City of Maud, Oklahoma

PART 7

FINANCE AND TAXATION

CHAPTER 1

FINANCE AND BUDGET ADMINISTRATION

SECTION 7-101 DEPOSITORIES DESIGNATED; FUNDS TO BE DEPOSITED.

All banks and all savings and loan associations in this city which are incorporated under federal or state law, and other institutions approved by the mayor and council, are hereby designated as depositories for the funds of the city. The city clerk-treasurer shall deposit daily all public funds received by him in such banks or savings and loan associations.
State Law Reference; Deposits by treasurers, designation of depositories; 11 O.S. Section 12-110.

SECTION 7-102 CONTRACTUAL SERVICES DEFINED FOR PURCHASING.

"Contractual services," for the purpose of this chapter means services performed for the city by persons not in the employment of the city, and may include the use of equipment or the furnishing of commodities in connection with the services under express or implied contract. Contractual services shall include travel; freight; express; parcel post; postage; telephone; telegraph; utilities; rents; printing out; binding; repairs, alterations and maintenance of buildings, equipment, streets and bridges, and other physical facilities of the city; and other services performed for the city by persons not in the employment of the city.

SECTION 7-103 PURCHASES, HOW MADE.

All purchases of supplies, materials, equipment and contractual services for the offices, departments and agencies of the city government, shall be made by city personnel in accordance with purchase authorizations issued by the city council.

SECTION 7-104 PAYROLL DISBURSEMENTS.

1. For all employees and officers of the City of Maud, a documented record shall be maintained in a personnel file of the authorized rate of pay or salary for each employee and officer.
2. For each pay period, a record of time worked for hourly employees shall be prepared in the form of time sheets or logs for each employee to be paid. Such record of time worked shall be verified as to its accuracy in writing by the employee and the City Clerk. A record of payroll from any outside payroll contractor shall be kept up to date by the City Clerk.
3. Upon verification of the work record, a payroll register including the amount of gross pay, authorized deductions, and net pay shall be prepared by the City Clerk.
4. The net payroll checks shall be prepared from the payroll register, along with checks for payment of related payroll taxes and other payroll benefits required by law or contract.
5. The payroll checks and the payroll register shall be presented to at least one other authorized check signer who shall compare the payroll checks to the payroll register and verify their accuracy. Upon verification, such other authorized check signer and the City Clerk shall sign the checks and prepare them for distribution. The City Clerk shall then record the checks in the appropriate cash disbursements journals.
6. The payroll register shall be provided to the governing body for informational purposes at the next regular meeting; however, governing body approval is not required prior to payment of payroll related costs if incurred and paid in accordance with the provisions above.

Ord. 2013-01, Apr 15, 2013

SECTION 7-105 PURCHASE OF GOODS AND SERVICES (OTHER THAN PAYROLL AND PAYROLL RELATED).

1. The following employees or officers have been designated as purchasing officers empowered to purchase or contract against budget appropriation accounts in an amount not to exceed $500 unless obtaining Council Approval:
   1. City Clerk
   2. Police Chief
   3. Fire Chief
   4. Public works Manager
2. The officer or employee receiving satisfactory delivery of merchandise or contract services shall acknowledge such fact by signing the invoice or delivery ticket. The invoice, along with delivery ticket if applicable, must then be verified by the authorized purchasing officer as to quantities, services, and prices. If correct, the invoice must then be signed by the authorized purchasing officer and coded with the fund(s) and budget line item(s) to be charged.
3. The City Clerk shall review all invoices for proper signatures and appropriateness of fund(s) and budget line item(s) to be charged. Upon acceptance of the invoices, the City Clerk shall prepare checks in payment of the invoices, and shall cancel each invoice as its check is prepared. Invoices shall be cancelled by noting on the invoice the date paid, the check number used to pay the invoice, and the amount paid with the check.
4. The invoices and checks shall be presented to at least one other authorized check signer who shall compare the checks to the invoices and verify their accuracy. Upon verification, such other authorized check signer and the City Clerk shall sign the checks and prepare them for distribution. The City Clerk shall then record the checks in the appropriate cash disbursements journals and shall prepare a check register. The check register shall list in check number order the check date, check number, vendor, and check amount.
5. The check register shall be provided to the governing body for informational purposes at their next regular meeting, however, governing body approval is not required prior to payment of invoices if paid charges were incurred and paid in accordance with the provisions above.
6. For all purchases of goods and services over $2,500, purchase orders or contracts shall be prepared and approved by the governing body prior to the time the commitment is made, and such approval shall be recorded in the minutes of the governing body. Additionally, the City Clerk shall immediately determine that there exists available unencumbered appropriation in the accounts to be charged, and such determination shall also be recorded in the minutes. Should appropriation not be available for the proposed purchase or commitment, the purchase or commitment shall not proceed until necessary budget amendments are authorized.

Ord. 2013-01, Apr 15, 2013

SECTION 7-106 INTER-FUND TRANSFERS.

1. All transfers between funds shall only be made in accordance with governing body appropriations as reflected in the original or amended City budget.
2. Once lawfully appropriated, interfund transfer payments may be made by the City Clerk without further governing body approval in the manner used for payment of purchases of goods and services.

Ord. 2013-01, Apr 15, 2013

SECTION 7-107 PETTY CASH.

1. As provided for in Title 11 O.S., Section 17-102 (D), the City may have petty cash accounts for use in making certain small payments for costs incurred in operating the City.
2. Each petty cash account established shall require governing body approval, including the imprest amount of the petty cash account. However, in no case should the imprest balance exceed $250.
3. The petty cash accounts shall be reimbursed by utilizing properly itemized invoices in the manner used for payment of purchases of goods and services. However, in no case shall an individual payment from petty cash exceed $20.

Ord. 2013-01, Apr 15, 2013

SECTION 7-108 DEBT SERVICE.

1. All long-term indebtedness in the form of bonds, notes, or lease purchase obligations shall be incurred in the manner provided by law.
2. Once lawfully incurred, the City Clerk shall make payments of principal and interest on the debt in accordance with the terms specified by the lender without further approval of the governing body.
3. The manner of payment shall be consistent with the manner used for payment of goods and services.
4. Current balances on outstanding debt shall be maintained by the City Clerk in the appropriate journals.

Ord. 2013-01, Apr 15, 2013

SECTION 7-109 COMPETITIVE BIDDING.

1. The City of Maud shall adhere to the provisions of Oklahoma Statutes (1991), Title 61, Sections 101 et seq. when determining when competitive bidding is required and the manner in which competitive bids will be obtained.
2. If the Maud City Code provides for additional competitive bidding requirements, such additional requirement shall be met.
3. In addition to the requirements of (A) above, public trusts created pursuant to O.S. Title 60, Section 176, of which the City of Maud is beneficiary, shall also follow the competitive bidding provisions of O.S. Title 60, Section 176(g).

Ord. 2013-01, Apr 15, 2013

SECTION 7-110 FINANCIAL REPORTING.

1. The City Clerk shall prepare written monthly financial reports which disclose at least all receipts and expenditures by fund in the same format as the approved budget and showing the variance from the budget.
2. The financial reports shall be placed on the agenda for acknowledgment by the governing body at each regular meeting.

Ord. 2013-01, Apr 15, 2013

SECTION 7-111 APPLICABILITY TO PUBLIC TRUSTS.

1. For all public trusts created pursuant to Title 60, O.S. Sections 176-180, for which the City is beneficiary and for which the trust's board of trustees is comprised entirely of members of the City's board of trustees, all sections of this ordinance shall apply.
2. For the purposes of public trusts as defined above, City Clerk shall mean Trust Secretary as defined by the trust indenture.

Ord. 2013-01, Apr 15, 2013

CHAPTER 2

SALES TAX

SECTION 7-201 CITATION AND CODIFICATION.

