There is created a general fund for the general operation of the city. All revenues accruing to the city, other than those designated for special funds as provided for in Chapter 3.08, shall be paid into and credited to the general fund.
(Ord. 3-75 § 1, 1975.)
Checks or warrants may be drawn on said fund for the general operation of the city in accordance with the annual budget or budgets. The accounts of the city shall be so kept that they shall show the departments and the respective amounts for which the check or warrant is issued and paid.
(Ord. 3-75 § 2, 1975.)
3.08.010 Additional funds.
The city council may create or eliminate other funds by resolution as required by the state or federal government, or when it is in the best interests of the city of Sandy.
(Ord. 3-83 § 1 (part), 1983.)
3.08.020 Method of making expenditures.
Checks or warrants may be drawn on other funds in accordance with the annual budget or budgets.
(Ord. 3-83 § 1 (part), 1983.)
The city council may establish by resolution separate trust funds of the city for the benefit of designated city services and/or facilities. These funds may also be established to account for revenues and expenditures of nonprofit organizations for which the City of Sandy acts as the fiscal agent. (Ord. 2013-06, 2013.)
The city may accept gifts, devises or bequests of money or property to the respective trust funds. Donations may be accepted on such conditions as may be approved by the city council.
3.12.030 Use of Funds.
A trust fund and the income therefrom shall be used exclusively for the benefit of the programs or facilities designated in the establishment of the fund. Subject to any other requirements of law, expenditures from a trust fund exceeding $20,000 shall be approved by the city council; expenditures under this limit may be authorized by the city manager or designee. Where the city acts as fiscal agent for another organization, the governing board of that organization will establish its own procedures for approval of fund expenditures.
3.12.040 Segregation and investment of funds.
Assets of the fund may be segregated into separate accounts, and such accounts may, for convenience or in order to comply with the conditions or requests of the donor, be designated by separate names. The assets of the various accounts may nevertheless be commingled as may be deemed expedient by the city for investment or accounting purposes.
3.12.060 Accounting practices.
Trust funds established under this chapter are classified as Trust & Agency Funds under generally accepted accounting principles, and are not subject to appropriation as part of the city’s budget.
Unless any other provision or section of this code provides to the contrary, any charge or fee owed to the city will incur to the city's benefit charges to be established by the city council by resolution.
(Ord. 18-93 § 6, 1993: Ord. 6-85 § 1, 1985.)
The city has incurred substantial employee inconvenience and city expense because of checks returned to the city for insufficient funds and drawn on closed accounts. The city is desirous of establishing a process of compensating the city for the expense so incurred.
(Ord. 4-87 § 1 (part), 1987.)
All checks hereinafter drawn to the account of the city and returned by a financial institution because of insufficient funds or because they were drawn on a closed account shall be assessed an administrative processing fees as set by the city council by resolution.
(Ord. 18-93 § 7, 1993: Ord. 4-87 § 1 (part), 1987.)
Except where the context otherwise requires, the definitions in this section govern the construction of this chapter:
A. "Hotel" means any structure or any portion of any structure which is occupied or intended or designed for transient occupancy for thirty days or less for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home, condominium, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, public or private dormitory, fraternity, sorority, public or private club, space in mobile home or trailer parks or similar structure or portions thereof so occupied.
B. "Occupancy" means the use or possession of the right to the use of possession for lodging or sleeping purposes of any room or rooms in a hotel, space in a mobile home or trailer park or portion thereof.
C. "Operator" means the person who is proprietor of a hotel in any capacity. Where the operator performs his function through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purpose of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or managing agent shall be considered to be compliance by both.
D. "Person" means any individual, firm, partnership, joint venture, association, social club fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, of any other group or combination acting as a unit.
E. "Tax" means either the tax payable by the transient or the aggregate amount of taxes due from an operator during the period for which he is required to report his collection.,
F. "Transient" means any individual who exercises occupancy or is entitled to occupancy in a hotel for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. The day a transient checks out of the hotel shall not be included in determining the thirty day period of the transient is not charged rent for that day by the operator. Any such individual so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupancy providing for a longer period of occupancy, or the tenancy actually extends more than thirty consecutive days. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. A person who pays for lodging on a monthly basis, irrespective of the number of days in such month, shall not be deemed a transient.
G. Motel. See definition for "hotel" above.
H. "Rent" means the consideration charged, whether or not received by the operator, for the occupancy of space in a motel, valued in money, goods, labor credits, property or other consideration valued in money, without any deduction.
