CHAPTER 11

TAXATION

   ARTICLE 11.01 GENERAL PROVISIONS*

   (Reserved)

   ARTICLE 11.02 SALES AND USE TAX

   Sec. 11.02.001     One-percent tax levied

A local sales and use tax of one percent (1%) was adopted by the voters of the city as a result of an election called by Ordinance 3-79-2, held on                . (Ordinance adopting Code)

   Sec. 11.02.002     Additional one-half-percent tax levied

An additional local sales and use tax of one-half percent (1/2%) was adopted by the voters of the city as a result of an election called by Ordinance 1-88-1, held on May 7, 1988. (Ordinance adopting Code)

   ARTICLE 11.03 ENTERPRISE ZONE**

   Sec. 11.03.001     Boundaries

The city hereby nominates the area set forth below an enterprise zone in accordance with the act [the Texas Enterprise Zone Act, V.T.C.A., Government Code, chapter 2303]:

For a 2,307-acre tract of land within Parker County and the cities of Weatherford and Hudson Oaks, Texas, particularly described as follows:

Beginning at the intersection of the east right-of-way of North Main Street and the north right-of-way of the railroad track.

Thence north along the east right-of-way line of Main Street crossing Front, Soward, Throckmorton, Wheeler, a distance of 1,600 feet (more or less) to the intersection of North Main and Edna Street, east to Liberty, north to Common, east to Duke, north to East First Street, north along the line of the city limits, a distance of 6,120 feet (more or less).

Thence west along the city limits to Farm Road 2421 a distance of 5,680 feet (more or less) south to Farm Road 920 a distance of 720 feet (more or less).

Thence west along Farm Road 920 to Karen Street a distance of 2,066.4 feet (more or less).

Weatherford Industrial Park

South 470.19 ft., thence west 372.56 ft., thence south 1,441.26 ft. to railroad tracks right-of-way.

Thence east along the railroad tracks crossing North Bowie and Franklin Street to North Main a distance of 8,660.81 feet (more or less).

Thence south on a line five feet west of the centerline of North Main to the intersection of the U.S. Highway 80/180.

Thence west on a line five feet north of the centerline of U.S. Highway 80/180 to a unnamed creek 560 feet (more or less) west of city limits on Highway 180, then southwest a distance of 4,480 feet (more or less) to a point southwest of Greenwood Road.

Thence southeast a distance of 6,560 ft. (more or less) to the city limits, thence north along the city limits of 1980 to Highway 180. East on Highway 180 on a line five feet south of the centerline to Bowie Street. South on Bowie Street on a line 5 feet to the west of the centerline to the service road on the south side of Interstate I-20. East on a line 5 feet south of the centerline of the service road to a tract known as Hobson Air Conditioning.

Hobson Air Conditioning Property

Beginning at an iron pipe, said point being the NW corner.

Thence South 84 deg 42 min East, with the SBL of the above-mentioned Interstate Highway 20, 1,477.5 feet to an iron pipe for corner.

Thence South 05 15 min 26 sec West with the general line of fence 939.69 feet.

Thence N 88 deg 30 min 39 sec West with the general line of fence, 1,392.42 feet to an iron pipe for a corner.

Thence N 00 deg 22 min 56 sec East with the general line of a fence, 1,038.48 feet to an iron pipe for a corner in the SBL of Interstate Highway 20; to the place of beginning and containing 32.531 acres of land (more or less).

West on a line 5 feet north of the centerline of the service road to Bowie Street, north on a line 5 feet east of the centerline of Bowie Street to the intersection of Highway 80/180, east along a line five feet south of the centerline of Highway 80/180 to Santa Fe. South on a line 5 feet west of the centerline of Santa Fe a distance of 4,440 feet (more or less) to Eureka Drive.

Clear Lake Industrial

East a distance of 1,120 ft. (more or less) on a line five feet north from the center of Eureka to Clear Lake Industrial Park, north for a distance of 330 feet, east a distance of 619.3 feet, southeast along the T&P Railroad a distance of 1813.43 feet, southwest a distance of 115.0 ft., west a distance of 1469.72 feet, south a distance of 784 ft. to East Park Road, west a distance of 338.5 feet, northwest a distance of 151.69 feet to Clear Lake Road, north on Clear Lake Road a distance of 1844.99 feet to Eureka Street. (An area of 97.78 acres more or less.)

City of Weatherford

Thence from a steel rod in the NBL of Eureka Street for corner.

Thence S 88 deg 46 min West 348.0 feet to a steel pipe for corner.

Thence with the general line of a fence S 00 deg 41 min West 104.22 ft. to a steel pipe for a corner.

