HomeMy WebLinkAboutOrdinance - 2012-O0071 - Amending Chapter 18 - 07/12/2012First Reading
July 12, 2012
Item No. 5.3
Second Reading
July 26, 2012
Item No. 5.9
ORDINANCE NO. 2012-0 0071
AN ORDINANCE AMENDING CHAPTER 18 (TAXATION) OF THE CODE
OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO
(REPEALING OUTDATED AND UNNECESSARY PROVISIONS, AMENDING
(PROVISIONS TO ENCOMPASS CURRENT PRACTICES, AND CONFORMING
THE ORDINANCE TO THE STANDARDS AND CONVENTIONS OF THE REST OF
THE CODE OF ORDINANCES; PROVIDING A PENALTY CLAUSE; PROVIDING
A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City of Lubbock, Texas, finds and determines that it
�s in the best interest of the citizens of the City of Lubbock to make the following
amendments to Chapter 18 (Taxation) of the Code of Ordinances of the City of Lubbock;
NOW, THEREFORE,
E IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT, Chapter 18 (Taxation) of the Code of Ordinances, City of
�ubbock.. Texas, is hereby repealed and the following provisions are enacted in its place
4nd stead:
ARTICLE 18.01 GENERAL PROVISIONS
Sec.18.01.001 Definitions
The following words, terms, and phrases are, for the purpose of this
chapter, except where the context clearly indicates a different meaning,
defined as follows:
Consideration. The cost of the room in a hotel only if the room is one
ordinarily used for sleeping, and shall not include the cost of any food
served or personal services rendered to the occupant of such room not
related to the cleaning and readying of such room for occupancy.
Eligible proiect costs. Exterior improvements to the structure and to those
interior elements determined by the Urban Design and Historic
Preservation Commission to be necessary to maintain the historic and
structural integrity of the structure.
Historic landmark. Any building, structure, site, area, or land of
architectural, landscape architectural, historical, archeological, or cultural
importance or value, as may be individually designated for preservation by
the City Council under article 40.03, division 28, of this code.
Hotel. Any building or buildings, in which the public may, for a
consideration, obtain sleeping accommodations. The term includes a hotel,
motel, tourist home, tourist house, tourist court, lodging house, inn,
rooming house, or bed and breakfast. The term does not include a hospital,
sanitarium, or nursing home. The term does not include a dormitory or
other housing facility owned or leased and operated by an institution of
higher education or a private or independent institution of higher
education as those terms are defined by the Texas Education Code,
Section 61.003, an institution for the purpose of providing sleeping
accommodations for persons engaged in an educational program or
activity at the institution, or an oilfield portable unit, as defined by the
Texas Tax Code, Section 152.001.
Occupancy. The use or possession, or the right to the use or possession, of
any room in a hotel if the room is one ordinarily used for sleeping and if
the occupant's use, possession, or right to use or possession extends for a
period of less than thirty (30) days.
Occupant. Any person who, for a consideration, uses, possesses, or has a
right to use or possess any room in a hotel if the room is one ordinarily
used for sleeping.
Permanent resident. This chapter does not impose a tax on a person who
has the right to use or possess a room in a hotel for at least 30 consecutive
days, so long as there is no interruption of payment for the period.
Person. A natural person or persons, or a firm, company, partnership,
association, or corporation, its successors, assigns, trustees, or receivers,
including anyone to whom tasks and responsibilities in this chapter have
been delegated.
Quarterly period. The regular calendar quarters of the year, beginning
with January.
Substantial rehabilitation. Rehabilitation of a structure designated as a
historic landmark at a cost that equals or exceeds the lesser of five
thousand dollars ($5,000.00) or five (5) percent of the assessed value of
the structure.
Tax collector. The City of Lubbock, Lubbock Central Appraisal District or
any other tax collector under contract with the City of Lubbock.
Sec. 18.01.002 Tax liens —Created; period of existence; priority
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A lien is hereby created on all property, personal and real, in favor of the
City, for all taxes, ad valorem, occupation, or otherwise. Such lien shall
exist from the first of January in each year until all the taxes are paid. Such
lien shall be prior to all other claims and liens then existing as determined
by federal and state law.
Sec. 18.01.003 Tax liens —Taxes need not be assessed
The lien for taxes created by the preceding section shall attach to all
property of the taxpayer on the first of January, and that subsequently
acquired, whether assessed or not.
