08/15/2017 Ordinances 9642ORDINANCE NO. 9642
An ordinance to amend Grand Island City Code Chapter 23, Occupation Taxes,
with the addition of Article IX, Sections 23-81 to 23-91 in its entirety; no other section of the
Chapter is being amended; and to provide for publication and the effective date of this ordinance.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA:
SECTION l. Chapter 23 of the Grand Island City Code is hereby adding the
following article as follows:
Article IX
RENTAL CAR OCCUPATION TAX
§23-81. Purpose.
Pursuant to the authority of Nebraska Revised Statute R.R.S. 1943, Section 15-203, the City
Council finds, determines and declares that it is appropriate that a tax be imposed on all car
rental businesses as herein defined for the purpose of raising revenues. The foregoing
determination is made with due consideration of business in the City and the relation of business
to the municipal welfare, together with relation thereof, to expenditures required by the City, and
with consideration of just, proper and equitable distribution of the tax burdens within the City
and other properly associated matters.
§23-82. Defnitions.
As used in this chapter, the following words and phrases shall have the meanings ascribed to
them in this section, except where the context cleaxly indicates or requires a different meaning:
(a) "Car rental business" shall mean the business of renting cars, automobiles, vans, ar trucks
with three-fourths (3/4) ton or less manufacturer's rated capacity without a driver, operator or
chauffeur. The tax will still apply to any business even if the above items are not their primary
business.
(b) "Person" shall mean any natural person, individual, partnership, association, organization
or corporation of any kind or character engaging in the car rental business.
(c) "Rent" shall mean to hire out vehicles at stipulated rates per mile, per hour, per day, per
week, or per month; provided, however, that such term shall not include the act of hiring out
vehicles for a period exceeding thirty (30) consecutive days, and no tax shall be collected
pursuant to this section for any vehicle rental contract to the same renter for a period exceeding
thirty (30) consecutive days.
(d) "Taxpayer" shall mean any person engaged in a car rental business herein defined who is
required to pay the tax herein imposed.
Approved as to Form tt
August 14, 2017 � it ttorney
ORDINANCE NO. 9642 (Cont.)
(e) "Vehicle rental contract" shall mean each agreement with a car rental business to rent a
vehicle for thirty (30) or fewer consecutive days and each vehicle rented under a single
document shall be considered a separate vehicle rental contract. A vehicle rental contract shall be
considered to be made within the city if the rental contract is executed by the renter within the
city or the renter takes possession of the vehicle within the city.
Exceptions. The tax imposed by this section shall not be measured by, and no tax shall be
collected for:
(1) Any vehicle rental contract in which the vehicle is provided on a
complimentary basis or for which no consideration is charged; and
(2) Any vehicle rental contract for which the consideration is paid by a person
not subject to the sales and use tax imposed by the Nebraska Revenue Act of 1967,
as it is amended from time to time.
(� "City Finance Director" shall mean the person appointed by the Mayor to that position or
the individual designated by the City Finance Director to perform these duties for him or her
§23-83. Tax Imposed; Collection of Tax.
Beginning October 1, 2017, each person engaged in a car rental business shall pay an occupation
tax in the amount of six percent (6%) of the actual rental rates charged for each vehicle rental
contract made by that person within the city.
The tax imposed by this chapter may be shown as an add-on to the charge for renting a vehicle
and shall be collectible at the time the vehicle is furnished, regardless of when the charge for the
vehicle is paid. The car rental business operator shall remain responsible for payment of all taxes
imposed, whether or not the taxes are actually collected from the customers.
§23-84. Return.
Each and every person engaged in a car rental business within the City for the calendar month
beginning October 2017, and for each and every calendar month thereafter, shall prepare and
file, on ar before the 25th of the month following on a form prescribed and furnished by the City
Finance Director, a return for the taxable calendar month, and at the same time pay to the City
the tax herein imposed. The return shall be verified and sworn to by the officer in charge of the
business. The return shall be considered filed on time if mailed in an envelope properly
addressed to the City Finance Department, postage prepaid and postmarked before midnight of
the 25th of the appropriate month.
§23-85. Tax Cumulative.
(a) The levy of the tax under this chapter is in addition to all other fees, taxes, excises and
licenses levied and imposed under any contract or any other provisions of this Code or
ordinances of the City, in addition to any fee, tax, excise or license imposed by the state.
(b) Payment of the tax imposed by this chapter shall not relieve the person paying the same
from payment of any other tax now or hereafter imposed by contract or ordinance or by this
Code, including those imposed for any business or occupation he or she may carry on, unless so
provided therein. The occupational taxes imposed by this chapter shall be cumulative except
where otherwise specifically provided.
2
�
ORDINANCE NO. 9642 (Cont.)
§23-86. Use of Revenue.
The six percent (6%) occupation tax imposed by this chapter shall be used for the purpose of
leasing or purchasing equipment for the Public Works Streets Division.
§23-87. Failure to File Return; Delinquency; Assessment by City Finance Director.
