Loading...
HomeMy WebLinkAbout1123 ORDINANCE NO. 1123 CITY OF LAKEVILLE COUNTY OF DAKOTA, MINNESOTA AN ORDINANCE AMENDING TITLE 3, CHAPTER 17 OF THE LAKEVILLE CITY CODE CONCERNING LOCAL LODGING TAX THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS: SECTION 1. Title 3, Chapter 17 of the Lakeville City Code is amended to read in its entirety as follows: CHAPTER 17 LOCAL LODGING TAX SECTIONS: 3-17-1: Purpose; Definitions 3-17-2: Imposition Of Tax 3-17-3: Registration And Collection 3-17-4: Exceptions And Exemptions 3-17-5:Payment And Returns 3-17-6: Examination Of Return, Adjustments, Notices And Demands 3-17-7: Refunds 3-17-8: Failure To File A Return 3-17-9: Penalties 3-17-10: Violations 3-17-11: Disposition Of Proceeds 3-17-12: Appeals 3-17-1: PURPOSE; DEFINITIONS: A. Purpose. In order to fund a local convention or tourism bureau for the purpose of marking and promoting the City as a tourist or convention center it is in the best interest of the City to impose a local lodging tax in accordance with Minnesota Statutes. B. Definitions. Unless otherwise expressly stated, wherever used in this Chapter, the following words shall have the meanings given to them by this Section. CITY: The City of Lakeville, Minnesota, acting by or through its duly authorized representatives(s). 1 238897v1 LODGING: The furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, bed and breakfast, short-term residential rental, or resort, other than the renting or leasing of it for a continuous period of thirty (30) days or more. The furnishing of rooms owned by religious, educational or non-profit organizations for self-sponsored activities shall not constitute lodging for purposes of this chapter I OPERATOR: Any person who has charge, care or control of a building, tourist court, bed and breakfast, resort or rooming house in the City, or part thereof, in which dwelling units or rooming units are let, whether in the capacity of owner, lessee, sublessee, licensee or any other capacity and provides lodging to others,or any office, agent or employee of such person. PERSON: Any individual,corporation,partnership,association, limited liability company or partnership, estate,receiver,trustee, executor, administrator, assignee, syndicate,or any other combination of individuals. Whenever the term "person is used in any provision of this article prescribing and imposing a penalty, the term as applied to a corporation, association, or partnership shall mean the officers or partners thereof as the case may be. SHORT-TERM RESIDENTIAL RENTAL: A rental dwelling or rental dwelling unit that is offered to transient guests for a period of less than 30 consecutive days. Including, but not limited to, VRBO's, Air BNB, HomeAway and other vacation rentals. 3-17-2: IMPOSITION OF TAX: Pursuant to Minn. Stat. §469.190,as it may be amended from time to time,there is hereby imposed a tax of three percent (3%) on the gross receipts from the furnishing for consideration of lodging. The tax shall be stated and charge separately and shall be collected by the operator from the lodger. The tax collected by the operator shall be a debt owed by the operator to the City and shall be extinguished only by payment to the City. In no case shall the tax imposed by this section upon an operator exceed the amount of tax which the operator is authorized and required by this chapter to collect from lodger. 3-17-3: REGISTRATION AND COLLECTION: A. Registration with the City for lodging tax purposes shall be required prior to commencing lodging operations. B. Each operator shall collect the tax imposed by this Chapter at the time the rent charge for the accommodation is paid. The tax collections shall be held in trust by the operator for the City. The amount of tax shall be separately stated from the rent charged for the lodging. 3-17-4: EXCEPTIONS AND EXEMPTIONS: 2 238897v1 A. Exceptions. No tax shall be imposed on rent for lodging paid by any officer or employee of a foreign government who is exempt by reason of express provisions of federal law or international treaty. B. Exemptions. An exemption shall be granted to any person as to whom or whose occupancy it is beyond the power of the City to tax. No exemption shall be granted, except upon a claim therefore made at the time the rent is collected, and this claim shall be made in writing and under penalty of perjury on forms provided by the City. All these claims shall be forwarded to the City when the returns and collections are submitted as required by this chapter. C. The lodging tax shall not apply to furnishing for consideration of lodging for a continuous period of thirty (30) days or more to the same lodger under an enforceable written agreement that may not be terminated without prior notice and including accommodations intermediary services provided in connection with other services. 3-17-5: PAYMENT AND RETURNS: Operators shall submit monthly lodging tax returns, including months in which no tax is due using the form or online system provided by the City no later than twenty (20) days after the end of the reporting month. Payment of the tax shall be due within twenty-five(25)days after the end of the reporting month. The return shall contain the following minimum information: A. The total amount of rent collected for lodging during the period covered by the return. B. The amount of tax required to be collected and due for the period. C. The signature of the person filing the return or that of his agent duly authorized in writing. D. The period covered by the return. E. The amount of uncollectible rental charges subject to the lodging tax. The operator may offset against the taxes payable with respect to any reporting period,the amount of taxes imposed by this Chapter previously paid as a result of any transaction the consideration for which became uncollectible during such reporting period, but only in proportion to the portion of such consideration which became uncollectible. 3-17-6: EXAMINATION OF RETURN, ADJUSTMENTS, NOTICES AND DEMANDS: After a return is filed, the City shall examine it and make any investigation or examination of the records and accounts of the person making the return deemed necessary for determining its correctness. The tax computed on the basis of such examination shall be the tax to be paid. If the tax due is found to be greater than that paid, such excess shall be paid to the City within ten 3 238897v1 (10) days after receipt of a notice thereof given either personally or sent by registered mail to the address shown on the return. If the tax paid is greater than the tax found to be due, the excess shall be refunded to the person who paid the tax to the City within ten (10) days after determination of such refund. Operators are required to keep all records, including written agreements for lodging and/or platform agreements, for at least three(3) years. 