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Chapter 11: Taxation

16 sections
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Chapter 11: Taxation

City of Lowry Crossing, TX Code of Ordinances


ARTICLE 11.01

GENERAL PROVISIONS (RESERVED)

ARTICLE 11.02

PROPERTY TAX

§ 11.02.001 Exemption for residence homestead of elderly or disabled persons.

Pursuant to article VIII, section 1-b of the Texas Constitution and section 11.13 of the Texas Property

Tax Code, $15,000.00 of the appraised value of the residence homestead of a person that is age sixty-

five (65) or older and/or disabled shall be exempt from ad valorem taxation by the city beginning

with tax year 2002 and continuing thereafter as provided by law. Such qualified person must make

application for such exemption to the Collin Central Appraisal District.

(Ordinance 150 adopted 2/5/02)

§ 11.02.002 Tax freeze for residence homesteads of elderly or disabled persons.

Pursuant to article VIII, section 1-b of the Texas Constitution and section 11.261 of the Texas Property

Tax Code (the “Tax Code”), the amount of ad valorem property taxes for residence homesteads owned

by persons who are disabled, as defined by the Tax Code, or by persons sixty-five (65) years of age

and older, shall not be increased above the amount due for tax year 2004, except as provided by section

11.261 of the Tax Code. Qualified persons must make application for such tax freeze to the Collin

County Central Appraisal District.

(Ordinance 185 adopted 5/4/04)

§ 11.02.003 Penalty to defray costs of collection of delinquent taxes.

(a) Whenever any accounts for delinquent property taxes owed to the city are given to an attorney

for collection on or after July 1 of the year they become delinquent, the city shall be entitled to

and may collect an additional penalty of fifteen percent (15%) of the delinquent taxes, penalty,

and interest due on each delinquent property at the time of collection, either before or after suit

or foreclosure sale, as provided by section 33.07 of the Texas Property Tax Code.

(b) In addition to the collection expenses provided for in subsection (a) of this section, whenever a

delinquent tax suit is filed, the city shall be entitled to recover reasonable expenses subject to the

approval of the court that are incurred by the city in determining the name, identity, and location

of necessary parties and in procuring the necessary legal description of the property on which a

delinquent tax is due, as provided by section 33.48(a) of the Texas Property Tax Code.

(c) Whenever taxes become delinquent on or after June 1 under section 31.03, 31.03 [sic], 31.032, or

31.04 of the Texas Property Tax Code, said delinquent taxes shall incur an additional penalty to

defray costs of collection in the amount of fifteen percent (15%) of the amount of tax, penalty,

and interest due, as provided by section 33.08 of the Texas Property Tax Code.

(Ordinance 151 adopted 2/5/02)

§ 11.02.004 Taxation of tangible personal property in transit.

The goods-in-transit, as defined by Texas Tax Code section 11.253(a)(2), as amended by Senate Bill 1,

enacted by the 82nd Texas Legislature in special session, shall remain subject to taxation by the city.

(Ordinance 242 adopted 12/6/11)

ARTICLE 11.03

SALES AND USE TAX

§ 11.03.001 Economic development tax.

(a) Findings.

(1) At a special election held on November 8, 2011 pursuant to and in accordance with law

there was submitted to the duly qualified voters of the city a proposition pertaining to the

adoption and use of a one-half of one percent (1/2 of 1%) sales and use tax for the purposes

set forth in the proposition and in chapters 505 and 501 of subtitle C1 of title 12 of the Texas

Local Government Code (said subtitle C1 being the Development Corporation Act (the

“Act”)).

(2) On November 8, 2011, the returns from the election were duly canvassed in accordance

with law and it was determined that a majority of the voters of the city voting at the election

voted for the sales and use tax and by such vote approved said sales and use tax.

(3) Section 505.251 of the Local Government Code provides that the city council may, by

ordinance, adopt a sales and use tax for the benefit of a corporation governed by chapter

505 of the Local Government Code (a “type B corporation”) if the tax is approved by a

majority of the voters of the city voting at the election.

(4) The city council desires to adopt and levy a sales and use tax at the rate of one-half of one

percent (1/2 of 1%) to be used for the purposes set forth in the proposition, the Act, and in

the articles and bylaws of the type B corporation to be created pursuant to the Act.

(b) Tax adopted.There is hereby adopted, levied and imposed a tax on the receipts from the sale at

retail of taxable items within the city at the rate of one-half of one percent (1/2 of 1%). In

accordance with section 505.253 of the Local Government Code, there is also levied and

imposed an excise tax at the same rate on the use, storage, or other consumption within the city

of tangible personal property purchased, leased or rented from a retailer during the period that

the tax adopted in the first sentence of this subsection is effective within the city. The tax

adopted, levied and imposed hereby is to be used in accordance with and for the purposes

authorized by the proposition, the Act, and in the articles and bylaws of the type B corporation

to be created pursuant to the Act, and is for the benefit of said type B corporation.