This chapter shall be known and may be cited as "City of Maud Sales Tax Ordinance."

State Law Reference; Authority to levy (sales) taxes for municipal purposes, 68 O.S. Section 2701; State Sales Tax Code 68 O.S. Sections 1350 et seq.

SECTION 7-202 DEFINITIONS.

1. The definitions of words, terms and phrases contained in the Oklahoma Sales Tax Code, Section 1352 of Title 68 of the Oklahoma Statutes, and in Sections 576 and 593 of Title 37 of the Oklahoma Statutes, are hereby adopted by reference and made a part of this chapter.
2. The definition of "gross receipts" in the State Sales Tax Code is hereby augmented to contain the additional following words; "The total retail sale price received for the sale, preparation or service of mixed beverages, ice and non-alcoholic beverages to be mixed with alcoholic beverages for consumption on the premises where such sale, preparation or service occurs shall constitute the gross receipts from such transaction."

SECTION 7-203 TAX COLLECTOR DEFINED.

The term "tax collector" as used in this chapter means the department of the city or the official agency of the state duly designated according to law or contracts and authorized by law to administer the collection of the tax levied in this chapter.

SECTION 7-204 CLASSIFICATION OF TAXPAYERS.

For the purpose of this chapter the classification of taxpayers hereunder shall be as prescribed by state law for purposes of the Oklahoma Sales Tax Code.

SECTION 7-205 SUBSISTING STATE PERMITS

All valid and subsisting permits to do business issued by the Oklahoma Tax Commission pursuant to the Oklahoma Sales Tax Code are, for the purpose of this chapter, hereby ratified, confirmed and adopted in lieu of any requirement for an additional city permit for the same purpose.

SECTION 7-206 EFFECTIVE DATE.

This chapter became effective as to each cent tax after approval of a majority of the registered voters of the city voting on the ordinance in the manner prescribed by Section 16-112 of Title 11 of the Oklahoma Statutes.

SECTION 7-207 PURPOSE OF REVENUES.

1. It is the purpose of the sales tax levied to provide revenues for the support of the functions of the municipal government of the city.
2. Distribution of the city sales taxes are two cents ($.02) to the Street and Alley Fund and two cents ($.02) to the General Fund of the city.

SECTION 7-208 TAX RATE - SALES SUBJECT TO TAX.

There is hereby levied an excise tax of three percent (3%) upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code including but not exclusive of the following;

1. Tangible personal property;
2. Natural or artificial gas, electricity, ice, steam, or any other utility or public service except water and those specifically exempt by this chapter;
3. Transportation for hire of persons by common carriers, including rail roads, both steam and electric, motor transportation companies, taxicab companies, Pullman car companies, airlines and all other means of transportation for hire;
4. Service by telephone and telegraph companies to subscribers or users, including transmission of messages, whether local or long distance. This shall include all services and rental charges having any connection with transmission of any messages;
5. Printing or printed matter of all types, kinds, and characters and the service of printing or over-printing, including the copying of information by mimeo graph or multigraph or by otherwise duplicating written or printed matter in any manner, or the production of microfiche containing information on magnetic tapes furnished by customers;
6. Service of furnishing rooms by hotel, apartment hotel public rooming house, motel, public lodging house or tourist camps;
7. Service of furnishing storage or parking privileges by auto hotels and parking lots;
8. Selling, renting or otherwise furnishing computer hardware or software or coding sheets, cards or magnetic tapes on which prewritten programs have been coded, punched or otherwise recorded;
9. Food, confections and all drinks sold or dispensed by hotels, restaurants, or other dispensers, and sold for immediate consumption upon the premises or delivered or carried away from the premises for consumption elsewhere;
10. Advertising of all kinds, types and character, including any and all devices used for advertising purposes and the servicing of any advertising devices, except those specifically exempt by this chapter;
11. Dues or fees to clubs including free or complimentary dues or fees which shall have the value equivalent to the charge that would have otherwise been made, including any fees paid for the use of facilities or services rendered at a health spa or club or any similar facility or business;
12. Sales of tickets, fees or other charges made for admission to or voluntary contributions made to places of amusement, sports entertainment, exhibition, display or other recreational events or activities, including free or complimentary admissions which shall have the value equivalent to the charge that would have otherwise been made;
13. Charges made for the privilege of entering or engaging in any kind of activity, when no admission is charged spectators, such as tennis, racket ball or hand ball courts;
14. Charges made for the privilege of using items for amusement, sports, entertainment or recreational activity such as trampolines or golf carts;
15. The rental of equipment for amusement, sports, entertainment or other recreational activities, such as bowling shoes, skates, golf carts, or other sports and athletic equipment;
16. The gross receipts from sales through any vending machine, without any deduction for rental to locate the vending machine on the premises of a person who is not the owner or any other deductions therefrom;
17. Gross receipts or gross proceeds from the rental or lease of tangible personal property, including rental or lease of personal property when the rental or lease agreement requires the vendor to launder, clean, repair or otherwise service the rented or leased property on a regular basis, without any deduction for the cost of the service rendered. Provided if the rental or lease charge is based on the retail value of the property at the time of making the rental or lease agreement and the expected life of the property, and the rental or lease charge is separately stated from the service cost in the statement, bill or invoice delivered to the consumer, the cost of services rendered shall be deducted from the gross receipts or gross proceeds;
18. Any licensing agreement, rental, lease or other device or instrument whereby rights to possess or exhibit motion pictures or filmed performances or rights to receive images, pictures or performances for telecast by any method are transferred. Provided, persons regularly engaged in the business of exhibiting motion pictures for which the sale of tickets or admissions is taxed under this chapter shall not be deemed to be consumers or users in respect to the licensing or exhibiting of copyrighted motion picture features, shorts, cartoons and scenes from copyrighted features and the sale or licensing of such films shall not be considered a sale within the purview of this chapter;
19. Flowers, plants, shrubs, trees and other floral items, whether or not same was produced by the vendor, sold by persons engaged in florist or nursery business in this state, including all orders taken by an Oklahoma business for delivery in another state. Provided, all orders taken outside this state for delivery within this state shall not be subject to the tax levied by this chapter;
20. Tangible personal property sold to persons, peddlers, solicitors or other salesmen, for resale where there is likelihood that this state will lose tax revenue due to the difficulty of enforcing this chapter because of:
    1. The operation of the business;
    2. The nature of the business;
    3. The turnover of independent contractors;
    4. The lack of place of business in which to display a permit or keep records;
    5. Lack of adequate records;
    6. The persons are minors or transients;
    7. The persons are engaged in service businesses; or
    8. Any other reasonable reason;
21. Any taxable services and tangible personal property including materials, supplies and equipment sold to contractors for the purpose of developing and improving real estate even though such real estate is intended for resale as real property are hereby declared to be sales to consumers or users and taxable; and
22. Any taxable services and tangible personal property sold to persons who are primarily engaged in selling their services, such as repairmen, are hereby declared to be sales to consumers or users and taxable.

SECTION 7-209 EXEMPTIONS; SALES SUBJECT TO OTHER TAX.

There is hereby specifically exempted from the tax levied by this chapter the gross receipts or gross proceeds exempted from the Oklahoma Sales Tax Code inclusive, but not exclusive of, and derived from the:

1. Sale of gasoline or motor fuel on which the motor fuel tax, gasoline excise tax or special fuels tax levied by state law has been paid;
2. Sale of motor vehicles or any optional equipment or accessories attached to motor vehicles on which the Oklahoma Motor Vehicle Excise Tax levied by state law has been paid;
3. Sale of crude petroleum or natural or casinghead gas and other products subject to gross production tax under state law. This exemption shall not apply when such products are sold to consumer or user for consumption or use, except when used for injection into the earth for the purpose of promoting or facilitating the production of oil or gas. This paragraph shall not operate to increase or repeal the gross production tax levied by the laws of this state; and
4. Sale of aircraft on which the tax levied pursuant to Sections 6001 through 6004 of Title 68 of the Oklahoma Statutes has been paid.