I. "Cash accounting" means a system of accounting in which the operator does not enter the rent due from a transient on the records until rent is paid.
"Accrual accounting" means a system of accounting in which the operator enters the rent due from a transient on his records when the rent is earned, whether or not it is paid.
(Ord. 7-88 § 1 (part), 1988.)
3.28.020 Tax imposed.
For the privilege of occupancy in any hotel, each transient shall pay a tax in the amount of three percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city which is extinguishable only by payment to the operator. The transient shall pay the tax to the operator at the time the rent is collected. The operator shall enter the tax on his records when rent is collected if the operator keeps his records on a cash accounting basis and when earned if the operator keeps his records on the accrual accounting basis. If rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the operator with each installment. In all cases, the rent paid or charged for occupancy shall exclude the sale of any goods, services or commodities.
(Ord. 1-96 § 1, 1996: Ord. 7-88 § 1 (part), 1988.)
3.28.030 Rules for collection.
A. Every operator renting rooms or space for lodging or sleeping purposes, unless the occupancy is exempt, shall collect the tax from the occupant. The tax collected or accrued by the operator constitutes a debt owed by the operator to the city.
B. In cases of credit or deferred payment of rent, payment of tax by the operator may be deferred until the rent is paid, and the operator shall not be liable for the tax until the credits are paid or the deferred payments are made. Adjustments may be made for uncollectibles.
C. The manager may enforce the provisions of this chapter and may adopt rules and regulations necessary to aid in its enforcement.
For rent collected on portions of a dollar, fractions of a penny of tax shall not be remitted.
(Ord. 7-88 § 1 (part), 1988.)
3.28.040 Operator's duties.
The tax collected by the operator shall be separately stated on the operator's records and on the receipt given by the operator. An operator shall not advertise that the tax or any part of the tax will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, when added, any part will be refunded unless specifically set forth herein.
(Ord. 7-88 § 1 (part), 1988.)
The tax required by this chapter shall not be imposed upon:
A. An occupant who occupies any room for more than thirty successive days.
An occupant whose rent is of a value less than two dollars per day.
(Ord. 7-88 § 1 (part). 1988.)
3.28.060 Payment of tax.
All net taxes collected are due and payable to the city on a monthly basis on the fifteenth day of the month for the preceding month. Any delinquency in payment shall be subject to a penalty of ten percent of the amount together with interest on the amount due at two percent per month without proration for fractions of a month.
If the operator has complied with all of the terms of this chapter, and specifically those relating to prompt payment of taxes, the operator shall be permitted to deduct as a personal collection expense five percent of the amount of taxes collected.
(Ord. 7-88 § 1 (part), 1988.)
The operator shall keep complete records separately, itemizing the tax accrued or collected, collection expense deducted, payments made, and interest accruing, which records shall be available for inspection by the city at all reasonable times.
(Ord. 7-88 § 1 (part), 1988.)
3.28.080 Disposition of tax.
All transient room taxes collected by the city shall be used for the promotion of tourism and economic development.
(Ord. 7-88 § 1 (part), 1988.)
A. Failure to remit taxes when due shall be grounds for revocation of the operator's city business license and shall subject the operator to the penalties of a Class "A" infraction.
Failure to comply with any provision of this chapter shall be a Class "A" infraction.
(Ord. 7-88 § 1 (part), 1988.)
3.30.010 - Definitions.
As used in this chapter the following terms shall mean as set out below unless the context requires otherwise:
A. "Activity or enterprise" means and includes all conduct or activity for gain or otherwise conducted by an applicant or any enterprise or undertaking for gain or otherwise.
B. "Applicant" means and includes any natural person or any entity (including corporation, unincorporated association, partnership, etc.) lawfully capable of engaging in or conducting activity in the city which activity requires a permit from the city.
C. "City" means the city of Sandy.
D. "City finance director" means and includes the director and any designate other than the city manager.
E. "City manager" means and includes the city manager or the city manager's designate.
F. "Permit" means and includes any and all permit(s), approval(s) or other form(s) of city authorization of whatever nature required by federal, state or local law as a condition for the lawful pursuit of an activity or enterprise in the city, including business licenses issued under the authority of Sandy Municipal Code (SMC) Chapter 5.08 and building permits issued pursuant to SMC Chapter 15.04, excepting land use permit(s) required or authorized under SMC Title 17.
3.30.015 - Authority to withhold or deny issuance.
