Business Improvement Districts - South Dakota Municipal ...



Business Improvement DistrictsA handbook for municipal officialsSouth Dakota Municipal League208 Island DriveFt. Pierre, South Dakota 57532 South Dakota Municipal League, 2011 Table of ContentsPageChapter 1: The History of Business Improvement Districts……………………………………………...3Chapter 2: Uses of Business Improvement Districts……………………………………………………..4Chapter 3: Creation of Business Improvement Districts…………………………………………………6Chapter 4: Implementation of Project Plans……………………………………………………………...9Chapter 5: Some Notes of Caution……………………………………………………………………...11Appendix A: Exhibits (Samples originally published in 1986…………………………………………13Appendix B: Samples enacting a per room occupancy tax, enacted by a SD municipality in 2003…...22Appendix C: South Dakota Statues, Chapter 9-55, Business Improvement Districts………………….37Chapter 1The History of Business Improvement DistrictsThe traditional business district has been at a competitive disadvantage with shopping centers for a number of reasons. These reasons include an inability to raise funds for many purposes such as parking facilities, area improvements, promotion of the area, coordination of activities and similar functions. There have been several programs developed to overcome these disadvantages. Urban renewal grants, community development block grants and urban development action grants were created to allow communities to deal with the physical needs of the central business district. These programs had a number of problems, including a lack of flexibility in dealing with the varying problems of each community. The biggest and most recent problem has been a dramatic reduction in the level of funding for these programs. This resulted in a search by many local officials to find another source of funds for improvement projects in business districts. The problem of finding funds to promote a business area and to coordinate activities was answered by the development of business associations that raise funds for promotional and other activities for which these groups often experience problems getting all of the business people in the area to participate. There are generally “freeloaders” who take advantage of the promotional activities of a group without assisting with the cost of these activities.The South Dakota Legislature during their 1986 session enacted what is now SDCL Chapter 9-55. This chapter allows municipalities to create and administer business improvement districts. This law was based upon similar statutes from other state, including Nebraska and Kansas. Amended in 1990, 2003, 2004, 2005, 2006, and 2007, chapter 9-55 gives business districts and municipalities the tool that they need to create a special purpose district to overcome some of the problems of development and promotion of business areas.Chapter 2Uses of Business Improvement DistrictsA Business Improvement District (BID) can be created “within the boundaries of an established business area of the municipality zoned for business, public, or commercial purposes.” An established business area may also include noncontiguous property within the incorporated municipality that has a common zoning designation. (SDCL 9-55-4) This means that a BID can be created in any business area of the community, not just in central business districts. The district can also include similarly zoned property within the municipality, but which is not physically joined to other property in the district.A Business Improvement District can undertake the following projects and tasks:1.The acquisition, construction, maintenance, and operation of public off-street parking facilities for the benefit of the district area;2.Improvement of any public place or facility in the district area, including landscaping and plantings;3. ???? Construction or installation of convention or event centers, pedestrian shopping malls or plazas, sidewalks, including moving sidewalks, parks, meeting and display facilities, bus stop shelters, lighting, benches or other seating furniture, sculptures, trash receptacles, shelters, fountains, skywalks, and pedestrian and vehicular overpasses and underpasses or any useful or necessary public improvement;4.Leasing, acquiring, constructing, reconstructing, extending, maintaining, or repairing parking lots or parking garages, both above and below ground, or other facilities for the parking of vehicles, including the power to install such facilities in public areas, whether such areas are owned in fee or by easement, in the district area;5.Creation and implementation of a plan for improving the general architectural design of public areas in the district area;6.The development of any activities and promotion of the district area;7.Maintenance, repair, and reconstruction of any improvements or facilities authorized by this chapter;8.Any other project or undertaking for the betterment of the facilities in the district area, whether the project is capital or non-capital in nature;9.Enforcement of parking regulations within the district area; and10.Employing or contracting for personnel, including administrators for any improvement or promotional program under this chapter, and providing for any service necessary or proper to carry out the purposes of this chapter. (SDCL 9-55-3)There are two ways that a BID can raise funds to carry out the projects that are authorized by law:The first method of raising revenue is by levying special assessments against property located within the district. These special assessments can be levied to cover the cost of projects that benefit property within the district to the extent of that benefit. (SDCL 9-55-13) The assessments can be levied based upon front feet, square feet, equivalent front feet or another method of assessment as determined by the governing body. (SDCL 9-55-1; 9-55-2) This means that each community has the ability to develop an assessment method that best meets the needs of that community. The amount of special assessments generally relates to a specific construction project or projects. Special assessments are primarily intended to pay for “brick and mortar” type projects that make an improvement and benefit property. Special assessments for BIDs are levied, certified and collected in the same manner as other assessments. (SDCL 9-55-13)The second method of raising revenue is the occupation tax. This is a tax that is levied against the users of space located within the district. (SDCL 9-55-2) This tax generally falls upon the tenant rather than the landlord. This tax can be based upon the square feet of area in a business into which customers are invited or space which is used in connection with the business or profession of the user. This generally means that public areas of a business and areas related to the work of persons occupying space are included in the taxable area. The taxable area generally excludes storage areas, janitor and clean up areas and places that are not related to the business that is conducted on the premises. The occupation tax is more often levied to pay for operation, maintenance and promotional costs.Another way to assess the occupational tax is on rooms rented by any lodging establishment to transient guests as defined in §10-45-7. If the occupational tax is based on rooms rented by a lodging establishment, the tax shall be imposed on the transient guest and such tax may not exceed two dollars per occupied room per night. However, no occupational tax may be imposed on any transient guest who has been offered a room by a lodging establishment on a complimentary basis and no fee or rent was charged for such room. (SDCL 9-55-7)The special assessment and the occupational tax can be used alone or in combination, but they can only be levied following public hearings and the opportunity to protest against the levies by property owners or tenants. (SDCL 9-55-13) The amount of taxes levied cannot exceed the total cost of projects set out in the project plan developed for the district. (SDCL 9-55-17) In addition, this chapter allows a method maintaining, repairing and reconstructing and paying utility costs for qualifying existing facilities. (SDCL 9-55-18)The authority of municipalities to create Business Improvement Districts and to carry out projects within the districts is quite broad. The municipality can perform almost any act that will improve the area. However, there is always the limiting factor of the ability of the property owners and tenants to protest against the creation of a district. (SDCL 9-55-10) This means that the municipality must work carefully with the business people in the proposed district area to make certain that the district as created is acceptable to them.Chapter 3Creation of Business Improvement DistrictsThe process of creating a Business Improvement District has several steps which are carefully designed to assure the maximum amount of public input and interaction prior to the actual creation of the district and levying of taxes to pay for the cost of the project that are part of the plans for the district.The first step for this or any other major municipal project is to work with the persons in the affected area to obtain their ideas on what should be included in the district including area and project plans. The impetus to create the district may (and probably should) actually come from people within the district area. A careful preliminary study and interaction with groups, such as a business association, the Chamber of Commerce, any development groups, major property owners and similar organizations will make the creation of a district much easier.The next step is to establish the boundaries of the proposed district. The boundaries must be established by resolution. (SDCL 9-55-5) It is wise to include a map of the proposed district boundaries. A sample resolution establishing the boundaries of a BID is included in this handbook as Exhibit A.Next, the mayor appoints a business improvement board with the approval of the governing body. (SDCL 9-55-5) This board must have at least five members whose term of office is established by resolution. (SDCL 9-55-6) The members must be property owners, residents, business operators or users of space within the boundaries of the district. (SDCL 9-55-5) The board selects from its members a chairperson and secretary. (SDCL 9-55-6) The duty of the board is to advise the governing body on the plan or plans for improvements and activities within the district. The board shall also advise the governing body as to the type of revenue to be raised and the use of any revenue raised. (SDCL 9-55-5) This board is not intended to be an administrative board, but is an advisory group to the governing body.The governing body, after receiving the report of the business improvement board, may adopt a resolution of intent to create one or more business improvement districts. (SDCL 9-55-7) A sample resolution is attached as Exhibit B. The resolution creating the district must contain the following items:1.A description of the boundaries of any proposed district;2.The time and place of a hearing to be held by the governing body to consider establishment of a district or districts;3.The proposed public facilities and improvements to be made or maintained within any such district; and4.The proposed or estimated costs for improvements, facilities and activities within any district, and the method by which the revenue shall be raised. If a special assessment is proposed, the resolution also shall state the proposed method of assessment.The notice of intent shall recite that the method of raising revenue shall be fair and equitable. In the use of a general occupation tax, the tax shall be based primarily on the square footage of the owner's and user's place of business or based on rooms rented by any lodging establishment to transient guests as