SECTION 7-210 EXEMPTIONS; GOVERNMENTAL AND NONPROFIT ENTITIES.

There are hereby specifically exempted from the tax levied by this chapter:

1. Sale of tangible personal property or services to the United States Government or to the State of Oklahoma, any political subdivision of this state or any agency of a political subdivision of the state; provided, all sales to contractors in connection with the performance of any contract with the United States Government, State of Oklahoma or any of its political subdivisions shall not be exempted from the tax levied by this chapter, except as hereinafter provided;
2. Sales of property to agents appointed or contracted with by agencies or instrumentalities of the United States Government if ownership and possession of such property transfers immediately to the United States Government;
3. Sales made directly by county, district or state fair authorities of this state, upon the premises of the fair authority, for the sole benefit of the fair authority;
4. Sale of food in cafeterias or lunch rooms of elementary schools, high schools, colleges or universities which are operated primarily for teachers and pupils and are not operated primarily for the public or for profit;
5. Dues paid to fraternal, religious, civic, charitable or educational societies or organizations by regular members thereof, provided, such societies or organizations operate under what is commonly termed the lodge plan or system, and provided such societies or organizations do not operate for a profit which insures to the benefit of any individual member or members thereof to the exclusion of other members;
6. Sale of tangible personal property or services to or by churches, except sales made in the course of business for profit or savings, competing with other persons engaged in the same or similar business;
7. The amount of proceeds received from the sale of admission tickets which is separately stated on the ticket of admission for the repayment of money borrowed by any accredited state-supported college or university for the purpose of constructing or enlarging any facility to be used for the staging of an athletic event, a theatrical production, or any other form of entertainment, edification or cultural cultivation to which entry is gained with a paid admission ticket. Such facilities include, but are not limited to, athletic fields, athletic stadiums, field houses, amphitheaters and theaters. To be eligible for this sales tax exemption, the amount separately stated on the admission ticket shall be a surcharge which is imposed, collected and used for the sole purpose of servicing or aiding in the servicing of debt incurred by the college or university to affect the capital improvements herein before described;
8. Sales of tangible personal property or services to the council organizations or similar state supervisory organizations of the Boy Scouts of America, Girl Scouts of U.S.A. and the Campfire Girls shall be exempt from sales tax;
9. Sale of tangible personal property or services to any county, municipality, public school district, the institutions of the Oklahoma system of higher education and the Grand River Dam Authority, or to any person with whom any of the above named subdivisions or agencies of this state has duly entered into a public contract pursuant to law, necessary for carrying out such public contract or to any subcontractor to such a public contract. Any person making purchases on behalf of such subdivision or agency of this state shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor that the purchases are made for and on behalf of such subdivision or agency of this state and set out the name of such public subdivision or agency. Any person who wrongfully or erroneously certifies that purchases are for any of the above named subdivision or agencies of this state or who otherwise violates this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined an amount equal to double the amount of the sales tax involved or incarcerated for not more than sixty (60) days or both;
10. Sales of tangible personal property or services to private institutions of higher education and private institutions of higher education and private elementary and secondary institutions of education accredited by the State Department of Education or registered by the State Board of Education for purposes of participating in federal programs or accredited as defined by the Oklahoma State Regents for Higher Education which are exempt from taxation pursuant to the provisions of Section 501 (c)(3) of the Internal Revenue Code, including materials, supplies, and equipment used in the construction and improvement of buildings and other structures owned by the institutions and operated for education purposes. Any person, firm, agency or entity making purchases on behalf of any institution, agency or subdivision in this state, shall certify in writing, on the copy of the invoice of sales ticket the nature of the purchases, and violation of this act shall be a misdemeanor as set forth in Paragraph (9) of this section;
11. Tuition and education fees paid to private institutions of higher education and private elementary and secondary institutions of education accredited by the State Department of Education or registered by the State Board of Education for purposes of participating in federal programs or accredited as defined by the Oklahoma State Regents for Higher Education which are exempt from taxation pursuant to the provisions of the Section 501(c)(3) of the Internal Revenue Code; and
12. Sales of tangible personal property made by public or private school for grade levels kindergarten through twelfth grade, a public school district, public school board, public school student group or organization or public school district personnel for purposes of raising funds for the benefit of such school, school district, school board, student group or organization. For purposes of this paragraph, "public or private school" shall mean any public or private institution of education accredited by the State Department of Education or registered by the State Board of Education for purposes of participating in federal programs. Sale of tangible personal property in this paragraph shall not include sale of admission tickets or concessions at athletic events.

SECTION 7-211 EXEMPTIONS; GENERAL.

There are hereby specifically exempted from the tax levied by this chapter;

1. Transportation of school pupils to and from elementary schools or high schools in motor or other vehicles;
2. Transportation of persons where the fare of each person does not exceed One Dollar ($1.00), or local transportation of persons within the corporate limits of a municipality except by taxicab;
3. Carrier sales of newspapers and periodicals made directly to consumers. Other sales of newspapers and periodicals where any individual transaction does not exceed seventy-five cents ($0.75). A carrier is a person who regularly delivers newspapers or periodicals to subscribers on an assigned route;
4. Sales for resale to persons engaged in the business of reselling the articles purchased, whether within or without the states provided that such sales to residents of this state are made to persons to whom sales tax permits have been issued as provided in this chapter. This exemption shall not apply to the sales of articles made to persons holding permits when such persons purchase items for their use and which they are not regularly engaged in the business of reselling! neither shall this exemption apply to sales of tangible personal property to peddlers, solicitors and other salesmen who do not have an established place of business and a sales tax permit;
5. Sales of advertising space in newspapers and periodicals and billboard advertising service, and any advertising through the electronic media, including radio, television and cable television;
6. Eggs, feed, supplies, machinery and equipment purchased by persons regularly engaged in the business of raising worms, fish, any insect or any other form of terrestrial or aquatic animal life and used for the purpose of raising same for marketing. This exemption shall only be granted and extended to the purchaser when the items are to be used and in fact are used in the raising of animal life as set out above. Each purchaser shall certify, in writing, on the invoice or sales ticket retained by the vendor that he is regularly engaged in the business of raising such animal life and that the items purchased will be used only in such business. The vendor shall certify to the Oklahoma Tax Commission that the price of the items has been reduced to grant the full benefit of the exemption. Violation hereof by the purchaser or vendor shall be a misdemeanor;
7. Sales of medicine or drugs prescribed for the treatment of human beings by a person licensed to prescribe the medicine or drugs. This exemption shall not apply to proprietary or patent medicines as defined by Section 353.1 of Title 59 of the Oklahoma Statutes;
8. Transfers of title or possession of empty, partially filled, or filled returnable oil drums to any person who is not regularly engaged in the business of selling, reselling or otherwise transferring empty, partially filled, or filled returnable oil drums;
9. Sales of food or food products for home consumption which are purchased in whole or in part with coupons issued pursuant to the federal food stamp program as authorized by Sections 2011 through 2029 of Title 7 of the United States Code, as to that portion purchased with such coupons. The exemption provided for such sales shall be inapplicable to such sales upon the effective date of any federal law that removes the requirement of the exemption as a condition for participation by the State of Oklahoma in the federal food stamp program; and
10. Nothing herein shall be construed as limiting or prohibiting the city from levying and collecting taxes on the sale of natural or artificial gas and electricity, whether sold for residential or commercial purposes. Any sales tax levied by the city on natural or artificial gas and electricity shall be in effect regardless of ordinance or contractual provisions referring to previously imposed state sales tax on such items.

SECTION 7-212 EXEMPTIONS; AGRICULTURE.

