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HomeMy WebLinkAbout133 - 09/15/1987 - ADDING NEW CHAPTER TO CITY CODE ENTITLED GAS COMPANY OCCUPATION TAX, WHICH IMPOSES AN OCCUPATION TAX ORDINANCE NO. 133, 1987 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADDING A NEW CHAPTER 102 TO THE CODE OF THE CITY OF FORT COLLINS ENTITLED "GAS COMPANY OCCUPATION TAX, " WHICH IMPOSES AN OCCUPATION TAX UPON GAS COMPANIES OPERATING WITHIN THE CITY OF FORT COLLINS WHEREAS, on August 24, 1967, the Council of the City of Fort Collins adopted Ordinance No. 40, 1967, approved by referendum on October 10, 1967, granting the Public Service Company of Colorado a gas franchise in the City of Fort Collins; and WHEREAS, said gas franchise, according to its terms, shall expire on October 10, 1987; and WHEREAS, for the reasons of legislative intent as hereinafter set forth, the Council does hereby determine that it is in the best interests of the City that a gas company occupation tax be imposed upon gas companies operating within the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Code of the City be amended by the addition of a new Chapter 102, Taxation, said Chapter to be entitled "Gas Company Occupation Tax, " which shall provide as follows: CHAPTER 102, Taxation Gas Company Occupation Tax Sec. 102-1 . Short title. This Chapter 102 shall be known and may be cited as the "Fort Collins Gas Company Occupation Tax." Sec. 102-2. Legislative intent. The City Council does hereby find, determine, and declare: (a) That transportation, distribution and sale of gas within a city through pipelines, mains and other fixed facilities, using easements and rights of ways granted by the City involves the use, availability and potential use of City personnel and facilities and creates the potential for hazards dissimilar to other utility services and may require stand-by and active service by fire, police and other local safety agencies, as well as the Department of Engineering Services, and are matters of local and municipal concern. (b) That the nature of companies transporting, distributing and selling gas, and otherwise operating within Fort Collins, including, without limitation, their demands on City agencies, the use of public and private easements, streets and rights of way, and the potential and actual hazards from the operations of such companies, has a substantial effect upon the health, safety and welfare of the citizens of Fort Collins, and upon the expenditures to be budgeted by the City. (c) That, upon review of all matters proper to be considered relating to the operations and hazards of gas companies, the classification of such gas companies as separate businesses and occupations is reasonable, proper, uniform and nondiscriminatory; and the taxable amount hereby levied is reasonable, proper, uniform, nondiscriminatory and necessary for a just and proper distribution of the tax burdens of the City. (d) That the potential for explosions of gas pipelines, as well as explosions related to escaping gas within buildings, indicates that there are dangers to the property and lives of the citizens of Fort Collins from the operation of gas companies within the City. (e) That the use by a gas company of the streets, alleys and public rights of ways located within the City is a valuable special privilege not provided to the public generally and for which the City is entitled to consideration in the form of occupation tax revenues. (f) That the occupation tax herein created and defined is imposed on the right of gas companies to do business within the City as are other occupation taxes so created and imposed in the City. Sec. 102-3. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section: City refers to and is the municipal corporation designated as the City of Fort Collins located in Larimer County and includes the territory which currently is or may in the future be included within the boundaries of the City. Gas or natural gas refers to such gaseous fuels as natural , artificial , synthetic, liquefied natural , liquefied petroleum, manufactured, or any mixture thereof. Gas company shall mean any person as defined in Section 104-1 of this Code that sells, provides, delivers or distributes gas to end users within the corporate limits of the City through pipelines, mains and other related facilities and appurtenances located in whole or in part on easements and rights of way granted by the City. Taxable amount refers to the monthly amount of the occupation tax levied upon a gas company by this Chapter. Sec. 102-4. Levy of the tax. (a) Effective October 11, 1987, there is hereby levied upon every gas company as defined in Section 102-3 a taxable amount for each and every calendar month that any such gas company sells, provides, supplies, delivers or distributes gas to end users within the City. (b) The taxable amount shall be $69,790. per calendar month, except that the taxable amount for