defined in §10-45-7. If the occupational tax is based on rooms rented by a lodging establishment, the tax shall be imposed on the transient guest and such tax may not exceed two dollars per occupied room per night. However, no occupational tax may be imposed on any transient guest who has been offered a room by a lodging establishment on a complimentary basis and no fee or rent was charged for such room. In the use of a special assessment, the assessment shall be based upon the special benefit to the property within the district. (SDCL 9-55-7)As noted under item “2” above, a public hearing shall be held on the proposed district as established in the resolution of intent. A notice of a hearing shall be given by mailing a complete copy of the resolution of intent to each owner of taxable property as shown on the property tax roll for such county. If an occupation tax is to be imposed, a copy of the resolution of intent shall also be mailed to the occupant of each address located in the proposed district. Mailing shall be completed at least thirty days prior to the time of hearing. (SDCL 9-55-8) There is no requirement that the noticed be mailed by other than standard first class mail. There is no requirement to publish a notice of public hearing in the official newspaper of the municipality.At the public hearing, the governing body shall:1.Hear all protests and receive evidence for or against the proposed action;2.Rule upon all written protests received prior to the close of the hearing, which ruling shall be final; and3.Continue the hearing from time to time as the governing body may deem necessary.If a special assessment is to be used, the proceedings shall terminate if written protest is made prior to the close of the hearing by the owners of a majority of the assessable front footage in the proposed district. If an occupation tax is to be used, the proceedings shall terminate if protest is made by the users of a majority of the space in the proposed district. If the general occupational tax is based upon rented hotel and motel rooms pursuant to §?9-55-7, the proceedings shall terminate if written protest is made prior to the close of the hearing by the owners of a majority of the hotels and motels in the proposed district.Any bonds for the construction of a convention facility that are payable from the proceeds of the hotel and motel room general occupational tax may only be issued and sold if at least two-thirds of the hotel and motel owners in the proposed district approve in writing of the issuance and sale of the bonds. (SDCL 9-55-10)If the governing body decides to establish a district, it shall adopt an ordinance to that effect. The ordinance shall contain the following information:1.The number of the resolution of intent and the date it was adopted;2.The time and place of the hearing that was held on the formation of such district;3.A statement that a business improvement district has been established pursuant to the provisions of this chapter;4.The purposes of the district and the public improvements and facilities to be included in such district;5.The description of the boundaries of such district;6.A statement that the businesses and professions in the district shall be subject to the general business occupation tax or that the real property in the area will be subject to the special assessment authorized by §?9-55-2;7.The proposed method of assessment to be imposed on the property within the district or the initial rate of the occupation tax to be imposed on the business users of the space in the district; and8.Any penalties to be imposed for failure to pay the occupation tax. (SDCL 9-55-12)A separate ordinance is required for each district that is created. The boundaries of two districts can overlap or one district can have boundaries that are entirely within the boundaries of another district. The same adoption procedure applies to an ordinance creating a BID as applied to all other ordinances. A sample ordinance creating a BID is attached as Exhibit “C”. Exhibit “C-1” contains sample provisions of an ordinance implementing a general occupation tax, and Exhibit “C-2” contains sample provisions of an ordinance implementing an occupation tax based upon rented hotel and motel rooms.This completes the steps that are necessary to create a BID. The district is now created and ready to perform activities and raise the revenue to carry out those activities. The time for objection to creation of the district and levying of taxes is now past. The actual implementation of the district activities will be covered in the next chapter.Chapter 4Implementation of Project PlansThe implementation segment of a BID is the easiest and certainly the most exciting part of the entire process. If there is construction work to be done, it is subject to the same advertising and bidding laws as any other municipal project. The plans and specifications for the work should be prepared by engineers or architects who are employed by the municipality. The work itself should be conducted as any other municipal project. Be prepared for more interest and input than usual from the property owners because of their direct financial interest in the project.The use of consultants for design work, promotional work, planning and similar activities is entirely up to the governing body in each community. The ability of local staff and citizens to perform some of these activities varies from municipality to municipality. Remember, however, that there are specialized activities, such as publicity campaigns, that are usually best left to experts in the field.The implementation of the special assessments and the occupation tax requires another public hearing. The municipality must give notice of the public hearing by publishing a notice in the official newspaper once a week for two weeks, at least thirty days prior to the hearing. The notice must include the following items:1.The date, time, and place of the hearing2.The description of the property to be assessed/and or taxed3.The amount of the assessment/and or tax4.The purpose of the assessment/and or tax (SDCL 9-55-13)A sample notice is attached as Exhibit “D” or “D-1”At the public hearing, the governing body is required to hear any objections to the proposed taxes or assessments. Assessments shall be levied in accordance with the method of assessment proposed in the ordinance creating the district. However, if the governing body finds that the proposed method of assessment does not provide a fair and equitable method of apportioning costs, then it may assess the costs under such method as the governing body finds to be fair and equitable. (SDCL 9-55-13) A sample of a resolution levying a special assessment or occupational tax is attached as Exhibit “E” and “E-1”. The law requires a separate hearing and resolution for special assessments and occupation taxes. There is nothing to prohibit both taxes from being levied at the same time or the hearings from being held on the same night. The total taxes and/or assessments levied cannot exceed the total cost of the projects proposed. (SDCL 9-55-17)The occupation tax can vary in amount based upon the type of use that occupies the space that is taxed. This means that a retail sales use with many customers and that requires a lot of parking might have a higher per square foot tax rate than a office business that has very few customers that come to the location. This variance in tax rates is not required, however, it is available if the governing body wants to use it. The governing body shall, by resolution, determine the method of collection and enforcement of the occupation tax. (SDCL 9-55-15)The governing body can also provide for mid-year adjustments in occupation tax rates after adoption of a new resolution of intent, if the use of a building changes during the year. (SDCL 9-55-16)The governing body may levy an occupation tax or a special assessment against the real property in a district for the purpose of paying all or part of the cost of maintenance, repair and reconstruction, including utility costs of any improvement or facility in the district. (SDCL 9-55-18). The statute provides that the governing body shall determine by resolution the method of collection of the occupation tax. (SDCL 9-55-15) This means that the governing body can decide who is responsible for collecting the occupation tax, how it shall be billed and what billing period shall be used. The municipal finance officer is charged by other statutes with the collection of all municipal funds. (SDCL 9-22-2) It would appear appropriate for the municipal finance officer to be the person in charge of billing and collecting the occupation tax. It may be appropriate to consider billing the occupation tax as part of the regular utility bills that are sent out by the municipality. This, of course, would be limited by the ability of the utility billing system to absorb another charge and local policy regarding placement of different types of charges on utility bills. The matter of collection period is also a local decision. The bills could be rendered once a year or twice a year or even as often as monthly if that appears to be appropriate to the governing body. The business improvement district advisory board should be consulted on the billing period. The billing period should be convenient not only to the municipality, but to the firms that are actually paying the occupation tax. One thing to consider in establishing the billing period is that it might be most appropriate to establish the billing period that is the same as the utility billing period if utility bills are to be used for collection of the occupation tax.One caution on the tax and assessment rates is to make sure that they are high enough to support the proposed activities without raising more money than needed for the projects. The procedure to change a tax or assessment rate is the same as the procedure to establish the initial rate. It is much easier to set the rate high enough the first time than it is to go through the whole process again to increase the rate.Chapter 5Some Notes of CautionBe sure to do your homework thoroughly with the people in the business area that is proposed to be part of the BID. Nothing can foul up the process more and even kill the project than an incomplete understanding of the proposal by the business people.In the use of a general occupation tax, the tax must be primarily based on the square footage of the place of business. (SDCL 9-55-7) In the use of a special assessment, the assessment must be based on the special benefit to the property. (SDCL 9-55-13)If the improvements in one business area cannot be equitably assessed together, then more than one business improvement district can be established as part of the same development plan. (SDCL 9-55-5)Use the business improvement board as a sounding group for ideas and input. Make sure that you have good progressive people on this board. Let them be involved in selling the proposal to their peers. Don’t let the board wither away after the district is created and the projects are started. They can help greatly to smooth the process and to give you feedback on the results of the work. They can also help you develop new ideas to help the area.Don’t be afraid to copy what another community has done if it fits your needs. Life isn’t long enough to reinvent the wheel every time something needs to be done. This is not to say that “canned” solutions should be used, but look at what other communities have done and apply them to your situation if they fit.Look critically at the work as it progresses. Don’t just put the plans in action and sit back and wait for results. The business improvement board can be invaluable in helping you do this.Do all of the paperwork to create the district right the first time. There may seem to be a lot of steps, but