O526ORDINANCE NO. 526
AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE
CITY OF KENNEDALE BY ADDING ARTICLE XII, "HOTEL/MOTEL
OCCUPANCY TAX ", TO CHAPTER 11, "LICENSES, TAXATION, AND
MISCELLANEOUS BUSINESS REGULATIONS "; ADOPTING AND
LEVYING A TAX ON THE OCCUPANCY OF HOTEL ROOMS;
PROVIDING FOR EXEMPTIONS IN CERTAIN CIRCUMSTANCES;
PROVIDING FOR REPORTS AND RECORDS; PROVIDING FOR TAX
COLLECTION; PROVIDING FOR USE OF TAX REVENUE;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF
ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A PENALTY FOR VIOLATIONS HEREOF; PROVIDING A
SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN THE
OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas, (hereinafter referred to as "City ") is a home
rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the
Texas Constitution, and Chapter 9 of the Texas Local Government Code; and
WHEREAS, the City is empowered by the Texas Constitution and state law to levy taxes
for lawful purposes; and
WHEREAS, Section 351.002 of the Texas Tax Code authorizes a municipality to adopt
an ordinance to impose a tax on a person who, under contract or agreement, pays for the use or
possession or for the right to use or possess a room in a hotel; and
WHEREAS, the City Council has determined it is necessary and appropriate to levy a
tax on the occupancy of a hotel room and to use the revenues from such tax for lawful purposes
pursuant to Chapter 351 of the Texas Tax Code, as amended.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS THAT:
SECTION 1.
Chapter 11, "Licenses, Taxation, and Miscellaneous Business Regulations" of the Code
of Ordinances of the City of Kennedale is hereby amended by adding Article XII., "Hotel /Motel
Occupancy Tax ", to read as follows:
" ARTICLE XII. HOTELIMOTEL OCCUPANCY TAX
Sec. 11 -275. Definitions.
As used in this Article, the following words, terms, and phrases are defined as follows:
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Chief Financial Officer means the Finance Director for the City of Kennedale or his or
her designee.
Consideration means the cost of a room in a hotel, and does not include:
(1) the cost of any food served or personal services rendered to the occupant not
related to cleaning and readying the room or space for occupancy; or
(2) any tax assessed by any other governmental agency for occupancy of the room.
Hotel means any building in which members of the public obtain sleeping
accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house,
tourist court, hostel, lodging house, inn, rooming house, or bed and breakfast. The term does not
include:
(1) a hospital, sanitarium, or nursing home; or
(2) a dormitory or other housing facility owned or leased and operated by an
institution of higher education or a private or independent institution of higher
education as those terms are defined by Section 61.003, Education Code, used by
the institution for the purpose of providing sleeping accommodations for persons
engaged in an educational program or activity at the institution.
Interruption of payment means a breach of the obligation to make continuous timely
payment for one or more days or parts of a day within a period of thirty (30) consecutive days of
occupancy.
Occupancy means the use or possession, or the right to the use or possession, of any room
in a hotel.
Occupant means any person who, for a consideration, uses, possesses, or has a right to
use or possess any room in a hotel under any lease, concession, permit, right of access, license,
contract, or agreement.
Permanent Resident means an occupant(s) whose use, possession or whose right to use or
possession of a hotel sleeping room extends for at least thirty (30) consecutive days and where
there is no interruption of payment for the period and where prior to using or possessing the hotel
sleeping room, the occupant(s) have executed a written agreement for use or possession of a
hotel sleeping room for a period of thirty (30) consecutive days as required by the Texas State
Comptroller's Office.
Person means any individual, company, firm, corporation, association or legal entity
owning, operating, managing or controlling any hotel as defined herein.
Revenue includes any interest derived from the revenue or tax.
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Tax means the hotel occupancy tax levied in this Article pursuant to Chapter 351 of the
Texas Tax Code, as amended.
Tourist means an individual who travels from the individual's residence to a different
municipality, county, state, or country for pleasure, recreation, education, or culture.
Sec. 11-276. Levy of Tax.
(a) There is hereby levied a tax upon the cost of occupancy of any room ordinarily used as a
sleeping room furnished by any hotel within the City of Kennedale where such cost of
occupancy is at the rate of $2.00 or more each day, such tax to be equal to the maximum tax as is
now or as hereafter permitted by State law.
(b) The tax does not apply to a person who is a permanent resident as defined herein.
