Chapter 3.12
RESORT TAX
Sections:
3.12.010 Created--General provisions--Imposed.
3.12.020 Definitions.
3.12.030 Imposed.
3.12.040 Luxuries tax.
3.12.050 Rate--Duration.
3.12.060 Resort tax payment.
3.12.070 Collection duties and responsibilities.
3.12.080 Resort tax collection fee.
3.12.090 Records and forms.
3.12.100 Preservation of records.
3.12.110 Random audit.
3.12.120 Appeals.
3.12.130 Exemptions.
3.12.140 Use of tax moneys.
3.12.150 Reduction of property tax levy.
3.12.160 Property tax relief fund.
3.12.170 Resort tax administration.
3.12.180 Violation--Civil penalties.
3.12.190 Violation--Criminal penalties.
3.12.010 Created--General provisions--Imposed.
A. There is imposed a resort tax on the retail value of all goods and services sold within the town by the following establishments:
1. Hotels, motels, and other lodging or camping facilities;
2. Restaurants, fast food stores, and other food service establishments;
3. Taverns, bars, nightclubs, lounges and other public establishments that serve beer, wine, liquor or other alcoholic beverages by the drink; and
4. Establishments that sell luxuries must collect a tax on such luxuries. (Ord. 211 §1, 2003; Ord. 112 §1, 1985)
3.12.020 Definitions.
A. The terms "luxuries," "medical supplies," and "medicine" shall be defined as set forth in MCA Section 7-6-1501.
B. All references to the "resort tax" and "tax" in this chapter shall refer to the resort tax passed by the electorate of West Yellowstone and as enacted by the ordinance codified in this chapter. (Ord. 211 §2, 2003; Ord. 113 §1, 1985; Ord. 112 §2, 1985)
3.12.030 Imposed.
There is imposed a duty on each operator of any of the establishments mentioned in this chapter to collect, upon sale, the tax imposed as set forth in this chapter. (Ord. 113 §2, 1985)
3.12.040 Luxuries tax.
Each business subject to the tax shall collect the same on the retail value of all goods and services sold within the town by the establishments set forth in Section 3.12.010. All luxuries shall be taxed, and luxuries shall mean any gift item, luxury item, or other item, or other item normally sold to the public or to transient visitors or tourists; but the term does not include food purchased unprepared or unserved, medicine, medical supplies and services, or any necessities of life. Luxuries shall be further defined to mean sporting goods, rentals on snowmobiles, automobiles, all-terrain vehicles, motorcycles, bicycles, skis, boats, campers, boat motors; recreational services, including float trips, guided trips and tours; all souvenir and localized items such as imprinted hats and T-shirts and curios; all nonfood items such as cleaning supplies, housewares (other than household appliances), automotive supplies and parts; ice; retail liquor, beer and wine, except that sold at state stores. (Ord. 211 §3, 2003; Ord. 113 §12, 1985)
3.12.050 Rate--Duration.
A. The exact rate of the resort tax is three percent.
B. The duration of the resort tax as approved by the voters on November 5, 1985 is twenty years from its effective date. The effective date of the resort tax is January 1, 1986.
C. The duration of the resort tax renewal as approved by the voters on November 5, 2002, is twenty years from its effective date. The effective date of the resort tax renewal is January 1, 2006. (Ord. 211 §4, 2003; Ord. 112 §§3, 4, 5, 1985)
3.12.060 Resort tax payment.
The resort taxes collected by a business in any month are to be paid to the town on or before the twentieth day of the following month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day. Resort tax payments sent by mail or private courier must be received by the town on or before the twentieth day of each month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day. (Ord. 224 §1, 2007: Ord. 219 §1, 2006: Ord. 113 §3, 1985)
3.12.070 Collection duties and responsibilities.
A. The office responsible for receiving and accounts for the resort tax receipts is the town clerk and treasurer.
B. The operations manager and his/her agents shall be responsible for enforcing the collection of resort taxes and shall be responsible for overseeing the methods and procedures to be used in enforcing the collection of the resort taxes. (Ord. 172 §1, 1995: Ord. 113 §§4, 5, 1985)