that is because you will be levying taxes to pay for the projects. Make certain that every “i” is dotted and every “t” is crossed as you go through the creation process.Be innovative. Have a good time during the process. This law gives municipalities a great deal of latitude to improve their business areas. There are many innovative people in municipal government in South Dakota. Let’s use that ability where we can.Please have all samples in this handbook reviews by your city attorney prior to their use to make certain that they are in proper form for your particular situation.Appendix A: Exhibits To Review With City Attorney(Pages 13-20)These sample exhibits were originally published in 1986, and have only minor amendments to reflect legislative and grammatical changes.Appendix B: (Pages 22-36)Contains actual samples TO REVIEW WITH YOUR CITY ATTORNEY. These were used by one municipality in 2003, using a per room occupancy tax on hotels allowed by SDCL 9-55-7.Appendix C: (Pages 37-43)Contains South Dakota Codified Law chapter 9-55Exhibit AResolution #86-_____Whereas, the governing body considers it appropriate that a plan be developed for the improvement of public facilities and activities in certain commercial areas of the municipality, andWhereas, one method of providing for that plan is the creation of a Business Improvement District, and Whereas, the boundaries of a proposed Business Improvement District must be established before a district can be created, andWhereas, the method of raising revenue shall be fair and equitable,Now therefore be it resolved by the Governing Body of the Municipality of Anywhere, South Dakota, that:1. The boundaries of a proposed Business Improvement District are hereby established as follows:(Insert the exterior boundaries of the proposed district)2. There is hereby created a Business Improvement Board which shall have the powers established in SDCL 9-55-5 and 9-55-6. The Board shall be appointed by the Mayor with the approval of the governing body.3. The Board shall consist of ________(at least 5) members whose terms shall be of ____ years except _____(1/3 of Board) for a 1 year term, _______(1/3 of Board) for a 2 year term and _____(1/3 of Board) for a three year term. The initial Board shall serve from the date of appointment to December 31, ______ in addition to their initial term.Adopted:_________________Mayor __________________________Attest: ____________________Finance OfficerExhibit BResolution #20-- _____Whereas, the proposed boundaries of a business improvement district have been established by Resolution #86-_____ and Whereas, the downtown Improvement Board has filed a report recommending that a business improvement district be created and recommending a plan for improvement of the business area, andWhereas, a resolution of intent is required prior to the creation of a business improvement district,Now therefore be it resolved by the governing body of the Municipality of Anywhere, South Dakota that:1. The proposed improvement district shall have the following description(insert description)2. A public hearing shall be held before the governing body of the Municipality of Anywhere, South Dakota on the _____ day of _______, _____(year) at _______ p.m., at the City Hall to consider the creation of a business improvement district.3. The following public facilities, improvements, and activities are proposed to take place within the district:(insert list of activities)4. The following costs are estimated for the public facilities, improvements, and activities within the proposed district.(insert estimated costs)5. The revenue to support the activities within the district shall be raised as follows: for occupation tax list the cost per square foot, for special assessment list the proposed method of assessment. Remember both revenue sources can be included in one resolution of intent.6. The following costs are estimated for maintenance, repair and reconstruction, including utility costs and shall be paid by the following method:(Insert estimated costs and method of payment)7. The finance officer shall cause a notice of public hearing for the creation of the proposed business improvement district to be mailed to each property owner or user of space in the proposed district at least thirty (30) days prior to the public hearing.Adopted:_________________Mayor __________________________Attest: ____________________Finance OfficerExhibit COrdinance No. ___________AN ORDINANCE ESTABLISHING BUSINESS IMPORVEMENT DISTRICT #1 OF THE MUNICIPALITY OF ANYWHERE, SOUTH DAKOTABE IT ORDAINED BY THE MUNICIPALITY OF ANYWHERE, SOUTH DAKOTA:Section 1. There is hereby created pursuant to Chapter 9-55 Business Improvement District #1 of the Municipality of Anywhere, South Dakota.Section 2. Business Improvement District #1 shall have the following boundaries: (insert boundaries).Section 3. A resolution of intent of the creation of this district was adopted on ______________.Section 4. A public hearing on the creation of this district was held on _______________.Section 5. The purposes of Business Improvement District #1 are as follows: (insert list of purposes)Section 6. The public improvements, facilities and activities to be performed by the district are as follows: (insert list of projects, improvement, and activities).Section 7. The businesses and professions within Business Improvement District #1 will be subject to an occupation tax as established in SDCL 9-55-2. The initial rate shall be $_____ per square foot. This rate shall be subject to establishment and readjustment by resolution (Remember, you can establish different rates for different uses, but they must all be listed in this ordinance.)Section 8. The real property in Business Improvement District #1 shall be subject to special assessments as established in Chapter 9-55-2. The special assessments shall be levied based upon front feet (or other method chosen).Section 9. The penalty for failure to pay the business occupation tax when it is due is (establish penalty within the limits allowed by law)Section 10. Savings Clause. Should any section, clause or provision of this ordinance be declared by the Courts to be invalid, the same shall not effect the validity of the ordinance as a whole or any part thereof, other than the so declared to be invalid.Section 11. Effective Clause. This ordinance shall be effective upon passage and publication as provided by law.Adopted:_________________Mayor __________________________Attest: ____________________Finance Officer Exhibit C-1Actual Ordinance (Partial) Implementing Occupation TaxSec. 1. Tax RateThe annual rate of the general license and occupation tax and classification of businesses are as follows:1. $.075 square foot floor space upon all space used for business and professional offices in the district; Provided,2. $60.00 minimum annual tax for any single business or professional office should the tax rate under (1) above be less than $60.00;3. Any business or professional office operating and maintaining any off-street parking place within said Improvement District which is hereby defined as 180 square feet which may reasonably be used for parking a motor vehicle shall receive a $5.00 credit in computing the tax due under (1) above, but in no event shall pay less than the minimum annual tax as set forth in (2) above. Sec. 2. Occupations TaxedThe license and occupation tax shall be fair, equitable, and uniform as to class and shall be based primarily on the square footage of the owner’s or user’s place of business or professional office space. License and occupation tax shall be collected from each user of space within the district based upon the square foot space wherein customers, patients, or clients, or other invitees, are received, and space from time to time used or available for use in connection with the business or profession of the user. Rooms or floor space not open to and not used by customers, patients, clients, or other invitees, shall be excluded from computation of floor space, to wit:1. Hallways used by the public to gain access to more than one user of space within the building.2. Elevators.3. Stairways.4. Employees lounges and coffee rooms.5. Warehouse and storage areas, including used car lots.6. Private parking spaces and driveways.7. Furnace rooms.8. Religious organization property excluded from paying general real estate taxes by County Board of Equalization.9. Space owned or used by political subdivisions.10. Residences used for residential purposes for more than 30 days prior to the effective date of this ordinance, or the date of any taxes due under this ordinance.11. Private kitchens.12. Utilities areas.13. Maintenance closets.14. Shipping and receiving areas.15. Restrooms16. Restricted manufacturing areas.17. Restricted equipment areas.Sec. 3. Tax ComputationThe city finance officer is authorized and directed, with the advice and recommendations of the Improvement Board, to determine and compute the tax in accordance herewith.Sec. 4. Annual TaxThe license and occupation tax imposed by the preceding sections is an annual tax and shall be due and payable on the first day of May each year, commencing May 1, 20--. For the year in advance; Provided, the initial tax shall be one full annual tax payment due on the first day of August, 20—which shall be fore the period from August 1, 20--, until April 30, 20--. Businesses and professional offices starting after any tax due date of any year shall pay a pro rata tax for the balance of that tax year. Upon payment thereof to the municipality, the municipal finance officer shall give a receipt therefore, property dated and specifying the person paying, the name of the business or profession on whose behalf the tax is being paid, the amount thereof, and for what period the tax is paid. It is hereby made the duty of every person, partnership, firm, or corporation, engaged in carrying on any business or occupation within the limits of the district as provided on which a license and occupation tax is levied by this ordinance, to pay said tax at the times provided for its payment herein.Sect. 5. PenaltyAny person who shall refuse or neglect to pay the general license or occupation tax levied by this chapter, or who transacts or engages in any profession within the district herein established without having complied with the provisions of this chapter shall be guilty of a violation of this Code. Any person, partnership, or corporation whose duty is made by this chapter to pay nay license tax and who does not pay the same shall be liable for an action for the recover of the amount of such license tax, provided, such remedy shall not be deemed as being concurrent with other remedies herein provided.Exhibit DNotice of Public HearingTake notice that the governing body of the Municipality of Anywhere, South Dakota will hold a public hearing a _____ p.m. on ______, 20—at the City Hall to hear comments or objections to proposed special assessments against property included in Business Improvement District #1 of the Municipality of Anywhere, South Dakota, more particularly described as (insert legal description). The amount of assessment is proposed to be $_____. The purpose of the assessment is (insert purpose or purposes.)Such hearing shall be public and citizens and persons of interest shall then be heard.By order of the governing body of the Municipality of Anywhere, South Dakota.___________________Finance Officer(This is a sample of a notice to be used if special assessments are to be used. It must be published twice.)Exhibit D-1Notice of Public HearingTake notice that the governing body of the Municipality of Anywhere, South Dakota will hold a public hearing at _____ p.m. on __________ 20— at the city Hall to hear comments or objections to proposed occupation tax against users of property included in Business Improvement District #1 of the Municipality of Anywhere, South Dakota, more particularly described as (insert legal description). The amount of the tax is proposed to be $_______. The purpose of the tax is (insert purpose or purposes).Such hearing shall be public and citizens and persons of interest shall then be heard.By order of the governing body of the Municipality of Anywhere, South Dakota.