Sec. 18.01.004 Delinquency —Penalties and interest
If any person fails to pay all of the City taxes imposed by law on his or her
property on or before the thirty-first day of January of the year succeeding
the year for which assessment is made, penalties will attach and interest
will accrue in accordance with Texas Tax Code, Section 33.01.
Sec. 18.01.005 Cancellation of taxes assessed against City property
When the tax collector has received proof and finds that tax assessments
have been erroneously made against exempt tracts of land owned by the
City, the tax collector is hereby authorized to cancel all such city taxes
assessed against such property during the time the land was owned or
otherwise in lawful possession of the City.
Sec.18.01.006 Certificate fee
All collections made by the tax collector for tax certificates shall be paid
into the City's general fund. Such funds shall be used for purposes
hereafter to be authorized by the City Council.
Sec. 18.01.007 Retention of sales and use tax on gas and electricity
The City will retain the taxes authorized on the receipts from the sale,
production, distribution, lease, or rental of, and the use, storage, or other
consumption of gas and electricity for residential use as determined by a
majority vote of the City Council and authorized by the Texas Tax Code,
Section 321.105.
Sec. 18.01.008 Gross receipts tax imposed on bingo games
There is hereby imposed a gross receipts tax of two (2) percent on the
conduct of bingo games within the municipality. Such tax shall be
effective January 1, 1984.
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Sec. 18.01.009 Exemption for organizations engaged primarily in
performing charitable functions
(1) The City adopts the exemption provided by the Texas Tax Code,
Section 11.184, as amended.
(2) The exemption may be repealed by the City Council at any time in
the same manner as the original adoption of the exemption.
ARTICLE 18.02 RESIDENCE HOMESTEAD EXEMPTIONS
Sec. 18.02.001 Persons age sixty-five or older
(1) Sixteen thousand seven hundred dollars ($16,700.00) of the market
value of the residence homesteads of persons sixty-five (65) years
of age or older shall be exempted from all ad valorem taxes levied
by the City. Where any ad valorem tax has theretofore been
pledged for the payment of any debt, the tax collector of the City
shall have authority to continue to levy and collect the tax against
the homestead property at the same rate as the tax so pledged until
the debt is discharged, if the cessation of the levy would impair the
obligation of the contract by which the debt was created.
(2) Persons claiming such exemption shall file with the tax collector,
between January first and prior to April first, of the year for which
such exemption is claimed, documentary proof of age satisfactory
to the tax collector and a sworn claim for such exemption,
describing the property for which the exemption is sought, on
forms prescribed by the tax collector, giving complete information
as provided for by such forms. In the event of good cause shown to
the satisfaction of the tax collector, late applications may be
accepted.
(3) The tax collector shall review the application and all submitted
proof and information and shall determine eligibility for such
exemption. The determination of the tax collector shall be final and
the property in question shall be placed on the tax rolls of the City
in accordance with such determination.
Sec.18.02.002 Disabled persons
Ten thousand dollars ($10,000.00) of the market value of residence
homesteads of persons who are under a disability for purposes of payment
of disability insurance benefits under federal old -age, survivors, and
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disability insurance or its successor shall be exempt from all ad valorem
taxes levied by the City. An eligible disabled person who is sixty-five (65)
years of age or older may not receive both the disability exemption and the
over sixty-five (65) exemption in the same year but may choose either
one. Where any ad valorem tax has theretofore been pledged for the
payment of any debt, the tax collector of the City shall have authority to
continue to levy and collect the tax against the homestead property at the
same rate as the tax so pledged until the debt is discharged, if the cessation
of the levy would impair the obligation of the contract by which the debt
was created.
Sec. 18.02.003 Limitation of tax increase for disabled persons and
persons age sixty-five or older
If a person who is disabled or is sixty-five (65) years of age or older
receives a specified residence homestead exemption, the total amount of
ad valorem taxes imposed on that homestead by the City may not be
increased while it remains the residence homestead of that person or that
person's spouse who is disabled or sixty-five (65) years of age or older
and receives a residence homestead exemption on the homestead. If such
disabled person or person sixty-five (65) years of age or older dies in a
year in which the person received a residence homestead exemption, the
total amount of ad valorem taxes imposed on the homestead by the City
may not be increased while it remains the residence of that person's
surviving spouse if the spouse is fifty-five (55) years of age or older at the
time of the person's death.