the period of October 11, 1987, through October 31, 1987, shall be $47,277. Sec. 102-5. Time of payment of tax. The tax levied by this Chapter shall accrue against each and every gas company on October 11, 1987, and, on the first day of each calendar month thereafter. The taxable amount shall be due and payable by such company no later than the tenth day of each calendar month except that the taxable amount for October, 1987, shall be due and payable no later than October 21, 1987. Any taxable amount not paid on October 21, 1987, and thereafter, on the tenth day of each calendar month shall become delinquent. Sec. 102-6. Interest on deficiency. Interest on any deficiency in payment of this tax shall be enforced as prescribed in Sections 104-36 and 104-38 of this Code. Sec. 102-7. Failure to pay. If any gas company subject to the provisions of this Chapter shall fail to pay the taxes as herein provided, the full amount thereof plus costs of collection, including reasonable attorney fees, shall be due and collected from such company, and the same together with an additional ten (10) percent of the amount of taxes due shall be and hereby is declared to be a debt due and owing from such company to the City. The computation of said ten (10) percent shall be in addition to interest on the deficiency as set forth in Section 102-7 of this Chapter. The City Attorney, upon direction of the City Council , shall commence and prosecute to final judgment and determination in any court of competent jurisdiction an action at law to collect said debt. Sec. 102-8. Inspection of records. The City, its officers, agents or representatives shall have the right at all reasonable hours and times to examine the books and records of the gas companies which are subject to the provisions of this Chapter and to make copies of the entries or contents thereof. Sec. 102-9. Administrative hearings. Any gas company subject to the provisions of this Chapter may request a hearing on the levy of the occupation tax after receiving a notice of final determination, assessment, demand for payment, or denial of claim for refund. Such hearing shall be conducted in the manner prescribed hereinafter: (a) If a gas company disputes the reasonableness or applicability of the tax, it may seek review of the assessment by filing a protest with the Financial Officer within thirty (30) days of the mailing of the accounting statement. If such a protest is filed, the gas company shall appear before the Financial Officer at a date specified. The gas company shall be notified of this hearing date by certified mail , return receipt requested. At this hearing the gas company may present evidence regarding the reasonableness or applicability of the tax. The gas company shall bear the burden of proof. (b) Said hearing shall be solely for the purpose of hearing protests as to the reasonableness and applicability of the tax. (c) At said hearing the Financial Officer shall have all powers necessary to ensure the fair and efficient conduct of the hearing, but shall not be bound by the Colorado Rules of Evidence. The hearing shall be open to the public. (d) Within sixty (60) days of such hearing, the Financial Officer shall make such order in the matter as he or she deems just and proper and shall furnish a copy of such final order to the protestant, and the City Manager. Sec. 102-10. Administration of the occupation tax. The Financial Officer shall administer the provisions of this Chapter. The City Manager may promulgate rules or regulations to aid in the enforcement and administration of this Chapter, pursuant to the provisions of Section 104-55 of this Code. Sec. 102-11 . Local purpose. The tax herein provided is upon occupations and businesses in the performance of local functions and is not a tax upon functions relating to interstate commerce. It is expressly understood that none of the terms of this Chapter shall be construed to mean that any gas company subject to this tax is granted a franchise by the City. Sec. 102-12. Reimbursement of costs. Any entity challenging the validity, legality, applicability or constitutionality of this ordinance, or the tax levied, if unsuccessful , will reimburse the City for all costs incurred, including attorneys' fees, in such litigation. Sec. 102-13. Severability. If any provision of this Chapter or application thereof to any company or circumstance is adjudged invalid by a court of competent jurisdiction, such invalidity shall not affect the remaining provisions of this Chapter that can be effective without the invalid provision, and to said end this Chapter is declared to be severable. Introduced, considered favorably on first reading and ordered published this 1st day of September, A.D. 1987, and to be presented for final passage on the 15th day of September, A.D. 1987. ATTEST: 1rs�r� City Cle 1987.Passed and adopted on final reading this 15th day of September, A.D. r ATTEST- City Clerk QS