___________________________ Finance Officer(This is a sample of a notice to be used if an occupational tax is to be used. It must be published twice).Exhibit EResolution # 20-- _______Whereas, a public hearing was held on ______, 20—regarding the levying of special assessments to pay for improvements included in Business Improvement District #1, andWhereas, the governing body following said public hearing has determined that the special assessments are proper and reflect the special benefit to each property proposed to be assessed, andWhereas, the assessment roll has been reviewed and found to be acceptable,Now therefore be it resolved by the governing body of the Municipality of Anywhere, South Dakota that:1. The special assessments for improvements in Business Improvement District #1 as outlined in the attached assessment roll are hereby levied against the properties listed in the assessment roll.2. These assessments shall be due and payable in installments and shall be collected under Plan (One or Two) as provided by SDCL 9-43.3. Such assessments shall be a lien upon the property assessed.Adopted: _________________Mayor __________________________Attest: ____________________Finance Officer (This is a sample of a resolution to be used if special assessments are to be used.)Exhibit E-1Resolution #20-- _________Whereas, a public hearing was held on _______, 20—regarding the levying of an occupational tax to pay for improvements included in Business improvement District #1, andWhereas, the governing body following said public hearing has determined that the occupation taxes are proper and reflect the special benefit to each business proposed to be taxed, andWhereas, the occupation tax roll has been reviewed and found to be acceptable,Now therefore be it resolved by the governing body of the Municipality of Anywhere, South Dakota that:1. The occupation tax for improvements in Business Improvement District #1 as outlined in the attached tax roll are hereby levied against the businesses listed in the tax roll.2. These taxes shall be due and payable (insert date of first payment and any payment plan the city may devise).3. Such taxes shall be subject to the penalty provided for in ordinance ________.Adopted: _________________Mayor __________________________Attest: ____________________Finance Officer (This is a sample of a resolution to be used if an occupational tax is to be used.)Appendix BResolution 2003-1, A resolution establishing a business improvement district and designating the members of the business improvement board of directors…………………………………....Pages 22-23BID Board Resolution #1, A resolution describing the real property the Board of Directors has voted to have incorporated within the legal area of a business district to created within the city of Anywhere…………………………………………………………………………………..….Pages 24-26Resolution 2003-2, a Resolution providing for the giving of notice to all real property owners, resident, or business owners or occupiers of certain commercial property situated within the municipal limits of the City of Anywhere…………………………………………………………………….……Pages 26-27Resolution 2003-3, a Resolution establishing a business improvement district and adopting an ordinance enacting a general occupation tax on lodging establishments as herein defined……………...Pages 28-30Ordinance 2003-04, An Ordinance creating a business improvement district within the municipal limits of the City of Anywhere; assessing a general occupation tax on all motel and hotel rooms let for overnight occupancy located therein; authorizing the issuance of revenue bonds for the purpose of construction of a convention/conference facility within the City of Anywhere; and adding Title XI Chapter 4 to the ordinances of the City of Anywhere………………………………………....Pages 30-31Resolution 2003-5, A Resolution providing for the appointment of a business improvement district board of directors and approving the by-laws governing the management of the board created…………………………………………………………………………………………Pages 31-32By-laws of business improvement district…………………………………………………….Pages 34-36Sample Remittance Form, Business Improvement District Occupation Tax……………………Page 33Resolution 2003-01A resolution establishing a business improvement district and designating the members of the business improvement board of directors.Whereas, the City of Anywhere has defined the potential need of creating a business improvement district within the municipal limits of the City of Anywhere; andWhereas, the City of Anywhere has determined that effective July 1st South Dakota law will authorize Class III municipalities to create business improvement districts and to further make special assessments against property and/or assess occupation taxes against persons who use facilities or rent rooms located therein; andWhereas, the City of Anywhere has determined that all commercial property lying north of Highway XX and within the municipal limits of the City of Anywhere shall be included in said business improvement district; andWhereas, SDCL 9-55-13 provides that if a public improvement is a convention facility a Business improvement district may assess an occupancy tax on rented hotel and motel rooms and units up to an amount of $2.00 per night; NOWTHEREFORE,Be it resolved by the city council of the City of Anywhere as follows:1. The boundaries of the proposed business improvement district shall be all property zoned as commercial lying north of Highway XX, including the property located along Presidential Drive.2. That the initial members of the business improvement district shall be the following residents, land owners, or business occupiers who either live, do business within, or own property within the business area, to-wit:Larry Blow, Anywhere, Larry’s Inc.Barry Mow, Anywhere, Barry’s MotelMary Stow, Anywhere, Mary’s MotelHarry Glow, Anywhere, Harry’s InnKerry Know, Anywhere, Kerry’s HotelJerry Plow, Anywhere, Jerry’s InnPerry Flow, Anywhere, Perry’s InnTerri Clow, Anywhere, Terri’s Car Lot3. That said business improvement board shall meet and determine the feasibility of constructing a convention facility within the business improvement district, and if so, where the proposed center should be located.4. That the initial term of service of said board of directors shall be 6 months; and there after the board of directors shall advise the city council of its proposal respecting term length future board members shall serve. At the same time as this report is made the Board of Directors shall return with its report on whether the district should undertake the construction of a convention facility, what the estimated cost of such facility shall be, and the method of assessment the board of directors chooses to implement so as to allow for issuance of revenue bonds to pay for the construction of any such convention facility.5. That should the board of director issue a report showing said facility to be feasible that the City Council of Anywhere enact any ordinances required to bring into being the business improvement district contemplated herein.6. That the business improvement district board of directors, at any meeting, shall elect amongst themselves a chairman, vice-chairman, secretary, and propose to city council of Anywhere a set of by-laws through which they will chose to operate and make decisions involving issues within the jurisdiction of the BID district.Dates this 17th day of March, 2003.CITY OF ANYWHERE:BY: ___________________ MayorATTEST:_______________________Finance OfficerAnywhere Bid Board Resolution No. 1Resolution made this 2nd day of April, 2003 by the board of directors of the board of directors of the City of Anywhere’s business improvement district, describing the real property the Board of Directors has voted to have incorporated within the legal area of a business district to be created within the City of Anywhere:Whereas, City of Anywhere Resolution 2003-1 established a board of directors to oversee the process of creating a business district within the municipal limits of the City of Anywhere; andWhereas, the business improvement district board of directors did, during their meeting held March 24, 2003, after review of prior reports and studies, vote to waive further study of the financial feasibility of construction of a convention center within the City of Anywhere; andWhereas, the BID district board of directors has reviewed plats and maps showing Anywhere’s commercial property; andWhereas, the BID board finds that a convention center is the project that should be built based on occupation tax assessments on commercial property located within the City of Anywhere;Now Therefore Be it Resolved as Follows:That the following real property should be property legally placed within a business improvement district to be created within the municipal limits of the City of Anywhere:City of Anywhere Business Improvement District1. Lot 1 of City of Anywhere Heights Third Subdivision, a portion off Tract H in the SE1/4 of Section 13 –104N – 72W of the 12th P.M.(and the description carries through in detail)The above land all being within Somewhere County, South Dakota and contains 179.26 acres more or less.Dates this 2nd day of April, 2003.Anywhere Business Improvement DistrictBy:______________________________ Its: PresidentAttest: ____________________________SecretaryResolution 2003-2Resolution made this 21st day of April, 2003 by the city council of Anywhere, providing for the giving of notice to all real property owners, residents, or business owners or occupiers of certain commercial property situate within the municipal limits of the City of Anywhere; Witnessseth:Whereas, the Anywhere Business Improvement Board of Directors, a board appointed pursuant to City Resolution 2003-1, has met and has defined what property should be included within a proposed Anywhere business improvement district; andWhereas, the business improvement district board of directors has issued its report to the city council, stating that it is their recommendation that the City of Anywhere approve the construction of a convention center within the business improvement area; andWhereas, the business improvement district board of directors did further report that an occupation tax imposed on rented hotel and motel rooms offered and let for overnight occupancies of less than 30 consecutive days should be the mechanism through which such municipal improvement should be funded; andWhereas, the business improvement district board of directors has further reported that the convention facility to be constructed should be a facility that costs no more than $2,300,000.00; andWhereas, the city council of Anywhere finds that the assessment of an occupation tax on rented hotel and motel rooms provides for the most fair and equitable manner by which to raise the funds necessary to construct the convention facility as those persons who rent hotel and motel rooms within Anywhere will be the same persons who will use the improvement to be constructed through implementation of an occupation tax; andWhereas, the city council does further find that an occupation tax on rented motel and hotel rooms is fairer than assessment of special tax based on square or front business footage; andWhereas, statute requires the giving of formal notice to all property owners or occupiers who own or occupy real property within the business improvement district proposed; Now therefore, based on the foregoing, be it resolved as follows:1. That the city council of Anywhere