1318 ORDINANCE NO. 1318 ( #17 - 07)
AN ORDINANCE CREATING JACKSONVILLE MUNICIPAL CODE § 3.06.015
ESTABLISHING A PREPARED FOODS TAX UPON GROSS REVENUES OF
CAFES, CAFETERIAS, CARRY -OUT RESTAURANTS, CATERERS,
CONCESSION STANDS, CONVENIENCE STORES, GROCERY STORES /FOOD
COUNTERS, DRIVE -THRU RESTAURANTS, FAST FOOD RESTAURANTS,
DINE -IN RESTAURANTS, AND OTHER SUCH SIMILAR BUSINESSES WHICH
PREPARE FOODS AND BEVERAGES FOR ON OR OFF PREMISES
CONSUMPTION LOCATED WITHIN JACKSONVILLE; AMENDING
JACKSONVILLE MUNICIPAL CODE 11 3.06.020 AND 3.06.030; CREATING
JACKSONVILLE MUNICIPAL CODE 55 3.06.032, 3.06.034, 3.06.036,
3.06.038, 3.06.042, 3.06.044, and 3.06.046; PRESCRIBING OTHER
MATTERS RELATING THERETO; AND, FOR OTHER PURPOSES.
WHEREAS, additional funds are needed for the development, establishment,
improvement, maintenance, and operation of recreational and tourist facilities within
the City of Jacksonville. It is believed that a Two Percent (2 %) tax upon the gross
receipts of cafes, cafeterias, carry-out restaurants, caterers, concession stands,
convenience stores, grocery stores /food counters, drive -thru restaurants, fast food
restaurants, dine -in restaurants, and other such similar businesses which prepare
foods and beverages for on or off premises consumption in Jacksonville would
provide an additional source of revenue for Jacksonville recreational /tourist facilities
and programs; and,
WHEREAS, administration of such funds, if collected, should be controlled by
and through the Jacksonville Advertising and Promotions Commission should
implementation of such a tax be approved. While some procedures are in place to
collect and enforce such a tax, it has been determined that additional provisions as
provided below will make said collection and enforcement procedures more effective
and efficient.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF JACKSONVILLE, ARKANSAS, THAT:
SECTION ONE: Jacksonville Municipal Code § 3.06.015 (Prepared Foods
Tax) is hereby created and shall include the following:
JMC § 3.06.015 (Prepared Foods Tax)
There is to hereinafter be levied and collected a Two Percent (2 %)
tax upon the gross receipts of cafes, cafeterias, carry-out restaurants,
caterers, concession stands, convenience stores, food counters, grocery
stores, drive -thru restaurants, fast food restaurants, dine -in restaurants, and
other such similar businesses which prepare foods and beverages for on or
off premises consumption located within the City of Jacksonville, provided
that such levy shall not apply to such gross receipts or gross proceeds of
organizations qualified under Section 501(c)(3) of the Internal Revenue Code
of 1986, as amended.
SECTION TWO: Jacksonville Municipal Code § 3.06.020 (Purpose of Levy
Expenditures) is hereby created and shall include the following:
JMC § 3.06.020 (Purpose of Levy Expenditures)
Funds collected and remitted to the City under this Chapter will be
deposited into a special fund to be used for advertisement, development,
construction, equipment, improvement, maintenance, operation, promotion,
reconstruction, renovation, and /or repair of the City's general operations and capital
improvements, Parks & Recreation facilities and programs, and tourist promotion
facilities located within or adjacent to Jacksonville city limits. These funds may also
be used to pay all or part or pledge all or part for retirement of bonds issued for the
ORDINANCE NO. 1318 (# 17 - 07)
Page Two
establishment and operation of tourist - oriented facilities. All disbursements of and
expenditures from said funds shall be as directed by majority vote of the Advertising
and Promotions Commission under the direction and in compliance with applicable
local, state, and federal laws. Of the total amount of tax levied hereunder, an
amount equal to Fifty Percent (50 %) of the tax collected on all hotels and Prepared
Foods as defined hereunder and hereinafter, until otherwise amended, shall be used
by the A&P Commission, at the direction of the Mayor and upon approval of the City
Council, for the construction, equipping, improvement, maintenance, operation,
reconstruction, and repair of Jacksonville Parks & Recreation Facilities.
SECTION THREE: Jacksonville Municipal Code § 3.06.030 (Payment
Schedule for Levy Collected) is hereby created and shall include the following:
JMC § 3.06.030 (Payment Schedule for Levy Collected)
From the effective date of this Chapter, the tax(es) so levied shall be
paid by businesses, companies, corporations, firms, individuals, persons, and other
such entities in the same manner and at the same time and manner as the tax
levied under ACA § 26 -52 -101 et. seq. (the Arkansas Gross Receipts Act of 1941)
and ACA § 26-18 -101 et. seq. (the Arkansas Tax Procedure Act), which are both
incorporated herein as applicable. All persons paying the tax shall report and remit
payment upon retum forms provided by the Advertising and Promotions
Commission.