There are hereby specifically exempted from the tax levied by this chapters

1. Sales of agricultural products produced in this state by the producer thereof directly to the consumer or user when such articles are sold at or from a farm and not from some other place of business, as follows:
   1. Farm, orchard or garden products;
   2. Dairy products sold by a dairyman or farmer who owns all the cows from which the dairy products offered for sale are produced;
   3. Livestock sold by the producer at a special livestock sale; or
   4. The provisions of this paragraph shall not be construed as exempting sales by florists, nurserymen or chicken hatcheries, or sales of dairy products by any other business except as set out herein;
2. Livestock, including cattle, horses, mules, or other domestic or draft animals, sold by the producer by private treaty or at a special livestock sale;
3. Sale of baby chicks, turkey poults and starter pullets used in the commercial production of chickens, turkeys and eggs, provided that the purchaser certifies, in writing, on the copy of the invoice or sales ticket to be retained by the vendor that the pullets will be used primarily for egg production;
4. Sale of salt, grains, tankage, oyster shells, mineral supplements, limestone and other generally recognized animal feeds for the following purposes and subject to the following limitations;
   1. Feed which is fed to poultry and livestock, including breeding stock and wool-bearing stock, for the purpose of producing eggs, poultry, milk or meat for human consumption;
   2. Feed purchased in Oklahoma for the purpose of being fed to and which is fed by the purchaser to horses, mules or other domestic or draft animals used directly in the producing and marketing of agricultural products;
   3. Any stock tonics, water purifying products, stock sprays, disinfectants or other such agricultural supplies;
   4. Poultry shall not be construed to include any fowl other than domestic fowl kept and raised for the market or production of eggs;
   5. Livestock shall not be construed to include any pet animals such as dogs, cats, birds or such other fur-bearing animals; and
   6. This exemption shall only be granted and extended where the purchaser of feed that is to be used and in fact is used for a purpose that would bring about an exemption hereunder executes an invoice or sales ticket in duplicate on a form to be prescribed by the Tax Commission. The purchaser may demand and receive a copy of the invoice or sales ticket and the vendor shall retain a copy.
5. Sales of items to be and in fact used in the production of agricultural products. Sale of the following items shall be subject to the following limitations;
   1. Sales of agricultural fertilizer to any person regularly engaged, for profit, in the business of farming or ranching. Each such purchaser shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor, that he is so engaged in farming or ranching and that the material purchased will be used only in such business;
   2. Sales of agricultural fertilizer to any person engaged in the business of applying such materials on a contract or custom basis to land owned or leased and operated by persons regularly engaged, for profit, in the business of farming or ranching. Each such purchaser shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor that he is engaged in the business of applying such materials to lands owned or leased and operated by persons regularly engaged, for profit, in the business of farming or ranching, and shall show in the certificate the name or names of such owner or lessee and operator, the location of the lands on which the materials are to be applied to each such land, and he shall further certify that his contract price has been reduced so as to give the farmer or rancher the full benefit of this exemption;
   3. Sales of agricultural fertilizer, pharmaceuticals and biologicals to persons engaged in the business of applying such materials on a contract or custom basis shall not be considered to be sales to contractors under this chapter, and the sales shall not be considered to be taxable sales within the meaning of the Oklahoma Sales Tax Code. As used in this section, "agricultural fertilizer" "pharmaceuticals" and "biologicals" mean any substance sold and used for soil enrichment or soil corrective purposes or for promoting the growth and productivity of plants or animals;
   4. Sales of agricultural seed or plants to any person regularly engaged, for profit, in the business of farming or ranching. This section shall not be construed as exempting from sales tax, seed which is packaged and sold for use in noncommercial flower and vegetable gardens;
   5. Sales of agricultural chemical pesticides to any person regularly engaged, for profit, in the business of farming or ranching. For the purposes of this act, agricultural chemical pesticides shall include any substance or mixture of substances intended for preventing, destroying, repelling or mitigating any insect, snail, slug, rodent, bird, nematode, fungus, weed or any other form of terrestrial or aquatic plant or animal life or virus, bacteria or other microorganism, except viruses, bacterial or other microorganisms on or in living man, or any substance or mixture of substances intended for use as a plant regulator, defoliant or desiccant; and
   6. This exemption shall only be granted and extended to the purchaser where the items are to be used and in fact are used in the production of agricultural products. Each purchaser shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor, that the material purchased will only be used in his farming occupation. The vendor shall certify to the Oklahoma Tax Commission that the contract price of the items has been reduced to grant the full benefit of the exemption. Violation hereof by the purchaser or vendor shall be a misdemeanor and, upon violation and conviction for a second offense, the Oklahoma Tax Commission shall revoke the vendor's sales tax permit; and
6. Sale of farm machinery, repair parts thereto or fuel, oil, lubricants and other substances used for operation and maintenance of the farm machinery to be used directly on a farm or ranch in the production, cultivation, planting, sowing, harvesting, processing, spraying, preservation or irrigation of any livestock, poultry, agricultural or dairy products produced from such lands. Each purchaser of farm machinery, repair parts thereto or fuel must certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor, that he is engaged in farming or ranching and that the farm machinery, repair parts thereto or fuel will be used only in farming or ranching. The exemption provided for herein shall not apply to motor vehicles. Each purchaser shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor, that the material purchased will only be used in his farming occupation. The vendor shall certify to the Oklahoma Tax Commission that the price of the items has been reduced to grant the full benefit of the exemption. Violation hereof by the purchaser or vendor shall be a misdemeanor and, upon violation and conviction for a second offense, the Oklahoma Tax Commission shall revoke the vendor's sales tax permit.

SECTION 7-213 EXEMPTIONS; MANUFACTURERS.

There are hereby specifically exempted from the tax levied by this chapter;

1. Goods, wares, merchandise and property purchased for the purpose of being used or consumed in the process of manufacturing, compounding, processing, assembling or preparing for sale a finished article and such goods, wares, merchandise or property become integral parts of the manufactured, compounded, processed, assembled or prepared products or are consumed in the process of manufacturing, compounding, processing, assembling or preparing products for resale. The term "manufacturing plants" shall mean those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such;
2. Ethyl alcohol when sold and used for the purpose of blending same with motor fuel on which motor fuel tax is levied by state law;
3. Sale of machinery and equipment purchased and used by persons establishing new manufacturing plants in Oklahoma, and machinery and equipment purchased and used by persons in the operation of manufacturing plants already established in Oklahoma. This exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation under this chapter. The term "manufacturing plants" means those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such;
4. Sales of containers when sold to a person regularly engaged in the business of reselling empty or filled containers or when purchased for the purpose of packaging raw products of farm, garden or orchard for resale to the consumer or processor. This exemption shall not apply to the sale of any containers used more than once and which are ordinarily known as returnable containers, except returnable soft drink bottles. Each and every transfer of title or possession of such returnable containers in this state to any person who is not regularly engaged in the business of selling, reselling or otherwise transferring empty or filled containers shall be taxable under this code. This exemption shall not apply to the sale of labels or other materials delivered along with items sold but which are not necessary or absolutely essential to the sale of the sold merchandise;
5. Sale of tangible personal property manufactured in Oklahoma when sold by the manufacturer to a person who transports it to another state for immediate and exclusive use in some other state; and
6. Machinery, equipment, fuels and chemicals incorporated into and directly used or consumed in the process of treatment to substantially reduce the volume or harmful properties of controlled industrial waste at treatment facilities specifically permitted pursuant to the Controlled Industrial Waste Disposal Act* and operated at the place of waste generation, or facilities approved by the State Department of Health for the cleanup of a site of contamination. The term controlled industrial waste may include low-level radioactive waste for the purpose of this subsection.

SECTION 7-214 EXEMPTIONS; CORPORATIONS AND PARTNERSHIPS.

