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HomeMy WebLinkAboutO-246ORDINANCE NO. 246 AN ORDII:ATrCE TO DEFINE TRADING STAMPS; TO REGULATE THE 1,IARKETING OF TRADING STAMPS; TO LEVY A PRIVILEGE LICENSE TAX UPON PERSONS, KEYS, ASSOCIATIONS, PARTNERSIIIPS AND CORPORATIONS MARKETING TRADING STA1.TS II; THE CORPORATE LIMITS OF THE' CITY OF FAIRHOPE AND ITS POLICE JURISDICTION; TO MAKE IT UNLAVEUL TO MARKET TRAD- ING STAMPS TO OR THROUGH MERCHANTS IN THE CORPORATE LIMITS OF THE CITY OF FAIRHOPE OR IN TIR POLICE: JTRISDICTION THEREOF WITHOUT FIRST PROCURING A LICENSE FROM THE CITY OF FAIRHOPE, AI;D TO PROVIDE PENALTIES FOR SUCH VIOLATION; TO MAKE IT UI'L•AV%T4'UL FOR ANY I&IRCHANT IL THE CITY OF FAIRHOPE 01, IN ITS POLICE JURISDICTION TO GIVE OR MARKET WITH THE SALE OF I3,RCHANDISE OR SE2VICM THE TRADING STAMPS OF ANY PERSON, FIM, lj ASSOCIATIOh, PARTTNI!aSHIP OR CORP0RATIOI; WHO OR WHICH HAS NOT FIRST PROCURED A LICENSE FROM THE CITY OF FAIR - HOPE TO MARIMT SAID TRADING STAMPS AND TO PhOVIDE PENALTIES FOR SUCH VIOLATIONS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA, AS FOLLOWS: SECTION 1. This ordinance shall be known and may be cited as Trading Stamp Ordinance No. 246 of the City of Fairhope, Alabama, of , 19_. SECTIOP; 2. It is not intended by this ordinance to repeal, abrogate, annul, or in any way impair or interfere with existing provisions of other laws or ordinances except those specifically repealed by this ordinance. SECTION 3. Definitions. For the purpose of this ordinance the following terms, phrases, and words shall have the meaning here- in given. When not inconsistent with the context words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directive. (a) For the purpose of this ordinance the term "trading stamps" shall also include and mean stamps, coupons, certificates and other similar devises or substitutes therefor which are re- deemable in commodities or cash, or to be used for things of value or cash. (b) For the purpose of this ordinance the term "person" shall include firm, associations, partnership and corporation. (c) For the purpose of this ordinance the term "marketing" shall also include and mean selling for cash or anything of value. (d) For the purpose of this ordinance the term "merchants" shall include persons, firms, associations and corporations who sell services or property, both real and personal, or the use thereof. (e) The words "sale price" shall mean and include the cost of the trading stamps to the merchants, whether paid for at the time of the purchase thereof or at the time of their redemption. SECTION 4. For the purpose of this ordinance trading stamps are and shall be presumed to have been marketed to the merchant by the person responsible for their redemption when the merchant gives or markets the trading stamps of such person in connection with the sale of property (both real and personal) or services by the merchant. SECTION 5. There is hereby levied on every person who en- gages in the marketing of trading stamps to merchants within the corporate limits of the City of Fairhope, and every such person shall pay to the City of Fairhope an annual license of $100.00 J. at the time of commencing to engage in the marketing of trading stamps and on January lst of each year thereafter, and in addition thereto a sum equal to 20 per cent of the sale price of all trading stamps so marketed, for the privilege of engaging in the marketing thereof within the corporate limits of the municipality, which shall be due and payable on the 15th day of each calendar month for all stamps marketed during the preceding calendar month. S SECTION 6. There is hereby levied on every person who en- gages in the marketing of trading stamps to merchants within the police jurisdiction of the City of Fairhope, but without the corporate limits of the City of Fairhope and every such person shall pay to the City of Fairhope an annual license of $50.00 at the time of commencing to engage in the marketing of trading stamps and on January 1st of each year thereafter, and in addition thereto a sum equal to 10 per cent of the sale price of all trading stamps so marketed, for the privilege of engaging in the marketing thereof within the police jurisdiction of the City of Fairhope, which shall be due and payable on the 15th day of each calendar month for all stamps marketed during the preceding calendar month. SECTION 7. Before engaging in the marketing of trading stamps in the corporate limits or the police jurisdiction of the City of Fairhope every person shall make application for license from the City of Fairhope through its clerk, who shall require from the applicant to supply certified statement of the last audit report of the company responsible for redeeming the trading stamps sought to be marketed. Such application shall also state the name of the merchant or merchants to whom the stamps are to be sold and the