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Legislation #: 121043 Introduction Date: 12/13/2012
Type: Ordinance Effective Date: 1/10/2013
Sponsor: COUNCILMEMBERS MARCASON, SHARP, DAVIS, CIRCO, WAGNER, BROOKS, JOHNSON, FORD, JAMES, JR., GLOVER, CURLS AND REED
Title: Calling an election on April 2, 2013, for the purpose of asking voters to remove all existing exemptions from the existing hotel/motel convention and tourism tax, except for the exemption of the United States government and its agencies under federal law, in order to provide additional funds for the promotion of convention and tourism business for the City; directing the City Clerk to provide notice of the election; directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by the voters; amending Section 68-564, Code of Ordinances to eliminate the exemptions for previously exempt groups; and recognizing an emergency.

Legislation History
DateMinutesDescription
12/12/2012 Filed by the Clerk's office
12/13/2012 Referred to Finance, Governance & Ethics Committee
12/19/2012 Do Pass as a Committee Substitute
12/20/2012 Assigned Third Read Calendar as Substituted
1/10/2013 Councilmember Marcason Move to Amend
1/10/2013 Passed as Substituted and Amended

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 121043, AS AMENDED

Calling an election on April 2, 2013, for the purpose of asking voters to remove all existing exemptions from the existing hotel/motel convention and tourism tax, except for the exemption held by the United States government, in order to provide additional funds for the promotion of convention and visitor business and neighborhood tourism and support of City owned convention and entertainment facilities; directing the City Clerk to provide notice of the election; directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by the voters; amending Section 68-564, Code of Ordinances to eliminate the exemptions for previously exempt groups; and recognizing an emergency.

WHEREAS, the City generally imposes a convention and tourism tax of seven and one-half percent on the amount of sales or charges for all sleeping rooms paid by transient guests of hotels, motels and tourist courts; and

WHEREAS, Section 68-564, Code of Ordinances, provides that exemptions consistent with the applicable provisions of Section 92.338, Revised Statutes of Missouri, are applicable to the imposition and collection of the convention and tourism tax; and

WHEREAS, state law was amended in 2012 by the passage of HB 1504 by the Missouri General Assembly allowing the City to eliminate the tax exemptions and to levy and collect the hotel/motel tax from organizations which would otherwise be exempt from sales tax under the provisions of Sections 144.010 to 144.510 of the Missouri Revised Statutes; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. ELECTION CALLED. That an election is called on April 2, 2013, for the purpose of submitting to the voters of Kansas City a question authorizing the removal of all existing exemptions, except that of the United States government and its agencies, from payment of the existing convention and tourism tax of seven and one-half percent of the amount of sales or charges for all sleeping rooms paid by these transient guests.

Section 2. BALLOT TITLE. The ballot title shall be:

QUESTION ___

SHALL THE FOLLOWING BE APPROVED?

Shall the City of Kansas City, Missouri be authorized to remove all existing exemptions from payment of the existing convention and tourism tax on transient guests, except the exemption held by the United States government, and to collect the existing tax of seven and one-half percent of the amount of sales or charges for all sleeping rooms paid by the transient guests of hotels, motels and tourist courts situated within the city, except for persons on United States government official business, in order to provide additional funds for the promotion of convention and visitor business and neighborhood tourism and support of city owned convention and entertainment facilities?

Section 3. ELECTION NOTICE. That the notice of election shall read as follows:

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NOTICE OF ELECTION

CITY OF KANSAS CITY, MISSOURI

Notice is given to the qualified voters of the City of Kansas City that the City Council of the City has called a special election to be held in the City on Tuesday, April 2, 2013, commencing at 6:00 a.m. and closing at 7:00 p.m. on the question contained in the following sample ballot:

The official ballot will be in substantially the following form:

==========================================================

OFFICIAL BALLOT

CITY OF KANSAS CITY

SPECIAL ELECTION – April 2, 2013

QUESTION _____

Shall the City of Kansas City, Missouri be authorized to remove all existing exemptions from payment of the existing convention and tourism tax on transient guests, except the exemption held by the United States government, and to collect the existing tax of seven and one-half percent of the amount of sales or charges for all sleeping rooms paid by the transient guests of hotels, motels and tourist courts situated within the city, except for persons on United States government official business, in order to provide additional funds for the promotion of convention and visitor business and neighborhood tourism and support of city owned convention and entertainment facilities?