3-37-7: REFUNDS: Any person may apply to the City for a refund of taxes paid for a prescribed period in excess of the amount legally due for that period, provided that no application for refund shall be considered unless filed within one year after such tax was paid,or within one year from the filing of the return, whichever period is the longer.The City shall examine the claim and make and file written findings thereon denying or allowing the claim in whole or in part and shall mail a notice thereof by registered mail to such person at the address stated upon the return. If such claim is allowed in whole or in part,the City shall credit the amount of the allowance against any taxes due under this Chapter from the claimant and the balance of the allowance, if any, shall be paid by the City to the claimant. 3-17-8: FAILURE TO FILE A RETURN: A. if any operator required by this Chapter to file a return shall fail to do so within the time prescribed, or shall make, willfully or otherwise, an incorrect, false, or fraudulent return, the operator shall, upon written notice and demand, file such return or corrected return within five (5) days of receipt of such written notice and shall at the same time pay any tax due on the basis thereof. If such person shall fail to file such return or corrected return,the City shall make a return or corrected return, for such person from such knowledge and information as the City can obtain, and assess a tax on the basis thereof, which tax (less any payments theretofore made on account of the tax for the taxable period covered by such return) shall be paid within five(5)days of the receipt of written notice and demand for such payment. Any such return or assessment made by the City shall be prima facie correct and valid, and such person shall have the burden of establishing its incorrectness or invalidity in any action or proceeding in respect thereto. B. If any portion of a tax imposed by this Chapter, including penalties thereon, is not paid within thirty(30)days after it is required to be paid, the City Attorney may institute such legal action as may be necessary to recover the amount due plus interest, penalties, the costs and disbursements of any action. Upon a showing of good cause, the City may grant an operator one thirty(30)day extension of time within which to file a return and make payment of taxes as required by this Chapter provided that interest during such period of extension shall be added to the taxes due at the rate of ten percent (10%)per annum. 4 238897v1 3-17-9: PENALTIES: If any tax imposed by this Chapter is not paid within the time therein specified for the payment, or an extension thereof, there shall be added thereto a specific penalty equal to ten percent (10%) of the amount remaining unpaid. The amount of tax not timely paid, together with any penalty provided by this Section, shall bear interest at the rate of eight percent (8%) per annum from the time such tax should have been paid until paid. Any interest and penalty shall be added to the tax and be collected as part thereof. 3-17-10: VIOLATIONS: Any person who shall willfully fail to make a return required by this Chapter; or who shall fail to pay the tax after written demand for payment, or who shall fail to remit the taxes collected or any penalty or interest imposed by this Chapter after written demand for such payment or who shall refuse to permit the City to examine the books,records and papers under his or her control,or who shall willfully make any incomplete, false or fraudulent return shall be guilty of a misdemeanor. 3-17-11: DISPOSITION OF PROCEEDS: Ninety five percent (95%) of the proceeds obtained from the collection of taxes pursuant to this Chapter shall be used in accordance with Minnesota Statutes, section 469.190 as the same may be amended from time to time to fund a local convention or tourism bureau for the purpose of marketing and promoting the City as a tourist or convention center. The City may retain a maximum of five percent (5%) for administrative costs. 3-17-12: APPEALS: Any operator aggrieved by any notice,order or determination made by the City under this Chapter may file a petition for review of such notice,order or determination detailing the operator's reasons for contesting the notice, order or determination. The petition shall contain the name of the petitioner, the petitioner's address and the location of the lodging subject to the order, notice or determination. The petition for review shall be filed with the City Clerk within ten (10) days after the notice, order or determination for which review is sought has been mailed or served upon the person requesting review. Upon receipt of the petition the City Administrator, or the Administrator's designee, shall set a date for a hearing and give the petitioner at least five(5)days' prior written notice of the date, time and place of the hearing. At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order or determination should be modified or withdrawn. The petitioner may be represented by counsel of petitioner's choosing at petitioner's own expense. The hearing shall be conducted by the City Administrator or the Administrator's designee, provided only that the person conducting the hearing shall not have participated in the drafting of the order, notice or determination for which review is sought. The person conducting the hearing shall make written findings of fact and conclusions based upon the applicable sections of this Chapter and the evidence presented. The person conducting the hearing may affirm,reverse or modify the notice, order or determination made by the City. Any decision rendered by the City 5 238897v1 Administrator pursuant to this Section may be appealed to the City Council. A petitioner seeking to appeal a decision must file a written notice of appeal with the City Clerk within ten (10) days after the decision has been mailed to the petitioner. The matter will thereupon be placed on the Council agenda as soon as is practical. The Council shall then review the findings of fact and conclusions to determine whether they were correct. Upon a determination by the Council that the findings and conclusions were incorrect, the Council may modify, reverse or affirm the decision of the City Administrator or his designee upon the same standards as set forth in this Section. SECTION 2. Effective Date. This ordinance shall be effective immediately upon its passage and publication. ADOPTED by the City Council of the City of Lakeville, Minnesota this 4th day of May, 2026. CITY OF LAKEVILLE ;� % i� . BY: rl�'7 � --,, � ke Hellier, Mayor ATTES : i i Ann Orlofsky, City Clerk 6 238897v1