(c) Pursuant to state law, the tax authorized by this Article shall be imposed on all hotels
located within the extraterritorial jurisdiction of the City of Kennedale; provided that the
combined rate of state, county, and municipal hotel occupancy taxes in the extraterritorial
jurisdiction does not exceed fifteen (15) percent of the price paid for a room in the hotel.
Sec. 11 -277. Responsibility for Collection, Reporting, and Payment of Tax.
Every person owning, operating, managing, or controlling any hotel shall collect the tax
for the city and report and pay the tax to the city in accordance with all requirements and
procedures set forth in this Article.
Sec. I1 -278. Collection and Remittance.
(a) The revenue obtained by the person required by this Article to collect the tax shall be
paid to the City monthly.
(b) A report shall be filed with the City in the form required by the Chief Financial Officer to
accurately reflect the amount of taxes owed and revenue obtained.
(c) The tax and report shall be submitted to the City on or before 5:00 p.m. on the twentieth
(20 day following the last day of each reporting period.
(d) The Chief Financial Officer shall have the authority to make such rules and regulations as
are necessary to effectively report and collect, the tax, penalty and /or interest levied by this
Article and state law.
(e) If the report is filed or tax is paid after the due date required by this Article, in addition to
the amount of tax due hereunder, a penalty shall be imposed as follows:
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(1) If the report and /or tax are received by the City within ten (10) days following the
due date, a penalty of ten percent (10 %) of the amount due shall be paid to the
City; and
(2) If the report and /or tax are received by the City on or after the eleventh (1 I day
after the due date, a penalty of fifteen percent (15 %) of the amount due shall be
paid to the City.
Sec. 11 -279. Collection Procedures on Purchase on Purchase of Hotel.
If a person who is liable for the payment of a tax under this Article is the owner of a hotel
and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of
the purchase price sufficient to pay the amount due until the seller provides a receipt by the
City's Chief Financial Officer showing that the amount has been paid or a certificate showing
that no tax is due. The City's Chief Financial Officer shall issue the certificate or statement not
later than the 60 day after the date that he /she receives the request. Failure of the Chief
Financial Officer to timely provide the certificate or statement required by this section shall
release the purchaser form the obligation to withhold the purchase price or pay the amount due.
The purchaser of a hotel who fails to withhold an amount of the purchase price as required by
this Article and state law is liable to the City for the amount required to be withheld to the extent
of the value of the purchase price.
Sec. 11 -280. Exemptions and Refunds.
(a) All persons, organizations and entities specified in Section 351.006 of the Texas Tax
Code, as amended, are exempt from the payment of the tax imposed under this Article.
(b) Any person, organization, or entity entitled to receive a refund of tax paid under this
Article, may file a refund claim as provided in Section 156.154 of the Texas Tax Code, as
amended.
(c) A person described in Section 156.103(c) of the Texas Tax Code, as amended, shall pay
the tax imposed by this Article, but the state governmental entity with whom the person is
associated is entitled to a refund of the tax paid.
(d) To receive a refund of tax paid under this Article, the governmental entity entitled to the
refund must file a refund claim with the City on a form prescribed by the state comptroller and
provided by the City. A governmental entity may file a refund claim with the City only for each
calendar quarter for all reimbursements accrued during that quarter.
Sec. 11 -281. Reports/Records.
(a) Every hotel within the City shall keep and maintain accurate records of the consideration
and hotel occupancy tax paid by the occupant of each sleeping room in the hotel. Such records
shall include, but not be limited to, guest folios, tax exemption certificates, and any original
documents such as posting ledgers and rate and stay adjustment reports, and any other
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documents necessary to provide the information on the City Hotel/Motel Occupancy Tax
reporting form required by the Chief Financial Officer and the State of Texas form for reporting
hotel occupancy tax to the Comptroller's Office. These reports may be retained in any
retrievable format, including but not limited to micro form and shall be maintained for a period
of not less than four (4) years; and shall be available for inspection upon request by any
employee, agent, officer or representative of the City at all reasonable times. Any adjustments or
allowances made or granted shall be reported to the City on a form provided by the Chief
Financial Officer.
(b) It shall be unlawfiil for any person to fail to perform an act required by this Article,
including but not limited to compliance with the requirements to collect, pay and accurately
report, taxes as required by this Article and state law.