YES _____

NO _____

[Instructions to voters will be supplied by the election authorities]

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A full and complete copy of Committee Substitute for Ordinance No. 121043, As Amended, submitting this question to the electorate is on file in the office of the City Clerk of Kansas City, Missouri and is open for inspection and copying.

The election will be held at the following polling places in the City of Kansas City, Missouri: [insert list in last publication only].

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I hereby certify that the foregoing is the legal notice to be published pursuant to Section 115.127, RSMo.

Given under my hand and the official seal of the City of Kansas City, Missouri, this _________ day of January, 2013.

(SEAL)

_____________________________

MARILYN SANDERS

City Clerk of Kansas City, Missouri

Before me, a notary public, personally appeared Marilyn Sanders, to me known to be the City Clerk of the City of Kansas City, Missouri, and the person who acknowledged to me that she executed the same for the purposes therein stated.

_________________________________

Notary Public

My commission expires:_____________________________

Section 4. NOTICE TO ELECTION AUTHORITIES BY CITY CLERK. That following passage of this ordinance the City Clerk shall deliver certified copies of this ordinance and notice of election to the Clerk of Cass County, Board of Election Commissioners of Clay County, Board of Election Commissioners of Kansas City, and Board of Election Commissioners of Platte County, not later than January 22, 2013, which shall be the authority of each election authority of the City to submit the foregoing question to the electors of the City and to give public notice as provided by law.

Section 5. AMENDMENT OF SECTION 68-564 OF THE CODE. That contingent upon approval of the voters of this question, section 68-564, Code of Ordinances, is amended to read as follows:


Sec. 68-564. Exemptions.

(a) Except as provided in (b) below, in accordance with the applicable provisions of RSMo 92.338, as amended, all exemptions granted to agencies of government, organizations and persons, and to the sale of certain articles and items of tangible personal property and taxable services under the provisions of RSMO 144.010-144.510 are hereby made applicable to the imposition and collection of the convention and tourism tax.

(b) Notwithstanding the provisions of (a) above, effective October 1, 2013, and in accordance with the applicable provisions of RSMo 92.338, as amended, the following transient guests who would otherwise be exempt under (a) above are subject the tax imposed by Sec. 68-551(a)(1) of this article:

(1) Religious and charitable organizations and institutions;

(2) Elementary and secondary schools operated at public expense;

(3) Private not-for-profit elementary or secondary schools;

(4) Institutions of higher education supported by public funds;

(5) Private not-for-profit institutions of higher education;

(6) Not-for-profit civic, social, service or fraternal organizations (including fraternal organizations which have been declared tax-exempt organizations pursuant to Section 501(c)(8) or (10) of the 1986 Internal Revenue Code, as amended);

(7) The state of Missouri, its agencies and political subdivisions;

(8) All other transient guests which the city is not prohibited from taxing under the laws or Constitution of the United States or the Constitution of the State of Missouri.

(c) The same exemption certificate required by RSMo 144.010-144.510 for the administration and collection of state sales tax shall satisfy the requirements of this article with respect to transient guests eligible for exemption under this article.

Section 6. EFFECT OF INVALIDITY. This ordinance represents a change in the existing exemptions from the convention and tourism tax and not a replacement. It is intended to place before the qualified voters the question of removing an existing exemption from the tax for certain transient guests, not either eliminating or increasing the tax. It is the intention of the Mayor and Council that if the change in the existing exemptions is found to be unlawful, the current provisions of Section 68-564 of the Code will remain in effect.

Section 7. NOTICE TO THE DIRECTOR OF REVENUE BY CITY CLERK. If the question is approved by the voters, the City Clerk shall, within 10 days after the approval, forward to the Missouri Director of Revenue by United States registered or certified mail, a certified copy of this ordinance together with certifications of the election returns accompanied by a map of the City clearly showing its boundaries.

Section 8. EMERGENCY RECOGNIZED. This ordinance, providing for the submission of questions to the people of Kansas City, Missouri, is hereby recognized to be an emergency measure within the meaning of Section 503(a)(3)(A) of the Charter because it calls an election and provides for the submission of proposals to the people; and as such shall become effective immediately following approval by the Mayor, or five days after passage if no action is taken by the Mayor to approve or veto the ordinance.

_______________________________________________

Approved as to form and legality:

 

______________________________

William Geary

City Attorney