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Legislation #: 110618 Introduction Date: 8/18/2011
Type: Ordinance Effective Date: 9/4/2011
Sponsor: None
Title: Amending Chapter 40, Article II, Code of Ordinances, by repealing Section 40-166, Rental car license fee, and enacting in its place a new section of like number and subject matter to impose an hourly license fee for passenger cars rented on an hourly basis, while retaining the $4.00 per day license fee for daily car rentals and the annual gross receipts license fee.

Legislation History
DateMinutesDescription
8/11/2011 Filed by the Clerk's office
8/18/2011 Referred to Finance, Governance & Ethics Committee
8/24/2011 Advance and Do Pass, Debate
8/25/2011 Passed

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110618.pdf Authenticated 106K AUTHENTICATED
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=110618 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=110618
110618 Fact Sheet-Amended 8-16-2011.xlsx Fact Sheet 50K Fact Sheet [revised 8/16/11]
110618com.docx Advertise Notice 22K compared version
Hourly Car Rental Fact Sheet 08.10.11.xlsx Fact Sheet 49K Fact Sheet

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ORDINANCE NO. 110618

 

Amending Chapter 40, Article II, Code of Ordinances, by repealing Section 40-166, Rental car license fee, and enacting in its place a new section of like number and subject matter to impose an hourly license fee for passenger cars rented on an hourly basis, while retaining the $4.00 per day license fee for daily car rentals and the annual gross receipts license fee.

 

WHEREAS, in the election held August 3, 2004, the voters of Kansas City, Missouri, authorized the City, for the purpose of providing funds for the acquisition, development, construction, operation and maintenance of a Downtown Arena and appurtenant facilities, to impose a license fee of up to $4.00 per vehicle per rental day on all rental car agencies in addition to the existing fees based on annual gross receipts then authorized by Section 40-165, Code of Ordinances; and

 

WHEREAS, pursuant to the authority granted by the voters in such election, the City Council, in Committee Substitute for Ordinance No. 041122, As Amended, enacted Section 40-166, Code of Ordinances, on October 21, 2004, imposing a license fee on rental car agencies of $4.00 per day per passenger vehicle rented, plus a yearly license fee based on annual gross receipts; and

 

WHEREAS, in various cities passenger cars are now being rented on an hourly basis for short trips within the city, including hourly rentals through car-sharing programs; and

 

WHEREAS, it is anticipated that such hourly car rentals will be offered in Kansas City; and

 

WHEREAS, it is within the authority granted by the voters in the August 3, 2004, election for the City to impose a license fee of less than $4.00 per vehicle for rentals of less than one day; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Chapter 40, Code of Ordinances, Article II, entitled Schedule of License Fees, is hereby amended by repealing Section 40-166, Rental car license fee, and enacting a new section of like number and subject matter, to read as follows:

 

Sec. 40-166. - Rental car license fee.

 

(a)    Amount of fee. Every individual person or business entity as described in section 40-61, engaged in the business of renting, leasing or letting passenger vehicles for compensation shall pay to the city a license fee as follows:

 

$4.00 per day, or for hourly rentals, the hourly license fee described in subsection (b) herein, for each and every passenger vehicle rented, leased or let to a person or entity for 90 consecutive days or less, plus a license fee per year upon the annual gross receipts of rental car agencies in accordance with the following schedule of rates:

Annual Gross Receipts Fee Plus Per $1000

Excess Over

$1.00—$28,000.00 $ 25.00

$28,001.00—$55,000.00 25.00 $0.90 $ 28,000.00

$55,001.00—$110,000.00 50.00 0.89 55,000.00

$110,001.00—$220,000.00 99.00 0.88 110,000.00

$220,001.00—$440,000.00 196.00 0.87 220,000.00

$440,001.00—$880,000.00 388.00 0.86 440,000.00

$880,001.00—$1,760,000.00 767.00 0.85 880,000.00

$1,760,001.00—$3,520,000.00 1,515.00 0.84 1,760,000.00

$3,520,001.00—$7,040,000.00 2,994.00 0.83 3,520,000.00

$7,040,001.00—$14,080,000.00 5,916.00 0.82 7,040,000.00

$14,080,001.00—$28,160,000.00 11,689.00 0.81 14,080,000.00

$28,160,001.00—$56,320,000.00 23,094.00 0.80 28,160,000.00

$56,320,001.00—$112,640,000.00 45,622.00 0.79 56,320,000.00

$112,640,001.00—$225,280,000.00 90,115.00 0.78 112,640,000.00

$225,280,001.00—$450,560,000.00 177,975.00 0.77 225,280,000.00

$450,560,001.00—$901,120,000.00 351,441.00 0.76 450,560,000.00

$901,120,001.00 and over 693,867.00 0.75 901,120,000.00

 