SECTION FOUR: Jacksonville Municipal Code § 3.06.032 (Permits) is
hereby created and shall include the following:
JMC § 3.06.032 (Permits)
a) It shall be unlawful for any business, company, corporation, firm, individual,
person, or other such entity to transact business within the City which is subject
to the tax(es) provided herein prior to the issuance and receipt of an A&P Tax
Permit from the Commission. Applications shall be completed by the potential
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to er on forms prescribed by the Commission;
taxpayer P Y
b) Separate A&P Tax Permit(s) shall be obtained for each location from which a
business, company, corporation, firm, individual, person, or other such entity
conducts business subject to the terms and conditions of the A&P tax;
c) A&P Tax Permit(s) shall not be assigned and shall be valid only for the named
party in whose name it is issued and for the location thereon designated;
d) A&P Tax Permit(s) shall at all (s ) a a times be conspicuously displayed at the location
designated thereon;
e) A&P Tax Permit(s) expire at the time of cessation of the taxpayer's business at
the location designated thereon, at the time the taxpayer's Business Privilege
License expires, or upon suspension by the Commission for violation of any
provisions contained herein. Should a taxpayer cease operation under an A&P
Tax Permit, the Permit shall be retumed to the Commission and pay any and all
unpaid and accrued A&P Tax(es) due thereunder; and,
f) It shall be unlawful for any person subject to the taxes herein to transact
business within the City when their A&P Tax Permit is expired.
SECTION FIVE: Jacksonville Municipal Code § 3.06.034 (Payment and
Retums) is hereby created and shall include the following:
JMC § 3.06.034 (Payment and Returns)
a) A&P tax payments shall be due and payable as of the First (15) day of each
calendar month by the business, company, corporation, firm, individual,
person, or other such entity liable for the payment. Such is considered
delinquent if not paid on or before the First (1s day of the next calendar
month;
ORDINANCE NO. 1318 (# 17 — 07)
Page Three
b) It shall be the duty of the taxpayer on or before the Twentieth (20 of each
calendar month to deliver to the Commission, upon forms prescribed and
furnished by the Commission, returns under oath showing the total combined
gross receipts or gross proceeds subject to the A&P tax for the preceding
calendar month and the amount of the tax due, together with payment for
said amount. Once a taxpayer becomes liable for the payment of A&P tax, a
taxpayer must continue to file a return, even though no tax may be due, until
such time as the taxpayer surrenders their A&P Tax Permit. The returns shall
contain such further information as the Commission may prescribe and
require;
c) If the retum is delivered on or before the Twentieth (20 day of the
calendar month following the month the tax is imposed, the taxpayer may
remit to the Commission Ninety-eight Percent (98 %) of the amount due as
full payment. A return is considered "delivered" if it is postmarked by the
U.S. Postal Service or received by the Commission prior to or on the
Twentieth (20 of the calendar month. Failure of the taxpayer to remit the
A&P tax on or before the Twentieth (20 of each calendar month shall cause
the taxpayer to remit to the Commission One Hundred Percent (100 %) of the
amount of the A&P Tax due, plus any applicable penalty and interest accrued
thereon; and,
d) If the return is delivered after the First (1s day of the next calendar month,
there shall be added to the amount required to be reported and paid the
amount of Five Percent (5 %) of the A&P Tax if the failure is not more than
One (1) month past the delinquency date, with an additional Five Percent
(5 %) for each additional month or fraction thereof during which the failure
continues, not to exceed a total penalty amount of no more than Thirty -five
Percent (35 %) in the aggregate as detailed below.
SECTION SLY: Jacksonville Municipal Code § 3.06.036 (Examinations)
is hereby created and shall include the following:
JMC § 3.06.036 (Examinations)
a) In the administration of this Chapter, the Commission or its designated
representative(s) may make an examination, investigation, or audit of a
business, company, corporation, firm, individual, person, or other such entity
liable for payment hereunder with reasonable notice therein. This shall
include the right to inspect, copy, or review the accounts, books, computer
programs or records, documents, papers, and vouchers of a taxpayer
hereunder, including those maintained by another business, financial
institution, and /or the records of another govemmental agency(ies) regarding
said taxpayer, except where privileged under law. Each taxpayer and /or its
agents, employees, or designated representatives shall exhibit these items
and facilitate any examination hereunder;
b) The Commission or its designated representative may compel production of
such records by summons if necessary. Such may be served directly by the
Commission or its designated representative(s); and,
c) Should such be necessary, the Commission is also authorized to administer
oaths, conduct hearings, and compel by summons the attendance of
witnesses, testimony, and the production of any accounts, books, computer
programs or records, documents, papers, and vouchers of a taxpayer
hereunder, including those maintained by another business.