(Ordinance 240 adopted 12/6/11)

§ 11.03.002 Tax for street maintenance.

(a) Findings.

(1) At a special election held on November 8, 2011 pursuant to and in accordance with law

there was submitted to the duly qualified voters of the city a proposition pertaining to the

adoption of a sales and use tax at the rate of one-fourth of one percent (1/4 of 1%) to provide

revenue for maintenance and repair of municipal streets pursuant to the provisions of

chapter 327, Texas Tax Code.

(2) On November 8, 2011, the returns from the election were duly canvassed in accordance

with law and it was determined that a majority of the voters of the city voting at the election

voted for said sales and use tax and by such vote approved said sales and use tax.

(3) Section 327.003 of the Tax Code provides that a municipality may adopt the sales and use

tax authorized by chapter 327 of the code at an election held in the municipality.

(4) In accordance with the requirements of chapter 327 of the Tax Code, with the adoption of

the sales and use tax as described herein, the combined rate of all sales and use taxes,

including the tax approved pursuant to the election, imposed by the city and other political

subdivisions of the state having territory in the city will not exceed two percent at any

location in the city.

(5) The city council desires to adopt and levy a sales and use tax at the rate of one-fourth of one

percent (1/4 of 1%) to provide revenue for maintenance and repair of municipal streets.

(b) Tax adopted.There is hereby adopted, levied and imposed a sales and use tax at the rate of one-

fourth of one percent (1/4 of 1%) to provide revenue for maintenance and repair of municipal

streets. Said tax is to be used in accordance with and for the purposes authorized by the

proposition and chapter 327 of the Tax Code. Accordingly, revenue from said tax may be used

only to maintain and repair municipal streets existing on the date of the election. For purposes of

this section, the term “municipal street” means the entire width of a way held by the city in fee

or by easement or dedication that has a part open for public use for vehicular travel; the term

does not include a designated state or federal highway or road or a designated county road.

(Ordinance 241 adopted 12/6/11)

ARTICLE 11.04

HOTEL OCCUPANCY TAX

§ 11.04.001 Definitions.

The following words, terms, and phrases, when used in this article, shall have the meanings ascribed

to them in this section, except where the context clearly indicates a different meaning:

Administrator. The city staff member responsible for administering and collecting the tax for the city

described in this article.

Consideration. The cost of a room or space in a hotel if the room is one ordinarily used for sleeping,

and shall not include the cost of any food served or personal services rendered to the occupant of such

room not related to the cleaning and readying of such room for occupancy.

Hotel. Any building in which the public may, for consideration, obtain sleeping accommodations. The

term shall include hotels, motels, tourist homes, lodging houses, cabins, inns, rooming houses, trailer

houses, trailer motels, dormitories where bed space is rented, apartments not occupied by permanent

resident, short-term rentals, and all other facilities where rooms or sleeping facilities or space are

furnished for consideration. The term "hotel" does not include a residence or portion of a residence

rented to a member of the resident's family or hospitals, sanitariums, or nursing homes.

Occupancy. The use or possession, or the right to the use or possession, of any room in a hotel if

the room is one ordinarily used for sleeping and if the occupant's use, possession, or right to use or

possession extends for a period of less than thirty (30) days.

Occupant. Anyone who, for consideration, uses, possesses, or has a right to use or possess any room in

a hotel if the room is one ordinarily used for sleeping. This term applies regardless of whether such use,

possession, or right to use or possession is arranged under a lease, concession, permit, right of access,

license, contract or other agreement. All occupants are subject to all applicable ordinances of the city

and laws of the State of Texas, including, but not limited to, regulations for noise, vehicles, property

maintenance, fireworks, and alcohol.

Permanent resident. Any occupant who has or shall have the right to use or possess a room in a hotel

for at least thirty (30) consecutive days, so long as there is no interruption of payment for the period.

Quarterly period. The regular calendar quarters of the year, the first quarter being the month of

October, November and December, the second quarter being the months of January, February, and

March, the third quarter being the months of April, May and June and the fourth quarter being the

months of July, August, and September.

Short-term rental. The rental of all or part of a residential property to a person who is not a permanent

resident for purposes of state law.

§ 11.04.002 Established and levied.

There is hereby established and levied a tax upon the cost of occupancy of any room ordinarily used

for sleeping and furnished by any hotel in the city or in the city's extraterritorial jurisdiction where such

costs of occupancy are at the rate of two dollars ($2.00) or more per day. Such tax is hereby levied

at the rate of seven (7) percent of the consideration paid to the hotel by the occupant of the room.

All persons, organizations, and entities specified for exemption in Texas Tax Code chapter 351, as

amended, are exempt from the payment of the tax imposed under this section.

§ 11.04.003 Expenditure of revenues.