There are hereby specifically exempted from the tax levied in this chapter;

1. The transfer of tangible personal property, as follows;
   1. From one corporation to another corporation pursuant to a reorganization. As used in this subparagraph the term "reorganization" means a statutory merger or consolidation or the acquisition by a corporation of substantially all of the properties of another corporation when the consideration is solely all or a part of the voting stock of the acquiring corporation, or of its parent or subsidiary corporation;
   2. In connection with the winding up, dissolution or liquidation of a corporation only when there is a distribution in kind to the shareholders of the property of such corporation;
   3. To a corporation for the purpose of organization of such corporation where the former owners of the property transferred are immediately after the transfer in control of the corporation, and the stock or securities received by each is substantially in proportion to his interest in the property prior to the transfer;
   4. To a partnership in the organization of such partnership if the former owners of the property transferred are immediately after the transfer, members of such partnership and the interest in the partnership, received by each, is substantially in proportion to his interest in the property prior to the transfer; or
   5. From a partnership to the members thereof when made in kind in the dissolution of such partnership;
2. Sale of an interest in tangible personal property to a partner or other person who after such sale owns a joint interest in such tangible personal property where the state sales or use tax has previously been paid on such tangible personal property.

SECTION 7-215 TAX DUE WHEN; RETURNS; RECORDS.

The tax levied hereunder shall be due and payable at the time and in the manner and form prescribed for payment of the state sales tax under the Oklahoma Sales Tax Code.

SECTION 7-216 PAYMENT OF TAX; BRACKETS.

1. The tax herein levied shall be paid to the tax collector at the time and in the form and manner provided for payment of state sales tax.
2. The bracket system for the collection of the city sales tax by the tax collector shall be the same as is hereafter adopted by the agreement of the city and the tax collector, in the collection of both the city sales tax and the state sales tax.

SECTION 7-217 TAX CONSTITUTES DEBT.

The taxes, penalty and interest due under this chapter shall at all times constitute a prior, superior and paramount claim as against the claims of unsecured creditors, and may be collected by suit as any other debt.

SECTION 7-218 VENDOR'S DUTY TO COLLECT TAX; PENALTIES.

1. The tax levied hereunder shall be paid by the consumer or user to the vendor. It is the duty of each and every vendor in this city to collect from the consumer or user the full amount of the tax levied by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof.
2. Vendors shall add the tax imposed hereunder, or the average equivalent thereof, to the sales price or charge, and when added such tax shall constitute a part of such price or charge, shall be a debt from the consumer or user to vendor until paid, and shall be recoverable at law in the same manner as other debts.
3. A vendor, as defined hereunder, who willfully or intentionally fails, neglects or refuses to collect the full amount of the tax levied by this chapter, or willfully or intentionally fails, neglects or refuses to comply with the provisions or remits or rebates to a consumer or user, either directly or indirectly, and by whatsoever means, all or any part of the tax herein levied, or makes in any form of advertising, verbally or otherwise, any statement which infers that he is absorbing the tax, or paying the tax for the consumer or user by an adjustment of prices or at a price including the tax, or in any manner whatsoever, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as provided in Section 1-108 of this code.
4. Any sum or sums collected or required to be collected in accordance with this chapter shall be deemed to be held in trust for the city. Any person, firm, corporation, joint venture or association that willfully or intentionally fails, neglects, or refuses to collect the sums required to be collected or paid shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as provided in Section 1-108 of this code.

SECTION 7-219 RETURNS AND REMITTANCES; DISCOUNTS.

Returns and remittances of the tax herein levied and collected shall be made to the tax collector at the time and in the manner, form and amount as prescribed for returns and remittances of tax collected hereunder and shall be subject to the same discount as may be allowed by the Oklahoma Sales Tax Code for collection of state sales taxes.

SECTION 7-220 INTEREST AND PENALTIES; DELINQUENCY.

Section 217 of Title 68 of the Oklahoma Statutes is hereby adopted and made a part of this chapter, and interest and penalties at the rates and in amounts as therein specified are hereby levied and shall be applicable in cases of delinquency in reporting and paying the tax levied by this chapter. The failure or refusal of any taxpayer to make and transmit the reports and remittances of tax in the time and manner required by this chapter shall cause such tax to be delinquent. In addition, if the delinquency continues for a period of five (5) days, the taxpayer shall forfeit his claim to any discount allowed under this chapter.

SECTION 7-221 WAIVER OF INTEREST AND PENALTIES.

The interest or penalty or any portion thereof accruing by reason of a taxpayer's failure to pay the city tax herein levied may be waived or remitted in the same manner as provided for the waiver or as applied in administration of the state sales tax provided in Section 220 of Title 68 of the Oklahoma Statutes. To accomplish the purposes of this section, the applicable provisions of Section 220 of Title 68 are hereby adopted by reference and made a part of this chapter.

SECTION 7-222 ERRONEOUS PAYMENTS; CLAIM FOR REFUND.

Refund of erroneous payment of the city sales tax herein levied may be made to any taxpayer making the erroneous payment in the same manner and procedure, and under the same limitations of time, as provided for administration of the state sales tax as set forth in Section 227 of Title 68 of the Oklahoma Statutes. To accomplish the purpose of this section, the applicable provisions of Section 227 of Title 68 are hereby adopted by reference and made a part of this chapter.

SECTION 7-223 FRAUDULENT RETURNS.

In addition to all civil penalties provided by this chapter, the wilful failure or refusal of any taxpayer to make reports and remittances herein required, or the making of any false and fraudulent report for the purpose of avoiding or escaping payment of any tax or portion thereof rightfully due under this chapter shall be an offense, and upon conviction thereof the offending taxpayer shall be subject to a fine as provided in Section 1-108 of this code.

SECTION 7-224 RECORDS CONFIDENTIAL.

The confidential and privileged nature of the records and files concerning the administration of the city sales tax is legislatively recognized and declared, and to protect the same the provisions of the State Sales Tax Code, Section 205 of Title 68 of the Oklahoma Statutes, and each subsection thereof, are hereby adopted by reference and made fully effective and applicable to administration of the city sales tax as if here set forth in full.

SECTION 7-225 AMENDMENTS.

The people of the city, by their approval of the sales tax ordinance hereby authorize the city council, by ordinance duly enacted, to make such administrative and technical changes or additions in the method and manner of administering and enforcing this chapter as may be necessary or proper for efficiency and fairness. Neither the rate of the tax herein provided nor the use to which the revenue is put shall be changed without approval of the qualified electors of the city as provided by law.

SECTION 7-226 PROVISIONS CUMULATIVE.

The provisions of this chapter shall be cumulative and in addition to any or all other taxing provisions of city ordinances.

CHAPTER 3

USE TAX

SECTION 7-301 CITATION AND CODIFICATION.

This chapter shall be known and may be cited as "City of Maud Use Tax".

SECTION 7-302 DEFINITIONS.

The definitions of words, terms and phrases contained in the Oklahoma Use Tax Code, Section 1401 of Title 68 of the Oklahoma Statutes, are hereby adopted by reference and made a part of this chapter. In addition thereto, the following words and terms shall be defined as follows;

1. "Tax collector" means the department of the city government or the official agency of the state, duly designated according to law or contract authorized by law, to administer the collection of the tax herein levied; and
2. "Transaction" means sale.

SECTION 7-303 EXCISE TAX ON STORAGE, USE OR OTHER CONSUMPTION OF INTANGIBLE, PERSONAL PROPERTY LEVIED.