(c) The Chief Financial Officer shall, upon giving reasonable notice, have access to all books
and records necessary to enable the Chief Financial Officer to determine the correctness of any
report filed as required by this Article and the amount of taxes due under this Article.
Sec. 11 -282. Tax Collection.
(a) The City Attorney or other attorney acting on behalf of the City is authorized to bring suit
against a person who is required to collect the tax imposed by this Article and pay the collections
over to the City and who has failed to file a tax report or pay the tax when due in order to collect
the tax not paid or may enjoin the person from operating a hotel in the City until the tax is paid
or the report filed in accordance with a Court order. In addition to the amount of any tax owed
under this Article, the person is liable to the City for:
(1) The City's reasonable attorney's fees;
(2) The costs of an inspection or an audit conducted under Section 1.05 or this section
as determined by the City using a reasonable rate, but only if the tax has been
delinquent for at least two complete municipal fiscal quarters at the time the audit
is conducted; and
(3) A penalty equal to fifteen (15) percent of the total amount of the tax owed.
(b) If the person required to file a tax report under this Article does not file the report as
required by the City, the City Attorney or other attorney acting for the City may determine the
amount of tax due under this Article by:
(1) Conducting an audit of each hotel in relation to which the person did not file the
report as required by the City; or
(2) Using the tax report filed for the appropriate reporting period under Section
156.151 of the Texas Tax Code, as amended.
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The authority to conduct an audit under this section is in addition to any other audit authority
provided by statute, charter, or ordinance.
(c) A limitations period relating to the time allowed to assess taxes and bring a suit to collect
taxes does not apply to a tax imposed under this Article or to a suit brought under this section.
(d) If a person fails to a file a tax report as required under state law or this Article for the
required reporting period, the City Attorney or other attorney acting for the City may estimate
the amount of tax due by using the tax reports in relation to the hotel that were filed during the
previous calendar year under this Ordinance or state law. An estimate made under this section is
prima facie evidence of the amount of tax due for that period in relation to that hotel.
See. 11 -283. Use of Tax Revenue.
(a) Revenue from municipal hotel occupancy tax may be used only to promote tourism and
the convention and hotel industry, and that use is limited to the following:
(1) Convention /Visitor Facilities. The acquisition of sites for the construction,
improvement, enlarging, equipping, repairing, operation, and maintenance of
convention center facilities or visitor information centers, or both;
(2) Furnishings. The furnishing of facilities, personnel, and materials for the
registration of convention delegates or registrants;
(3) Advertising and Promotions. Advertising and conducting solicitations and
promotion programs to attract tourists and convention delegates or registrants to
the City or its vicinity;
(4) Arts. The encouragement, promotion, improvement and application of the arts,
including instrumental and vocal music, dance, drama, folk art, creative writing,
architecture, design and allied fields, painting, sculpture, photography, graphic
and craft arts, motion pictures, radio, television, tape and sound recording, and
other arts related to the presentation, performance, execution, and exhibition of
these major art forms;
(5) Historic Purposes. Historical restoration and preservation projects or activities or
advertising and conducting solicitations and promotional programs to encourage
tourists and convention delegates to visit preserved historic sites or museums:
a. At or in the immediate vicinity of convention center facilities or visitor
information centers; or
b. Located elsewhere in the City or its vicinity that would be frequented by
tourists and convention delegates;
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(6) Other. Other qualifying uses as set forth in Section 351.101 of the Tax Code, as
amended, or other applicable law.
(b) Hotel occupancy tax revenue spent for a purpose authorized by this Section may be spent
for day -to -day operations, supplies, salaries, office rental, travel expenses, and other
administrative costs only if those administrative costs are incurred directly in the promotion and
servicing expenditures authorized under Section 1.06(A) above.
(c) Revenue from any hotel occupancy tax imposed and levied by this Article may not be
used for the general revenue purposes for general governmental operations of the city.
(d) Allocation of tax revenues for the purposes specified in Section 1.07 (A) (iii) above shall
be in an amount not less than the amount of revenue received by the City from the tax at a rate of
one (1) percent of the cost of a room.
See. 11 -284. Criminal Penalty.
Any Person who violates this Article shall be guilty of a misdemeanor and each day the
violation is allowed to exist or continues to exist shall be a separate offense. Each such offense
shall be punishable by a fine not to exceed $500.00. The penalties provided in this ordinance
are cumulative of any other remedies and /or actions for collection available to the City by law.
