to be assessed under this code shall be served on dealers within
three years from the date upon which such additional taxes become due, and shall be subject to
penalty as provided in section 7.518 .
7.542 Examining Books and Accounts of Carrier of Motor Vehicle Fuel. The tax
administrator or duly authorized agents of the tax administrator may at any time during normal
business hours examine the books and accounts of any carrier of motor vehicle fuel operating within
the city for the purpose of enforcing the provisions of this code.
7.544 Records to be Kept by Dealers. Every dealer in motor vehicle fuel shall keep
a record in such form as may be prescribed by the tax administrator of all purchases,
receipts, sales and distribution of motor vehicle fuel. The records shall include copies of all invoices
or bills of all such sales and shall at all times during the business hours of the day be subject to
inspection by the tax administrator or authorized officers or agents of the tax administrator.
7.546 Records to be Kept Three Years. Every dealer shall maintain and keep, for a period
of three years, all records of motor vehicle fuel used, sold and distributed within the
city by such dealer, together with stock records, invoices, bills of lading and other pertinent papers .
as may be required by the tax administrator. In the event such records are not kept within the state
of Oregon, the dealer shall reimburse the tax administrator for all travel, lodging, and related
expenses incurred by the tax administrator in examining such records. The arriount of such expenses
shall be assessed in addition to the tax imposed by section 7.502 .
7.548 Use of Tax Revenues.
(1) For the purpose of this section, net revenue shall mean the revenue from the
tax and penalties imposed by sections 7.500 through 7.548 remaining after providing for the cost
of administration and any refunds and credits authorized herein.
(2) The net revenue shall be used only for the construction, reconstruction,
improvement, repair, maintenance, operation, and use of public highways, roads and streets within
the city.
Section 2. The tax imposed pursuant to Section 7.502 shall take effect only after the Tax
Administrator has developed the necessary forms and documents to administer the tax. The Tax
Administrator shall declare when the tax shall take effect, and give not less than 15 days notice of
that date before the tax may take effect. The Tax Administrator's decision as to the effective date
of the tax and the type of notice to provide shall be final and not subject to review.
Section 3. If any portion of this ordinance is for any reason held invalid or unconstitutional
by a court of competent jurisdiction, such portion shall be deemed a separate, distinct and .
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independent provision and such holding shall not affect the validity of the remaining portions of this
ordinance.
Section 4. This Ordinance shall become effective thirty days after its adoption by the
Council and approval by the Mayor.
Passed by the City Council this
~ day of March
, 2003
City Recorder
REVIEWED & APPROVED
AS '!""O FORM
--.Jo,>~~=\ l~~....(
DATE: __S_\_L\,;;L.\ '2003
OFFICE OF CITY ATTORNEY
Approved by the Mayor this
-1Q... day of March
, 2003
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