Thence with the general line of a fence N 89 deg 47 min West 972.08 feet the SWBL of the above-mentioned T&P Railroad Company S 56 deg 51 min 59 sec East 1328.13 feet to a steel pipe for a corner.

Thence North 11 deg 01 min E 68.34 feet to a point in the SWBL of the T&P Railroad Company for a corner.

Thence with the general line of a fence N 88 deg 37 mm 16 sec East 1339.11 feet to a steel 2" pipe for a corner.

Thence with the general line of a fence N 00 deg 46 min 32 sec East 810.68 feet to a point for a corner.

Thence with the NEBL of the above-mentioned FM Highway 2552, S 47 deg 30 min 38 sec East 627.39 [feet] to a point for a corner.

Thence N 00 deg 27 min 06 sec East 341.32 feet to a point in the NEBL of FM Highway 2552 for a corner.

Thence S 89 deg 02 min 49 sec West 328.78 feet.

Thence N 00 deg 23 min 47 sec East 42.5 feet (more or less).

Thence with the general line of a fence N 88 deg 37 min 16 sec East 1,033.72 feet to a steel pipe for a corner.

Thence S 00 deg 00 min 36 sec West 423.41 feet to a steel pipe for a corner.

Thence with the NBL of said 1.08-acre tract of land S 89 deg 30 min 29 sec West 89.0 feet to a point being the NW corner of said 1.08-acre tract of land for a corner.

Thence with the EBL of the above-mentioned 1.08-acre tract of land S 00 deg 32 min 16 sec E 545.60 feet to a point being the NE corner of said 1.08-acre tract of land for a corner.

Thence with the NBL of the above-mentioned Eureka Street S 88 deg 46 min West 161.35 feet to a point being the SE corner of a 1.08-acre tract of land for a corner.

Thence south 210 feet to (the place of beginning and containing 23.999 acres of land, more or less), west a distance of 1,120 feet (more or less) on a line 5 feet south of the centerline of Eureka to Santa Fe.

HKP Industrial Park

North on a line five feet east of the centerline of Santa Fe to the intersection of Highway 80/180, east on a line five feet south of the centerline of Highway 80/180 to Bankhead Drive, south along a line 5 feet west of the centerline of Bankhead Drive to Banks Drive on the south side of I-20, south a distance of 554.5 feet (more or less) along a line five feet east of the centerline of Banks Drive East on a line a distance of 179.1 feet.

Thence south 764.7 feet (more or less) then west, following the property (fence) line 239 feet (more or less) then south along the east side of Banks Dr. for 100.9 feet (more or less) then west 672 feet (more or less) on the south side of Brim Street then north 65 feet (more or less) to the property line then west 276 feet to the west property line, then north 946.86 feet (more or less) to the north property (fence) line then east 887.7 feet (more or less).

Thence west 1,116.2 feet (more or less) to the west property (fence) line then north 357.66 feet (more or less).

Thence north and east 1,147.2 feet (more or less).

Thence to the northwest corner of Banks Drive and Bankhead Highway.

North along a line 5 feet east of the centerline of Bankhead Drive to Highway 80/180 East a on a line 5 feet south of the centerline of Highway 80/180 to the city limits of Hudson Oaks.

Hudson Oaks

South and east following the city limits line to the intersection of Newell Drive and Shannon Drive, southeast following along the creek between Shannon Drive and Joalene Drive, east to a line separating Hudson Heights Addition and Hidden Oaks Addition, north to the city limits line at the north end of Hidden Oaks. North and east to where the city limits joins Interstate I-20. West [and] northwest to intersection of city limits at Winfield Drive and the north service road Interstate I-20. West and northwest following city limits to where the city limits joins Lot #2 of North Oakridge addition, south a distance of 200 feet (more or less), west a distance of 450 feet (more or less) to North Oakridge Drive. South and southeast to Garner Road a distance of 700 feet (more or less). South and west to west city limits of U.S. 80 following the city limit line.

East on U.S. 80 to the city limits at Winfield Road. East along a line five feet south of centerline of the north service road to the east city limits at Mikus Road. North and west along the city limits line to the beginning point at Winfield Drive consisting of 26.59 acres.

Parker County Airport

East southeast to the intersection of the south service road of I-20. East along a line five feet south of the centerline of the south service road to the city limits on the west side of the airport, south along a line of the city limits, to Bankhead Road, east along the city limits line to Russell Road, north along a line five feet west of the centerline of Russell Road to the south service road of I-20, then west along a line five feet north of the centerline of the south service road to connect with the point across from Winfield Drive.

