19-28,111.   Same; countywide entertainment tax;imposition, levy, collection, administration and enforcement; reports andrecords; penaltyfor unpaid taxes; disposition of revenues.(a) The board of county commissioners of any urban area county in whicha county sports authority has been created may impose a countywideentertainment tax as hereinafter prescribed in this section for a periodof years not exceeding fifty (50), if prior thereto there shall be filedwith the board of county commissioners:

      (1)   A request by the authority that an entertainment tax be leviedat a rate not to exceed three percent (3%);

      (2)   An affidavit of the publication of a notice of intentionpursuant to subsection (a) of K.S.A. 19-28,109;

      (3)   A certificate executed by the commissioners of the authoritycertifying that no sufficient protest was filed within the sixty-daylimit or, if an election was held, a certificate showing the results ofsaid election and that a majority of the votes cast and counted at saidelection were in favor of the proposition submitted; and

      (4)   A finding by the board that the facilities proposed to beconstructed by the authority are financially feasible to the extent thatnot less than one-half (1/2) of the amount of money necessary to repaythe principal of and interest on the proposed bond issue over the periodof its entire maturity will be derived from the net income of theproposed facilities after deducting operation and maintenance expensebut before depreciation.

      (b)   The rate of any entertainment tax proposed to be levied shall befixed in the amount of one percent (1%), two percent (2%) or threepercent (3%), and shall be fixed at a rate which will produce revenuesin an amount which, when combined with the amount of revenues estimatedby the authority to be derived from the operation of the facilities ofthe sports complex in the year for which said levy will be made, will beat least equal to the amount estimated by the authority to be necessaryto pay the costs of operating the facilities of the authority in saidyear and the amount necessary to pay the principal and interest due insaid year on outstanding bonds issued by the authority under this act.In no event shall the board levy a tax at a rate in excess of the rateprescribed in the notice of intention published by the authoritypursuant to subsection (a) of K.S.A. 19-28,109 or, ifan election was held, the rate prescribed in the published notice ofelection; and the board shall not levy any such tax for any calendaryear whenever any revenue bond principal and interest reserve accountestablished by the authority pursuant to a duly adopted resolution ortrust indenture or covenant shall contain an amount equal to one hundredfifty percent (150%) of the amount required to pay the total debtservice requirement of the authority which is due and payable in saidyear;

      (c)   Such entertainment tax shall be levied against:

      (1)   Every person engaged in the business of renting, leasing orletting living quarters, sleeping accommodations, rooms or a partthereof, in connection with any motel, hotel or tourist court, as apercentage of the gross rental receipts derived from or paid bytransient guests for sleeping accommodations; and

      (2)   Every person engaged in the business of operating a cafe,cafeteria, lunchroom or restaurant, as a percentage of the grossreceipts derived from the retail sales of food prepared on the premisesand delivered to the purchaser in a condition fit for immediateconsumption.

      (d)   Any entertainment tax levied under this section shall be basedon the gross daily rental receipts and the gross daily receipts from theretail sales of food collected by any taxpayer during the precedingperiod of three (3) months ending, respectively, on the last day ofDecember, March, June and September. As applied to food furnished tomembers and guests of any private club licensed pursuant to K.S.A.41-2601 et seq., the value of any alcoholic liquor or cerealmalt beverage, as said terms are defined by K.S.A. 41-102 andK.S.A. 41-2701, respectively, which is so furnished shall be included inthe gross daily receipts from the retail sales of food collected by suchclub. Said tax shall be due and payable quarterly on or before the lastday of January, April, July and October of each year, with the firstpayment due and payable on or before the last day of the month specifiedin the resolution of the board which levies the tax.

      (e)   Each taxpayer shall make a true report to the county treasurer,on a form prescribed by him, providing such information as may benecessary to determine the amounts to which the entertainment tax shallapply for all gross daily rental receipts and for all gross dailyreceipts from the retail sales of food for the applicable three-monthperiod, which report shall be submitted with the taxpayer's quarterlypayment. Records of the retail sales of food by which this entertainmenttax is measured shall be kept separate and apart from the records ofgross rental receipts and from the records of other retail sales made bythe taxpayer, in order to facilitate the examination of books andrecords as provided herein.

      (f)   The county treasurer or his authorized representative shall havethe right at all reasonable times during business hours to make suchexamination and inspection of the books and records of a taxpayer as maybe necessary to determine the correctness of such reports.

      (g)   For each and every month, or any part thereof, any suchentertainment tax provided for under this section remains unpaid afterthe same becomes due and payable, there shall be added to such tax, as apenalty, ten percent (10%) of the amount of such tax for the first monthor any part thereof the same is unpaid, and for each and every monththereafter two percent (2%) of the amount of such tax shall be addeduntil the same is fully paid. In no case shall the total penalty exceedthirty percent (30%) of said tax.

      (h)   All moneys collected by the county treasurer under theprovisions of this section shall be credited to a "county entertainmenttax fund," which fund shall be created and set aside by the countytreasurer. All entertainment tax revenue collected by the countytreasurer pursuant to this act and credited to the county entertainmenttax fund shall be remitted at least quarterly to the county sportsauthority.

      History:   L. 1972, ch. 84, § 7; March 13.