A. If an applicant for a city issued permit owes money to the city, the city may (through the offices of the city finance director) revoke, suspend or deny issuance of said permit until the monies owed are either paid in full or arrangements, satisfactory to the city finance director, are entered into for payment.
B. Any revocation, suspension or denial made by the city based on the terms of this chapter shall be set out in writing, describing the basis for the city's action and setting out the amount deemed by the city to be owed it.
3.30.020 - Appeal of denial--Hearing before city manager--Appeal of city manager's decision.
A . In the event an applicant wishes to challenge a decision by the city pursuant to Section 3.30.015, the applicant may, at their option, file an appeal thereof with the office of the city manager within fifteen (15) days of the city's action.
B . The appeal shall be in writing and include, at a minimum, the following:
1. Information identifying the applicant (i.e., name and address);
2. Telephone number;
3. The type of permit at issue and the action (revocation--suspension--denial) taken by the city;
4. A copy of the written determination described in Section 3.30.015; and
5. Reason(s) why the city's action is unlawful or otherwise inappropriate.
C. Within ten business days of the date the completed appeal is filed with the city manager's office, the city manager shall hold a hearing on the matter, unless the applicant agrees to an extension. At the hearing, the city manager will take testimonial and other evidence, if any, offered by applicant as well as include in the record any material offered by the city supporting the city's position that monies are owed and the amount thereof.
D. After reviewing the material and evidence offered and received, the city manager shall make a written decision and either uphold, modify or reverse the city's action. The decision of the city manager shall be final.
E. An appeal of the city manager's decision may be taken by way of writ of review (ORS 34.010 to ORS 34.100) and not otherwise.
For the purposes of this chapter, every person who sells marijuana, medical marijuana or marijuana-infused products in the City of Sandy is exercising a taxable privilege. The purpose of this chapter is to impose a tax upon the retail sale of marijuana, medical marijuana, and marijuana-infused products.
When not clearly otherwise indicated by the context, the following words and phrases as used in this chapter have the following meanings:
A. “Gross Taxable Sales” means the total amount received in money, credits, property or other consideration from sales of marijuana, medical marijuana and marijuana-infused products that is subject to the tax imposed by this chapter.
B. “Manager” means the City Manager of the City of Sandy.
C. “Marijuana” means all parts of the plant of the Cannabis family Moraceae, whether growing or not; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its resin, as may be defined by Oregon Revised Statutes as they currently exist or may from time to time be amended. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted there from), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
D. “Oregon Medical Marijuana Program” means the office within the Oregon Health Authority that administers the provisions of ORS 475.300 through 475.346, the Oregon Medical Marijuana Act, and all policies and procedures pertaining thereto.
E. “Person” means natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or any group or combination acting as a unit, including the United States of America, the State of Oregon and any political subdivision thereof, or the manager, lessee, agent, servant, officer or employee of any of them.
F. “Purchase or Sale” means the retail acquisition or furnishing for consideration by any person of marijuana within the city and does not include the acquisition or furnishing of marijuana by a grower or processor to a seller.
G. “Registry identification cardholder” means a person who has been diagnosed by an attending physician with a debilitating medical condition and for whom the use of medical marijuana may mitigate the symptoms or effects of the person's debilitating medical condition, and who has been issued a registry identification card by the Oregon Health Authority.
H. “Retail sale” means the transfer of goods or services in exchange for any valuable consideration and does not include the transfer or exchange of goods or services between a grower or processor and a seller.
I. “Seller” includes any person who is required to be licensed or has been licensed by the State of Oregon to provide marijuana or marijuana-infused products to purchasers for money, credit, property or other consideration.
J. “Tax” means either the tax payable by the seller or the aggregate amount of taxes due from a seller during the period for which the seller is required to report collections under this chapter.
K. “Taxpayer” means any person obligated to account to the City Manager for taxes collected or to be collected, or from whom a tax is due, under the terms of this chapter.
3.32.030 Levy of Tax.
A. Every seller exercising the taxable privilege of selling marijuana and marijuana-infused products as defined in this chapter is subject to and must pay a tax for exercising that privilege.
B. The amount of tax levied is as follows:
1. Twenty percent (20%) of the gross sale amount paid to the seller of marijuana and marijuana infused products by a person who is a registry identification cardholder.
2. Twenty percent (20%) of the gross sale amount paid to the seller of marijuana and marijuana infused products by persons who are purchasing marijuana and marijuana-infused products but are not doing so pursuant to the provisions of the Oregon Medical Marijuana Program.