3.12.080 Resort tax collection fee.
Each collecting merchant shall be entitled to withhold two and one-half percent of the resort taxes collected to defray costs for collecting the resort tax, providing that resort tax payments are timely made in accordance with Section 3.12.060. The resort tax collection fee may be withheld by the business at the time of paying the tax to the town. Failure to withhold the fee shall constitute waiver and forfeiture of the same. (Ord. 222 §1, 2007: Ord. 219 §2, 2006: Ord. 113 §7, 1985)
3.12.090 Records and forms.
The town shall provide each business that is required to collect resort tax with the proper forms for reporting and making payment to the town. Resort tax payments to the town shall be tabulated and accounted for on forms prescribed and furnished to the business by the town. The records and forms held by the town shall be confidential, and shall not be open to inspection by the public unless so ordered by a court of competent jurisdiction. Each business that is required to collect resort tax must maintain adequate accounting records and pay the resort tax to the town on the forms provided by the twentieth day of the following month. The accounting records maintained must be accurate, verifiable, and provide a reasonable audit trail. Failure to maintain adequate accounting records constitutes a violation of this chapter. (Ord. 219 §3, 2006: Ord. 201 §1, 1999: Ord. 119 §1, 1986; Ord. 113 §8, 1985)
3.12.100 Preservation of records.
Every business required to collect and pay resort tax shall keep and preserve for a period of not less than three years all records necessary to determine the accuracy of the taxes paid, and shall make these records available for audit or inspection on its business premises at all reasonable times. Any audit or inspection shall be conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax or at such other location as the town may determine. (Ord. 219 §4, 2006: Ord. 201 §2, 1999: Ord. 113 §10, 1985)
3.12.110 Random audit.
Periodic random audits shall be conducted under the direction of the mayor or his designated representative and all business operators shall cooperate in all respects in the conduct of the audits. Any random audit shall be for the previous calendar year, and shall be conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax or at such other location as the town may determine. If the audit determines a deficiency it will be at the discretion of the town to audit the previous two years and require a follow up audit on the next reporting year. Failure to cooperate in any audit or inspection of records, including the failure to make the appropriate records available on the business premises in West Yellowstone, shall constitute a violation of the provisions of this chapter. (Ord. 201 §3, 1999: Ord. 113 §9, 1985)
3.12.120 Appeals.
Any business may appeal to the town council any assessment of penalty or interest; provided, that notice of appeal in writing is filed with the town clerk within thirty days of the serving or mailing of the determination of the amount of penalty and interest due. The town council shall on the next immediate regular town council meeting fix the time and place for hearing the appeal and the town clerk shall cause notice in writing to be personally served by a peace officer upon the operator. The findings and decision of the town council shall be final and conclusive and shall be served upon the appellant in the manner prescribed for service of notice of hearing or by certified mail directed to the business operator’s last known address. Any amount found to be due shall be immediately payable upon service of the findings and decision. (Ord. 113 §11, 1985)
3.12.130 Exemptions.
Notwithstanding Section 3.12.040, however, the following goods and services shall be exempt from the tax:
A. Utilities and utility services;
B. Medical supply services and medicine;
C. Wholesale merchandise for resale at retail or used in the purchaser’s business as supplies;
D. Gasoline and other motor vehicle fuel;
E. Liquor sold at state liquor stores;
F. Propane and similar home fuels;
G. Automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, boats, outboard motors and chain saws;
H. Labor on automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, boats, outboard motors and chain saws;
I. All nonrecreational labor, services and nonrecreational state licensed professions and trades;
J. All payroll and business and labor costs;
K. Lumber, building supplies and tools, and other tools;
L. Household appliances;
M. Any hotel, motel, campground or other lodging facility occupancy, with respect to any person or persons who occupy a room or a space for a period longer than thirty consecutive calendar days; provided, that such person certifies prior to occupancy that the occupancy will exceed thirty consecutive calendar days and does in fact exceed thirty consecutive calendar days;
N. All sales of goods from catalogs paid for from outside of the boundaries of the town; that is, catalog sales of goods shall be exempt except to the extent that the goods are paid for and the exchange is made within the boundaries of the town. (Ord. 117 §§2, 3, 1986; Ord. 113 §13, 1985)
3.12.140 Use of tax moneys.
A. The tax moneys derived from the resort tax may be appropriated by the town council for any activity, undertaking, or administrative service that the municipality is authorized by law to perform, including costs resulting from the imposition of the tax.