hold hearing on the 2nd day of June, 2003, at the hour of 8:00 o’clock p.m. CDT, at the Anywhere Finance Office, Anywhere, South Dakota and then and there hear statements offered in support or objection to the creation of a business improvement district within the municipal limits of the City of Anywhere, after which the board will issue decision on whether to accept or reject the report of the business improvement board of directors.2. Whether after said hearing the City council of Anywhere adopt the recommendation of the business improvement district board of directors that the method of taxation be in the form of an occupancy tax on rented motel or hotel rooms located within the district described below:(Repetition of property descriptions within the district)3. Whether upon creation of a business improvement district the city council of Anywhere adopt the business improvement district’s board of directors’ finding that a convention facility should be the project undertaken by the City of Anywhere.4. Whether the city council of Anywhere should adopt the resolution of the business improvement district’s board of directors that all rented hotel and motel rooms within the business district should be subject to an occupation tax of $2.00 per room per night.5. Whether the city council should give authority to the business improvement board of directors to institute the process of solicitation of architects, engineers, construction managers, or other professionals, for the purpose of design of a convention facility with a total cost no greater than $2,300,000.00.Dated this 21st day of April, 2003City of Anywhere:By: _____________________Its: MayorAttest:_________________________________City Finance OfficerResolution 2003-3A resolution establishing a business improvement district and adopting an ordinance enacting a general occupation tax on lodging establishments as herein defined.Whereas, the city council of the City of Anywhere previously received a report from Anywhere Business Improvement Board of Directors whereby the directors determined that it would be feasible for the City of Anywhere to enact an occupation tax on hotel and motel rooms rented for overnight lodging of less than 30 consecutive nights; andWhereas, the same report requested the city council of Anywhere, pursuant to SDCL 9-55-7, set a time, date and place for hearing on the matter involving the creation of a business district within the boundaries of the City of Anywhere, and to further assess an occupation tax against certain businesses located therein; andWhereas, notice of the intent to create a business improvement district was passed on April 21, 2003, in Anywhere Resolution 2003-02, mailed to all persons who are business owners, occupiers, residents, or real property owners of taxable realty to be included within said district, which notice of intent was mailed more than 30 days prior to the hearing set for the 2nd day of June, 2003; andWhereas, notice of intent to create a business improvement district was published in the Times, the legal newspaper for the City of Anywhere, twice, with the last publication being April 30, 2003, which was more than 30 days prior to the hearing; andWhereas, the City of Anywhere held hearing on Monday, June 2, 2003, at which time the City council was called upon to vote on whether the City should create a business improvement district (BID) for the purpose of constructing a City owned convention/conference meeting facility;Now Therefore Be It Resolved by the City Council of Anywhere as follows:1. The boundaries of the business improvement district shall be all commercially zoned property lying north of Highway as is shown on the official zoning maps of the City of Anywhere, incorporating by reference the legal description of the realty included within said district as were published in the Times on April 23rd and 30th of 2003.2. That property notice of time, date and place of hearing on said notice of intent was given to all business owners, occupiers, real property owners, tenants, and all residents who own or occupy real property included within said district, by mailing notice of intent to all those persons named above, as well as publishing the notice of intent twice, with the last publication made more than 30 days prior to the hearing which was held at 8 p.m. at the Anywhere Finance Office on June 2, 2003.3. The proposed public facility and improvement to be made within the business district is a convention/conference meeting facility, including parking and support facilities as well as operating equipment necessary to support and maintain said facility.4. The proposed cost of the improvement is approximately $2,300,000.00 to be financed by a fair and equitable general occupation tax levied upon rented hotel and motel rooms offered and let for overnight occupancies of less than 30 consecutive days.5. The method of raising revenue shall be by imposing on occupation tax of $2.00 per room, per night, on all hotel or motel rooms located within said district. Said occupation tax shall be set, assessed, and collected in a manner consistent with South Dakota statute, enforced by ordinance of the City of Anywhere, and the assessment due from each establishment reported to the Somewhere County Treasurer’s office for collection in the same manner as is done with other real property or sales tax collections.6. The City Council of Anywhere further enact ordinances as are necessary to secure the assessment and collection of the occupation tax in a timely manner, as well as secure enforcement of payment of said tax as it is collected from persons who rent hotel or motel rooms offered and let for overnight occupancies of less than 30 consecutive days.7. The occupation tax collected pursuant to ordinance and this resolution be imposed only so long as is necessary to repay any revenue bonds issued for construction of the convention/conference facility which is the project of the business improvement district created herein.8. The City Finance Officer notify the Somewhere County Treasurer of the City’s creating a BID district, such that if any assessment is made against any of the real property within said district that the Treasurer have notice of the potential of special assessment being done on behalf of the City of Anywhere, including any penalty for failure of any motel or hotel to remit any payments when due.Dated this 2nd day of June 2003.City of Anywhere:By: _____________________Its: MayorAttest:_________________________________City Finance OfficerOrdinance 2003-4An Ordinance creating a Business Improvement District within the municipal limits of the City of Anywhere; assessing a general occupation tax on all motel and hotel rooms let for overnight occupancy located therein; authorizing the issuance of revenue bonds for the purpose of construction of a convention/conference facility within the city of Anywhere; and adding Title XI Chapter 4 to the Ordinances of the City of Anywhere.Be it Ordained by the City Council of the City of Anywhere that there be established a business improvement district and enacting a general occupation tax on all hotel and motel rooms situated therein.4.01. EFFECTIVE DATE: From ad after the 1st day of July, 2003, there is hereby imposed an occupation tax on all rented hotel and motel rooms offered and let for overnight occupancies of less than 30 consecutive days within the business improvement district defined in Anywhere Resolutions 2003-02 and 2003-03, which is all commercial property located within the municipal limits of the City of Anywhere lying north of Highway.4.01. STATUTORY AUTHORITY: The occupation tax imposed herein is a tax assessed pursuant to SDCL Chapter 9-55, and specifically SDCL 9-55-13 which authorizes assessment of a general occupation tax on transient occupancies of rented hotel and motel rooms and units offered and let for overnight occupancies of less than 30 consecutive calendar days, or as the above statutes may from time to time be amended.4.03. PURPOSE OF CHAPTER: This Act is passed for the purpose of creating a Business Improvement District (BID) within Anywhere, to set the amount of the occupation tax which may be assessed against hotel and motel rooms or units let for overnight occupancy, and to specify the purpose for which those moneys raised may be used. Any occupation tax collected pursuant to this ordinance shall be used for purpose of payment of any promissory notes associated with the construction of a convention/conference facility with the City of Anywhere.4.04. DURATION: The occupation tax assess through this act shall remain in effect until such time as any revenue bonds or other indebtedness associated with the construction and equipping of a convention/conference facility are fully paid by the BID district.4.05. METHOD OF RAISING REVENUE: There is hereby imposed an occupation tax of $2.00 per room, per night, on all rented hotel and motel rooms and units located within the BID district which are offered and let for overnight occupancies of less than 30 consecutive days.4.06. BID DISTRICT AREA: The Business Improvement Area subject to the terms of this act and collection of the occupation tax area all commercially zoned real properties lying within the municipal limits of the City of Anywhere, specifically encompassing that property described in Anywhere City Resolution 2003-02.4.07. COLLECTION: The occupation tax assessed pursuant to the terms of this act shall be remitted by the 15th day of each month to the Anywhere City Finance Office, with the remittance to be for the previous calendar month’s tax collections.4.08. DELINQUENT PAYMENTS: The city finance officer shall be entitled to audit the books, ledgers, or franchise reports of any hotel or motel subject to the terms of this act, including therewith the right to inspect the daily reports of such hotels or motels so as to insure that the occupation tax assesse3d by this act is being properly remitted to the City. The city finance officer shall be entitled to seek injunctive relief against any motel or hotel which does not remit the tax moneys when due, which relief shall be in the form of an action requiring that the offending hotel or motel owner to allow entry upon their property and access to their records, computers or books so as to verify that the motel or hotel is remitting all moneys it collects pursuant to this ordinance and South Dakota Statute.4.09. LATE PAYMENT: Any motel or hotel required to collect the occupation tax which does not pay the tax when due shall be assessed an interest penalty of 1% per month of the unpaid tax. In addition the failure to pay said tax shall become a lien against the real property upon which the motel or hotel is located. In those situations where the retailer fails to remit the tax collected for the BID district the city finance officer shall be entitled to take action under 4.08, and report the unpaid assessment to the Somewhere County Treasurer.4.10. OTHER STATUTES: Nothing within the body of this act shall be construed as limiting any other rights which the City of Anywhere has, or may pursue in seeking collection of moneys received but not paid under the terms of this ordinance. In the event that this tax becomes subject to supervision by the State of South Dakota through the State’s department of revenue any rights which Anywhere as herein shall be deemed cumulative to any powers which inure to the benefit of the State.4.11. PENALTY: The failure of any business owner, occupier, resident, or tenant to remit tax collections due under the terms of this ordinance and Resolution 2003-3 shall subject that person or entity to criminal penalty as authorized by State law or municipal ordinance, including the right of Anywhere to charge any violator with a misdemeanor or petty offense as the situation may warrant. In the event of any civil or