(A) Excise tax on storage, use or other consumption of tangible, personal property levied. There is levied and there shall be paid by every person storing, using or otherwise consuming within the town tangible, personal property purchased or brought into this town an excise tax on the storage, use or other consuming within the town of such property at the rate of 1% of the purchase price of such property, and such tax shall be in addition to the 2% excise tax currently levied by the town on such purchases. The tax shall be paid by every person storing, using or otherwise consuming within the town, tangible personal property purchased or brought into the town. The additional tax levied hereunder shall be paid at the time of importation or storage of the property within the town and shall be assessed to only property purchased outside Oklahoma; provided, that the tax levied herein shall not be levied against tangible, personal property intended solely for use outside the town, but which is stored in the town pending shipment outside the town or which is temporarily retained in the town for the purpose of fabrication, repair, testing, alteration, maintenance or other service. Any person liable for payment of the tax authorized herein may deduct from such tax any local or municipal sales tax previously paid on such goods or services; provided, that the amount deducted shall not exceed the amount that would have been due if the taxes imposed by the town had been levied on the sale of such goods or services.
(B) Exemptions. The provisions of this section shall not apply:
(1) With respect to the use of an article of tangible, personal property brought into the town by a nonresident individual visiting in this town for his or her personal use or enjoyment while within the town;
(2) With respect to the use of tangible, personal property purchased for resale before being used;
(3) With respect to the use of any article of tangible, personal property on which a tax, equal to or in excess of that levied by both the Oklahoma Use Tax Code and the town use tax ordinance, has been paid by the person using such tangible, personal property in the town, whether such tax was levied under the laws of Oklahoma or some other state or city of the United States. If any article of tangible, personal property has already been subjected to a tax by Oklahoma or any other state or city in respect to its sale or use, in an amount less than the tax imposed by both the Oklahoma Use Tax Code and the town use tax ordinance measured by the difference only between the rate provided by both the Oklahoma Use Tax Code and the town use tax ordinance, and the rate by which the previous tax upon the sale or use was computed; provided, that no credit shall be given for taxes paid in another state or city, if that state or city does not grant like credit for taxes paid in Oklahoma and the town;
(4) In respect to the use of machinery and equipment purchased and used by persons establishing new manufacturing or processing plants in the town, and machinery and equipment purchased and used by persons to the operation of manufacturing plants already established in the town; provided, this exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation under the sales tax code of the town. The term MANUFACTURING PLANTS shall mean those establishments primarily engaged in manufacturing or processing operations and generally recognized as such;
(5) With respect to the use of tangible, personal property now specifically exempted from taxation under the sales tax code of the town;
(6) With respect to the use of any article of tangible, personal property brought into the town by an individual with intent to become a resident of the town where such personal property is for such individual’s personal use or enjoyment;
(7) With respect to the use of any article of tangible, personal property used or to be used by commercial airlines or railroads; and
(8) With respect to livestock purchased outside Oklahoma and brought into this town for feeding or breeding purposes, and which is later resold.
(C) Time when due; returns; payment. The tax levied by this section is due and payable at the time and in the manner and form prescribed for payment of the state use tax under the Use Tax Code of the State of Oklahoma.
(D) Tax constitutes debt. Such taxes, penalty and interest due hereunder shall at all times constitute a prior, superior and paramount claim as against the claims of unsecured creditors, and may be collected by suit as any other debt.
(E) Collection of tax by retailer or vendor. Every retailer or vendor maintaining places of business both within and without the State of Oklahoma, and making sales of tangible, personal property from a place of business outside this state for use in this town shall at the time of making such sales collect the use tax levied by this section from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Oklahoma Tax Commission (the “Tax Commission”), if the Tax Commission shall, by regulation, require such receipt. Each retailer or vendor shall list with the Tax Commission the name and address of all his or her agents operating in this town and location of any and all distribution or sales houses or offices or other places of business in this town.
(F) Collection of tax by retailer or vendor not maintaining a place of business within state or both within and without state; permits. The Tax Commission may in its discretion, upon application, authorize the collection of the tax herein levied by any retailer or vendor not maintaining a place of business within this state but who makes sales of tangible, personal property for us in this town and by the out-of-state place of business of any retailer or vendor maintaining places of business both within and without Oklahoma and making sales of tangible, personal property at such out-of-state place of business for use in this town. Such retailer or vendor may be issued, without charge, a permit to collect such taxes, by the Tax Commission in such manner and subject to such regulations and agreements as it shall prescribe. When so authorized, it shall be the duty of such retailer or vendor to collect the tax upon all tangible, personal property sold to his knowledge for use within this town. Such authority and permit may be canceled when at any time the Tax Commission considers that such tax can more effectively be collected from the person using such property in this town; provided, however, that in all instances where such sales are made or completed by delivery to the purchaser within this town by the retailer or vendor in such retailer’s or vendor’s vehicle, whether owned or leased (not by common carrier), such sales or transactions shall continue to be subject to applicable town sales tax at the point of delivery and the tax shall be collected and reported under taxpayer’s sales tax permit number accordingly.
