HomeMy WebLinkAboutO-1385ORDINANCE NO. 1385
PURSUANT TO THE PROVISIONS OF CODE OF ALABAMA 1975, SECTIONS
11-51-200 THROUGH 11-51-207, THIS ORDINANCE LEVIES A PRIVILEGE,
LICENSE OR EXCISE TAX AGAINST PERSONS, FIRMS, OR CORPORATIONS
STORING, USING, OR OTHERWISE CONSUMING OR ENGAGED IN THE
BUSINESS OF SELLING AT RETAIL TANGIBLE PERSONAL PROPERTY OR
CONDUCTING PLACES OF AMUSEMENT IN THE CITY OF FAIRHOPE,
ALABAMA, AND ITS POLICE JURISDICTION; AND PROVIDES FOR
PENALTIES FOR THE VIOLATION OF THIS ORDINANCE.
Pursuant to the provisions of Code of Alabama 1975, Sections 11-51-200 through
11-51-207, be it ordained by the City Council of the City of Fairhope, in the State of
Alabama, as follows:
Section 1. There is hereby levied, in addition to all other taxes of every kind now
imposed by law, and shall be collected as herein provided, a privilege or license tax against
the person on account of the business activities and in the amount to be determined by the
application of rates against gross sales, or gross receipts, as the case may be, as follows:
(a) Upon every person, firm, or corporation, (including the State of Alabama, the
University of Alabama, Auburn University and all other institutions of higher learning in
the state, whether such institutions be denominational, state, county or municipal
institutions, and any association or other agency or instrumentality of such institutions)
engaged or continuing within the City of Fairhope in the business of selling at retail any
tangible personal property whatsoever, including merchandise and commodities of every
kind and character, (not including, however, bonds or other evidences of debts or stocks,
nor sale or sales of material and supplies to any person for use in fulfilling a contract for the
painting, repair, or reconditioning of vessels, barges, ships and other watercraft and
commercial fishing vessels of over five (5) tons load displacement as registered with the U.
S. Coast Guard and licensed by the State of Alabama Department of Conservation and
Natural Resources), an amount equal to two (2) percent of the gross proceeds of sales of the
business except where a different amount is expressly provided herein. Provided, however,
that any person engaging or continuing in business as a retailer and wholesaler or jobber
shall pay the tax required on the gross proceeds of retail sales of such business at the rates
specified, when his books are kept so as to show separately the gross proceeds of sales of
each business, and when his books are not so kept he shall pay the tax as retailer on the
gross sales of the business.
(b) Upon every person, firm or corporation engaged or continuing within the city, in
the business of conducting, or operating, places of amusement or entertainment, billiard and
pool rooms, bowling alleys, amusement devices, musical devices, theaters, opera houses,
moving picture shows, vaudevilles, amusement parks, athletic contests, including wrestling
matches, prize fights, boxing and wrestling exhibitions, football and baseball games,
(including athletic contests, conducted by or under the auspices of any educational
institution within the city, or any athletic association thereof, or other association whether
such institution or association be a denominational, a state, or county, or a municipal
institution or association or a state, county, or city school, or other institution, association or
school), skating rinks, race tracks, golf courses, or any other place at which any exhibition,
display, amusement or entertainment is offered to the public or place or places where an
admission fee is charged, including public bathing places, public dance halls of every kind
and description within the city, an amount equal to two (2) percent of the gross receipts of
any such business. Provided, however, not withstanding any language to the contrary in the
prior portion of this subsection, the tax provisions so specified shall not apply to any
athletic event conducted by a public or private primary or secondary school. The tax
Ordinance No. 1385
Page -2-
amount which would have been collected pursuant to this subsection shall continue to be
collected by said public or private primary or secondary school but shall be retained by the
school which collected it and shall be used by said school for school purposes.
(c) Upon every person, firm or corporation engaged or continuing within the city in
the business of selling at retail machines used in mining, quarrying, compounding,
processing, and manufacturing of tangible personal property, an amount equal to two 2
percent of the gross proceeds of the sale of such machines; provided, that the term
"machines," as herein used, shall include machinery which is used for mining, quarrying,
compounding, processing, or manufacturing tangible personal property, and the parts of
such machines, attachments and replacements therefore which are made or manufactured
for use on or in the operation of such machines and which are necessary to the operation of
such machines and are customarily so used.