criminal action being filed seeking collection of any delinquent assessment the offending motel or hotel may be assessed attorneys fees and costs incurred by the city in seeking payment under the terms of this act.Dated this 16th day of June, 2003.City of Anywhere:By: _____________________Its: MayorAttest:_________________________________City Finance OfficerResolution 2003-5Resolution made this 21st day of July, 2003, by the City Council of Anywhere, providing for the appointment of a business improvement district board of directors, and approving the by-laws governing the management of the Board created; Witnesseth:Whereas, there has been enacted an ordinance creating a business improvement district within the City of Anywhere; andWhereas, it is necessary for the City to appoint a board of directors to manage the district to oversee assessments and remittance of the occupation tax the business improvement district and the City of Anywhere have set; andWhereas, the City Council of Anywhere finds that the board of directors of the Anywhere business improvement district should have by-laws which govern how the business district should be managed; and Whereas, statute requires the appointment of a board of directors to oversee and manage operation of the business improvement district; Now, therefore, based on the foregoing, be it resolved as follows:1. That the board of directors of the Anywhere Business Improvement District consist of the following named individuals:Larry Blow; Barry Mow; Mary Stow; Harry Glow; Kerry Know; Jerry Plow; Perry Flow; Terri Clow2. That the persons appointed shall serve 3 year terms, with the original board of directors to cast lots to determine which three members shall serve an original one (1) year term, which 3 members shall serve an original two (2) year term, and which 2 members shall serve a full three (3) year term.3. That the City of Anywhere hereby adopts the by-laws which are on file in the city finance office of the City of Anywhere as the articles governing the management of the BID district.Dates this 21st day of July, 2003.City of Anywhere:By: _____________________Its: MayorAttest:_________________________________City Finance OfficerBy-Laws of Anywhere Business Improvement DistrictA. Membership1. Membership on the Business Improvement board of Directors shall be limited to persons who are residents who live within the business improvement district, persons who own real property within the district, and any person who manages, operates, or otherwise oversees any business place that is located within the business improvement district, or any managerial employee of any business that operates within the business improvement district.B. Meetings.1. The Business Improvement board of Directors shall meet monthly for the purpose of conducting any business properly brought before the board. The Board shall take minutes of the meetings and shall have those minutes delivered to the finance office of the City of Anywhere either by personal delivery, regular mailing, or electronic mailing to an e-mail address designated by the city finance officer.2. At any meeting of the Board of Directors a quorum of 5 directors shall be necessary before any action may be voted on during any board meeting.3. No proxy voting may be used in any vote before the Business Improvement Board of Directors. No board member may designate another person to attend any meeting or authorize any person to vote on any issue other than directors who the City of Anywhere as designated as members of the BID Board.C. Directors and Officers.1. There shall be eight (8) members of the Board of Directors. No person may serve on the Board until such time as their nomination has been approved by the City of Anywhere at any of its regular meetings.2. Each member of the BID Board of Directors shall serve a term of office of 3 years. Nothing shall be deemed to preclude a board member from serving consecutive terms.3. The BID Board of Directors shall oversee and be responsible for any matters relating to assessment of occupation fees on transient motel or hotel occupants.4. No board member may be paid for any meeting they attend in conjunction with their appointment to serve on the BID Board of Directors. Board members may vote to issue compensation to help members or others pay personal expenses associated with those persons acting on the BID Board’s behalf.5. In the event any member of the Board of Directors misses 3 meeting within a 12 month period of time that director shall be deemed to have resigned his or her membership on the BID Board.6. In the event of a vacancy on the BID Board of Directors the vacancy shall be filled according to South Dakota law.7. At any meeting of the Board of Directors it shall require 5 affirmative votes before any project or issue shall be deemed passed. In addition, 3 out of the 5 motels must likewise vote in favor of any proposal prior to the proposal being deemed passed.D. Collection of Assessments.1. The BID Board of Directors shall each month determine whether occupation taxes have been remitted to the City of Anywhere. In the event any motel or hotel has failed to remit the fees to the City that fact shall be communicated to the City finance officer.2. The BID Board shall authorize the City of Anywhere to invest any revenues from the occupation tax to be placed in interest bearing accounts within federally insured financial institutions.3. The BID Board of Directors shall, upon receiving notice that remittance was not made of the assessment chargeable through the district, give the property owner and business occupier notice of the failure to remit. The notice shall contain a statement advising said operator and/or owner that they have 7 calendar days to cure said defalcation. In the event remittance is not made within that time the board shall notify the City of Anywhere such that the City Council may act as authorized under statute.E. Disclosure of Occupancy and Confidentiality of Information.1. The BID Board of Directors shall promulgate rules by which the occupancy rate of any motel or hotel subject to the occupation tax will be divulged to proposed bond purchasers or vendors of any revenue bond to be issued by the district.2. The rule to be set by the above paragraph shall provide for the confidentiality of the number of rooms a motel or hotel has historically had occupied, and that the only parties that may have access to such information are parties directly involved in the preparation, sale, or processing of revenue bonds issued by the BID district.F. Employment of Personnel1. Nothing shall be construed as barring the BID district from hiring individuals for purposes relevant to carrying out the BID district business.2. Prior to employing any personnel, manager, or other outside professionals, the BID district board shall advise the City council of Anywhere of the purpose of such employment, and gain the City council’s approval of any persons to be employed.3. The BID Board of Directors shall act in an advisory capacity to the City Council of Anywhere relative to any capital projects which the BID board whishes to undertake. Any such project shall be first approved by the City Council, and any expenses incurred on any proposed project shall be reimbursed by the Board, with said expenses to be paid through the City of Anywhere which shall act as the Treasurer of any BID occupation taxes received.G. Amendment of By-Laws.1. These by-laws may be amended at any time by the City Council of the City of Anywhere.2. The BID district board of directors may propose amendments to these by-laws, which upon being presented to the city council at a regularly scheduled city meeting shall become effective unless the city council votes against any amendment proposed.Approved by the City Council of the City of Anywhere, on this 21st day of July, 2003.City of Anywhere:By: _____________________Its: MayorCITY OF ANYWHEREBUSINESS IMPROVEMENT DISTRICT (BID)OCCUPATION TAXREMITTANCE FORM******************************************************************************************************************************This form must be submitted with your monthly payment of the City of Anywhere BID District Occupation Tax. The form has been drafted in simplified form, making it easier for any hotel or motel to complete with minimal time and effort. Questions regarding completion or submission of this form may be directed to the Anywhere Finance Office at 867-5309.******************************************************************************************************************************HOTEL/MOTEL NAME: _____________________________________________________________REPORTING PERIOD: __________________________ THROUGH ________________________Month/Day/YearMonth/Day/YearNUMBER OF ROOMS OCCUPIED DURING REPORTING PERIOD:__________________LESS NUMBER OF ROOMS ‘COMPED’:-__________________TOTAL ROOM OCCUPANCY SUBJECT TO TAX:=__________________ANYWHERE OCCUPATION TAX RATE PER ROOM:X__________________TOTAL PAYMENT ENCLOSED:$__________________Please sign below and keep a photocopy of this form for your records. Make checks payable to City of Anywhere and send along with this form to the Anywhere Finance Office, PO Box 000, Anywhere, SD 57000 by the 15th day of the month following the reporting period.******************************************************************************************************************************1.TAX EXEMPT ORGANIZATIONS. Any rooms that are rented to state, municipal, federal, or other similar tax-exempt organizations are subject to payment of the occupation tax even if they do not have to pay sales tax.2. COMPED ROOMS. Rooms rented for which no charge is made (comped rooms) are excluded from the occupation tax.3.SALES TAX. The occupation tax amount is not subject to collection of state or municipal sales tax. Example: Room rate +(room rate X state sales tax rate)+(room rate X municipal sales tax rate) + $2.00 occupation tax = Total charges per night.4.REMITTANCE EXAMPLE. If your motel rented 750 rooms during the month, including 10 rooms rented by a tax-exempt organization and 20 comped rooms rented for no charge, you would have 730 room rentals subject to the $2.00 per night occupation tax. Your occupation tax remittance would be $1,460 payable to the City of Anywhere by the 15th day of the following month.******************************************************************************************************************************I DECLARE, UNDER THE PENALTY OF PERJURY, THAT THE ABOVE ACCOUNTING OF ROOMS RENTED IS ACCURATE, AND THE TAX PAYMENT MADE HERE IS ACCURATE ACCORDING TO MY BUSINESS RECORDS.SIGNED:_________________________________ DATE:___________________________________TITLE: ___________________________________Appendix CSouth Dakota State Statutes: Chapter 9-55, Business Improvement Districts9-55-1. ? Definition of terms. Terms as used in this chapter mean:???????????? (1) ???? "Assessable unit," the front foot, square foot, equivalent front foot, or other unit of assessment established under the proposed method of assessment set forth in the resolution of intent to create a business improvement district;???????????? (2) ???? "Occupation tax," a fee imposed on any person with an established place of business within the district for the privilege of doing business;???????????? (3) ???? "Record owner," the fee owner of real property as shown in the records of the office of the register of deeds in the county in which the business area is located. A contract purchaser of real property is the record owner for the purpose of this chapter and the only person entitled to petition pursuant to §?9-55-9 or protest pursuant to §?9-55-10; and???????????? (4) ???? "Space," the square foot space wherein customers, patients, clients, or other invitees are received and space from time to time used or available for use in connection with a business or profession of a user, except all space owned or used by political subdivisions.Source: SL 1986, ch 81, §?1. ???? 