A CHARTER ORDINANCE AMENDING CHARTER ORDINANCE 23-24 AND SETTING FORTH SUBSTITUTE AND ADDITIONAL PROVISIONS FOR THE GOVERNANCE OF THE CITY OF OTTAWA, KANSAS.
WHEREAS, the Governing Body did, on the 25th day of September 2024 adopt Charter Ordinance 23-24 to allow for the levy of a transient guest tax in the City of Ottawa, and to charter out of non-uniform state statutes concerning the same, and,
WHEREAS, that charter ordinance sought to have the Kansas Department of Revenue collect said transient guest tax; and,
WHEREAS, the governing body now finds it advisable to have the city self-administer the collection of a transient guest tax in the city of Ottawa.
THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF OTTAWA, KANSAS:
Section 1. Amendment of Section 2 of Charter Ordinance 23-24. Section 2 of Charter Ordinance 23-24 is hereby amended as follows:
Section 2. Transient Guest Tax, Substitute Provisions for K.S.A. 12-1697.
(a) The Governing Body is hereby authorized to levy a transient guest tax not to exceed the rate of nine percent (9%) upon the gross receipts derived from or paid by transient guests for sleeping accommodations, exclusive of charges for incidental services or facilities, in any hotel, motel, or tourist court. The percentage of such tax shall be determined by the City Governing Body and shall be specified by ordinary ordinance authorizing the same.
(b) Any transient guest tax levied pursuant to this Section shall be based upon the gross revenue receipts collected by any business.
(c) The taxes levied pursuant to this Section shall be paid by the consumer or user to the business and it shall be the duty of each and every business to collect from the consumer or user the full amount of any such tax, or an amount equal as nearly as possible or practicable to the average equivalent thereto. Each business collecting any of the taxes levied hereunder shall be responsible for paying over the same to the City Clerk or the City Clerk’s authorized designee in the manner prescribed by this ordinance and the City of Ottawa shall administer and enforce the collection of such taxes.
(d) A transient guest tax authorized by this Section shall not be levied until the Governing Body of the City has passed an ordinary ordinance authorizing the same.
Section 2. Additional Provisions Regarding Collection. The following additional provisions regarding the levying and collection of transient guest tax within the City of Ottawa are hereby adopted.
A. Any tax levied and collected shall become due and payable by the business monthly, on or before the 25th day of the month, immediately succeeding the month in which it is collected, with the first payment due and payable on or before the 25th day of the month beginning in September 2025. Each business shall make a true report to the City, on a form prescribed by the City Clerk, providing such information as may be necessary to determine the amounts to which any such tax shall apply for all gross rental receipts for the applicable month or months, which report shall be accompanied by the tax disclosed thereby. Records of gross rental receipts shall be kept separate and apart from the records of other retail sales made by a business in order to facilitate the examination of books and records as provided herein.
B. The City Clerk or the City Clerk’s authorized designee shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of a business as may be necessary to determine the accuracy of such reports.
C. The City Clerk is hereby authorized to administer and collect any transient guest tax levied pursuant to this Charter Ordinance and Charter Ordinance 23-24 and to adopt such procedures and policies as may be necessary for the efficient and effective administration and enforcement of the collection thereof. Whenever any business liable to pay any transient guest tax refuses or neglects to pay the same, the amount, including any penalty, shall be elected in the manner prescribed for the collection of the transient guest tax by the City of Ottawa Municipal Code and amendments thereto or if none, as set forth in this ordinance. Upon receipt of any tax remittance for transient guest tax, the City Clerk shall deposit the entire amount in the City treasury, and the city treasurer shall credit 2% of all taxes so collected to the City’s general fund to defray the expenses of the department in administration and enforcement of the collection thereof. The remainder of such taxes shall be retained and expended in accordance with those purposes set forth in Charter Ordinance 23-24.
D. Interest and penalties for failure to pay or for untimely payment of transient guest taxes shall be as follows:
I. If any taxpayer shall fail to pay the tax levied pursuant to this Charter Ordinance and Charter Ordinance 23-24, and amendments thereto, there shall be added to the unpaid balance of the tax, interest at the rate per month prescribed by the City of Ottawa Municipal Code, as amendments thereto, and if no such rate has been set by the ordinance codified in the municipal code, then at 10%, form the date the tax was due until paid.
II. If any taxpayer fails to pay the tax due at the time required by or under the provisions of this Charter Ordinance or Charter Ordinance 23-24 and amendments thereto, there shall be added to the tax a penalty in the amount of 10%. Said penalty may be reduced or waived by the City Clerk or the City Clerk’s authorized designee for good cause shown.
III. If any such person shall fail to pay any tax, within sixty calendar days from the date the return or tax was due, except in the case of an extension granted by the City Manager, there shall be added to the tax due an additional penalty equal to 25% of the amount of such tax. Said penalty may be reduced or waived by the City Clerk or the City Clerk’s authorized designee for good cause shown. This penalty shall be in place of the penalty in Section 2.D.II, and not in addition to it.
IV. If any taxpayer, with fraudulent intent, fails to pay any tax or make, render or sign any return, or to supply any information, within the time required by or under the provisions of this Charter Ordinance or Charter Ordinance 23-24, and amendments thereto, there shall be added to the tax a penalty in an amount equal to 50% of the unpaid balance of tax due. A penalty under this section shall be in addition to and not in place of the penalty under Section 2.D.II and 2.D.III.
V. For serious, repeated, or continuous violations of any of the requirements of this Charter Ordinance or Charter Ordinance 23-24, or any other relevant ordinance related to transient guest tax, or for interference with City staff in the performance of their duties, any business license or license to operate or conduct business as a hotel, motel, or tourist court may be suspended and/or permanently revoked after an opportunity for a hearing before the City Commission has been provided. Prior to such action, the City Clerk shall notify the license holder in writing, stating the reasons for which the license is subject to suspension or revocation and advising that the license shall be temporarily suspended at the end of 30 days following service of such a notice, unless the license holder files a request for a hearing with the City Clerk within 10 days of service of the notice.
VI. Hearings provided for under this section shall be conducted by the City Commission at a time and place designed by the City Commission. Based on the record of such hearing, the City Commission shall make a finding and shall sustain, modify, or rescind any suspension or proposed revocation issued or recommended by staff. A written report of the hearing decision shall be furnished to the license holder by the City Clerk.
VII. In addition to all other penalties provided by this section, any person who makes a false or fraudulent return, or fails to keep any books or records necessary to determine the accuracy of the person’s reports, or who willfully violates any regulations of the City, for the enforcement and administration of the provisions of this Charter Ordinance or Charter Ordinance 23-24, and amendments thereto, or who aids and abets another in attempting to evade the payment of any tax imposed of who violates any other provision of this Charter Ordinance or Charter Ordinance 23-24, and amendments thereto, shall, upon conviction thereof, be guilty of a class B misdemeanor and subject to the punishments therefor as ordered by the judge.
E. The transient guest tax authorized by Charter Ordinance 23-24 and set by Ordinary Ordinance 4157-24, shall remain in effect, and is unchanged by this Charter Ordinance, and is hereby ratified.
Section 3. Charter Ordinance 23-24 Ratified as to Remainder. With the exception of the above amendments, the balance of Charter Ordinance 23-24 is hereby ratified and shall continue in effect. Those sections in conflict with this Charter Ordinance are hereby repealed.
Section 4. Codification. The City Clerk or his or her designee is authorized to codify any provision of this Charter Ordinance and Charter Ordinance 23-24 as they deem necessary in the Municipal Code of the City of Ottawa, Kansas.
(05-07-2025)