August 14, 2017
ORDINANCE 208,6d (1st Reading)
Introduced by Councilor Baker
AN ORDINANCE ENACTING AUTHORIZATION FOR EXTENDING A LOCAL OPTION SALES AND USE TAX
WHEREAS, the City Council of Albert Lea currently imposes a one-half of one percent sales and use tax for water quality projects outlined in the Shell Rock River Watershed Plan; and
WHEREAS, the authority for the sales tax stems from the 2005 Minnesota State Legislature law enacted First Special Session, Chapter, 3, Article 5, Section 38 (as amended in 2006) and as amended in 2014 Sessions Laws 2014, Chapter 308, Article 3, Section 23 (extending the expiration of the tax); and
WHEREAS, the tax is set to expire once fifteen million dollars ($15,000,000) are raised and it appears that sum will be collected around October of 2017; and
WHEREAS, the voters in the City of Albert Lea voted in favor of a referendum on November 8, 2016 to extend the tax for another period of up to fifteen (15) years or an additional fifteen million dollars ($15,000,000), whichever comes first; and
WHEREAS, the Minnesota State Legislature approved the 2017 Minnesota Special Session Law, Chapter 1, which under Chapter 1, Article 5, Sections 12 and 13, which permits the existing sales tax to expire thirty (30) years after it was first imposed or the revenues collected exceed thirty million dollars ($30,000,000); and
WHEREAS, the tax shall be extended pursuant to the vote of the people and Legislature upon compliance with Minnesota Statute 645.021, subd. 2 and 3.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF ALBERT LEA, MINNESOTA:
Sec. 1. That a new ordinance extending authorization for a local option sales and use tax is hereby enacted.
Sec. 2. Authority and Termination. The Legislature has enacted Laws of Minnesota, 2017, Chapter 1, Article 5, Sections 12 and 13 (see attached Exhibit), authorizing the City to extend the sales and use tax of 0.5% within the City to provide revenues to pay certain costs related to the funding of water quality projects. The tax expires at the earlier of 1) thirty (30) years after the taxes were first imposed, or 2) when the city council first determines that the amount of revenues raised to pay for applicable projects meet or exceed the sum of thirty million dollars ($30,000,000) total.
Sec. 3. Definitions. The words, terms and phrases used in this ordinance shall have the meaning ascribed to them in Minnesota Statutes, except where the context clearly indicates otherwise. In addition, the following definitions shall apply:
A. “Act” means Laws of Minnesota, 2017.
B. “City” means the City of Albert Lea.
C. “Commissioner” means the Commissioner of Revenue for the State of Minnesota, acting under the authority of an agreement entered into between the City and the State of Minnesota pursuant to the Act, or such other person designated to administer and collect the Albert Lea Sales Tax.
Sec. 4. Sales and Use Tax. Except as otherwise provided in this Article, there is hereby extended the excise tax in the amount of one-half of one percent on the gross receipts from sales at retail and the storage, use, distribution or consumption of goods or services which are taxable pursuant to Minnesota Statutes, Chapter 297A and occur within the City of Albert Lea, Minnesota.
Sec. 5. Application to State General Sales Tax. The tax imposed under this Article is intended to be collected for the most part on the same, items as the state general sales and use tax imposed by Minnesota Statutes, Chapter 297A and consequently the application and administration of the City sales tax shall be construed consistent with the State general sales and use tax and the imposition of the City tax shall be construed so that any subsequent amendment to Minnesota Statutes, Chapter 297A affecting the sales or uses taxable under Chapter 297A shall also apply to the City tax and effect in the same manner the sales taxable under this ordinance.
Sec. 6. Exemptions. All goods and services which are otherwise exempt from taxation under Minnesota Statute § 297A are exempt from this tax.
All mobile transportation equipment and parts and accessories attached to or to be attached to such equipment are exempt, if purchased by a holder of a motor carrier direct pay permit under Section 297A.90.