ARTICLE 18.03 HOTEL OCCUPANCY TAX
Sec. 18.03.001 Levy; rate; use
(1) There is hereby levied a tax upon the cost of occupancy of any
sleeping room furnished by any hotel, where such cost of
occupancy is at the rate of two dollars ($2.00) or more per day,
such tax to be equal to seven (7) percent of the consideration paid
by the occupant of such room to any hotel, exclusive of other
occupancy taxes imposed by other governmental agencies.
(2) Issuance of bonds; use of funds.
(a) In the event the City Council should in the future
determine that revenue bonds should be issued for the
purposes stated in the Texas Government Code, Section
1504.002(a), all or any part of the tax levied under
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subsection (1) above may be pledged as security for
revenue bonds issued pursuant to the aforesaid statute.
(b) The funds received from the tax levied under subsection
(1) shall be distributed in accordance with state law and
resolution of the City Council.
(3) No tax shall be imposed under this article when state law provides
an exemption from this tax.
Sec.18.03.002 Collections
(1) Every person operating, managing, or controlling any hotel shall
collect the tax imposed in section 18.03.001 of this article for the
City.
(2) Every person collecting the tax as provided in subsection (1) of
this section is hereby authorized to retain from the tax collected by
such person one (1) percent of the tax collected to reimburse said
person for that person's efforts in collecting said tax for the City.
(3) Notwithstanding the one -percent reimbursement provided for in
subsection (2) of this section, no reimbursement shall be
authorized or allowed in any case where the person collecting the
tax fails to pay said tax over to the City or fails to file reports with
the City as required by section 18.03.003 of this article. In every
case where the person collecting the tax fails to pay said tax to the
City or fails to file the reports required by section 18.03.003 of this
article, said one -percent reimbursement fee shall be forfeited and
the total tax collected shall be due the City.
Sec. 18.03.003 Reports
(1) On the last day of the month, every person required in section
18.03.002 of this article to collect the tax imposed herein shall file
a report with the City showing the consideration paid for all room
occupancies in the preceding month, the amount of the tax
collected on such occupancies, and any other information as the
City may reasonably require. Such person shall pay the tax due on
such occupancies at the time of filing such report.
(2) If the taxpayer owes less than $500 for a calendar month or $1,500
for a calendar quarter, the taxpayer qualifies as a quarterly filer
having a reporting period of a calendar quarter and taxes are due
and payable at the end of the month after the end of the calendar
quarter.
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(3) Payment, whether monthly or quarterly, shall be made by check,
money order, automatic electronic transfer, or cash. No other
method of payment will be accepted.
Sec. 18.03.004 Rules and regulations
The City of Lubbock shall have the power to make such rules and
regulations as are necessary to effectively collect the tax levied herein, and
shall, upon reasonable notice have access to books and records necessary
to determine the correctness of any report filed as required by this article
and the amount of taxes due under the provisions of this article.
Sec. 18.03.005 Penalties; disclosure of information; examination of
records
(1) Penalties. If any person shall fail to collect the tax imposed in this
article, or shall fail to file a report as required herein, or shall fail to
pay to the City the tax imposed herein when said report for
payment is due, or shall file a false report, then such person shall
be deemed guilty of a misdemeanor. In addition, such person who
fails to remit the tax imposed by this article within the time
required shall forfeit five (5) percent of the amount due as a
penalty, and after the first thirty (30) days it shall forfeit an
additional five (5) percent of such tax; provided, however, that the
penalty shall never be less than one dollar. Delinquent taxes shall
draw interest at the rate of six (6) percent per annum beginning
sixty (60) days from the date due.
(2) Disclosure of information, examination of records.
(a) It shall be a misdemeanor for any official or employee of the
City to make known in any manner whatever the business
affairs, operations, or information obtained by an
investigation of records and activities of any hotel visited or
examined in the discharge of official duty, or the amount or
source of income, profits, losses, expenditures, or any
particular thereof set forth or disclosed in any return, or to
permit any return or copy thereof, or any book containing any
abstract or particulars thereof to be seen or examined by any
person not connected with the City.