The following deductions are allowed against sales received by the seller providing marijuana:
A. Refunds of sales actually returned to any purchaser;
B. Any adjustments in sales that amount to a refund to a purchaser, providing such adjustment pertains to the actual sale of marijuana or marijuana-infused products and does not include any adjustments for other services furnished by a seller.
3.32.050 Seller Responsible For Payment Of Tax.
A. Every seller must, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October and January) make a return to the Manager, on forms provided by the city, specifying the total sales subject to this chapter and the amount of tax collected under this chapter. The seller may request or the Manager may establish shorter reporting periods for any seller if the seller or Manager deems it necessary in order to ensure collection of the tax. The Manager may require further information in the return relevant to payment of the tax. A return is not considered filed until it is actually received by the Manager.
B. At the time the return is filed, the seller must remit to the Manager the full amount of the tax collected. Payments received by the Manager for application against existing liabilities will be credited toward the period designated by the taxpayer under conditions that are not prejudicial to the interest of the city. A condition considered prejudicial is the imminent expiration of the statute of limitations for a period or periods.
C. The city will apply non-designated payments in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax.
D. If the Manager, in his or her sole discretion, determines that an alternative order of payment application would be in the best interest of the city in a particular tax or factual situation, the Manager may order such a change. The Manager may establish shorter reporting periods for any seller if the Manager deems it necessary in order to ensure collection of the tax. The Manager also may require additional information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest will be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. Sellers must hold in trust all taxes collected pursuant to this chapter for the city’s account until the seller makes payment to the Manager. A separate trust bank account is not required in order to comply with this provision.
E. Every seller required to remit the tax imposed by this chapter is entitled to retain five percent of all taxes due to the city to defray the costs of bookkeeping and remittance.
F. Every seller must keep and preserve in an accounting format established by the Manager records of all sales made by the seller and such other books or accounts as the Manager may be require. Every seller must keep and preserve for a period of three years all such books, invoices and other records. The Manager has the right to inspect all such records at all reasonable times.
3.32.060 Penalties And Interest.
A. Any seller who fails to remit any portion of any tax imposed by this chapter within the time required must pay a penalty of ten percent of the amount of the tax, in addition to the amount of the tax.
B. If any seller fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent, the seller must pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the penalty first imposed.
C. If the Manager determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax will be added thereto in addition to the penalties stated in subparagraphs A and B of this section.
D. In addition to the penalties imposed, any seller who fails to remit any tax imposed by this chapter must pay interest at the rate one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
E. Every penalty imposed, and any interest as accrues under the provisions of this section,becomes a part of the tax required to be paid.
F. All sums collected pursuant to the penalty provisions in paragraphs A and C of this section will be distributed to the city’s general fund.
G. Waiver of Penalties. Penalties for certain late tax payments may be waived or reduced pursuant to policies and processes adopted by the City Council. However, the City Council is not required to create a penalty waiver or penalty reduction policy. If the City Council chooses, in its sole discretion, to not create a policy for waivers or reductions, or has otherwise failed to do so, no waivers or reductions are allowed.
3.32.070 Failure To Report and Remit Tax –Determination of Tax by Manager.
A. If any seller fails to make any report of the tax required by this chapter within the time provided in this chapter, the Manager will proceed to obtain facts and information on which to base the estimate of tax due. As soon as the Manager procures such facts and information upon which to base the assessment of any tax imposed by this chapter and payable by any seller, the Manager will determine and assess against such seller the tax, interest and penalties provided for by this chapter.
B. If the Manager makes a determination as outlined in subsection A, the Manager must give notice to the seller of the amount assessed. The notice must be personally served on the seller or deposited in the United States mail, postage prepaid, addressed to the seller at the last known place of address.
C. The seller may appeal the determination as provided in section 3.32.080. If no appeal is timely filed, the Manager's determination is final and the amount assessed is immediately due and payable.
A. Any seller aggrieved by any decision of the Manager with respect to the amount of the tax owed along with interest and penalties, if any, may appeal the decision to the municipal court.
B. The seller must file a written notice of appeal within 10 days of the city’s serving or mailing of the determination of tax due.
C. The municipal court’s review will be on the record. The court will review the Manager’s decision to determine if substantial evidence supports it.
D. The municipal court’s decision is final subject only to judicial review pursuant to ORS 34.010 et seq.
A. The city may refund to the seller any tax, interest or penalty amount under any of the following circumstances:
1. the seller has overpaid the correct amount of tax, interest or penalty; or
2. the seller has paid more than once for the correct amount owed; or
3. the city has erroneously collected or received any tax, interest or penalties.