Thence west on a line five feet north of the center of Interstate 20 to the intersection of Interstate 20 and Highway 80, thence west on a line five feet north of the centerline of U.S. 80 to the intersection of Fort Worth Highway and North Main, thence north on a line five feet east of the centerline to the railroad track.

(Ordinance 1991-5, sec. 1, adopted 5/20/91)

   Sec. 11.03.002     Finding of qualifications

The city finds the zone area meets the qualifications of the act. (Ordinance 1991-5, sec. 2, adopted 5/20/91)

   Sec. 11.03.003     Tax and fee incentives

The city will provide certain tax incentives applicable to business enterprises in the zone which are not applicable throughout the county as follows:

(1)     The city shall abate taxes on the increase in value of real property improvements that locate in a designated enterprise zone. The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs and adds a value to the tax rolls in accordance with exhibit A attached to Ordinance 1991-5, which is the city tax abatement policy.

(2)     The city shall also offer sales tax refunds on all materials and supplies used for renovation and/or construction bought by an eligible business within the enterprise zone, the amount of tax paid under the business and remitted to the comptroller of public accounts to the extent authorized by Texas Tax Code ch. 321.508, for a period of five years from the date the state economic development and tourism office certifies the entity as a qualified business under the act. The sales tax refund will only be that portion that the city collects which is other than to lower property tax, currently 1.50 cents to the dollar. In order for the eligible business to receive the sales tax refund, it must present all bills and receipts which clearly show what was purchased. A statement indicating how the material and supplies were used in the construction and renovation of the building must accompany the bills and receipts.

(3)     The city will also waive a portion of all building-related fees charged by the city to an eligible business located within the enterprise zone, prorated on a scale related to the number of jobs created. The permits must be obtained and all plans and construction must be approved and meet the various city codes. However, the fees for the building, electrical, gas, plumbing, heating and vent permits, various inspections, plan review, water tap, sewer tap, and curb breaks will be partially waived for any eligible business located within the enterprise zone. The building-related fees will be reduced by $100 for each new job created and the job is filled for a period of not less than six months. The maximum reduction will be one-half of the total building-related fees due.

(4)     The city will continue to review other incentives. If it proves productive with a minimum cost to the city, the city will add that incentive. It is the goal of the city to make the enterprise zone as productive and beneficial as possible, so future incentives will be likely to occur within the enterprise zone.

(Ordinance 1991-5, sec. 3, adopted 5/20/91)

   Sec. 11.03.004     Designation of zone

The area described in this article is designated as an enterprise zone and a reinvestment zone, subject to the approval of the state economic development and tourism office. (Ordinance 1991-5, sec. 4, adopted 5/20/91)

   ARTICLE 11.04 HOTEL OCCUPANCY TAX*

   Sec. 11.04.001     Definitions

The following words, terms and phrases, for the purpose of this article, except where the context clearly indicates another meaning, are respectively defined as follows:

City administrator. The city administrator or his or her designee.

Consideration. The cost of the room, sleeping space, bed or dormitory space or other facility in a hotel and shall not include the cost of any food served or personal services rendered to the occupant not related to cleaning and readying such room for occupancy and shall not include any tax assessed for occupancy therefor by any other governmental agency.

Hotel. Any building in which the public may, for a consideration, obtain sleeping accommodations. The term shall include hotels; motels; tourist homes, houses or courts; lodginghouses; inns; roominghouses; trailer houses; trailer motels; dormitory space (regardless of whether the bed space is rented to individuals or groups); apartments; and all other facilities where rooms or sleeping facilities or spaces are furnished for a consideration. The term “hotel” shall not be defined to include hospitals, sanitariums or nursing homes.

Monthly period. One (1) calendar month.

Occupancy. The use or possession, or the right to the use or possession, of any room, space or sleeping facility in a hotel for any purpose.

Occupant. Anyone who, for a consideration, uses, possesses, or has a right to use or possess any room or rooms or sleeping space or facility in a hotel under any lease, concession, permit, right of access, license, contract or agreement.

Permanent resident. Any occupant who has or shall have the right to occupancy of any room or rooms or sleeping space or facility in a hotel contracted for in advance of occupancy for at least thirty (30) consecutive days during the current calendar year.

Person. Any individual, company, corporation or association owning, operating, managing or controlling any hotel.

   Sec. 11.04.002     Levy

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 of such hotel, exclusive of other occupancy taxes imposed by other governmental agencies.

   Sec. 11.04.003     Collection

Every person owning, operating, managing or controlling any hotel shall collect the tax imposed in section 11.04.002 for the city.