However, the City Manager may, by general or special order,
authorize examination by state officers, by the federal
government, if a reciprocal arrangement exists, or by any
other person of the records maintained by the City under this
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article.
Nothing herein contained shall be construed to prevent: the
delivery to a taxpayer, or his or her duly authorized
representative, of a copy of any report or other paper filed by
him or her pursuant to the provisions of this article; the
publication of statistics so classified as to prevent the
identification of a particular report and the items thereof; the
use of such records, reports or information secured, derived
or obtained by the City Attorney or the City under the terms
of this article in any action against the same taxpayer for a
penalty or any tax due under any provision of this article.
(b) Successors, receivers, trustees, executors, administrators,
assignees, and guarantors, if directly interested, may be given
information as to the items included in the measure and
amounts of any unpaid tax or amounts of tax required to be
collected, interest, and penalties.
ARTICLE 18.04 TAX INCENTIVES FOR HISTORICAL
PRESERVATION
Sec.18.04.001 Purpose
The purpose of this article is to encourage historic preservation by
providing tax incentives for the stabilization, rehabilitation, and renovation
of properties designated as Lubbock Historic Landmarks under Chapter 40
(Zoning) of this code.
See.18.04.002 Eligibility
(1) Properties individually designated as Lubbock Historic Landmarks
that have been substantially rehabilitated may be eligible for partial
tax exemption as described in section 18.04.003.
(2) Any partial tax exemption under this article shall not exceed the
total City tax liability due for the property during the period of
eligibility.
(3) As an incentive for property owners interested in having their
property individually designated as a Lubbock Historic Landmark,
during the months of January and February of each year, the zone
case fee for designation shall be waived.
(4) Only properties that have been individually designated as a
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Lubbock Historic Landmark are eligible for partial tax exemption
under this article.
(5) Property subject to the partial tax exemptions shall include the
designated structure and only the land necessary for reasonable
access to the structure. Determination of the amount of land
necessary for reasonable access to a structure shall be determined
by the Lubbock Central Appraisal District as allowed by the Texas
Tax Code, Section 11.24.
(6) To receive the annual tax reduction, property owners must comply
with all applicable City codes, regulations, and ordinances. These
include, but are not limited to, complying with the standards and
procedures of the historical preservation and urban design district
portion of article 40.03, division 28, the property maintenance code
adopted in section 34.01.001, and chapter 40 (Zoning) of this code.
(7) Properties located in a tax increment finance reinvestment (TIF)
zone must be approved by the responsible TIF board of directors
before a tax exemption may be granted.
(8) Current and delinquent taxes, as well as municipal assessments,
must be paid in full in order to receive any tax reduction.
Sec.18.04.003 Partial property tax exemption for substantial
rehabilitation of certain properties zoned design
historic
(1) Eligibility. A structure individually designated as a historical
landmark, which is substantially rehabilitated in accordance with
this section, shall be eligible for an exemption from real property
ad valorem taxes levied by the City to the extent of the tax on fifty
(50) percent of the total approved project costs for rehabilitation of
the designated historic site. The exemption shall begin the tax year
after the project is completed and extend for a period not to exceed
five (5) years or an amount in excess of the total eligible project
cost.
(2) Projects. Eligible projects shall be limited to the exterior of the
structure and to those interior elements determined by the Urban
Design and Historic Preservation Commission to be necessary to
maintain the historic and structural integrity of the structure. "Total
approved project costs" for use in calculation of the tax exemption
in subsection (a) shall be determined by the Commission upon
completion of each project.
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(3) Retroactivity. This program is not retroactive for previously
completed projects. Only projects approved by the Commission
after the effective date of Ordinance No. 2003-00063 shall be
eligible for tax exemption under this section.
(4) Insurance. Projects initiated as a result of destruction or alteration
of the structure or site by natural causes (e.g., fire, tornado, water
damage, etc.) will only be eligible for that portion of the cost that
is in excess of any insurance settlement.
(5) Application and approval process. Upon application to receive the
rehabilitation tax exemption, the Urban Design and Historic
Preservation Commission shall review the project for approval
under sections 40.03.3220 and 40.03.3222 of this code, the
ordinance designating the property as a Lubbock Historic
Landmark, and the Secretary of the Interior's Standards for
Rehabilitation (36 CFR part 67). Approval by the Commission
shall be forwarded as a recommendation to the City Council for
final action granting the tax exemption. Denial of the application
by the Commission may be appealed by the owner to the City
Council with notice to the City Manager within ten (10) days of
receipt of the Commission's written order.
