12-34 - O TOWN OF PROSPER, TEXAS ORDINANCE NO. 12-34
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS,
ESTABLISHING THE LEVY OF A HOTEL OCCUPANCY TAX
PURSUANT TO §351.001, et seq., TEXAS TAX CODE; PROVIDING
FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE;
PROVIDING FOR REPEALING SAVINGS AND SEVERABILITY
CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS
ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF
THE CAPTION THEREOF.
WHEREAS, the Town Council of the Town of Prosper, Texas ("Town Council")
is of the opinion that it is in the best interest of the citizens to expend public funds to: (1)
advertise the Town of Prosper, Texas ("Prosper"); (2) encourage tourism; and (3)
promote Prosper in general; and
WHEREAS, the Town Council finds that a large portion of the public facilities
are necessarily supplied for the use of transient public in the form of display,
entertainment, convention, historical and art facilities; and
WHEREAS, the burden of financing the facilities and programs should be spread
to the extent possible among the persons for whom the facilities are being provided and
held and receive the benefits of same from time to time; and
WHEREAS, §351.003 of the Texas Tax Code allows for the levy of tax not to
exceed seven percent(7%) of the price paid for a room; and
WHEREAS, the Town Council has investigated and determined that it would be
advantageous and beneficial to Prosper and its inhabitants to establish the hotel
occupancy tax authorized by the Texas Tax Code.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF
THE TOWN OF PROSPER, TEXAS:
SECTION l: Findings Incorporated. The findings set forth above are
incorporated into the body of this ordinance as if fully set forth herein.
SECTION 2: Definitions.
Town Manager shall mean the Town Manager of Prosper or his/her designated
representative.
Consideration shall mean the cost of the room in such hotel only 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.
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Hotel shall mean a building or buildings in which the public may, for
consideration, obtain sleeping accommodations. The term shall include hotels, motels,
tourist homes, houses or courts, lodging houses, inns, rooming houses or other buildings
where rooms are furnished for a consideration, but "hotel' shall not be defined so as to
include hospitals, sanitariums or nursing homes.
Hotel Occupancy Tax shall mean the tax imposed by this Ordinance.
Reporting period shall mean either the monthly or quarterly reporting period that
applies to a person as determined by §156.151, Texas Tax Code, as it exists or may be
amended.
Occupancy shall mean 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 shall mean 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.
Permanent resident shall mean any occupant who has or shall have the right of
occupancy of any room or rooms or sleeping space or facility in a hotel for at least thirty
(30) consecutive days during the current calendar year or preceding year.
Person shall mean any individual, company, corporation or association owning,
operating, managing or controlling any hotel.
SECTION 3: Levv of Tax, Rate, Exemptions. There is hereby levied a tax upon
the cost of occupancy of any room or space furnished by any hotel where such cost of
occupancy is at the rate of TWO DOLLARS ($2.00) or more per day, such tax to be
equal to seven percent (7%) of the consideration paid by the occupant of such room,
space or facility to such hotel, exclusive of other occupancy taxes imposed by other
governmental agencies. Exemptions to the levy of the hotel occupancy tax imposed
herein shall be the same as those prescribed by §351.006, Texas Tax Code, as it exists or
may be amended.
SECTION 4: Extraterritorial Jurisdiction. Any hotel occupancy tax provided
herein shall be imposed in the Prosper extraterritorial jurisdiction, provided, however,
that the levy such taxed shall not result in a combined rate of state, county or municipal
hotel occupancy taxes in the extraterritorial jurisdiction which exceeds fifteen percent
(15%) of the price paid for a room in a hotel.
SECTION 5: Disposition of Revenue. The revenue derived from the hotel
occupancy tax will only be used for the purposes authorized by 1351.001, et seq., Texas
Tax Code, as it exists or may be amended, as the Town Council may direct and authorize.
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SECTION 6: Collection. Every person owning, operating, managing or
controlling any hotel shall collect the hotel occupancy tax imposed by this Ordinance for
Prosper.
SECTION 7: Reports. On the last day of the month that follows each reporting
period, every person required to collect the tax imposed by of this Ordinance shall file a
report with the Town Manager showing the consideration paid for all room occupancies
in the preceding reporting period, the amount of the tax collected on such occupancies
and any other information as the Town Manager or his or her designated representative
may reasonably require. Such person shall pay the hotel occupancy tax due on such
occupancies at the time of filing such report.
SECTION 8: Rules and Regulations. The Town Manager shall have the power
to make such rules and regulations as are necessary to effectively collect the hotel
occupancy tax levied by this Ordinance and shall upon reasonable notice have access to
books and records necessary to enable him/her to determine the correctness of any report
filed as required by this Ordinance and the amount of taxes due under the provisions of
this Ordinance. All powers granted to Prosper by Chapter 351, Texas Tax Code, as it
exists or may be amended, are hereby adopted by this Ordinance.
SECTION 9: Penaltv Provision. If any person, firm, corporation or entity shall
fail to collect the hotel occupancy tax imposed by this Ordinance, or shall fail to file a
report as required herein, or shall fail to pay to the Town Manager the tax imposed by this
Ordinance when said report for payment is due, or shall file a false report, then such
person, firm, corporation or entity shall be deemed guilty of a misdemeanor and upon
conviction be punished a fine of not less than FIFTY DOLLARS ($50.00) nor more than
FIVE HUNDRED DOLLARS ($500.00) per offense. In addition, such person, firm,
corporation or entity who fails to remit the hotel occupancy tax imposed by this
Ordinance within the time required shall be subject to the collection procedures and
penalties authorized by Chapter 351 and other relevant provisions of the Texas Tax Code,
as it exists or may be amended. Furthermore, delinquent hotel occupancy taxes shall also
draw interest at the rate of ten percent (10%) per annum beginning sixty (60) days from
the date due.
SECTION 10: Savings/Repealing Clause. All provisions of any ordinance in
conflict with this Ordinance are hereby repealed to the extent they are in conflict; but
such repeal shall not abate any pending prosecution for violation of the repealed
ordinance, nor shall the repeal prevent a prosecution from being commenced for any
violation if occurring prior to the repeal of the ordinance. Any remaining portions of said
ordinances shall remain in full force and effect.
SECTION 11: Severabilitv. Should any section, subsection, sentence, clause or
phrase of this Ordinance be declared unconstitutional or invalid by a court of competent
jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance
shall remain in full force and effect. Prosper hereby declares that is would have passed
this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the
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fact that any one or more sections, subsections, sentences, clauses and phrases be
declared unconstitutional or invalid.
SECTION 12: Effective Date. This Ordinance shall become effective upon its
adoption and publication, as required by Prosper's Town Charter and by law.
DULY PASSED AND APPROVED BY THE TO COUNCIL OF THE
TOWN OF PROSPER, TEXAS, on this the day of ���L , 2012.
r
Ray Smith, Mayor
ATTESTED TO AND
CORRECTLY RECORDED BY: AP ROVED AS TO FORM:
Amy PiAan#,ftAdSecretary Abernathy, oe er, Body & Joplin, P.C.
Rebecca H. Brewer, Town Attorneys
DATE(s)OF PUBLICATION: W THE DALLAS MORNING NERS(COLLIN COUNTY EDITION)
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