The revenues derived from the hotel occupancy tax levied pursuant to this article shall be expended

only for the purposes and in the manner authorized by Texas Tax Code chapter 351, as it exists and or

may be amended, as the city council may direct and authorize.

§ 11.04.004 Collection of tax by hotel and payment to city.

(a) The tax levied pursuant to this article upon hotel occupancy shall be collected by each person

owning, operating, managing, or controlling any hotel within the city or within the city's

extraterritorial jurisdiction upon collection by said person of the consideration paid by the

occupant of the sleeping room. Such revenues shall be paid by the hotel to the city by the fifteenth

(15th) day of the month following each monthly reporting period in which the tax is earned

pursuant to section 11.04.007.

(b) All persons required to collect and pay the hotel occupancy tax to the city are hereby authorized

to withhold from the payment to the city, as reimbursement for the cost of collecting the tax, one

percent (1%) of the amount of tax collected and required to be reported to the city. The amount

withheld under this subsection shall be reflected in the records maintained by the parties

collecting the tax.

(c) All parties collecting the subject tax shall forfeit the one-percent reimbursement for failure to pay

the tax or the file reports as required by this article.

§ 11.04.005 Records to be maintained by hotel.

Every hotel within the city or within the city's extraterritorial jurisdiction shall keep and maintain an

accurate record of the consideration and the hotel occupancy tax paid by the occupant of each sleeping

room in the hotel, and any employee, agent, officer, or representative of the city shall be authorized to

have access to the records maintained hereunder at all reasonable times.

§ 11.04.006 Rules and regulations for implementation.

(a) The administrator shall have the power to make any rules and regulations necessary to effectively

collect the tax. The administrator shall, upon giving reasonable notice, have access to all books

and records necessary to determine the correctness of any report filed as required by this article

and the amount of taxes due under this article.

(b) Each hotel shall register with the administrator, in a form prescribed by the administrator. The

administrator shall keep records of all hotels in the city. The hotel operator may be required to

provide updated contact information on a regular basis.

(c) Each hotel operator shall schedule an annual inspection by the building inspector of the interior

and exterior of a hotel to determine compliance with state and local laws, including the Texas

Health and Safety Code. A nonrefundable inspection fee shall be paid to the city by the hotel

operator. If entry for a building inspector is refused by a hotel operator, the building inspector

may seek a warrant permitting entry pursuant to Texas Code of Criminal Procedure art. 18.05, as

the same may be amended from time-to-time.

§ 11.04.007 Reporting requirements.

(a) On the 15th day of the month following each month in which a tax is earned, every person

required by this article to collect the tax shall file a report with the administrator showing:

(1) The consideration paid for all occupancies in the preceding month;

(2) The amount of the tax collected on the occupancies; and

(3) Any other information the administrator may reasonably require.

(b) Every person required by this article to collect the tax shall pay the tax due on all occupancies in

the preceding month to the administrator at the time of filing the report required under subsection

(a) of this section.

§ 11.04.008 Offenses and penalties.

(a) A person commits an offense if he:

(1) Fails to collect the tax;

(2) Fails to file a report as required by this article;

(3) Fails to pay the administrator the tax when payment is due; or

(4) Files a false report.

(b) A person who commits an offense under this article shall be deemed guilty of a misdemeanor and

upon conviction be punished by a fine of no less than $100.00, but not to exceed the sum of

$500.00, for each offense, and each and every day such offense shall continue shall be deemed to

constitute a separate offense. No culpable mental state need be pleaded or proved during a

prosecution for a violation of this article.

(c) In addition to any penalties imposed under subsection (b) of this section, a person failing to pay

the tax to the administrator within the time required shall pay an additional ten (10) percent of the

tax due as a penalty. An additional ten (10) percent of the tax due shall be paid thirty (30) days

later if the tax is not paid. The penalty provided by this subsection may never be less than five

dollars ($5.00). Delinquent taxes shall draw interest at the rate of ten (10) percent per year

beginning thirty (30) days from the date the tax is due.

§ 11.04.009 Civil action for collections authorized.

In addition to any other remedies allowed by state law, the city attorney or other attorney acting for

the city may bring suit against a person who is required to file a report required by section 11.04.007,

collect the tax imposed by this chapter and/or pay the collections over to the city if such person has

failed to file a tax report, collect the tax and/or pay the tax when due in order to collect the tax not paid,

obtain the reports or to enjoin the person from operating a hotel in the municipality until the tax is paid

and/or the report filed, as applicable. In addition to the amount of any tax owed under this chapter, the

person is liable to the city for the city's reasonable attorney's fees and a penalty equal to fifteen (15)

percent of the total amount of the tax owed, pursuant to Texas Tax Code § 351.004.

§ 11.04.009 LOWRY CROSSING CODE

TRAFFIC AND VEHICLES