HomeMy Public PortalAboutOrd. 448 - Hotel-Motel Room Occupancy Tax/Liquor by the drink tax ORDINANCE NO. 448
AN ORDINANCE OF THE CITY OF McCALL, VALLEY COUNTY,
IDAHO, REELATING TO NONPROPERTY TAXES; FINDING THAT SAID
CITY HAS SIGNIFICANT ECONOMIC DEPENDENCE ON VISITORS
AND TRAVELERS; PROVIDING FOR DEFINITIONS; PROVIDING FOR
THE IMPOSITION OF CERTAIN NONPROPERTY TAXES, TO-WIT: A
FOUR PER CENTUM (4%) HOTEL-MOTEL ROOM OCCUPANCY TAX,
AND A FOUR PER CENTUM ,(40-.) LIQUOR BY-THE-DRINK TAX;
PROVIDING FOR A FIVE '(5) YEAR DURATION OF SAID. NON--
PROPERTY TAXES; ESTABLISHING THE PURPOSES FOR WHICH THE
REVENUES DERIVED FROM SAID NONPROPERTY TAXES SHALL BE
USED; CREATING-A PROPERTY TAX RELIEF FUND; AUTHORIZING
THE CITY CLERK TO ADMINISTER, REGULATE, AND COLLECT
SAID NONPROPERTY TAXES; PROVIDING FOR PERMITS AND
ISSUANCE; PROVIDING .METHOD FOR PAYMENT OF TAXES, AUDITS,
DEFICIENCY DETERMINATIONS; PROVIDING FOR REDETERM-
INATIONS OF DEFICIENCY, APPEALS, INTEREST QN DEFICIENCY,
COLLECTIONS AND ENFORCEMENT; PROVIDING FOR REFUNDS
LIMITATIONS AND INTEREST; .PROVIDING FOR RESPONSIBILITY
FOR PAYMENT OF TAXES; PROVIDING PERIOD 'OF LIMITATION ON
ASSESSMENT AND COLLECTION; ESTABLISHING SUCCESSOR' S
LIABILITY; PROVIDING FOR GENERAL ADMINISTRATION BY CITY
CLERK; PROVIDING PENALTIES AND PENALTY CHARGE; PROVIDING
FOR EXEMPTIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING
AN EFFECTIVE DATE OF THIS ORDINANCE.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY
OF McCALL, IDAHO, AS FOLLOWS :
SECTION l.' FINDING:
The City Council of the City of McCall; hereby finds
that said City is ,a city that derives the major portion of
its economic well being from people catering to recreational
needs and meeting. needs of., people travel.ing ' tb� that distinct
City for an extended period of time; that said City hasa
significant economic dependence upon visitors and travelers
passing through or. stayin.g in the community and said City;
and, that said visitors and travelers require services of
said City which place an undue burden upon the taxpayers of
said City.
SECTION 2. DEFINITIONS :
(a) Hotel-motel Any _business including hotels, motels,
condominiums, tourist homes, and any other business which in
the regular course of business rents or leases for occupancy
temporary lodging to individuals with or without meals, except
where residence is maintained continuously under terms of a
lease or similar agreement for a period in excess of, thirty
(30) days.
(b) Liquor- by-the-drink - The -term as used in this
ordinance, includes :
(i) "Alcohol, " meaning the product of distil-
lation of any fermented liquor, rectified either once
or oftener, whatever may be the origin thereof, or
synthetic ethyl alcohol.
(ii) "Spirits, " meaning any beverage which con-
tains alcohol obtained by distillation mixed with
drinkable water and other substances in solution,
including,- among .other things, brandy, rum; whiskey,
and gin.
(iii) "Wine, " meaning any alcoholic beverage
obtained by the fermentation of the natural sugar
content of fruits (grapes, apples, etc. ) or other
agricultural products containing sugar (honey, milk,
etc. )
(iv) ".Beer, " meaning any alcoholic beverage
obtained from the fermentation of sugar, barley, hops,
malt, yeast and similar ingredients .
(v) Any liquid or solid, patented or not,
containing alcohol, spirits, or wine and susceptible
of being consumed by a human being,. for beverage
purposes.
(c) Sale of Liquor by-the-drink - The terms sale,
retail sale, and sale at retail mean the sale of liquor by-the-
drink for consumption on the premises, and includes any transfer
of money, title, exchange, barter or credit, conditional or
otherwise, in any manner or by any means whatsoever as con-
sideration.
(d) Room occupancy charge '- The total amount charged
for the rental use or temporary occupancy of a room or living
unit, valued in money, whether paid in money or otherwise,
without any deduction.
