HomeMy WebLinkAbout1083 Utility Tax Chapter 705 BILL NO. 2011-031 ORDINANCE NO. IO S 3
AN ORDINANCE OF THE CITY OF RIVERSIDE, MISSOURI, ENACTING A NEW SECTION
705.020 ENTITLED "NO AUTOMATIC ADJUSTMENTS" OF CHAPTER 705 "UTILITY TAX"
OF TITLE VII "UTILITIES" OF THE RIVERSIDE CITY CODE
WHEREAS, Section 393.275 requires municipalities to either roll back the rate of gross
receipts taxes imposed on utilities or pass an ordinance maintaining the existing rates despite
the increase in gross receipts to the utility as a result of a tariff increase; and
WHEREAS, the City currently imposes a license fee of 5% of the licensee's gross
receipts from the sale of gas, electricity, water or telephone service; and
WHEREAS, the City Code of the City of Riverside, Missouri does not currently provide
for "No Automatic Adjustments" of the city's utility tax and the Board of Aldermen find and the
Board of Aldermen find that it is in the best interest of the City to ensure there is no reduction in
the revenue received from gross receipts from such utility companies;
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1— ENACTMENT OF SECTION 705.020 OF THE CITY CODE. The City
Code of the City of Riverside, Missouri is hereby amended by adding a new section to Title VII
"Utilities", in Chapter 705 "Utility Tax", to read as follows:
Section 705.020 — No Automatic Adjustments: Pursuant to Section 393.275 I
RSMo., and any and all other applicable authority, the City shall maintain the tax
rate of its business license taxes on the gross receipts of gas, electric and water
utilities without reduction, notwithstanding any periodic fluctuations in the tariffs of
such utility corporations or any notice thereof including, but not limited to, notice
sent under Section 393.275, RSMo., as amended.
SECTION 2— REPEAL OF ORDINANCES IN CONFLICT. All ordinances or parts of
ordinances in conflict with this ordinance are hereby repealed.
SECTION 3— SEVERABILITY CLAUSE. The provisions of this ordinance are severable
and if any provision hereof is declared invalid, unconstitutional or unenforceable, such
determination shall not affect the validity of the remainder of this ordinance.
SECTION 4— EFFECTIVE DATE. This ordinance shall be in full force and effect from
and after the date of its passage and approval.
BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of t�e�3oard of AI erm n and app�Qved by the Mayor of the City of
Riverside, Missouri, this --� day of !�-1.J , 2011.
L��e.�,c��C .
a leen L. Rose, Mayor
ATT APPR S TO FORM:
.�� ���Z`'�.y�,�¢�
Robin Littrell, City Clerk a ps , City Attorney
CITY OF
RIVERSI.��
� �,�--- ,�1�6.m �����
Upstream from ordinary.
2950 NW Vivion Road
Riverside, Missouri 64150
AGENDA DATE: September 6, 201 I
TO: Mayor and Board of Aldermen
FROM: Nancy Thompson, City Attorney
RE: City Code Amendment — Utility Tax "No Automatic Adjustment"
BACKGROUND: In reviewing the City Code provisions related to utility taxes, it was discovered
the code was outdated as it relates to protecting the City from a requirement
contained in Section 393.275 RSMo to roll back the gross receipts tax in the
event of a rate increase greater than 7%. The state law requirement is that in
the event of an increase of more than 7%, the City must determine its current
revenue stream from the fee and calculate the average rate of increase over the
prior three years to determine the rate going forward. The City has the option
of opting out of the roll back requirement by enacting an ordinance.
The City currently imposes a utility tax of 5% on gross receipts of gas, electric
and water utilities. The proposed ordinance would ensure the City's license
fees would not be affected in the event a utility is granted a rate increase in
excess of 7%.
Do not hesitate to contact me if you have any questions or would like any
additional information in advance of the meeting.