There is hereby levied and there shall be paid by every person storing, using or otherwise consuming within the city tangible, personal property purchased or brought into this city, an excise tax on the storage, use or other consuming within the city of such property at the rate of three percent (3%) of the purchase price of such property. Such tax shall be paid by every person storing, using or otherwise consuming, within the city, tangible, personal property purchased or brought into the city. The additional tax levied hereunder shall be paid at the time of importation or storage of the property within the city and shall be assessed to only property purchased outside Oklahoma; provided, that the tax levied herein shall not be levied against tangible, personal property intended solely for use outside the city, but which is stored in the city pending shipment outside the city or which is temporarily retained in the city for the purpose of fabrication, repair, testing, alteration, maintenance or other service. Any person liable for payment of the tax authorized herein, may deduct from such tax any local or municipal sales tax previously paid on such goods or services; provided, that the amount deducted shall not exceed the amount that would have been due if the taxes imposed by the city had been levied on the sale of such goods or services.

SECTION 7-304 PURPOSE OF REVENUES.

It is hereby declared to be the purpose of this chapter to provide revenues for the support of the functions of the municipal government of the city, and any and all revenues derived hereunder may be expended by the governing body of the city for any purpose for which funds may be lawfully expended as authorized.

SECTION 7-305 EXEMPTIONS.

The provisions of this chapter shall not apply:

1. In respect to the use of an article of tangible, personal property brought into the city by nonresident individual visiting in this city for his or her personal use or enjoyment while within the city;
2. In respect to the use of tangible, personal property purchased for resale before being used;
3. In respect to the use of any article of tangible, personal property on which a tax, equal to or in excess of that levied by both the Oklahoma Use Tax Code and the City of Maud Use Tax, has been paid by the person using such tangible, personal property in the city, whether such tax was levied under the laws of Oklahoma or some other state or municipality of the United States. If any article of tangible, personal property has already been subjected to a tax by Oklahoma or any other state or municipality in respect to its sale or use, in an amount less than the tax imposed by both the Oklahoma Use Tax Code and City of Maud Use Tax, the provision of this chapter shall also apply to it by a rate measured by the difference only between the rate provided by both the Oklahoma Use Tax Code and the City of Maud Use Tax, and the rate by which the previous tax upon the sale or use was computed. Provided, that no credit shall be given for taxes paid in another state or municipality, if that state or municipality does not grant like credit for taxes paid in Oklahoma and the city;
4. In respect to the use of machinery and equipment purchased and used by persons establishing new manufacturing or processing plants in the city, and machinery and equipment purchased and used by persons to the operation of manufacturing plants already established in the city. Provided, this exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation under the sales tax code of the city. The term "manufacturing plants" means those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such;
5. In respect to the use of tangible, personal property now specifically exempted from taxation under the sales tax code of the city;
6. In respect to the use of any article of tangible personal property brought into the city by an individual with intent to become a resident of this city where such personal property is for such individual's personal use or enjoyment;
7. In respect to the use of any article of tangible, personal property used or to be used by commercial airlines or railroads; or
8. In respect to livestock purchased outside Oklahoma and brought into this city for feeding or breeding purposes, and which is later resold.

SECTION 7-306 TIME WHEN DUE, RETURNS, PAYMENT.

The tax levied by this chapter is due and payable at the time and in the manner and form prescribed for payment of the State Use Tax under the Use Tax Code of the State of Oklahoma.

SECTION 7-307 TAX CONSTITUTES DEBT.

Such taxes, penalty and interest due hereunder shall at all times constitute a prior, superior and paramount claim as against the claims of unsecured creditors, and may be collected by suit as any other debt.

SECTION 7-308 COLLECTION OF TAX BY RETAILER OR VENDOR.

Every retailer or vendor maintaining places of business both within and without the state, and making sales of tangible, personal property from a place of business outside this state for use in this city shall at the time of making such sales collect the use tax levied by this chapter from the purchaser and give to the purchaser a receipt therefore in the manner and form prescribed by the Tax Commission, if the Tax Commission shall, by regulation, require such receipt. Each retailer or vendor shall list with the Tax Commission the name and address of ail his agents operating in this city and location of any and all distribution or sales houses or offices or other places of business in the city.

SECTION 7-309 COLLECTION OF TAX BY RETAILER OR VENDOR NOT MAINTAINING A PLACE OF BUSINESS WITHIN STATE OR BOTH WITHIN AND WITHOUT STATE, PERMITS.

The Tax Commission may, in its discretion, upon application, authorize the collection of the tax herein levied by any retailer or vendor not maintaining a place of business within this state but who makes sales of tangible, personal property for use in this city and by the out-of-state place of business of any retailer or vendor maintaining places of business both within and without this state and making sales of tangible, personal property such out-of-state place of business for use in this city. Such retailer or vendor may be issued, without charge, a permit to collect such taxes by the Tax Commission in such manner and subject to such regulations and agreements as it shall prescribe. When so authorized, it shall be the duty of such retailer or vendor to collect the tax upon all tangible, personal property sold to his knowledge for use within this city. Such authority and permit may be cancelled when at any time the Tax Commission considers that such tax can more effectively be collected from the person using such property in this city. Provided, however, that in all instances where such sales are made or completed by delivery to the purchaser within this city by the retailer or vendor in such retailer's or vendor's vehicle, whether owned or leased (not by common carrier), such sales or transactions shall continue to be subject to applicable city sales tax at the point of delivery and the tax shall be collected and reported under taxpayer's sales tax permit number accordingly.

SECTION 7-310 REVOKING PERMITS.

Whenever any retailer or vendor not maintaining a place of business in this state, or both within and without this state, and authorized to collect the tax herein levied, fails to comply with any of the provisions of this chapter of the Oklahoma Use Tax Code or any orders, rules or regulations of the Tax Commission, the Tax Commission may, upon notice and hearing as provided for in Section 1408 of Title 68 of the Oklahoma Statutes, by order revoke the use tax permit, if any, issued to such retailer or vendor, and if any such retailer or vendor is a corporation authorized to do business in this state may, after notice and hearing above provided, cancel the corporation's license to do business in this state and shall issue a new license only when such corporation has complied with the obligations under this chapter, the Oklahoma Use Tax Code, or any orders, rules or regulations of the Tax Commission.

SECTION 7-311 REMUNERATIVE DEDUCTIONS ALLOWED VENDORS OR RETAILERS OF OTHER STATES.

Returns and remittances of the tax herein levied and collected shall be made to the Tax Commission at the time and in the manner, form and amount as prescribed for returns and remittances required by the Oklahoma Use Tax Code; and remittances of tax collected hereunder shall be subject to the same discount as may be allowed by the code for the collection of state use taxes.

SECTION 7-312 INTEREST AND PENALTIES, DELINQUENCY.

Section 217 of Title 68 of the Oklahoma Statutes is hereby adopted and made a part of this chapter, and interest and penalties at the rates and in the amounts as herein specified are hereby levied and shall be applicable in cases of delinquency in reporting and paying the tax levied by this chapter. Provided, that the failure or refusal of any retailer or vendor to make and transmit the reports and remittances of tax in the time and manner required by this chapter shall cause such tax to be delinquent. In addition, if such delinquency continues for a period of five (5) days, the retailer or vendor shall forfeit his claim to any discount allowed under this chapter.

SECTION 7-313 WAIVER OF INTEREST AND PENALTIES.

The interest or penalty or any portion thereof accruing by reason of a retailer's or vendor's failure to pay the city tax herein levied may be waived or remitted in the same manner as provided for the waiver or remittance as applied in administration of the State Use Tax provided in Section 227 of Title 68 of the Oklahoma Statutes, and to accomplish the purposes of this section the applicable provisions of Section 220 are hereby adopted by reference and made a part of this chapter.

SECTION 7-314 ERRONEOUS PAYMENTS, CLAIM FOR REFUND.

Refund of erroneous payment of the city use tax herein levied may be made to any taxpayer making such erroneous payment in the same manner and procedure, and under the same limitations of time, as provided for administration of the State Use Tax as set forth in Section 227 of Title 68 of the Oklahoma Statutes, and to accomplish the purpose of this section, the applicable provisions of Section 227 are hereby adopted by reference and made a part of this chapter.