(e) Seller of liquor by-the-drink - Any individual,
partnership,. corporation, organization .or association that
engages in sale of liquor by-the-drink for consumption on
the premises,. whether by agent, employee or principal.
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(f) Taxpayer = Any person subject to or liable for
any tax or payment of any tax imposed under this ordinance.
(g) "In the City .of -McCall" - Means within the exterior
boundaries of the City of McCall, Valley County, Idaho.
(h) "Person" - Shall include any individual, firm,
co-partnership, joint venture, association, social club,
fraternal 'organizati.on, corporation, estate, trust, business
trust, receiver, trustee, syndicate, cooperative, assignee,
or any other group or combination acting as a unit.
(i) Sales Price - The total amount for which liquor
by-the-drink is sold, valued in -money, whether paid in money
or otherwise; without any deduction. .
SECTION 3. IMPOSITION OF CERTAIN NONPROPERTY TAXES,
TO-WIT: A FOUR PER CENTUM (40) HOTEL-
MOTEL ROOM OCCUPANCY TAX, AND A FOUR
PER CENTUM (4%) LIQUOR. BY-THE-DRINK TAX.
The City of McCall, hereby imposes and shall collect,
as set forth herein; certain nonproperty taxes as follows :
(a) HOTEL-MOTEL ROOM OCCUPANCY - A tax is hereby imposed
at the rate of four per centurm (40) on the room occupancy
charge for each hotel-motel room rented or leased within the
City of McCall, Valley County, Idaho. Said room occupancy
tax shall apply, be computed on and collected on all room
occupancy charges including all credit, installment, conditional
or similar rental or lease .fees at; the time: the .fee for rental
is charged. Said room occupancy -tax shall be collected by
the owner of said property or his authorized agent from the
renter or lessee.
(b) LIQUOR BY.-THE-DRINK TAX - A tax is hereby imposed
at- the 'rate of four per centum (4%) of the sales price upon
each sale at retail of liquor by-the-drink. The tax shall apply
to, be computed on, and collected for all sales including
credit, or similar sales at the time of the sale, and shall
be collected by the retailer from the consumer.
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(c) When the sales price involves a fraction of a
dollar, said nonproperty taxes shall be collected on that
.fractional portion of the price by adding thereto the tax based
upon the following "bracket system:
1. $. 01 to $. 13 $. 00
2 . $. 15 to $ . 37 $ . 01
3. $ . 38 to $. 62 $. 02
4 . $. 63 to $. 87 $ . 0-3
5. $.-88 to $. 99 $. 04
(Each whole dollar $. 04)
The retailer shall calculate the tax upon the entire amount
of purchases of the consumer made at a particular time subject
to this ordinance, and not separately upon each item purchased.
The retailer may retain any amount collected under said bracket
system which is in excess of the amount of tax for which he is
liable to the City during the period as compensation for the
work or collecting said tax.
(d) All monies collected and/or retained under the pro-
visions of this ordinance shall be held in trust for the City of
McCall and for payment thereof to the City Clerk in the manner
and at the times in this ordinance provided.
SECTION 4. DURATION OF TAXES .
The nonproperty taxes authorized and collected under
this ordinance are hereby impsoed for a duration of five (5)
years from the effective date of this ordinance.
SECTION 5. PURPOSES FOR WHICH THE REVENUES DERIVED
FROM SAID NONPROPERTY TAXES SHALL BE USED.
The nonproperty tax revenue derived from and collected
under this ordinance shall be used for the following purposes :
A. City Administrator,
B. Police
C. Recreation
D. Street Improvements
E. Property Tax Relief
F. 'Direct Collection Costs
SECTION 6 . CREATION OF A PROPERTY TAX RELIEF, FUND.
(a) There is hereby created in the office of the City
Clerk a fund to be designated as the "Municipal Property
Tax Relief Fund. " All monies collected under this ordinance,
and not otherwise budgeted by the City Council, shall be placed
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by the City Clerk into the municipal property tax relief fund.
All monies cllected and placed into said fund shall be used to
replace City property taxes in the ensuing fiscal year.
SECTION 7 . AUTHORIZATION FOR CITY CLERK TO ADMINISTER,
REGULATE AND COLLECT SAID NONPROPERTY TAXES.
(a) The .City Clerk. of the City of McCall is hereby
authorized and empowered to administer,, regulate and collect
payment of all nonproperty taxes adopted and imposed by this
ordinance. Said Clerk shall have all of the 'powers set forth
in this ordinance together with those additional powers neces-
sary and proper to carry out the provisions of this ordinance.
SECTION 8 . PERMITS-ISSUANCE.