Sees. 11 -285. —11 -295. Reserved."
SECTION 2.
That this Ordinance shall be cumulative of all other Ordinances of the City affecting
taxation and shall not repeal any of the provisions of such Ordinances except in those instances
where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance;
whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances
of the City of Kennedale, codified or uncodified, not in conflict with the provisions of this
Ordinance, shall remain in full force and effect.
SECTION 3.
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or
application thereof to any person or circumstance, is held invalid or unconstitutional by a Court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
the Ordinance, and the City Council hereby declares it would have passed such remaining of the
Ordinance despite such invalidity, which remaining portions shall remain in full force and effect.
SECTION 4.
It shall be unlawful for any person to violate any provision of this Ordinance, and any
person violating or failing to comply with any provision hereof shall be fined, upon conviction,
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in an amount not more than Five Hundred Dollars ($500.00), and a separate offense shall be
deemed committed each day during or on which a violation occurs or continues.
SECTION 5.
All rights and remedies of the City of Kennedale are expressly saved as to any and all
violations of the provisions of any ordinances governing taxation that have accrued at the time of
the effective date of this Ordinance; and, as to such accrued violations and all pending litigation,
both civil and criminal, whether pending in court or not, under such ordinances, same shall not
be affected by this Ordinance but may be prosecuted until final disposition by the courts.
SECTION 6.
The City Secretary of the City of Kennedale is hereby directed to publish the Caption,
Penalty Clause, and Effective Date Clause of this Ordinance as required by Section 52.011 of the
Texas Local Government Code, Charter, and other applicable law.
SECTION 7.
This Ordinance shall take effect from and after its date of passage and publication in
accordance with law, and it is so ordained.
PASSED AND APPROVED this the 1 I day of July 2013.
— G a��
X�d yor, John Clark
ATTEST:
Amethyst Cirmo City Secretary
APPROVED AS TO FORM:
a
City Attorney
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CITY OF KENNEDALE
HOTEL/MOTEL OCCUPANCY TAX REPORT INSTRUCTIONS
Who Must File You must file this report if you are a sole owner, partnership, corporation or other organization that
owns, operates, manages or controls any hotel or motel in the City of Kennedale. Complete and detailed records
must be kept of all receipts reported and exemptions or reimbursements claimed so that a city accountant can verify
the reports. Failure to file this report and pay applicable tax may result in fines and penalties.
When To File The reporting period is for each calendar month of the year. Timely reports must be submitted so
they are received by 5PM on or before the 20 "' of the month following the reporting period. The report must be
filed for every period even if you have no amount subject to tax or no tax due. Enter "0" if no receipts were
collected for this reporting period. If the due date falls on a Saturday, Sunday or city holiday, the next business day
will be the due date.
For Assistance The City of Kennedale Hotel/Motel Occupancy Tax Report and instructions may be obtained
through the City's website, www.cityo&ennedale.com You may call (817) 985 -2110 for assistance.
General Instructions Please type the information on the report and print it before mailing to the City, along with the
remittance. You may print the information on the report, but it must be in ink only. Complete all applicable items of
the report. You must sign and date the report before mailing. A copy of the concurrent "Texas Hotel Occupancy
Tax Report" filed with the State Comptroller of Public Accounts must be attached to the City's report. Make
check payable to City of Kennedale, and mail forms and check to: City of Kennedale, Attn: Finance Department,
405 Municipal Drive, Kennedale, TX 76060.
SPECIFIC INSTRUCTIONS
Line (A) Enter the total amount of room receipts for the month for location shown. Enter "0" if no taxable
receipts were collected.
Line (B) For explanations of tax exemptions, please refer to the Texas Comptroller's Hotel Occupancy Tax
Exemptions Publication and City Ordinance.
Line (C) Subtract line B from Line A.
Line (D) The City of Kennedale Hotel/Motel Occupancy Tax rate is 9 %.
Line (E) Multiply Line C by 7 %.
Line (F) If the report is filed or tax paid after the due date, enter penalty (1 -10 days late equals 10% of Line
E; on or after 11th day equals 15% of Line E).
Line (G) Add lines E and F.
Line (H) Enter the number of room days rented for the month.
Line (1) Enter the number of rooms available for the month.
Line (J) Enter the number of days in the month.
Line (K) Divide line H by the product of line I and J. Report the percentage using two decimal places (i.e.,
75.85 %).
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