Sec. 7. Separate Statement; Collection from Purchaser; Advertising No Tax; Minimum; Uniform Tax Collection Methods. The tax shall be stated and charged separately from the sales price or charge for service insofar as practicable and shall be a debt from the purchaser to the seller recoverable at law in the same manner as other debts.
In computing the tax to be collected as the result of any transaction amounts of tax less than one-half of one cent may be disregarded and amounts of tax one-half cent or more may be considered an additional cent. If the sale price of any sale at retail is ninety-nine cents ($.99) or less, no tax shall be collected.
Sec. 8. Permit.
A. Every person desiring to engage in or who is conducting the business of making retail sales within Albert Lea shall file with the Commissioner an application for a separate Albert Lea permit and if such person has more than one place of business in Albert Lea, an application for each place of business must be filed. A vending machine operator who has more than one vending machine location shall nevertheless be considered to have only one place of business for purposes of this section. An applicant who has no regular place of doing business and who moves from place to place shall be considered to have only one place of business and shall attach such permit to his cart, stand, truck, or other merchandising device.
B. The Commissioner will issue to each applicant a separate permit for each place of business within the City. The permit shall be conspicuously displayed at the place for which it is issued. The permit shall not be assignable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein.
Sec. 9. Exemption Certificate. A fully completed exemption certificate taken from a purchaser to the effect that the property purchased is for resale or that the sale is otherwise exempt from the application of the tax imposed by this Article will conclusively relieve the retailer from collecting and remitting the tax. A person who has obtained from the Commissioner an exemption certificate pursuant to Minnesota Statutes Section 297A.89 may use such exemption certificate for the purposes of the sales tax imposed by the City.
Sec. 10. Presumption of Purpose of Sale. For the purpose of the proper administration and enforcement of this ordinance, it shall be presumed that all retail sales for delivery in the City are for storage, use, or other consumption in the City until the contrary is established.
Sec. 11. Collection of Sales Tax at Time of Sale.
A. Any retailer regularly making deliveries within the City, any retailer maintaining a place of business in the City, or any other retailer otherwise doing business within the City, upon making sales of any items which are not exempted from the sales tax imposed under that section and which are to be delivered within the City to the purchaser, shall at the time of making such sales collect the sales tax from the purchaser. The tax collected by such retailer shall be remitted to the Commissioner.
B. Any retailer required to collect the sales tax and remit such tax to the Commissioner pursuant to this section shall file with the Commissioner an application for a permit and provide such other information as the Commissioner may require.
C. “Retailer maintaining a place of business in the City,” or any like term, shall mean any retailer having or maintaining within this City, directly or by a subsidiary, an office, place of distribution, sales or sample room or place, warehouse, or other place of business, or having any affiliate, agent, salesperson, canvasser, or solicitor operating in this City under the authority or the retailer or its subsidiary, for any purpose, including the repairing, selling, delivering, installing, or soliciting of orders of the retailer’s goods or services, or the leasing of tangible personal property located in this City, whether the place of business or agent representative, affiliate, salesperson, canvasser, or solicitor is located in the City permanently or temporarily, or whether or not the retailer, subsidiary, or affiliate is authorized to do business within this City.
Sec. 12. Agent of Retailer. When, in the opinion of the Commissioner, it is necessary for the efficient administration of the tax, the Commissioner may regard any salesman, representative, trucker, peddler, or canvasser as the agent of the dealer, distributor, supervisor, employer, or other person under whom such salesman, representative, trucker, peddler, or canvasser operates or from whom the tangible personal property being sold is obtained, and may regard the dealer, distributor, supervisor, employer, or other person as a retailer for the purposes of this Article.
Sec. 13. Effective Date; Transitional Sales. Except as otherwise provided herein, the taxes authorized by this Article shall apply to sales made on or after April 1, 2006, and shall be in addition to all other taxes now in effect.
The City sales tax shall not apply to:
A. The gross receipts from retail sales or leases of tangible personal property made pursuant to a bona fide written contract which unconditionally vests the rights and obligations of the parties thereto, provided that such contracts were enforceable prior to April 1, 2006, and that delivery of the tangible personal property subject thereto is made on or before June 30, 2006.