9-55-2. ? Imposition of special assessment or general business license and occupation tax. Any municipality may impose a special assessment upon the property within a business improvement district in the municipality or a general business license and occupation tax on businesses and users of space within a business improvement district or both.Source: SL 1986, ch 81, §?2; SL 2003, ch 47, §?2. ???? 9-55-3. ? Uses to which generated funds may be put. Any money generated pursuant to §?9-55-2 may be used for any one or more of the following purposes:???????????? (1) ???? The acquisition, construction, maintenance, and operation of public off-street parking facilities for the benefit of the district area;???????????? (2) ???? Improvement of any public place or facility in the district area, including landscaping and plantings;???????????? (3) ???? Construction or installation of convention or event centers, pedestrian shopping malls or plazas, sidewalks, including moving sidewalks, parks, meeting and display facilities, bus stop shelters, lighting, benches or other seating furniture, sculptures, trash receptacles, shelters, fountains, skywalks, and pedestrian and vehicular overpasses and underpasses or any useful or necessary public improvement;???????????? (4) ???? Leasing, acquiring, constructing, reconstructing, extending, maintaining, or repairing parking lots or parking garages, both above and below ground, or other facilities for the parking of vehicles, including the power to install such facilities in public areas, whether such areas are owned in fee or by easement, in the district area;???????????? (5) ???? Creation and implementation of a plan for improving the general architectural design of public areas in the district area;???????????? (6) ???? The development of any activities and promotion of the district area;???????????? (7) ???? Maintenance, repair, and reconstruction of any improvements or facilities authorized by this chapter;???????????? (8) ???? Any other project or undertaking for the betterment of the facilities in the district area, whether the project is capital or noncapital in nature;???????????? (9) ???? Enforcement of parking regulations within the district area; and???????????? (10) ???? Employing or contracting for personnel, including administrators for any improvement or promotional program under this chapter, and providing for any service necessary or proper to carry out the purposes of this chapter.Source: SL 1986, ch 81, §?3; SL 2005, ch 54, §?1. ???? 9-55-4. ? Creation of business improvement district--Established business area. A business improvement district may only be created as provided by this chapter and shall be within the boundaries of an established business area of the municipality zoned for business, public, or commercial purposes. For the purposes of this chapter, an established business area, may also include noncontiguous property within the incorporated municipality that has a common zoning designation. Any business improvement district that includes noncontiguous property pursuant to this section, may by resolution of the governing body, add qualifying property to the business improvement district.Source: SL 1986, ch 81, §?4; SL 2005, ch 54, §?2; SL 2007, ch 41, §?1 ???? 9-55-5. ? Appointment of business improvement board--Designation of boundaries of district--Duties of board--Proposal of more than one district as part of same development plan. The mayor shall, with the approval of the governing body, appoint a business improvement board consisting of property owners, residents, business operators or users of space within the business area to be improved. The governing body shall, by resolution, designate the boundaries of the business area prior to the time of the appointment of the board. The board shall make recommendations to the governing body for the establishment of a plan or plans for improvements in the business area. If the improvements to be included in one business area offer benefits that cannot be equitably assessed together under this chapter, more than one business improvement district as part of the same development plan for that business area may be proposed. The board may make recommendations to the municipality as to the use of any revenue collected pursuant to §?9-55-2.Source: SL 1986, ch 81, §?5. ???? 9-55-6. ? Composition of board--Vacancies--Terms--Officers. The board shall consist of no less than five members to serve such terms as the governing body, by resolution, determines. The mayor, with the approval of the governing body, shall fill any vacancy for the remainder of the term vacated. A member of such board may serve more than one term. The board shall select from its members a chairperson and a secretary.Source: SL 1986, ch 81, §?6. ???? 9-55-7. ? Creation of districts by resolution of intent--Contents--Basis of occupation tax or special assessment. Upon receiving a recommendation from the business improvement board, the governing body may create one or more business improvement districts by adopting a resolution of intent to establish a district or districts. The resolution shall contain the following information:???????????? (1) ???? A description of the boundaries of any proposed district;???????????? (2) ???? The time and place of a hearing to be held by the governing body to consider establishment of a district or districts;???????????? (3) ???? The proposed public facilities and improvements to be made or maintained within any such district; and???????????? (4) ???? The proposed or estimated costs for improvements, facilities and activities within any district, and the method by which the revenue shall be raised. If a special assessment is proposed, the resolution also shall state the proposed method of assessment.???? The notice of intent shall recite that the method of raising revenue shall be fair and equitable. In the use of a general occupation tax, the tax shall be based primarily on the square footage of the owner's and user's place of business or based on rooms rented by any lodging establishment to transient guests as defined in §?10-45-7. If the occupational tax is based on rooms rented by a lodging establishment, the tax shall be imposed on the transient guest and such tax may not exceed two dollars per occupied room per night. However, no occupational tax may be imposed on any transient guest who has been offered a room by a lodging establishment on a complimentary basis and no fee or rent was charged for such room. In the use of a special assessment, the assessment shall be based upon the special benefit to the property within the district.Source: SL 1986, ch 81, §?7; SL 2005, ch 54, §?3. ???? 9-55-8. ? Notice of hearing. A notice of a hearing required under subdivision 9-55-7(2) shall be given by mailing a complete copy of the resolution of intent to each owner of taxable property as shown on the property tax roll for the proposed district. If an occupation tax is to be imposed, a copy of the resolution of intent shall also be mailed to the occupant of each address located in the proposed district. Mailing shall be completed at least thirty days prior to the time of hearing.Source: SL 1986, ch 81, §?8; SL 1990, ch 68, §?2; SL 2006, ch 35, §?1. ???? 9-55-9. ? Petition for hearing. The owners of a majority of the assessable front footage in a business area or the users of a majority of space in a business area may, by petition, direct the governing body to hold a hearing to create a district pursuant to this chapter.Source: SL 1986, ch 81, §?9; SL 1990, ch 68, §?3. ???? 9-55-10. ? Duties of governing body at hearing--Termination of hearing--Issuance of bonds for convention center from proceeds of general occupational tax. If a hearing is held under subdivision 9-55-7(2), the governing body shall:???????????? (1) ???? Hear all protests and receive evidence for or against the proposed action;???????????? (2) ???? Rule upon all written protests received prior to the close of the hearing, which ruling shall be final; and???????????? (3) ???? Continue the hearing from time to time as the governing body deems necessary.???? If a special assessment is to be used, the proceedings shall terminate if written protest is made prior to the close of the hearing by the owners of a majority of the assessable front footage in the proposed district. If an occupation tax is to be used, the proceedings shall terminate if protest is made by the users of a majority of the space in the proposed district. If the general occupational tax is based upon rented hotel and motel rooms pursuant to §?9-55-7, the proceedings shall terminate if written protest is made prior to the close of the hearing by the owners of a majority of the hotels and motels in the proposed district.???? Any bonds for the construction of a convention facility that are payable from the proceeds of the hotel and motel room general occupational tax may only be issued and sold if at least two-thirds of the hotel and motel owners in the proposed district approve in writing of the issuance and sale of the bonds.Source: SL 1986, ch 81, §?10; SL 1990, ch 68, §?4; SL 2004, ch 79, §?1; SL 2005, ch 54, §?4. ???? 9-55-11. ? Procedure for change of boundaries. If the governing body decides to change the boundaries of a proposed district, the hearing shall be continued to a time at least thirty days after such decision and the notice shall be given as prescribed in §?9-55-8, showing the boundary amendments. However, no new or additional resolution of intent is required for a proposed change in the boundary of a district.Source: SL 1986, ch 81, §?11; SL 1990, ch 68, §?5. ???? 9-55-12. ? Establishment or rejection of districts--Adoption of ordinance establishing district--Contents. The governing body, following a hearing held pursuant to subdivision 9-55-7(2), may establish or reject any proposed district or districts. If the governing body decides to establish a district, it shall adopt an ordinance to that effect. The ordinance shall contain the following information:???????????? (1) ???? The number of the resolution of intent and the date it was adopted;???????????? (2) ???? The time and place of the hearing that was held on the formation of such district;???????????? (3) ???? A statement that a business improvement district has been established pursuant to the provisions of this chapter;???????????? (4) ???? The purposes of the district and the public improvements and facilities to be included in such district;???????????? (5) ???? The description of the boundaries of such district;???????????? (6) ???? A statement that the businesses and professions in the district shall be subject to the general business occupation tax or that the real property in the area will be subject to the special assessment authorized by §?9-55-2;???????????? (7) ???? The proposed method of assessment to be imposed on the property within the district or the initial rate of the occupation tax to be imposed on the business users of the space in the district; and???????????? (8) ???? Any penalties to be imposed for failure to pay the occupation tax.Source: SL 1986, ch 81, §?12. ???? 