(d) Upon every person, firm or corporation engaged or continuing within the city in
the business of selling at retail any automotive vehicle or truck trailer, semi -trailer, house
trailer or mobile home set-up materials and supplies including but not limited to steps,
blocks, anchoring, cable pipes and any other materials pertaining thereto an amount equal to
two (2) percent of the gross proceeds of sale of said automotive vehicle, truck trailer, semi-
trailer, house trailer or mobile home set-up materials and supplies provided, however, where
a person subject to the tax provided for in this subsection withdraws from his stock in trade
any automotive vehicle or truck trailer, semi -trailer or house trailer for use by him or by his
employee or agent in the operation of such business, there shall be paid, in lieu of the tax
levied herein, a fee of five dollars ($5.00) per year or part thereof during which such
automotive vehicle, truck trailer, semi -trailer or house trailer shall remain the property of
such person. Each such year or part thereof shall begin with the day or anniversary date, as
the case may be, of such withdrawal and shall run for the twelve (12) succeeding months or
part thereof during which such automotive vehicle, truck trailer, or house trailer shall
remain the property of such person.
Where any used automotive vehicle or truck trailer, semi -trailer or house trailer is taken in
trade or in a series of trades, as a credit or part payment on the sale of a new or used vehicle,
the tax levied herein shall be paid on the net difference, that is, the price of the new or used
vehicle sold less the credit for the used vehicle taken in trade.
(e) Upon every person, firm or corporation engaged or continuing within the city in
the business of selling at retail any machine, machinery or equipment which is used in
planting, cultivating and harvesting farm products, or used in connection with the
production of agricultural produce or products, livestock or poultry on farms, and the parts
of such machines, machinery or equipment, attachments and replacements therefore which
are made or manufactured for use on or in the operation of such machine, machinery or
equipment, and which are necessary to and customarily used in the operation of such
machine, machinery or equipment, an amount equal to two 2) percent of the gross proceeds
of the sale thereof. Provided, however, the two (2) percent rate herein prescribed with
respect to parts, attachments, and replacements shall not apply to any automotive vehicle or
trailer designed primarily for public highway use, except farm trailers used primarily in the
production and harvesting of agricultural commodities.
Where any used machine, machinery or equipment which is used in planting, cultivating,
and harvesting farm products, or used in connection with the production of agricultural
produce or products, livestock and poultry on farms is taken in trade or in a series of trades
as a credit or part payment on a sale of a new or used machine, machinery or equipment, the
tax levied herein shall be paid on the net difference, that is, the price of the new or used
machine, machinery or equipment sold, less the credit for the used machine, machinery or
equipment taken in trade.
Ordinance No. 1385
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(f) Upon every person, firm or corporation engaged or continuing within the city in
the business of selling through coin -operated dispensing machines, food and food products
for human consumption, not including beverages other than coffee, milk, milk products and
substitutes therefore, there is hereby levied a tax equal to two (2) percent of the retail selling
price of such food, food products and beverages sold through such machines.
Section 2. Levy of the Tax in Police Jurisdiction. Upon every person, firm or
corporation engaged in the doing of an act, or who shall do an act, or continuing in the
doing of an act, or engaged in the operation of any business, or who shall engage in the
operation of any business, within the police jurisdiction of the city but beyond the corporate
limits of said city for which or upon which a privilege or license tax is in this ordinance
levied or required within the corporate limits of the city, there is hereby levied, in addition
to all other taxes of every kind now imposed by law or by municipal ordinance, to be
collected as herein provided for the privilege or license taxes herein levied within the
corporate limits of the city a privilege or license tax equal to one-half of that provided,
levied or required in this ordinance for the doing of such act, or the engaging or continuing
therein, or the engaging or continuing in the operation of such business within the corporate
limits of the city. Provided further, that except for the amount of the privilege or license tax
herein levied within the police jurisdiction of said city but without the corporate limits
thereof, all the provisions of this ordinance extend and apply to all the area within the police
jurisdiction of the city.
Section 3. Provisions of State Sales Tax Statutes Applicable to this Ordinance and
Taxes herein levied. This ordinance and the taxes levied herein shall be subject to all
definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and
regulations promulgated under the Alabama Administrative Procedure Act, direct pay
permit and drive -out certificate procedures, statute of limitation, discounts, penalties, fines,
punishments, and deductions that are applicable to the taxes levied by the State Sales Tax
statutes, except where inapplicable or where herein otherwise provided, including all
provisions of the State Sales Tax statutes for enforcement and collection of taxes.
Section 4. (a) An excise tax is hereby imposed on the storage, use or other
consumption in the city, of tangible personal property (not including materials and supplies
bought for use in fulfilling a contract for the painting, repairing, or reconditioning of
vessels, barges, ships and other watercraft and commercial fishing vessels of over five (5)
tons load displacement as registered with the U. S. Coast Guard and licensed by the State of
Alabama Department of Conservation and Natural Resources) purchased at retail on or after
the effective date of this ordinance for storage, use or other consumption in the city, except
as provided in subsections (b), (c), and (d), at the rate of two (2) percent of the sales price
of such property within the corporate limits of said city.
