(a) Definitions. As used in this section and Sections 163.062 the following words and terms have the following meanings:
(1) “Transient contractor” means any person who is not a resident of or does not have a place of business in the Municipality, including, but not limited to, a promoter, booking agent, or other agent or representative, who enters into an agreement with or on behalf of a transient taxpayer or arranges for activities or services of a transient taxpayer relating to a transient activity within the Municipality. A transient contractor may also be a transient taxpayer and, for purposes of this chapter, shall be treated as the employer of any transient taxpayer who is employed in or with respect to, or performs activities or services in or with respect to a transient activity as to which the person is a transient contractor notwithstanding that the legal relationship of the transient contractor and the transient taxpayer is that of an independent contractor or an agent.
(2) “Transient activity” means any activity, including, but not limited to, any rental of moveable personal property, protection of persons and property, custodial services, catering services, entertainment act, sports event, promotional booth, special event, band, orchestra, rock group, circus, theatrical performance or food, beverage or souvenir concession, which takes place on a one-time, short-term or irregular basis within the Municipality.
(3) “Transient taxpayer” means any person who engages in or provides or performs activities or services in or with respect to, any transient activity, as defined in subsection (a)(2) hereof.
(Ord. 21-04. Passed 5-3-04.)
(b) Collection at Source.
(1) Any person, including any transient contractor, who:
A. Employs or contracts for or arranges for the provision of the activities or services of any transient contractor or any transient taxpayer in connection with a transient activity as defined in subsection (a)(2) hereof; or
B. Rents real or tangible personal property to a transient taxpayer for a transient activity and who makes any payment to a transient contractor or a transient taxpayer shall withhold, report and pay over as estimated tax an amount equal to fifty percent (50%) of one and one half percent (1 1/2%) of the gross receipts of the transient activity paid to transient taxpayers or transient contractors by such person with respect to such transient activity, this Council finding and determining that such percentage will produce an amount which will be substantially what, under Section 163.03(a), all transient contractors and transient taxpayers involved in the transient activity, would have paid to this Municipality as a tax at the rate and as provided in Section 163.03 after allowing deductions permitted and available by reason of the structure of transient activities. Each payment under this subsection shall be accompanied by a withholding form prescribed by and available on request from the Tax Administrator.
(2) The tax withheld pursuant to this subsection shall be paid over to the Tax Administrator or a designated custodian of the Municipality within a period not to exceed three hours following the close of ticket sales or other final collection of gross receipts or revenues in connection with the transient activity.
(3) When this Municipality has received payment in full of the withholding required by subsection (b)(1) hereof with respect to a transient activity, no further withholding is required for that transient activity.
(Ord. 32-05. Passed 8-1-05.)
(c) Payment of Estimated Tax.
(1) Every transient taxpayer, including every transient contractor, who receives amounts in compensation for transient activities performed within the Municipality and for which no withholding of estimated tax, as required by subsection (b) hereof, has been made, shall prior to completion of the transient activity or immediately upon receipt of any amount or other compensation to be paid in connection with such transient activity, whichever is later, file an estimated income tax form as prescribed by the Tax Administrator and pay over the estimated tax on such gross amounts received at the rate provided in Section 163.03. If the transient taxpayer is a transient contractor, the estimated tax shall be calculated and paid over to the Tax Administrator at the rate required by Section 163.03 on the total amount received by the transient contractor net of deductions permitted in the calculation of taxable income, provided that such transient contractor simultaneously complies or has previously complied with the withholding requirement of subsection (b) hereof.
(2) Every transient taxpayer subject to this provision may be required to immediately file an estimated income tax form as prescribed by the Tax Administrator and pay the estimated income tax due thereon prior to the issuance of any permits or licenses or the execution of any rental agreement for the use of municipally owned property of the Municipality for the transient activity giving rise to the tax liability.
(d) Notice of Tax Obligation.
(1) Any person that enters into an agreement with a transient taxpayer for the performance of a transient activity shall provide notice to the transient taxpayer, on a form provided by the Tax Administrator of the liability for municipal income tax, including an explanation of the method of collecting such tax and the rate of tax. Such notice shall be provided no later than the execution by the transient taxpayer of that agreement.
(2) Failure to provide the notice required in subsection (d)(1) hereof, shall be a misdemeanor and shall be punishable by a fine of five hundred dollars ($500.00).
(e) Refunds. Any transient contractor or transient taxpayer which has made a payment to the Municipality of estimated tax to this Municipality or for which withholding of tax has been made and believes it has made an overpayment of its estimated tax or has had withheld and paid to this Municipality as withholding for tax owed to this Municipality an amount in excess of that which it owes as a tax shall, upon filing of its return for the calendar year of such estimated payment or for which withholding was made, be entitled to and shall receive a refund of the amount of the overpayment or the excess amount of the withholding provided that, in the case of a transient contractor, the return of the transient contractor shall either be accompanied by the returns for the applicable year of all transient taxpayers involved in the transient activity and for which the transient contractor was an employer for purposes of this chapter or there shall be deducted from the amount of the refund to be paid to the transient contractor fifty percent (50%) of the amount claimed by the transient contractor as payments to the transient taxpayers involved in the transient activity as withholding of the tax due from those transient taxpayers pursuant to this chapter.
(Ord. 21-04. Passed 5-3-04.)