(a) Every person desiring to engage in or conduct business
of renting a hotel-motel room, and/or selling liquor by-the-
drink within this City shall file with the City Clerk an appli-
cation for a municipal nonproperty tax permit .for each place
of business. A separate permit is required for each place of
business within the City. Every application for said permit shall
be -made upon a form prescribed by the City Clerk and shall set
forth the name under which the applicant transacts or intends to
transact business, the location of the business or places of
business, and such other information as the City Clerk may require.
The application shall be signed by the owner, if he is a natural
person; or in the case of an association or partnership, by a
member or partner; in the case of a corporation, by an executive
officer or other person authorized by the corporation to sign the
application. Initial permits shall be issued upon completion of
the application and payment of a Five Dollar ($5. 00) application
fee for each permit sought. .
(b) Upon .filing an application meeting the requirements set
out above, the City Clerk shall issue to each applicant a permit
for each place of business . A permit shall not be assignable,
and shall be valid only for the person in whose name it is issued
and for the transaction of business at the place designated
therein. It shall at all times be conspicuously displayed at
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the location for which it was issued. Issuance of a permit
may be subject to additional requirements as set forth in this
ordinance.
(c) On the face of the permit shall be_ fixed a municipal
nonproperty tax number which shall he used by the applicant
as an identifying number on all filing, payment and correspond-
ence with regard to the nonproperty tax imposed under this
ordinance.
SECTION 9 . METHOD FOR PAYMENT OF TAXES .
(a) The taxes imposed by this ordinance shall be, computed
and paid for each calendar month. Said taxes .are due and pay-
able to the City Clerk: on or before the 25th, day, of_ . the succeed-
ing month. The amount of- tax paid shall be computed -on- the total
dollar value of liquor by-the-drink sold and/or hotel-motel
room charges. . Each .person required to hold a municipal nonprop-
erty tax permit and number shall file a municipal nonproperty
tax return and a copy of their Idaho State Sales Tax Return for
the. month at the same time. said taxes are paid to the City Clerk,
unless said person has been permitted in writing by the .Idaho
State Tax Commission to file- quarterly sales or use tax returns .
Persons who have been permitted to file other than quarterly
returns shall notify the City Clerk in writing and the City
Clerk thereupon may require reporting of State Tax Returns over
some other period. .
(b) The first payment of taxes under this ordinance shall
be due and payable together on the 25th day of November, 1982 ,
for that period beginning October 1, 1982, and ending October
31, 1982 . Thereafter all payments shall be made monthly.
(c) A municipal nonproperty tax return shall' be ,f,iled
each and every month by every person engaging in the sale of
liquor by-the-drink and/or hotel-motel rental or lease irregard-
less of whether or not any tax is due. Returns shall be signed
by the person required to file the return or by a duly authorized
agent.
SECTION 10 . AUDITS - DEFICIENCY DETERMINATIONS .
� (a)- The City Clerk may order an audit. of any taxpayer
under this ordinance for the purpose of ascertaining the
correctness or completeness of any return or ?payment.
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(b) If any error or omission is discovered in- such audits
or in any other way, the City Clerk may compute and determine
the amount of tax due upon the basis of facts obtained from
such information within his possession and assert a deficiency.
One or more deficiency determinations may be made for the amount
due for one or for more than one period. In making such a deter-
mination, the City Clerk may offset over payments against amounts
due. Further, said determinations shall be made for the period
or periods in respect to which the person .f_ails to make a return
and shall be based upon any informatin which is in the City
Clerk' s possession.
(c) The City Clerk shall give written notice of its deter-
mination and the amount of its deficiency, including interest,
at the rate of eighteen percent (18%) per annum from the date
due, to the person from whom such deficiency amount is due. Such
notice may be given personally or mailed to the person at the
address furnished to the City Clerk in the nonproperty tax
permit application.
SECTION 11. REDETERMINATION OF DEFICIENCY.
(a) Any person against .whom a deficiency determination
is made under this ordinance, or any person directly interested,
may petition in writing for a redetermination within thirty
(30) days after service upon. the person of notice thereof. If
the petition for redetermination is not filed within the thirty
(30) day period, the determination becomes final at the expira-
tion of the period.
(b) If a petition for redetermination is filed within
the thirty (30) day period, the City Clerk shall reconsider
the determination and, if the person so requests in the petition,
grant the person oral hearing and give said person ten (10)
days ' notice of the time and place of the hearing personally or
by mail addressed to the person at the address furnished to the
City Clerk in said person' s application for a nonproperty tax
permit.
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SECTION 12. APPEALS, INTEREST ON DEFICIENCY.