cost thereof to the merchant. The clerk shall not issue license until he has received the foregoing statement and submitted it to the City Council for its approval and authorization. The City Council shall approve such application unless it determines that the applicant fails to provide a reserve sufficient to insure the redemption of all outstanding un-redeemed stamps. The city council may require such statement and affidavits of the applicant as are necessary to determine this requirement for the protection of the public in- terest. On or before the 15th day of each calendar month each person marketing trading stamps within the corporate limits of the City of Fairhope or within the police jurisdiction thereof shall file with the City Clerk on forms prescribed by the City Council a statement of the number of trading stamps sold, to whom sold, and the cost thereof to the merchant. SECTION 8. Each merchant to whom trading stamps are sold to be issued in connection with his sales shall also make report to the City Clerk on or before the 10th day of each calendar month of the number of trading stamps purchased by him for issuance, from whom purchased, how redeemable, or to be used, and the cost thereof. SECTION 9. If any person required to pay the license here- under shall fail to pay the same and shall fail to pay any amount thereof when and as the same shall become due, the City Council may revoke the license issued hereunder. And it shall be unlawful for any person whose license has been revoked to market trading stamps to merchants in the City of Fairhope or its police jurisdiction. No revoked license shall be reinstated, but a new license shall be re- quired and may be issued with the approval of the City Council upon filing a new application and upon meeting any and all requirements of this ordinance and the payment of any and all taxes due. SECTION 10. The agents or representatives of persons who en- gage in the business of marketing trading stamps to merchants in this city shall be personally responsible for the compliance of their principals and of the business they represent with this ordinance. SECTION 11. It shall be unlawful for any merchant to give or issue trading stamps sold to it by any person who has not procured license hereunder. And in the event the license is revoked, it shall be unlawful for any such merchant to issue trading stamps bought from a person whose license has been revoked. The issuance by any merchant in the City of Fairhope or in its police jurisdiction of the trading stamps purchased by it from a person unlicensed, or from one whose license taxes have not been paid hereunder, after notice that such person has not paid such license, or that such license has been re- voked, shall render the merchant so issuing such trading stamps liable for the taxes levied by this ordinance for the marketing of trading stamps. SECTION 12. There is hereby levied upon any and all merchants issuing trading stamps not purchased from a person licensed hereunder, a privilege license tax in the same amounts, with the same pains and penalties herein prescribed for the marketing of trading stamps. Be fore engaging in the issuance of trading stamps not purchased from a licensee hereunder the merchant or person so issuing the same shall apply to the City Council and make application in the manner and form prescribed for the marketing of trading stamps to merchants and shall comply with all requirements hereunder for the marketing of trading stamps. SECTION 13. Any person violating any of the provisions of this ordinance shall, on conviction, be fined not more than $100.00 to which may be added, in the discretion of the judge of the court trying the case, confinement to jail and to hard labor for the city, for a period not to exceed six months. SECTION 14. If any section of this ordinance is for any reason held invalid or unconstitutional, such section shall be deemed a separate provision and shall not affect the validity of the remain- ing portions hereof. SECTION 15. The license imposed by this ordinance shall not apply to persons issuing coupons or certificates furnished by a manu- facturer or compounder as a part of an original package or item of merchandise and distributed in connection with that one commodity only, nor to persons issuing coupons or certificates exclusively on one private brand product only. SECTION 16. This ordinance shall be and become effective thirty days after its adoption. If any person shall be engaging in the marketing of trading stamps or any merchant shall be giving or issuing the same in connection with his sales, such person shall make application for license and pay the taxes herein provided and fully comply with this ordinance within ten days after this ordinance shall become effective. SECTION 17. This ordinance shall go into effect on the llth day of April, 1957, and remain in effect until repealed.