19-28,111. Same; countywide entertainment tax; imposition, levy, collection, administration and enforcement; reports and records; penalty for unpaid taxes; disposition of revenues.
19-28,111
19-28,111. Same; countywide entertainment tax;
imposition, levy, collection, administration and enforcement; reports and
records; penalty
for unpaid taxes; disposition of revenues.
(a) The board of county commissioners of any urban area county in which
a county sports authority has been created may impose a countywide
entertainment tax as hereinafter prescribed in this section for a period
of years not exceeding fifty (50), if prior thereto there shall be filed
with the board of county commissioners:
(1) A request by the authority that an entertainment tax be levied
at a rate not to exceed three percent (3%);
(2) An affidavit of the publication of a notice of intention
pursuant to subsection (a) of K.S.A. 19-28,109;
(3) A certificate executed by the commissioners of the authority
certifying that no sufficient protest was filed within the sixty-day
limit or, if an election was held, a certificate showing the results of
said election and that a majority of the votes cast and counted at said
election were in favor of the proposition submitted; and
(4) A finding by the board that the facilities proposed to be
constructed by the authority are financially feasible to the extent that
not less than one-half (1/2) of the amount of money necessary to repay
the principal of and interest on the proposed bond issue over the period
of its entire maturity will be derived from the net income of the
proposed facilities after deducting operation and maintenance expense
but before depreciation.
(b) The rate of any entertainment tax proposed to be levied shall be
fixed in the amount of one percent (1%), two percent (2%) or three
percent (3%), and shall be fixed at a rate which will produce revenues
in an amount which, when combined with the amount of revenues estimated
by the authority to be derived from the operation of the facilities of
the sports complex in the year for which said levy will be made, will be
at least equal to the amount estimated by the authority to be necessary
to pay the costs of operating the facilities of the authority in said
year and the amount necessary to pay the principal and interest due in
said 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 rate
prescribed in the notice of intention published by the authority
pursuant to subsection (a) of K.S.A. 19-28,109 or, if
an election was held, the rate prescribed in the published notice of
election; and the board shall not levy any such tax for any calendar
year whenever any revenue bond principal and interest reserve account
established by the authority pursuant to a duly adopted resolution or
trust indenture or covenant shall contain an amount equal to one hundred
fifty percent (150%) of the amount required to pay the total debt
service requirement of the authority which is due and payable in said
year;
(c) Such entertainment tax shall be levied against:
(1) Every person engaged in the business of renting, leasing or
letting living quarters, sleeping accommodations, rooms or a part
thereof, in connection with any motel, hotel or tourist court, as a
percentage of the gross rental receipts derived from or paid by
transient 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 gross
receipts derived from the retail sales of food prepared on the premises
and delivered to the purchaser in a condition fit for immediate
consumption.
(d) Any entertainment tax levied under this section shall be based
on the gross daily rental receipts and the gross daily receipts from the
retail sales of food collected by any taxpayer during the preceding
period of three (3) months ending, respectively, on the last day of
December, March, June and September. As applied to food furnished to
members and guests of any private club licensed pursuant to K.S.A.
41-2601 et seq., the value of any alcoholic liquor or cereal
malt beverage, as said terms are defined by K.S.A. 41-102 and
K.S.A. 41-2701, respectively, which is so furnished shall be included in
the gross daily receipts from the retail sales of food collected by such
club. Said tax shall be due and payable quarterly on or before the last
day of January, April, July and October of each year, with the first
payment due and payable on or before the last day of the month specified
in 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 be
necessary to determine the amounts to which the entertainment tax shall
apply for all gross daily rental receipts and for all gross daily
receipts from the retail sales of food for the applicable three-month
period, which report shall be submitted with the taxpayer's quarterly
payment. Records of the retail sales of food by which this entertainment
tax is measured shall be kept separate and apart from the records of
gross rental receipts and from the records of other retail sales made by
the taxpayer, in order to facilitate the examination of books and
records as provided herein.
(f) The county treasurer or his authorized representative shall have
the right at all reasonable times during business hours to make such
examination and inspection of the books and records of a taxpayer as may
be necessary to determine the correctness of such reports.
(g) For each and every month, or any part thereof, any such
entertainment tax provided for under this section remains unpaid after
the same becomes due and payable, there shall be added to such tax, as a
penalty, ten percent (10%) of the amount of such tax for the first month
or any part thereof the same is unpaid, and for each and every month
thereafter two percent (2%) of the amount of such tax shall be added
until the same is fully paid. In no case shall the total penalty exceed
thirty percent (30%) of said tax.
(h) All moneys collected by the county treasurer under the
provisions of this section shall be credited to a "county entertainment
tax fund," which fund shall be created and set aside by the county
treasurer. All entertainment tax revenue collected by the county
treasurer pursuant to this act and credited to the county entertainment
tax fund shall be remitted at least quarterly to the county sports
authority.
History: L. 1972, ch. 84, § 7; March 13.