(a) If any person neglects or refuses to file a return or make payment of the taxes as required
by this chapter, the City Finance Director shall make an estimate, based upon such information
as may be reasonably available, of the amount of taxes due for the period or periods for which
the taxpayer is delinquent, and upon the basis of such estimated amount, compute and assess in
addition thereto (1) interest on such delinquent taxes, at the rate of one percent (1%) per month,
or fraction thereof from the date when due and, (2) a late fee equal to ten percent (10%) thereof.
Any such interest due may be compounded quarterly.
(b) The City Finance Director shall give the delinquent taxpayer written notice of such
estimated taxes, late fees, and interest, which notice must be served personally or by certified
mail.
(c) Such estimate shall thereupon become an assessment, and such assessment shall be final
and due and payable from the taxpayer to the City Finance Director ten (10) days from the date
of service of the notice or the date of mailing by certified mail; however, within such ten (10)
day period the delinquent taxpayer may petition the City Finance Director for a revision or
modification of such assessment and shall, within such ten-day period, furnish the City Finance
Director the facts and correct iigures showing the correct amount of such taxes.
(d) Such petition shall be in writing, and the facts and figures submitted shall be submitted in
writing and shall be given under oath of the taxpayer.
(e) The City Finance Director may then modify such assessment in accordance with the facts
which he or she deems correct. Such adjusted assessment shall be made in writing, and notice
thereof shall be mailed to the taxpayer within ten (10) days; and all such decisions shall become
final upon the expiration of thirty (30) days from the date of service, unless proceedings are
commenced within that time for appeal in the District Court.
§23-88. Administration of Chapter; Miscellaneous Provisions.
(a) The administration of the provisions of this chapter are hereby vested in the City Finance
Director who shall prescribe forms in conformity with this chapter for the making of returns, for
the ascertainment, assessment and collection of the tax imposed hereunder, and for the proper
administration and enforcement hereof.
(b) All notices required to be given to the taxpayer under the provisions of this chapter shall
be in writing. Notices shall be mailed by first class or certified mail, postage prepaid, return
receipt requested, to the taxpayer at his or her last known address.
(c) It shall be the duty of every taxpayer to keep and preserve suitable records and other
books or accounts as may be necessary to determine the amount of tax for which he/she is liable
hereunder.
ORDINANCE NO. 9642 (Cont.)
(1) Records of the gross revenue by which this tax is measured shall be kept separate
and apart from the records of other sales or receipts in order to facilitate the examination
of books and records as necessary for the collection of this t�.
(2) It shall be the duty of every such taxpayer to keep and preserve for a period of
four (4) years all such books, invoices and other records, which shall be open for
examination at any time by the City Finance Director. If such person keeps or maintains
their books, invoices, accounts or other records, or any thereof, outside of the state, upon
demand of the City Finance Director he/she shall make the same available at a suitable
place within the City, to be designated by the City Finance Director, for examination,
inspection and audit by the City Finance Director. The taxpayer shall reimburse the City
for the reasonable costs of the examination, inspection and audit if the City Finance
Director determines that the taxpayer paid ninety percent or less of the tax owing for the
period of the examination.
(3) The City Finance Director in his or her discretion, may make, permit or cause to be
made the examination, inspection or audit of books, invoices, accounts or other records
so kept or maintained by such person outside of the state at the place where same are kept
or maintained or at any place outside the state where the same may be made available,
provided such person shall have entered into a binding agreement with the City to
reimburse it for all costs and expenses incurred by it in order to have such examination,
inspection or audit made in such place.
(d) For the purpose of ascertaining the correctness of a return, or for the purpose of
determining the amount of tax due from any person, the City Finance Director, or his/her duly
authorized persons, may conduct investigations concerning any matters covered by this chapter;
and may examine any relevant books, papers, records or memoranda of any such person.
§23-89. Recovery of Unpaid Tax by Action at Law.
(a) The City Finance Director may also treat any such taxes, penalties or interest due and
unpaid as a debt due the City.
(b) In case of failure to pay the taxes, or any portion thereof, or any late fee or interest
thereon when due, the City may recover at law the amount of such taxes, penalties and interest in
any court of Hall County, Nebraska or of the county wherein the taxpayer resides or has its
principal place of business having jurisdiction of the amounts sought to be collected.
(c) The return of the taxpayer or the assessment made by the City Finance Director, as herein
provided, shall be prima facie proof of the amount due.
(d) The City Attorney may commence an action for the recovery of taxes due under this
chapter and this remedy shall be in addition to all other existing remedies, or remedies provided
in this chapter.
(e) The City Finance Director may turn over any unpaid amount due to the City to a 3`d party
collections agency, following any notice required by State law.
§23-90. Reserved
§23-91. Reserved
4
ORDINANCE NO. 9642 (Cont.)
SECTION 2. Chapter 23, Article IX, Sections 23-81 through 23-91, is being
added in its entirety.
SECTION 3. This ordinance shall be in force and take effect from and after its
passage and publication, within fifteen days in one issue of the Grand Island Independent as
provided by law.
Enacted: August 15, 2017.
Attest:
Jerem . Jen en, ayor
GRAIVp
��� "~�'~ �`S
r� ,�$A�Ile��24
�k ••�•� *
RaNae Edwards, City Clerk � ��� ��'L
/�FeRAS�P
5