(b)   Definitions. For purposes of this section, the following terms are defined as follows:

 

(1)               Rental car agency means an individual person or business entity as described in section 40-61 that provides the service of renting, leasing or letting passenger vehicles for compensation, whether the provision of such service is the primary, secondary, or incidental business of such person or entity.

 

(2)               Passenger vehicle means a motor vehicle designed primarily for the carriage of passengers, including, but not limited to, vehicles commonly classified as sedans, coupes, convertibles, station wagons, sport utility vehicles, passenger vans, "Suburban"-type vehicles or pick-up trucks, but does not include a vehicle licensed as a taxicab or a livery vehicle under chapter 76 of the Code of Ordinances.

 

(3)               Annual gross receipts as used in this section means annual gross receipts as defined in section 40-62 exclusive of the $4.00 per day per vehicle or the hourly license fee.

 

(4)               Hourly rentals mean the rental of a passenger vehicle for a period of less than 24 hours at an hourly rate or other rate based on a partial day.

 

(5)               Hourly license fee. The hourly license fee for each passenger vehicle rented is 17 cents per hour or 50 cents for the total period of rental, whichever is greater.

 

(c)    Issuance of license. The license under this section shall be issued as of January 1 of the current year and shall expire on December 31 of such year.

 

(d)   Gross receipts fee—Application, preliminary fee, year end adjustment. The gross receipts portion of the license fee shall be paid and determined as follows:

 

(1)               Preliminary license fee and application. The preliminary license fee and application shall be due and payable January 1 of the current year, or for a new business, on or before the date of starting operation The preliminary license fee shall be calculated based on anticipated gross receipts for the current year at the rate prescribed in part (a) of this section based on annual gross receipts from the preceding calendar year. A new business shall determine the preliminary license fee pursuant to Section 40-8 of this Chapter. The application shall be made in such form as required by the commissioner of revenue, giving such information as may be necessary to determine the amount of the preliminary license fee. A license shall be issued upon payment of the preliminary license fee.

 

(2)               Year end adjustment. At the end of the license period and before March 1 of the year succeeding the license period or within 60 days after ceasing to engage in the business so licensed, whichever occurs first, the licensee shall make adjustments to the preliminary license fee application, based on the actual gross receipts for the license year just ended. Such year end adjustment shall be made in such form or on such return as required by the commissioner of revenue. Any underpayment as determined by the adjustment shall be remitted by the licensee with the adjusted return. Any overpayment by the licensee shall be credited to the preliminary license fee for the succeeding year, or, in the event the licensee has ceased to engage in the business so licensed, paid or refunded to the licensee.

 

(e)    Daily and hourly license fees—quarterly returns and payments. The $4.00 per day per rental vehicle portion of the license fee and the hourly license fee shall be paid and determined as follows:

 

The license fee shall be paid to the commissioner of revenue quarterly, due and payable on the following dates, for the preceding quarterly periods as listed, based on the actual number of rentals of passenger vehicles per rental day, or the actual number of hourly rentals of passenger vehicles, for the quarter calculated at the rate of $4.00 per day or at the hourly license fee rate for hourly rentals for each and every passenger vehicle rented. The licensee shall make true reports to the commissioner of revenue, on forms prescribed by the commissioner, giving such information as may be necessary to determine the amount of the license fee.

 

Date License Fee/Report Due License Period

April 20 1st quarter-January 1 through March 31

July 20 2nd quarter-April 1 through June 30

October 20 3rd quarter-July 1 through September 30

January 20 4th quarter-October 1 through December 31

(f)    Examination of books and records. The commissioner of revenue and his authorized representative shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of the licensee as may be necessary to determine the correctness of such reports.

 

(g)   Penalties for nonpayment. Penalties for non-payment or late payment of any license fee due under this section shall be determined pursuant to sections 40-12 and 40-13.

 

________________________________________

 

Approved as to form and legality:

 

 

________________________________

Stephen Walsh

Assistant City Attorney