SECTION SEVEN: Jacksonville Municipal Code § 3.06.038 (Assessment
and Collection) is hereby created and shall include the following:
JMC § 3.06.038 (Assessment and Collection)
ORDINANCE NO. 1318 (# 17 — 07)
Page Four
a) The Commission or its designated representative(s) are authorized and
required to make the appropriate assessments, determinations, inquiries,
investigations, and to take any and all necessary steps required regarding the
collection of the A&P Tax, including any accrued interest, additional tax(es)
due, and assessable penalties imposed herein. By recording such and
providing the taxpayer with a copy thereof, the Commission shall demand
payment of said amount(s); and,
b) If any taxpayer fails to file any return as required hereunder or files a return
that is incorrect, fraudulent, or miscalculated, the Commission, from any
information in its possession or obtainable, may determine the correct
amount of tax due for the taxable period and shall notify the taxpayer in
writing of the correct amount due. Should the taxpayer disagree with said
assessment, he /she/it shall notify the Commission in writing within Ten (10)
days of receipt of said assessment of the basis for disagreement and provide
any and all supporting documentation for review by the Commission.
SECTION EIGHT Jacksonville Municipal Code § 3.06.040 (Penalties) is
hereby created and shall include the following:
JMC § 3.06.040 (Penalties)
Any business, company, corporation, firm, individual, person, or other
such entity who fails to collect and /or remit the tax levy referred to herein shall be
subject to a penalty of no more than Thirty-five Percent (35 %) of the unpaid tax.
Simple interest on unpaid taxes shall be assessed at the rate of Ten Percent (10 %)
per annum.
SECTION NINE :: Jacksonville Municipal Code § 3.06.042 (Revocation or
Suspension of Permit) is hereby created and shall include the following:
JMC § 3.06.042 (Revocation or Suspension of Permit)
a) Whenever a taxpayer to whom an A&P Tax Permit has been issued fails to
comply with any provision of this Chapter, induding any rule or regulation
prescribed by the Commission, the Commission shall give written notice of its
intention to revoke the taxpayer's A&P Tax Permit. If desired, the taxpayer
may, within Ten (10) days of receipt of such a notice, request a hearing
before the Commission to prevent such revocation;
b) If a taxpayer request a hearing, the Commission shall conduct such at its
next regularly scheduled meeting. At such time, the taxpayer and the
Commission shall be entitled to introduce evidence and testimony as
necessary to determine whether the taxpayer's Tax Permit should be
revoked. The Commission shall, upon completion of said hearing, take a
recorded majority vote to either continue or suspend the Tax Permit in
question and make a final assessment thereunder, when applicable. Failure
of the taxpayer to attend said hearing shall be grounds for the Commission to
immediately revoke the taxpayer's A&P Tax Permit; and,
c) Once suspended, a taxpayer is not entitled to obtain another A&P Tax Permit
until all outstanding arrearages are paid in full, including any applicable
accrued interest, tax(es), and penalties.
SECTION TEN; Jacksonville Municipal Code § 3.06.014 (Unpaid
Taxes — Certificates of Indebtedness) is hereby created and shall include:
JMC § 3.06.044 (Unpaid Taxes — Certificates of Indebtedness)
a) If a taxpayer does not timely and properly pursue the remedies provided
herein and by law from a decision of the Commission and a final assessment
is made, or if the taxpayer fails to pay the deficiency assessed upon notice
and demand, the Commission or its designated representative(s) shall issue
ORDINANCE NO. 1318 at 17- 07)
Page Five
to the Circuit Clerk of any County of the State in which the taxpayer's
business is located a Certificate of Indebtedness certifying that the business,
company, corporation, firm, individual, person, or other such entity liable for
payment hereunder is indebted to the Commission for the amount assessed;
b) The entry of a Certificate of Indebtedness shall have the same force and
effect as the entry of a judgment rendered by a Circuit Court, remaining in
force for Ten (10) years. This entry shall constitute the Commission's lien
upon the title of any real and personal property of the taxpayer in the County
where the Certificate of Indebtedness is recorded; and,
c) Nothing in this Chapter shall preclude the Commission from utilizing any
other means provided by law for collection of delinquent taxes.
SECTION ELEVEN: Jacksonville Municipal Code § 3.06.046
(Violations) is hereby created and shall include the following:
JMC § 3.06.046 (Violations)
Any business, company, corporation, firm, individual, person, or other such entity
liable for payment hereunder found to be in violation of any provision of this Chapter
shall be subject to punishment of said violation(s) through citation into the
Jacksonville District Court. If guilt is determined or pled, said violation shall be
punishable by a fine no less than One Hundred Dollars ($100.00) and no greater
than Five Hundred Dollars ($500.00). Each day a taxpayer transacts business within
the City without a valid A &P permit or in violation of the terms herein shall constitute
a separate violation.
SECTION TWELVE: Any such Ordinance or parts of Ordinances in
conflict herewith are hereby repealed to the extent of said conflict.
SECTION THIRTEEN: This Ordinance shall take effect from and after
the First an day of October, 2007, and shall continue to be assessed and collected
until declared otherwise by Council action.
APPROVED AND ADOPTED THIS Ond DAY OF AUGUST, 2007.
CITY OF JACKSONVILLE, ARKANSAS
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TOMMY SWAT A
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SUSAN + VITT CITY LERK - 57;
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