SECTION 7-315 FRAUDULENT RETURNS.

In addition to all civil penalties provided by this chapter, the willful failure or refusal of any taxpayer to make reports and remittances herein required, or the making of any false and fraudulent report for the purpose of avoiding or escaping payment of any tax or portion thereof rightfully due under this chapter shall be an offense, and upon conviction thereof the offending taxpayer shall be punished as provided in Section 1-108 of this code. Each day of noncompliance with this chapter shall constitute a separate offense.

SECTION 7-316 RECORDS CONFIDENTIAL.

The confidential and privileged nature of the records and files concerning the administration of the city use tax is legislatively recognized and declared, and to protect the same the provisions of Section 205 of Title 68 of the Oklahoma Statutes, of the State Use Tax Code, and each subsection thereof, is hereby adopted by reference and made fully effective and applicable to administration of the city use tax as is herein set forth in full.

SECTION 7-317 CLASSIFICATION OF TAXPAYERS.

For the purpose of this chapter, the classification of taxpayers hereunder shall be as prescribed by state law for purposes of the Oklahoma Use Tax Code,

SECTION 7-318 SUBSISTING STATE PERMITS.

All valid and subsisting permits to do business issued by the Tax Commission pursuant to the Oklahoma Use Tax Code are for the purpose of this chapter hereby ratified, confirmed and adopted in lieu of any requirement for an additional city permit for the same purpose.

SECTION 7-319 PROVISIONS CUMULATIVE.

The provisions hereof shall be cumulative, and in addition to any and all other taxing provisions of the city ordinances.

CHAPTER 4

TELEPHONE EXCHANGE FEE

SECTION 7-401 FEE LEVIED ON TELEPHONE EXCHANGES.

There is hereby levied effective with the adoption of this code an annual inspection fee and service charge upon each and every person, firm, or corporation operating a telephone exchange in the city in an amount equal to two percent (2%) of the gross revenues for each current year for exchange telephone transmission service rendered wholly within the limits of the city to compensate the city for the expenses incurred and services rendered incident to the exercise of its police power, supervision, police regulations, and police control of the construction of lines and equipment of the telephone company in the city. The inspection fee and charge shall be due and payable to the city annually for the preceding year and shall be paid into and appropriated and expended from the general revenue fund of the city.

State Law References City powers to levy utility tax on gross receipts, 68 O.S. Sections 2601 et seq.

SECTION 7-402 FEE TO BE IN LIEU OF OTHER FEES, TAXES.

During continued substantial compliance with the terms of this chapter by the owner of any telephone exchange, the charge levied hereby shall be and continue to be in lieu of all concessions, charges, excise, franchise, license, privilege, and permit fees or taxes or assessments, except ad valorem taxes. However, it is not intended hereby to extinguish or abrogate any existing arrangement whereby the city is permitted to use underground conduit, duct space, or pole contacts of the company for the fire alarm or police calls systems of the city.

CHAPTER 5

EMERGENCY TELEPHONE SERVICE, TAX

SECTION 7-501 CITATION AND CODIFICATION.

This Chapter shall be known as may be cited as the Maud Nine-One-One Emergency Number Ordinance.

SECTION 7-502 PURPOSE.

It is the purpose of the Nine-One-one Emergency Number Ordinance to establish the number nine-one-one (911) as the primary emergency telephone number for use throughout the city in order to expedite the response of police, fire, medical rescue and other emergency services to any person calling the telephone number nine-one-one (911).

SECTION 7-503 DEFINITIONS.

As used in this article, unless the context requires otherwise, the following terms are defined:

1. "Emergency Telephone Service" means a telephone system utilizing a three-digit number, nine-one-one (911) for reporting to the appropriate public agency providing law enforcement, fire, medical or other emergency services, including ancillary emergency services and personnel.
2. "Emergency Telephone fee" means a fee to finance the operation of emergency telephone service.
3. "City" means the City of Maud, Oklahoma.
4. "Governing Body" means the city council of the City of Maud, Oklahoma.
5. "Local Exchange Telephone Company" means any company providing exchange telephone services to any service user in this city.
6. "Wireless Carrier" shall mean a person who offers wireless telephone service and who is required to collect a fee for funding of emergency telephone service.
7. "Person" means any individual, firm, partnership, co-partnership, joint venture, association, cooperative organization, private corporation, whether organized for profit or not, fraternal organization, nonprofit organization, estate, trust, business, or common law trust, receiver, assignee for the benefit of creditors, trustee or trustee in bankruptcy, state, any political subdivision, of the state, state agency, department, commission, board, bureau, or any other service user.
8. "Public agency" means any city, town, county, municipal corporation, public district, or public authority located within this state which provides or has authority to provide firefighting, law enforcement, ambulance, emergency, medical, or other emergency services.
9. "Service user" means any person who is provided exchange telephone service in this city.
10. "Tariff rate" means the rate or rates billed by local exchange telephone company stated in tariffs applicable for such company, as approved by the Oklahoma Corporation Commission, which represents the recurring charges of such local exchange telephone company for exchange telephone service or its equivalent, exclusive of all taxes, fees, licenses, or similar charges whatsoever.
11. "Primary Provider" means American Telephone and Telegraph Company (AT&T), which is designated as the local exchange telephone company to primarily provide the service for the City's Nine-one-one (911) emergency telephone system.
12. "Pottawatomie County Enhanced 9-1-1 System" means the Public Service Access Point (PSAP) operated by the Pottawatomie County Enhanced 9-1-1 System Advisory Board to provide emergency communications for public service entwwities within Pottawatomie County.

SECTION 7-504 EMERGENCY TELEPHONE SERVICE AND TAX.

1. The city hereby provides for the operation of an emergency telephone service, through the levy of an emergency telephone service tax or service fee. The tax or service fee is hereby levied pursuant to Nine-One-One (911) Emergency Number Act, Sections 2811 through 2819 of Title 63 of the Oklahoma Statutes, Supp. 1986, and specifically Section 2814 thereof.
2. The Emergency Landline Telephone Service Fee shall be an amount not to exceed fifteen percent (15%) of the applicable telephone tariff rate until modified as required by law.
3. The Emergency Wireless Telephone Service Fee shall be fifty cents ($0.50) per month, per wireless connection, as determined by the billing zip code of the subscriber.
4. The proceeds of the fee shall be utilized to pay for the operation of emergency telephone service as specified in this chapter.

SECTION 7-505 COLLECTION.

1. All emergency telephone fees shall be collected monthly by each telephone company and/or wireless service provider at the same time charges for telephone services are collected and in accordance with the regular billing practices of the company. In the event any service user tenders a payment in an amount insufficient to satisfy all charges, tariffs, fees, and taxes, the amount tendered shall be first credited to the emergency telephone fee.
2. Unless required by state law to remit otherwise, all fees collected by a telephone company or wireless provider pursuant to this chapter shall be remitted to the Pottawatomie County Enhanced 9-1-1 System Advisory Board pursuant to Resolution 2007-2, and applicable contracts and agreements between the City of Maud and the Pottawatomie County Enhanced 9-1-1 System Advisory Board.

SECTION 7-506 FAILURE TO REMIT FEE

Any service user willfully failing or refusing to remit or pay any emergency telephone fee or portion thereof duly authorized by this chapter shall be guilty of an offense and, upon conviction thereof, shall be subject to a fine as provided in Section 1-108 of this code. Each separate failure or refusal to remit or pay the emergency telephone fee hereof shall be deemed a separate offense.

SECTION 7-507 FALSE REPORTING.

No person shall call the number nine-one-one (911) for the purpose of making a false alarm or complaint or reporting false information which could result in the dispatching of emergency services from any public agency. Any person violating the provisions of this section shall be guilty of an offense and, upon conviction thereof, shall be subject to a fine as provided in Section 1-108 of this code.