   Sec. 11.04.004     Reports

On or before the 20th day of the month following each monthly period, every person required in section 11.04.003 to collect the tax imposed herein shall file a report with the city administrator showing the consideration paid for all room or sleeping space occupancies in the preceding month, the amount of tax collected on such occupancies, and any other information that the city administrator may reasonably require. Such person shall also submit a copy of the Texas Hotel Occupancy Tax Report, which is submitted to the state comptroller, to the city administrator. Such person shall pay the tax due on such occupancies at the time of filing such report.

   Sec. 11.04.005     Adoption of procedures, rules and regulations; access to books and records

The city administrator shall adopt such procedures, rules and regulations as are reasonably necessary to effectively collect the tax levied herein and shall, upon request of any person owning, operating, managing or controlling any hotel, furnish a copy of such procedures, rules and regulations for the guidance of such person and facilitate the collection of such tax as such collection is required herein. Such procedures, rules and regulations shall be in writing and a copy thereof shall be placed on file with the city secretary. The city administrator shall be permitted to have access to books and records during reasonable business hours as shall be necessary to enable the city administrator to determine the correctness of the amount due under the provisions of this article or to determine whether or not a report should have been filed and the amount, if necessary, of taxes due.

   Sec. 11.04.006     Violations; penalties; additional enforcement actions

(a)     If any person required by the provisions of this article to collect the tax imposed herein, or make reports as required herein, and pay to the city administrator the tax imposed herein shall fail to collect such tax, file such reports, or pay such tax, or if any such person shall file a false report or if any such person shall violate any of the provisions of this article, such person shall be deemed guilty of a misdemeanor and upon conviction shall be punished by fine as provided in section 1.01.009 of this code. Each day after the due date of a report and/or payment of such fine shall be deemed to be a separate offense and subject to a separate fine. In addition to such fine, such person, firm or corporation shall pay to the city administrator the tax due, together with a penalty of five percent (5%) per month or any part of a month on any delinquent tax, plus any attorney's fees and court courts associated with the collection of delinquent or fraudulent taxes.

(b)     In addition to those penalties and provisions enumerated in subsection (a) of this section, the city may also take the following actions:

(1)     Bring a civil suit against the hotel operator for noncompliance;

(2)     Request any district court with proper jurisdiction to enjoin the hotel operation for noncompliance until the report is filed and/or the tax is paid;

(3)     Assess a fifteen-percent penalty of the current arrearage of taxes due;

(4)     Request that any appropriate district court close down the hotel if the occupancy taxes are not remitted. Such request shall require only a ten-day nonjudicial notice to the hotel operator or that notice date decreed by the district court.

(c)     Hotel operators shall provide the city with the proper name, address and telephone number of the real owners of interest in the facility or complex, including all operations in the city.

(1)     If the owners do not physically reside in city or the extraterritorial jurisdiction of the city or are corporations, limited liability corporations, or partnerships, an agent must be designated for process of service, either by virtue of an assumed name certificate filed with the county clerk or by written designation.

(2)     Should this information not be provided, any summons issued by the municipal court of the city may be served upon the local manager of the facility compelling appearance to answer citations and/or complaints as if the entity or owners had designated the individual as the local agent.

(3)     Failure to appear for any such summons and/or subpoena may then be considered by the municipal court as a further violation of this article, and additional fines and penalties may be assessed as well as arrest warrants issued as appropriate.

   Sec. 11.04.007     Sale of properties

Should there be a sale of property by the current operator and/or owner, the following requirements and actions shall be in force and enforceable:

(1)     Retention by buyer of delinquent taxes, plus penalties and interest.

(A)     The purchaser shall retain out of the purchase price an amount sufficient to recover any delinquent hotel occupancy taxes due the city, including any penalties, interest, attorney's fees, or other costs included in any judicial judgment awarding same to the city.

(B)     If the purchaser does not remit such amounts or show proof that the hotel is current in remitting such occupancy taxes, the purchaser becomes liable for any delinquent hotel occupancy taxes due, including all penalties, interest and assessments, either judicial or nonjudicial.

(2)     Rights of purchaser. In addition to the above enumerated terms, the following shall also apply:

(A)     The purchaser of a hotel may request that the city provide a receipt showing that no hotel occupancy taxes or assessments are due.

(B)     The city shall be required to file this statement not later than the 60th day after it is received by the city.

(C)     If the city fails to issue such statement within this time frame, without justification of delay, the purchaser is relieved of the obligation to withhold the amount due from the purchase price, but is not relieved of the liability of the debt due.

   Sec. 11.04.008     Exemptions

Persons who are exempt from payment of the hotel occupancy tax imposed under this article are the persons described in V.T.C.A., Tax Code, section 351.006, under the conditions imposed by said section 351.006.

(Ordinance adopting Code)