B. There is established a marketing and promotion (MAP) fund for the town. Two and one-half percent of the three percent resort tax collected by the collecting merchant shall be dedicated exclusively to the MAP fund, which fund shall be used solely for the marketing and promotion of West Yellowstone and the surrounding area, as well as the associated costs of administering the fund. The town council may appropriate additional resort tax receipts to the MAP fund.
C. The town council shall by resolution establish a board of not less than three nor more than seven qualified persons to oversee the MAP fund. At least one member of this board shall be a sitting member of the town council or the council’s designee. The board shall establish policies and procedures for its operation and the general management of the fund in accordance with the council’s resolution establishing the board. The board shall also select individual marketing and promotion projects and approve expenditure of funds for such projects, subject to approval by the town council. (Ord. 222 §2, 2007: Ord. 112 §6, 1985)
3.12.150 Reduction of property tax levy.
Annually anticipated receipts from the resort tax must be applied to reduce the municipal property tax levy for the fiscal year in an amount equal to five percent of the resort tax revenues derived during the preceding fiscal year. (Ord. 112 §7, 1985)
3.12.160 Property tax relief fund.
In the event the town receives more resort tax revenues than had been included in the annual municipal budget, it shall establish a municipal property tax relief fund, and all resort tax revenues received in excess of the budget amount must be placed in the fund. The entire fund must be used to replace municipal property taxes in the ensuing fiscal year. (Ord. 112 §8, 1985)
3.12.170 Resort tax administration.
The town shall administer resort tax collections according to the following rules:
A. Resort tax payments shall be made to the town finance office by the established deadline.
B. Failure to report or make resort tax payments by the payment deadline shall result in forfeiture of the resort tax collection fee for the month in which the payment is due.
C. Failure to pay resort tax before the end of the month in which the payment is due shall result in an administrative fee of either: (1) twenty-five dollars for businesses with gross sales of one thousand five hundred dollars or less for the reported month; or (2) fifty dollars for businesses with gross sales in excess of one thousand five hundred dollars for the reported month, which shall be in addition to any civil penalties awarded to the town in a suit for collection of resort tax.
D. At the end of each subsequent month after the original payment is due, the town will assess an additional administrative fee equal to ten percent of the sum of any delinquent resort tax and penalties, which shall be assessed on the first business day of the subsequent month. This and all administrative fees shall be assessed in addition to any civil penalties awarded to the town in a suit for collection of resort tax.
E. The town may revoke the business license of any person or business that violates any provision of this chapter. The town may revoke a violator’s business license either through the administrative procedure described in Chapter 5.04 or through a court order or judgment in accordance with Section 3.12.180. (Ord. 250 §1, 2010: Ord. 219 §5, 2006: Ord. 211 §5, 2003; Ord. 112 §9, 1985)
3.12.180 Violation--Civil penalties.
For failure to report taxes when due, failure to pay taxes when due, and other violations of this chapter, the town may seek the following penalties or remedies:
A. A court judgement in the amount of all unpaid resort taxes, including any unpaid administrative fees assessed under Section 3.12.170 and any resort tax collection fees forfeited in accordance with Section 3.12.080;
B. Interest at the rate of ten percent per annum on unpaid resort taxes or administrative fees from the due date or assessment date until paid;
C. A civil penalty in the amount of fifty percent of the unpaid resort taxes, which includes forfeited resort tax collection fees, plus all costs and attorney’s fees incurred by the town in any court action;
D. An order requiring the delinquent business to undergo a financial audit by the town or its representatives to determine the proper amount of resort taxes due, including payment by the business of all audit costs and expenses incurred by the town or its representatives;
E. Revocation of the violator’s town business license, either through judicial order or the administrative procedure described in Chapter 5.04;
F. Any other penalty, remedy or judicial relief to which the town is entitled. (Ord. 219 §6, 2006: Ord. 207 §3, 2000: Ord. 113 §6, 1985)
3.12.190 Violation--Criminal penalties.
A person or business violating any provision of this chapter is guilty of a misdemeanor and subject to a fine not exceed one thousand dollars for each violation, or imprisonment not to exceed six months for each violation, or both. (Ord. 219 §7, 2006)