SECTION 7-508 AMENDMENTS.

The provisions of this chapter may be amended as the governing body deems necessary for the purpose of improving emergency services or administration or for the purpose of bringing the article into conformance with amendments made by the state legislature to the Nine-One-One Emergency Number Act.

CHAPTER 6

TAX ON NON-FRANCHISE HOLDERS

SECTION 7-601 TAX LEVIED.

From and after the effective date hereof, there is hereby levied and assessed an annual tax of two percent (2%) upon the gross receipts from residential and commercial sales of power, heat, light, gas, and electricity in the City of Maud, Oklahoma, which tax shall be in lieu of any other franchise, license, occupation or excise tax; provided, however, that the provisions herein shall not apply to any person, firm, association or corporation operating under a valid franchise in the City.

SECTION 7-602 PAYMENT.

The tax levied under section 7-601 of this chapter shall be levied for a term of not than one year and shall be payable annually in January of each year and placed in the general revenue fund of the city.

SECTION 7-603 LIEN OF TAX.

The tax imposed herein shall constitute a first and prior lien upon all the assets located within the City of any person, firm or corporation engaged in the business of selling power, light, heat, gas or electricity within the city limits of the city of Maud, Oklahoma

SECTION 7-604 REFUSAL TO PAY.

Any person, firm or corporation failing or refusing to pay such tax when levied shall be regarded as a trespasser and may be ousted from such city and in addition thereto, an action may be maintained against such person, firm or corporation for the amount of the tax, and all expenses of collecting same, including reasonable attorney fees.

SECTION 7-605 PERMIT.

Any persons, firms, associations, or corporations engaged in the business of furnishing power, heat, light, gas, and electricity within the city limits of Maud, Oklahoma, not operating under a valid franchise from city, is hereby granted a revocable permit by city for so long as this chapter remains in effect and the taxes are in accordance with the terms of this chapter to acquire, construct, erect, install, extend, repair, remove, relocate, replace, operate and maintain a system of works, pipes, pipelines, apparatus, structures, and appurtenance in, across, upon and under the streets, alleys, avenues, boulevards, lanes, parks, parkways, sidewalks, parkings, driveways, rights of way, utility easements, and other public ways, places, areas and grounds, all being sometimes referred to herein as "streets, alleys, avenues, and other public ways, places and grounds", in the City of Maud, Oklahoma, as now constituted, and as may be added to hereafter, for the purpose of transporting, distributing, and selling power, heat, light, gas, and electricity to said city, its inhabitants and the public generally for domestic, commercial, and industrial uses, and for any and all other purposes for which power, heat, light, gas, and electricity during the period of this revocable permit may be used, together with the right to enter upon the streets, alleys, avenues, and other public ways, places, and grounds of said city for the purpose of constructing, erecting, installing, extending, relocating, operating, maintaining, removing, and repairing said works, pipes, pipelines and all necessary apparatus, machinery, structures, and appurtenances.

CHAPTER 7

FRANCHISE CANCELLATION PROCEDURES

SECTION 7-701 TERMS DEFINED.

The words or term 'franchise holder' when used in this title shall mean any person, firm, corporation or association holding a franchise in the City of Maud.

SECTION 7-702 NOTICE AND HEARING.

When it shall appear to the Council that the holder of any franchise in the City of Maud has failed, neglected, or refused to exercise a franchise in substantial accordance with the terms of the Charter of the City of Maud or the ordinance granting the franchise, it shall be the duty of the Council to give notice to the franchise holder and set a definite date for a hearing as provided herein.

SECTION 7-703 RESOLUTION OF NON-COMPLIANCE.

The Council shall first by resolution set forth in general terms the manner and form in which the franchise holder has failed, neglected, or refused to exercise the franchise in accordance with the terms of the Charter or the ordinance granting the franchise.

SECTION 7-704 DATE FOR HEARING.

The Council shall, in its resolution, set a date for a hearing on the charges contained therein, at which time the franchise holder shall have the right to show cause why the franchise should not be annulled or cancelled. The hearing shall be set on a date not less than ten (10) days nor more than thirty (30) days after the passage of the resolution and may be held at a regular meeting of the council or at a special meeting called in the manner provided by statute.

SECTION 7-705 SERVICE OF NOTICE.

A notice of the hearing, together with a certified copy of the resolution setting forth the manner and form in which it may appear to the Council that the franchise holder has failed, neglected, or refused to exercise the franchise in accordance with the terms of the Charter or the ordinance granting it, shall be served upon the franchise holder by the Chief of Police or other officer authorized by the Mayor. Service and return of service shall be in the manner provided by law for the service of summons in a civil action. A written return of service shall be filed in the Office of the City Clerk.

SECTION 7-706 CONTINUANCE OF HEARING.

The hearing may be continued from time to time by the Council upon good cause shown; provided, however, that no continuance shall be made except by the Council at the meeting regularly set for the hearing. The hearing may be continued from one meeting to another.

SECTION 7-707 DEFAULT.

In the event the franchise holder shall fail, neglect or refuse to appear before the Council in response to the notice provided herein, the franchise holder shall be adjudged in default and the Council may proceed with the hearing on the annulment or cancellation of the franchise under consideration.

SECTION 7-708 QUORUM; POWER TO ACT.

The City and the franchise holder shall have the right to compel the attendance of witnesses and the production of books, papers, and records, as provided in the Charter of the City of Maud, and to introduce evidence pertaining to the questions involved. A majority of the members of the Council shall constitute a quorum with the power to act on all matters coming before it at the hearing pertaining to the proceedings and to the cancellation and annulment of the franchise.

SECTION 7-709 ISSUANCE OF SUBPOENAS.

Subpoenas for witnesses and for the production of books, records, and papers shall be issued by the City Clerk. All Subpoenas and process in the matter shall be issued as provided by the Charter and the Ordinances of the City of Maud, and shall be served and returned by the Chief of Police or other officer authorized by the Mayor, as provided by law in civil actions. The Mayor, any member of the Council, the City Attorney, any special counsel acting for the City, the franchise holder and the attorney for the franchise holder shall have the right to request the issuance of subpoenas by the City Clerk for witnesses and for the production of books, papers and records; and subpoenas shall forthwith be issued and served in the manner provided herein for all witnesses named in such subpoenas.

SECTION 7-710 FAILURE OR REFUSAL TO TESTIFY.

Any person, firm, or corporation who shall fail, neglect, or refuse to appear before the Council in response to any subpoena duly served or shall fail, neglect, or refuse to produce any books, records, or papers in response to a subpoena duly served, or who shall refuse to be sworn or affirmed as a witness or to testify before the Council at any hearing shall be guilty of an offense, and shall be punishable in the manner provided by law; provided, however, that no testimony received by the Council in any hearing provided for herein shall be used in a criminal prosecution against such witness.

SECTION 7-711 DUTIES OF THE CITY ATTORNEY.

It shall be the duty of the City Attorney to diligently prosecute before the Council all charges of non-compliance with the terms of any franchise or the ordinance granting the franchise before the Council, and the Council may, in its discretion, employ special counsel for the prosecution of the charges or to assist in the prosecution.

SECTION 7-712 TRANSCRIPT

At the hearing, a complete transcript of all proceedings shall be made and a copy thereof filed in the office of the City Clerk.

SECTION 7-713 CANCELLATION.

At the conclusion of the hearing, if it be determined by the Council that such franchise has not been or is not being exercised in substantial accordance with the terms of the Charter or the ordinance granting the franchise, it shall be the duty of the Council to enter an order by resolution canceling and annulling the franchise and to repeal the ordinance granting the franchise.

SECTION 7-714 PENALTY.

Any person firm or corporation violating any of the terms or provisions of this chapter shall be guilty of an offense and upon conviction thereof shall be fined any sum not exceeding ONE HUNDRED DOLLARS ($100.00), including costs.