(G) Revoking permits. Whenever any retailer or vendor not maintaining a place of business in this state, or both within and without this state, and authorized to collect the tax herein levied, fails to comply with any of the provisions of this section or the Oklahoma Use Tax Code or any order, rules or regulations of the Tax Commission, the Tax Commission may, upon notice and hearing as provided for in 68 O.S. § 1408, by order revoke the use tax permit, if any, issued to such retailer or vendor, and if any such retailer or vendor is a corporation authorized to do business in this state may, after notice and hearing above provided, cancel said corporation’s license to do business in this state and shall issue a new license only when such corporation has complied with the obligations under this section, the Oklahoma Use Tax Code, or any order, rules or regulations of the Tax Commission.
(H) Remunerative deductions allowed vendors or retailers of other states. Returns and remittances of the tax herein levied and collected shall be made to the Tax Commission at the time and in the manner, form and amount as prescribed for returns and remittances required by the Oklahoma Use Tax Code; and remittances of tax collected hereunder shall be subject to the same discount as may be allowed by said code for the collection of state use taxes.
(I) Interest and penalties; delinquency. 68 O.S. § 217 is hereby adopted and made a part of this section, and interest and penalties at the rates and in the amounts as therein specified are hereby levied
and shall be applicable in cases of delinquency in reporting and paying the tax levied by this section; provided, that the failure or refusal of any retailer or vendor to make and transmit the reports and remittances of tax in the time and manner required by this section shall cause such tax to be delinquent. In addition, if such delinquency continues for a period of five days, the retailer or vendor shall forfeit his or her claim to any discount allowed under this section.
(J) Waiver of interest and penalties. The interest and penalty or any portion thereof accruing by reason of a retailer’s or vendor’s failure to pay the town tax herein levied may be waived or remitted in the same manner as provided for said waiver or remittance as applied in administration of the state use tax provided in 68 O.S. § 220, and to accomplish the purposes of this section, the applicable provisions of said § 220 are hereby adopted by reference and made a part of this section.
(K) Erroneous payments; claim for refund. Refund of erroneous payment of the town use tax herein levied may be made to any taxpayer making such erroneous payment in the same manner and procedure, and under the same limitations of time, as provided for administration of the state use tax as set forth in 68 O.S. § 227, and to accomplish the purpose of this section, the applicable provisions of § 227 are hereby adopted by reference and made a part of this section.
(L) Fraudulent returns. In addition to all civil penalties provided by this section, the willful failure or refusal of any taxpayer to make reports and remittances herein required, or the making of any false and fraudulent report for the purpose of avoiding or escaping payment of any tax or portion thereof rightfully due under this section shall be an offense and upon conviction thereof, the offending taxpayer shall be punished by a fine of not more than $100. Each day of noncompliance with this section shall constitute a separate offense.
(M) Records confidential. The confidential and privileged nature of the records and files concerning the administration of the town use tax is legislatively recognized and declared, and to protect the same, the provisions of 68 O.S. § 205, of the Oklahoma Use Tax Code, and each subsection thereof, is hereby adopted by reference and made fully effective and applicable to administration of the town use tax as is herein set forth in full.
(N) Provisions cumulative. The provisions hereof shall be cumulative, and in addition to any and all other taxing provisions of the town ordinances.
(O) Provisions severable. The provisions hereof are hereby declared to be severable, and if any section, paragraph, sentence or clause of this section is for any reason held invalid or inoperative by any court of competent jurisdiction, such decision shall not affect any other section, paragraph, sentence, or clause hereof.
(P) Definitions. The definitions of words, terms and phrases contained in the Oklahoma Use Tax Code, 68 O.S. § 1401, are hereby adopted by reference and made a part of this section. In addition thereto, the following words and terms shall be defined as follows:
TOWN. The Town of Granite, Oklahoma.
TRANSACTION. Sale.
(Q) Tax Collector defined. The term TAX COLLECTOR as used herein means the department of the town government or the official agency of the state, duly designated according to law or contract authorized by law, to administer the collection of the tax herein levied.
(R) Classification of taxpayers. For the purpose of this section, the classification of taxpayers hereunder shall be as prescribed by state law for purposes of the Oklahoma Use Tax Code.
(S) Subsisting state permits. All valid and subsisting permits to do business issued by the Tax Commission pursuant to the Oklahoma Use Tax Code are for the purpose of this section hereby ratified, confirmed and adopted in lieu of any requirement for any additional town permit for the same purposes.
(T) Purposes of revenues. It is hereby declared to be the purpose of this section to provide revenues for the support of the functions of the municipal government of the town, and any and all revenues derived hereunder may be expended by the governing body of the town for any purpose for which funds may be lawfully expended as authorized.
(Ord. 191, passed - - ; Am. Ord. 223, passed 9-11-06)