(b) An excise tax is hereby imposed on the storage, use or other consumption in the
city, of any machines used in mining, quarrying, compounding, processing, and
manufacturing of tangible personal property purchased at retail on or after the effective date
of this ordinance at the rate of two (2) percent of the sales price of any such machine;
provided, that the term "machine" as herein used, shall include machinery which is used for
mining, quarrying, compounding, processing, or manufacturing tangible personal property,
and the parts of such machines, attachments and replacements therefore, which are made or
manufactured for use on or in the operation of such machines and which are necessary to
the operation of such machines and are customarily so used.
Ordinance No. 1385
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(c) An excise tax is hereby imposed on the storage, use or other consumption in the
city on any automotive vehicle or truck trailer, semi -trailer, house trailer or mobile home
set-up materials and supplies including but not limited to steps, blocks, anchoring, cable
pipes and any other materials pertaining thereto purchased at retail on or after the effective
date of this ordinance for storage, use or other consumption in the city at the rate of two 2
percent of the sales price of such automotive vehicle, truck trailer, semi -trailer, house trailer
or mobile home set-up materials and supplies within the corporate limits of said city.
Where any used automotive vehicle or truck trailer, semi -trailer or house trailer is taken in
trade or in a series of trades, as a credit or part payment on the sale of a new or used vehicle,
the tax levied herein shall be paid on the net difference, that is, the price of the new or used
vehicle sold less the credit for the used vehicle taken in trade.
(d) An excise tax is hereby levied and imposed on the storage, use or other
consumption in the city of any machine, machinery or equipment which is used in planting,
cultivating and harvesting farm products, or used in connection with the production of
agricultural produce or products, livestock or poultry on farms, and the parts of such
machines, machinery or equipment, attachments and replacements therefore which are
made or manufactured for use on or in the operation of such machine, machinery or
equipment, and which are necessary to and customarily used in the operation of such
machine, machinery or equipment, which is purchased at retail after the effective date of
this ordinance, for the storage, use or other consumption in the city at the rate of two 2
percent of the sales price of such property within the corporate limits of said city, regardless
of whether the retailer is or is not engaged in the business in this city. Provided, however,
the two (2) percent rate herein prescribed with respect to parts, attachments, and
replacements shall not apply to any automotive vehicle or trailer designed primarily for
public highway use, except farm trailers used primarily in the production and harvesting of
agricultural commodities. Where any used machine, machinery or equipment which is used
in planting, cultivating, and harvesting farm products, or used in connection with the
production of agricultural produce or products, livestock and poultry on farms is taken in
trade or in a series of trades as a credit or part payment on a sale of a new or used machine,
machinery or equipment, the tax levied herein shall be paid on the net difference, that is, the
price of the new or used machine, machinery or equipment sold, less the credit for the used
machine, machinery or equipment taken in trade.
(e) An excise tax is hereby imposed on tangible personal property at one-half the
rates specified in subsections (a), (b), (c), and (d) of this section on the storage, use or other
consumption of such tangible personal property outside the corporate limits of the city, but
within the police jurisdiction.
Section 5. Provisions of State Use Tax Statutes Applicable to this Ordinance and
Taxes Herein Levied. This ordinance and the taxes levied herein shall be subject to all
definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and
regulations promulgated under the Alabama Administrative Procedure Act, direct pay
permit and drive -out certificate procedures, statute of limitation, discounts, penalties, fines,
punishments, and deductions that are applicable to the taxes levied by the State Use Tax
statutes, except where inapplicable or where herein otherwise provided, including all
provisions of the State Use Tax statutes for enforcement and collection of taxes.
Section 6. Use of Proceeds. The proceeds from the tax herein levied remaining
after payment of the costs of collecting said tax, including all charges of the administration
for such collection and paid over to and received by the City of Fairhope shall be distributed
according to Ordinance No. 1384, an ordinance for allocating the funds collected from the
City of Fairhope's Sales and Use Tax, adopted and approved on April 27, 2009 by the City
Council.
Ordinance No. 1385
Page -5-
Section 7. Severability. The sections, paragraphs, sentences, clauses and phrases
of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of
this ordinance shall be declared unconstitutional by a court of competent jurisdiction, then
such ruling shall not affect any other paragraphs and sections, since the same would have
been enacted by the municipality council without the incorporation of any such
unconstitutional phrase, clause, sentence, paragraph or section.
Section 8. Effective Date. This ordinance shall become effective on the first day of
June, 2009, and the first payment of taxes hereunder shall be due and payable on the
twentieth day of June, 2009.
ADOPTED AND APPROVED this 27th day of April, 2009.
ATTEST:
isa4A/
Aank!(, Cit Clerk