9-55-13. ? Special assessment against real property located in district--Procedure. A municipality may levy a special assessment against the real property located in a district, to the extent of the special benefit on such property, for the purpose of paying all or any part of the total costs and expenses of any project authorized by this chapter, within the district. The amount of each special assessment shall be determined by the governing body. Assessments shall be levied in accordance with the method of assessment proposed in the ordinance creating the district. If the governing body finds that the proposed method of assessment does not provide a fair and equitable method of apportioning costs, then the governing body may assess the costs under a method the governing body finds to be fair and equitable. Notice of a hearing on any special assessments to be levied under this chapter shall be given to the landowners in the district by publication of the description of the land, the amount proposed to be assessed, and the general purpose for which the assessment is to be made, once a week for two weeks in a daily or weekly newspaper of general circulation published in the municipality. The notice shall be published at least thirty days prior to the hearing and shall provide the date, time, and place of the hearing to hear any objections or protests by landowners in the district as to the amount of assessment made against their property. All special assessments levied under this chapter constitute liens on the property and shall be certified for collection and collected in the same manner as other special assessments.Source: SL 1986, ch 81, §?13; SL 1990, ch 68, §?6; SL 2003, ch 47, §?1; SL 2005, ch 54, §?5. ???? 9-55-14. ? Levy of general business occupation tax in addition to or in place of special assessments. In addition to or in place of a special assessment, a municipality may levy a general business occupation tax upon the businesses and users of space within a district established for acquiring, constructing, maintaining, or operating public off-street parking facilities and providing in connection therewith other public improvements, facilities and activities authorized by this chapter, for the purpose of paying all or any part of the total cost and expenses of any authorized improvement, facility or activity within such district. Notice of a hearing on any such tax shall be given to the businesses and users of space of such districts in the same manner as provided in §?9-55-13.Source: SL 1986, ch 81, §?14. ???? 9-55-15. ? Procedure for implementation of tax. For the purposes of implementing the tax imposed under §?9-55-14, the governing body may make a reasonable classification of businesses or users of space in a district. The collection of the tax imposed pursuant to §?9-55-14, shall be made and enforced in such a manner as the governing body shall by resolution determine. The governing body may by resolution provide that failure to pay such tax shall constitute a violation of the resolution and shall subject the violator to a fine or other punishment as provided in such resolution.Source: SL 1986, ch 81, §?15. ???? 9-55-16. ? Reassessment or changes in rate of levy of special assessment or occupation tax--Procedure. If, subsequent to the levy of an occupation tax or a special assessment, the use of any parcel of land shall change so that, had the new use existed at the time of making such levy, the assessment or levy on such property would have been higher than the levy or assessment actually made, an additional assessment or levy may be made on such property by the governing body. The governing body shall take into consideration the new and changed use of such property. Reassessments or changes in the rate of levy of special assessments or occupation taxes may be made by the governing body after notice and hearing as provided in §?9-55-13. The governing body shall adopt a resolution of intent to change the assessment or rate of levy at least thirty days prior to the hearing on such change. Such resolution shall specify the proposed change and shall give the time and place of the hearing.Source: SL 1986, ch 81, §?16; SL 1990, ch 68, §?7. ???? 9-55-17. ? Limitations on amount of assessments or taxes. The total amount of special assessments or general business occupation taxes levied under this chapter may not exceed the total costs and expenses of the projects authorized in the resolution of intent for such district. The levy of any additional special assessment or occupation tax may not reduce or affect in any manner the assessments previously levied. The special assessments or occupation taxes levied shall be for the purposes specified in the resolution of intent for each district and the proceeds may not be used for any other purpose.Source: SL 1986, ch 81, §?17. ???? 9-55-18. ? Purpose of taxation or assessment by municipality--Limitations on taxation and assessment--Method of taxation or assessment. A municipality may levy a general business occupation tax, or a special assessment against the real property located in a district to the extent of the special benefit to such property, for the purpose of paying all or any part of the cost of maintenance, repair and reconstruction, including utility costs, of any improvement or facility in the district. Districts created for taxation or assessment of maintenance, repair and reconstruction costs, including utility costs, of improvements or facilities which are authorized by this chapter but which were not acquired or constructed pursuant to this chapter, may be taxed or assessed as provided in this chapter. Any occupation tax levied under this chapter shall be limited to those improvements and facilities authorized by this chapter. The governing body may levy such occupation taxes or special assessments under either of the following methods:???????????? (1) ???? The governing body may not more frequently than annually, determine the costs of maintenance, repair and reconstruction of a facility. Such costs shall be either assessed to the real property located in such district in accordance with the proposed method of assessment, or taxed against the businesses and users of space in the district, whichever may be applicable as determined by the resolution creating the district. However, if the governing body finds that the method of assessment proposed in the resolution creating the district does not provide a fair and equitable method of apportioning such costs, then it may assess the costs under such method as the governing body finds to be fair and equitable. At the hearing on such taxes or assessments, objections may be made to the total cost and the proposed allocation of such costs among the parcels of real property or businesses in such district; or???????????? (2) ???? After notice is given to the owners or businesses as provided in this chapter, the governing body may establish and may from time to time change the percentage of such costs for maintenance, repair and reconstruction which each parcel of real property or each business or user of space in any district shall pay. The governing body shall annually determine the total amount of such costs for each period since costs were last taxed or assessed, and shall, after a hearing, tax or assess such costs to the real property in the district in accordance with the percentages previously established at such hearing. Notice of such hearing shall be given as provided in §?9-55-13 and shall state the total costs and percentage to be taxed or assessed to each parcel of real property. Unless objections are filed with the finance officer at least five days before such hearing, all objections to the amount of total costs and the assessments shall be levied as stated in such notice. However, the governing body may reduce any assessment percentage.Source: SL 1986, ch 81, §?18. ???? 9-55-18.1. ? Issuance and sale of bonds--Permissible uses of proceeds--Business improvement district to remain in effect. Any municipality which has created a business improvement district as provided by this chapter, and which has levied special assessments or general business occupation taxes, or both, may issue and sell bonds payable from the special assessments, business occupation taxes, or both, as provided in this section and chapter 6-8B if the owners of a majority of the assessable front footage in the district or the users of a majority of the space in the district petition the municipality to issue such bonds. Unless the bonds are to be general obligations which pledge the full faith and credit of the municipality, no election is required for the issuance of the bonds. The proceeds of the bonds shall be used only for the purposes for which the collections of the special assessments or general business occupation taxes from which the bonds are payable may be used under the provisions of this chapter, to fund a debt service reserve for bonds which are not general obligations of the municipality, to pay the interest estimated to accrue on the bonds until the first collections of the special assessments or general business improvement taxes and to pay the costs of issuance of the bonds. The governing body shall, in the resolution or ordinance authorizing the issuance of the bonds, agree that it shall keep the business improvement district in effect, shall continue to impose and collect the special assessments and general business occupation taxes so long as the bonds are outstanding, and shall pledge so much of the collections of the special assessments and general business occupation taxes as may be necessary to pay the principal of, premium, if any, and interest on the bonds, and to maintain any debt service reserve established for the bonds.???? The municipality may also pledge any part of the collections of special assessments or general business improvement taxes, in excess of those pledged to the payment of bonds issued under this section, to the payment of utility revenue bonds issued under chapter 9-40 or tax incremental revenue bonds issued under chapters 11-8 and 11-9, but only if the proceeds of the utility revenue bonds or tax incremental revenue bonds are used to finance improvements located, in whole or in part, in the business improvement district.Source: SL 1990, ch 68, §?1. ???? 9-55-19. ? Procedure for abolishment of district. The governing body may, by ordinance, abolish a district after a hearing thereon. The governing body shall adopt a resolution of intent to abolish the area at least thirty days prior to the hearing required by this section. The resolution shall give the time and place of the hearing. Notice of the hearing shall be given as provided in §?9-55-13.Source: SL 1986, ch 81, §?19; SL 1990, ch 68, §?8. ???? 9-55-20. ? Disposition of proceeds of tax or assessment upon abolishment. Upon abolishment of a district, any proceeds of the occupation tax or the special assessment, or assets acquired with such proceeds, are subject to disposition as the governing body shall determine.Source: SL 1986, ch 81, §?20. ???? 9-55-21. ? Use of donated funds or grants. The municipality may receive, administer, and disburse donated funds or grants for the purposes of and in the manner authorized by this chapter.Source: SL 1986, ch 81, §?21. ???? 9-55-22. ? Dissolution of district imposing occupational tax on rooms rented. If a district has imposed an occupation tax based on rooms rented and the occupational tax revenue was used only for the promotion of the district, a majority of the landowners may dissolve the district established pursuant to §?9-55-7 by submitting a petition to the governing body requesting the district to be dissolved. On and after the date the petition is filed with the governing body, the district may not enter into any new obligations or contracts. Not withstanding the other provisions of this chapter, the governing body, upon receiving the petition and verifying that a majority of the landowners have signed the petition, shall by resolution dissolve the district. However, the governing body may not dissolve the district until there are sufficient funds available to extinguish all of the debts and obligations of the district. The governing body shall administer any remaining affairs and issues concerning the dissolved district.Source: SL 2006, ch 35, §?2.Bottom of Form ................
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