B. The city may not issue a refund under this subsection unless the seller provides to the Manager a written claim under penalty of perjury stating the specific grounds upon which the claim is founded and on forms furnished by the Manager. The seller must file the claim within one year from the date of the alleged incorrect payment to be eligible for a refund.
C. The Manager has 20 calendar days from the date of the claim’s receipt to review the claim and make a written determination as to its validity. After making the determination, the Manager will notify the claimant in writing of the determination by mailing notice to the claimant at the address provided on the claim form.
D. If the Manager determines the claim is valid, the claimant may either claim a refund or take as credit against taxes collected and remitted the amount that was overpaid, paid more than once, or erroneously received or collected by the city. The claimant must notify the Manager of the claimant’s choice no later than15 days following the date the Manager mailed the determination and the claimant must do so in a manner prescribed by the Manager.
E. If the claimant does not notify the Manager of claimant's choice within the 15 day period and the claimant is still in business, the city will grant a credit against the tax liability for the next reporting period. If the claimant is no longer in business, the city will mail a refund check to claimant at the address provided in the claim form.
F. The city will not pay a refund unless the claimant establishes by written records the right to a refund and the Manager acknowledges the claim’s validity.
3.32.100 Actions to Collect.
Any tax required to be paid by any seller under the provisions of this chapter is a debt owed by the seller to the city. Any tax collected by a seller that has not been paid to the city is a debt owed by the seller to the city. Any person owing money to the city under the provisions of this chapter is liable to an action brought in the name of the City of Sandy for the recovery of the amount owing. In lieu of filing an action for the recovery, the city, when taxes due are more than 30 days delinquent, may submit any outstanding tax to a collection agency. So long as the city has complied with the provisions set forth in ORS 697.105, if the city turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of $50.00 or 50 percent of the outstanding tax, penalties and interest owing.
3.32.110 Violation Infractions.
A. All violations of this chapter are punishable as set forth in SMC 1.16.010. It is a violation of this chapter for any seller or other person to:
1) Fail or refuse to comply as required herein;
2) Fail or refuse to furnish any return required to be made;
3) Fail or refuse to permit inspection of records;
4) Fail or refuse to furnish a supplemental return or other data required by the Manager;
5) Render a false or fraudulent return or claim; or
6) Fail, refuse or neglect to remit the tax to the city by the due date.
B. The remedies provided by this section are not exclusive and do not prevent the city from exercising any other remedy available under the law.
C. The remedies provided by this section do not prohibit or restrict the city or other appropriate prosecutor from pursuing criminal charges under state law or city ordinance.
Except as otherwise required by law, it is unlawful for the city, any officer, employee or agent to divulge, release or make known in any manner any financial information submitted or disclosed to the city under the terms of this chapter. Nothing in this section prohibits any of the following:
A. The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana is sold or provided; or
B. The disclosure of general statistics in a form which would not reveal an individual seller’s financial information; or
C. Presentation of evidence to the court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim by the Manager or an appeal from the Manager for amount due the city under this chapter; or
D. The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or
E. The disclosure of records related to a business' failure to report and remit the tax when the report or tax is in arrears for over six months or when the tax exceeds $5,000. The City Council expressly finds that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5).
3.32.130 Audit of Books, Records or Persons.
The city may examine or may cause to be examined by an agent or representative designated by the city for that purpose, any books, papers, records, or memoranda, including copies of seller's state and federal income tax return, bearing upon the matter of the seller's tax return for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due. All books, invoices, accounts and other records must be made available within the city limits and be open at any time during regular business hours for examination by the Manager or an authorized agent of the Manager. If any seller refuses to voluntarily furnish any of the foregoing information when requested, the Manager may immediately seek a subpoena from the Sandy Municipal Court to require that the seller or a representative of the seller attend a hearing or produce any such books, accounts and records for examination.
3.32.140 Forms And Regulations.
A. The Manager is authorized to prescribe forms and promulgate rules and regulations to aid in the making of returns, the ascertainment, assessment and collection of the marijuana tax and to provide for:
1. A form of report on sales and purchases to be supplied to all vendors;
2. The records that sellers providing marijuana and marijuana-infused products must keep concerning the tax imposed by this chapter.
1. Ordinances 1-87 and 4-87 each added a new Chapter 3.20. The numbering of Ordinance 4-87 has been editorially changed to add a new Chapter 3.24