Subject: 10394/SalesTax/2 1/4% Date: Wed, 27 May 1992 07:45:00 -0500 ORDINANCE NO. 10394 AN ORDINANCE TO LEVY A LOCAL SALES TAX AS AUTHORIZED BY SECTION 67-6-702, TENNESSEE CODE ANNOTATED, AS AMENDED, FOR THE PURPOSE OF TAXING PRIVILEGES SUBJECT TO THE "RETAILERS' SALES TAX ACT" UNDER CHAPTER 6, TITLE 67, TENNESSEE CODE ANNOTATED, AS THE SAME MAY BE AMENDED, AT A RATE EQUAL TO TWO AND ONE-FOURTHS (2 1/4%) PERCENT SUBJECT TO THE MAXIMUM AMOUNT SET FORTH IN TCA SECTION 67-6-702(a)(1) FOR THE SALE OR USE OF ANY SINGLE ARTICLE OF PERSONAL PROPERTY; AND TO PROVIDE FOR THE COLLECTION OF SAID TAX BY THE DEPARTMENT OF REVENUE OF THE STATE OF TENNESSEE IN ACCORDANCE WITH ITS RULES AND REGULATIONS; AND TO PROVIDE FOR PENALTIES AND INTEREST FOR DELINQUENCIES; AND TO AUTHORIZE THE CITY TREASURER TO CONTRACT WITH THE DEPARTMENT OF REVENUE OF THE STATE OF TENNESSEE, (1) FOR THE COLLECTION OF SAID TAX, AND (2) FOR A DEDUCTION BY THE DEPARTMENT OF REVENUE OF A PORTION OF THE AMOUNT COLLECTED TO COVER THE EXPENSE OF ADMINISTRATION AND COLLECTION; AND TO DESIGNATE THE CITY TREASURER AS THE OFFICER AGAINST WHOM SUITS FOR THE RECOVERY OF ANY TAX HEREIN LEVIED SHALL BE BROUGHT; AND TO CALL FOR AN ELECTION IN THE CITY OF CHATTANOOGA IN ACCORDANCE WITH THE ELECTION LAWS TO DETERMINE WHETHER THIS ORDINANCE SHALL BECOME OPERATIVE; AND TO PROVIDE FOR THE TRANSMITTAL OF A COPY OF THIS ORDINANCE TO THE DEPARTMENT OF REVENUE OF THE STATE OF TENNESSEE AND FOR ITS PUBLICATION BY NEWSPAPER PRIOR TO THE ELECTION CALLED FOR; AND TO PROVIDE FOR THE EFFECTIVE DATE OF THIS ORDINANCE. SECTION 1. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE, That as authorized by Section 67-6-702, Tennessee Code Annotated, as amended, there is levied a tax in the same manner and on the same privileges subject to the "Retailers' Sales Tax Act" under Chapter 6, Title 67, Tennessee Code Annotated, as the same may be amended, which are exercised in the City of Chattanooga. The tax is levied on all such privileges at a rate equal to two and one-fourths percent (2 1/4%) of the 0C sales price, cost price, gross proceeds, rental price, gross charge of any other privilege subject to taxation by Title 67, Chapter 6, of Tennessee Code Annotated. Provided, however, that the tax levied by this Ordinance shall apply only to the limits on the sale or use of any single article of personal property as set forth in Tennessee Code Annotated Section 67-6-702(a)(1), as the same may be amended from time to time. There is exempted from the tax levied by this Ordinance the sale, purchase, use, consumption or distribution of electric power or energy, or of natural or artificial gas, or coal and fuel oil. Penalties and interest for delinquencies shall be the same as provided in Section 67-6-516, Tennessee Code Annotated, as the same may be amended. SECTION 2. BE IT FURTHER ORDAINED, That this Ordinance shall become operative in accordance with the provisions of Section 67-6-706, Tennessee Code Annotated, as amended, if the majority vote in the election therein provided is for the Ordinance; provided, however, that collection of the tax levied by this Ordinance shall begin on the first day of the month occurring thirty (30) or more days after the County Election Commission makes its official canvass of the election returns. SECTION 3. BE IT FURTHER ORDAINED, That it having been determined by the Department of Revenue of the State of Tennessee that it is feasible for this tax to be collected by that department, said determination being evidenced by local option sales and use tax rules and regulations heretofore promulgated by the Department of Revenue, the department shall collect such tax concurrently with the collection of the State tax in the same manner as the State tax is collected in accordance with the rules and regulations promulgated by said department. The City Treasurer is hereby authorized to contract with the Department of Revenue for the collection of the tax by the department, and to provide in said contract that the department may deduct from the tax collected a reasonable amount or percentage to cover the expense of the administration and collection of said tax. SECTION 4. BE IT FURTHER ORDAINED, That in the event the tax is collected by the Department of Revenue suits for the recovery of any tax illegally assessed or collected shall be brought against the Treasurer. SECTION 5. BE IT FURTHER ORDAINED, That a copy of this Ordinance shall be transmitted to the said Department of Revenue and shall be published one (1) time in a newspaper of general circulation in the City of Chattanooga prior to the election called for in Section 2 hereof. SECTION 6. BE IT FURTHER ORDAINED, That this Ordinance shall take effect two (2) weeks from and after its passage as provided by law; provided that, pursuant to Section 67-6-703(b), the effectiveness hereof shall be suspended for forty (40) days or longer beyond the date on which it would otherwise be effective in the event Hamilton County adopts a resolution to levy the tax. PASSED on Third and Final Reading March 26, 1996. s/s____________________________ CHAIRPERSON APPROVED:__X__DISAPPROVED:_____ DATE: ____________ ____, 1996. s/s____________________________ MAYOR MAM:cjc