HomeMy WebLinkAboutDocumentation_Regular_Tab 15_9/10/2020Agenda Item #15.
Regular Council
STAFF MEMO
Meeting: Regular Council - Sep 10 2020
Staff Contact: Hugh Dunkley, Finance Director Department: Utilities
ORDINANCE 8-20, FIRST READING, AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE OF TEQUESTA CODE OF
ORDINANCES AT CHAPTER 70. TAXATION; ARTICLE IV. PUBLIC SERVICE TAX; DIVISION 2.
ELECTRICITY, GAS AND WATER; SECTION 70-121. TAX LEVIED. BY REPEALING THE "PER
GALLON BASIS" FOR THE COLLECTION OF TAX ON WATER BUT LEAVING UNCHANGED THE
RATE OF 9%; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF
CHAPTER 70 SHALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED;
PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE, AND AUTHORITY TO CODIFY;
PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
Repealing the "per gallon" basis for water tax calculation and returning to former, historically used
"water service" basis. Leaving current 9% rate unchanged.
Approve on First Reading
08-20 Repeal Per Gallon Basis for Water Tax
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Agenda Item #15.
ORDINANCE NO. 08-20
AN ORDINANCE OF THE VILLAGE
COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING
THE VILLAGE OF TEQUESTA CODE
OF ORDINANCES AT CHAPTER 70.
TAXATION; ARTICLE IV. PUBLIC
SERVICE TAX; DIVISION 2.
ELECTRICITY, GAS AND WATER;
SECTION 70-121. TAX LEVIED. BY
REPEALING THE -PER GALLON BASIS"
FOR THE COLLECTION OF TAX ON WATER
BUT LEAVING UNCHANGED THE RATE OF
9%; PROVIDING THAT EACH AND
EVERY OTHER SECTION AND
SUBSECTION OF CHAPTER 70 SHALL
REMAIN IN FULL FORCE AND
EFFECT AS PREVIOUSLY ADOPTED;
PROVIDING A CONFLICTS CLAUSE, A
SEVERABILITY CLAUSE, AND
AUTHORITY TO CODIFY; PROVIDING
AN EFFECTIVE DATE; AND FOR
OTHER PURPOSES.
WHEREAS, the Village Council of the Village of
Tequesta, Florida has historically levied a tax on the "sale of
water service"; and
WHEREAS, the Village Council of the Village of
Tequesta, Florida recently revised the methodology for water
tax calculation to a "per gallon basis"; and
WHEREAS, this revision to the methodology for the
calculation of water tax resulted in a significant revenue
shortfall which is projected to have meaningful negative
impact to the Village's future budgets; and
WHEREAS, the Village of Tequesta's Finance
Director has been advised by the Florida Department of
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Agenda Item #15.
Revenue that a repeal of the "per gallon basis" tax
calculation methodology and a return to the former "sale of
water service" calculation methodology will not be deemed to
be a rate increase by the State of Florida, so the statutory
notice and effective date requirements for a rate increase do
not apply to this revision to the Village of Tequesta's Code of
Ordinances; and
WHEREAS, the Village Council of the Village of
Tequesta, Florida finds this amendment to the Village of
Tequesta Code of Ordinances to be in the best interest of
the Village, and that this amendment will best serve the
public health, safety, and welfare.
NOW, THEREFORE, BE IT ORDAINED BY
THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, THAT:
Section 1: Chapter 70. Taxation. of the Code of
Ordinances of the Village of Tequesta, Florida, is hereby
amended at Article IV. Public Service Tax, Division 2,
Electricity, Gas and Water. Section 70-121, by repealing the
"per gallon basis" for the collection of tax on water; providing
that Section 70 -121 shall hereafter read as follows:
CHAPTER 70. TAXATION
ARTICLE IV. - PUBLIC SERVICE TAX
DIVISION 2. - ELECTRICITY, GAS AND WATER
Sec. 70-121. - Tax levied.
There is hereby levied by the village on each and every
sale, in the village, of electricity, metered natural gas,
liquefied petroleum gas either metered or bottled,
manufactured gas either metered or bottled, a tax of nine
percent of the charge made by the seller thereof, which tax
shall, in every case, be paid by the purchaser, for the use of
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Agenda Item #15.
the village, to the seller of such electricity, metered natural
gas, liquefied petroleum gas either metered or bottled,
manufactured gas either metered or bottled, at the time of
paying the charge therefor, to the seller thereof, but not less
often than monthly. In addition, there is hereby levied by the
village on each and every sale, in the village, of water
service a tax of nine percent of the charge made by the
seller thereof en a per rya"^n basic which tax shall, in every
case, be paid by the purchaser, for the use of the village, to
the seller of such water at the time of paying the charge
therefor, to the seller thereof, but not less often than
monthly.
Section 2: Each and every other section and
subsection of Chapter 70. Taxation. of the Code of
Ordinances of the Village of Tequesta, Florida, shall remain
in full force and effect as previously adopted.
Section 3
All ordinances or parts of ordinances in
conflict be and the same are hereby repealed.
Section 4: Should any section or provision of this
Ordinance or any portion thereof, any paragraph, sentence
or word be declared by a court of competent jurisdiction to
be invalid, such decision shall not affect the validity of the
remainder of this Ordinance.
Section 5: Specific authority is hereby granted to
codify this Ordinance.
Section 6: This Ordinance shall take effect
immediately upon adoption.
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Agenda Item #15.
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