B. The gross receipts from retail sales made pursuant to a bona fide lump sum or fixed price construction contract which unconditionally vests the rights and obligations of the parties thereto and which does not make provision for allocation of future taxes, provided that such contract was enforceable prior to April 1, 2006. And that delivery of the tangible personal property used in performing the Construction Contract is made before January 1, 2007.
C. Payments made for April and May, 2006, for contracts to provide taxable services, provided that such contracts were enforceable prior to April 1, 2006; however, the City sales tax shall apply to payments made on and after June 1, 2006.
D. Utility bills that include charges for services for any date before April 1, 2006; however, the Albert Lea Sales and Use Tax shall apply to all utility bills for services provided after April 1, 2006.
Sec. 14. Collection and Enforcement. The taxes imposed by the City hereunder shall be subject to the same interest, penalties, and other rules as are applicable to the State general sales and use tax imposed by Minnesota Statutes, Chapter 297A. The taxes imposed by the City hereunder may be collected by the State on behalf of the City as provided by an appropriate agreement with the Minnesota Commissioner of Revenue.
That the motion for the adoption of the foregoing resolution was duly seconded by Councilor and upon a vote being taken thereon, the following voted in favor thereof: Councilors Murray, Baker, Howland, Olson, Rasmussen, Brooks and Mayor Rasmussen, Jr.
And the following voted against the same: None.
That the motion for the adoption of the foregoing resolution was duly seconded by Councilor Olson and upon a vote being taken thereon, the following voted in favor thereof: Councilors Murray, Baker, Howland, Olson, Rasmussen, Brooks and Mayor Rasmussen, Jr.
And the following voted against the same: None.
Introduced and passed this 14th day of August, 2017
Mayor Vern Rasmussen Jr.
Filed and attested this 15th day of August, 2017
Secretary of the Council
June 13, 2017
Introduced by Councilor Baker
AN ORDINANCE OF THE CITY OF ALBERT LEA, MINNESOTA AMENDING CHAPTER 6, ARTICLE II, DIVISION 3, SEC. 6-109 – HOURS AND DAYS OF SALES
THE CITY COUNCIL OF THE CITY OF ALBERT LEA ORDAINS:
Sec. 1. That Chapter 6, Article II, Division 3, Sec. 6-109 of the Code of Ordinances, City of Albert Lea, Minnesota is hereby amended to read as follows:
Sec. 6-109. – Hours and days of sales.
a. On-Sale Hours. No sale of liquor by an on-sale licensee may be made between the hours of 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor after 1:00 a.m. on Sunday, except as provided in City Code Section 6-111. No “on-sale” shall be made after 8:00 p.m. on December 24.
b. Off-Sale Hours. No sale of intoxicating liquor may be made by an off-sale licensee:
(1) on Sundays, except between the hours of 11:00 a.m. and 6:00 p.m.;
(2) before 8:00 a.m. or after 8:00 p.m. on Monday through Thursday, or before 8:00 a.m. or after 10:00 p.m. on Friday and Saturday;
(3) on Thanksgiving Day;
(4) on Christmas Day, December 25; or
(5) after 8:00 p.m. on Christmas Eve, December 24.
c. Sunday Deliveries for Off-Sale. No delivery of alcohol to an off-sale licensee may be made by a wholesaler or accepted by an off-sale licensee on a Sunday. No order solicitation or merchandising may be made by a wholesaler on a Sunday.
Sec. 2. Effective Date. This law shall become effective July 1, 2017.
That the motion for the adoption of the foregoing ordinance was duly seconded by Councilor Howland, and upon a vote being taken thereon, the following voted in favor thereof: Councilors Murray, Baker, Howland, Olson, Rasmussen, and Mayor Rasmussen, Jr.; and the following voted against the same: Brooks
Mayor Rasmussen declared this ordinance passed.
Introduced the first time on the 22nd day of May, 2017
Introduced the second time on the 12th day of June, 2017
Mayor Vern Rasmussen, Jr.
Filed and attested to on the 13th day of June, 2017
Secretary of the Council