(6) Appraisal district requirements. Nothing in this article relieves the
owner from the responsibility to submit an application for the
exemption each year to the Lubbock Central Appraisal District
pursuant to section 11.43(b) of the Texas Tax Code. By filing said
application, the property owner grants the Urban Design and
Historic Preservation Commission the right to make an annual
inspection of the property as detailed in section 18.04.004.
Sec. 18.04.004 Verification process
(1) The Urban Design and Historic Preservation Commission shall
review annually all those properties that have been granted tax
exemptions under this article.
(2) If, in the opinion of the Commission, a property that has been
granted an exemption is no longer being maintained in an
acceptable state of repair, the Commission shall contact the owners
of the property and discuss the Commission's concerns with them.
(3) Following this discussion, the Commission shall report to the City
Council either recommending that the tax exemption for that
property be terminated on the last day of the tax year, or outlining
the steps the owner must take to bring the property into
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compliance.
(4) The City Council, upon receipt of the report of the Commission,
and after such notice as may be required by law, may remove the
tax exemption if it deems such action appropriate.
Sec. 18.04.006 Transferability of tax benefits
The benefits of these city ad valorem tax incentive programs relating to
structures designated as Lubbock Historic Landmarks are transferable and
run with the property.
Sec. 18.04.007 Recapture of taxes
(1) In order to maintain eligibility for a tax exemption in accordance
with this article, the owner and any representative shall not alter or
totally or partially destroy the historically significant structure or
site by willful act or negligence during the period of the
exemption. Maintenance of historic landmarks is required by
section 40.03.3223 of this code.
(2) In the event that the owner has requested and been granted removal
of the designation as a Lubbock Historic Landmark, or if the
landmark or the site is altered or totally or partially destroyed, the
owner shall notify the planning department of the City and the
Chief Appraiser of the Lubbock Central Appraisal District that he
is no longer entitled to the exemption.
(3) If the Urban Design and Historic Preservation Commission has
reason to believe that a structure or site benefiting from a tax
exemption has been altered or totally or partially destroyed by the
willful act or negligence of its owner or a representative during the
period of the exemption, the Commission shall request that the
City Manager immediately cause the matter to be scheduled for the
earliest possible consideration by the City Council.
(4) If, after giving notice of a hearing to the owner, the City Council
determines that the structure or site has been totally or partially
destroyed or altered by the willful act or negligence of the owner
or a representative, the owner shall take corrective measures, if
feasible, within the time specified by the City Council. If the
owner fails to take such corrective measures or if corrective
measures are not feasible, the owner shall immediately repay to the
City all of the city tax revenues that were not paid because of the
exemption plus interest calculated at an annual rate of ten (10)
percent. This penalty shall be in addition to any fines levied under
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the zoning code for failure to insure the structural soundness of a
landmark property.
(5) If the design historic zoning designation is removed either by the
City Council or at the property owner's request, the property
owner shall immediately repay to the City all of the city tax
revenues that were not paid because of this exemption for the
previous five (5) years.
SECTION 2. THAT, unless otherwise provided herein, a violation of any
provision of this Ordinance shall be deemed a misdemeanor punishable as provided by
Section 1.01.004 of the Code of Ordinances of the City of Lubbock.
SECTION 3. THAT should any paragraph, section, sentence, phrase, clause, or
word of this Ordinance be declared unconstitutional or invalid for any reason, the
remainder of this Ordinance shall not be affected thereby.
SECTION 4. THAT the City Secretary of the City of Lubbock is hereby
authorized and directed to cause publication of the descriptive caption of this Ordinance
as an alternative method provided by law.
SECTION 5. THAT this Ordinance shall become effective, except as may
otherwise be provided herein, from and after its publication as provided by law.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 12th day of July
Passed by the City Council on second reading this 26th day of July
GL C'RROf3 SON, Mayor
ATTEST:
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Rebecca Garza, C
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APPROVED AS TO CONTENT:
Le Ann Dumbauld, City Manager
APPROVED AS TO FORM:
Laura raft, Assistant City Attorney
Q:` CCDOCS\Amending LCO Chapter 18 - Taxation.docx
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