(a) When a redetermination is made, the City Clerk shall
give notice to the taxpayer against whom the redetermination is
made. Within thirty (30) days of the date upon which such notice
of redetermination is mailed or served, the taxpayer may file
an appeal with the City Council or may file a complaint with the
District Court for review of ,the City Clerk' s redetermination.
There shall be no right of review to the City Council nor to
the District Court on the determination of taxes due made by the
City Clerk unless a petition for redetermination has been timely
filed. No assessment of a deficiency in respect to the tax
imposed by this ordinance or proceeding to collect for its
collection shall be made, begun or prosecuted until- such notice
has been mailed to the taxpayer and expiration of such thirty
(30) day period after notice of redetermination, nor if a protest
is filed until a decision on the protest becomes final. If
the taxpayer does not protest to the City Council or file an
action in District Court within the time prescribed in this
section, the deficiency shall be assessed and shall become due
and payable upon notice and demand from the City Clerk.
(b) Interest upon any deficiency shall be assessed at the
same time as the deficiency and shall become due and payable
upon notice and demand from the City Clerk and shall be col-
lected as part of the tax at the rate of eighteen percent (180)
per annum from the date prescribed for payment of' the tax.
SECTION 13. ' COLLECTIONS .AND ENFORCEMENT.
(a) As soon as practical after monthly municipal non-
property tax return and payment is filed, the City Clerk shall
examine same, and determine the correct amount of the tax. For the
purpose of ascertaining the correctness of .any payment deter-
mining the amount of tax due where none has been made, determining
liability. of any person for any tax payable under this ordinance,
or the liability at law or in equity of any person in respect to
any tax provided by this ordinance or collecting any such liability,
the City Clerk, or duly authorized deputy, is authorized
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(1) to examine the books, papers, records or other .data which
may be relevant or material to the inquiry; (2) to summon the
person liable for the- tax or any officer, agent or emplovee of
such person, or any person having possession, custody or care of
books of accounting containing entries .relating to the business
of the person liabile for- the tax, to appear, before the City .
Clerk, or deputy, at a time' and place named in its summons to
produce such books; papers, records or other data and/or give
such testiminy under oath as may be relevant or material to
such inquiry.
SECTION i4 . REFUNDS, LIMITATIONS AND INTEREST.
(a) If the City Clerk determines that any- amount due
under this ordinance has been paid more than once or has been
erroneously or illegally collected or computed, the City Clerk
shall set forth that fact in .its records and the excess amount
paid or collected may be credited on an_v amount due or payable
to the City Clerk for nonproperty taxes from that person, and
any balance refunded to the person by whom it was paid or to his
successors, administrators or executors .
(b) No such credit or refund shall be allowed or made
after one (1) year from the time the payment was made unless
before the expiration of such period a .claim therefor is .filed
by ' the taxpayer.
(c) Interest shall be allowed .on the amount of such credits
or refunds at the rate of eighteen percent (180) per annum from
the date which such- tax was paid.
(d) Appeal from the City Clerk' s decision denying in hart
or in whole a claim -for refund shall be made in accordance with
the laws 'of the State of Idaho with regard to claims against
municipalities.
SECTION 15 . RESPONSIBILITY FOR PAYMENT OF TAXES.
(a) Every person with a duty to account for or pay .over
,any tax imposed by. this ordinance on behalf of a corporation as an
officer employee of the corporation, or on behalf of a partner-
ship, as a member employee of the partnership shall be personally
liable for payment of such tax, plus' penalties and interest.
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r
SECTION 16 . PERIOD OF LIMITATION UPON ASSESSMENT AND
COLLECTION.
(a) The amount of taxes imposed under this ordinance shall
be assessed within three (3) years of the time the return upon
which the tax asserted to be due was or should have been filed,
whichever is later; provided, however, if a deficiency deter-
mination or assessment has been made within the prescribed time,
such tax may be collected within a period of six (6) years after
assessment. The running of limitations provided by this section
shall be suspended for the period during which the City Clerk
is prohibited from making the assessment or from collecting
or proceeding in court due to a petition for redetermination
or an appeal therefrom, and for thirty (30) days thereafter.
(b) In the cases of taxes due during the lifetime of a
decedent, the tax shall be assessed any proceedings for collec-
tion begun within six (6) months after written request therefor
(filed after the return is made) by the executor, administrator,
or other fiduciary representing the estate of such decedent
unless the assessment is stayed by a petition for redetermina-
tion or any appeal therefrom.
(c) In the case of a false or fraudulent return with in-
tent to evade tax, or of a failure to file a return, the tax
may be assessed, or a proceeding in court for collection of such
tax may be begun without assessment, at any time within three
(3) years after the date of the discovery of the facts consti-
tuting the fraud, or discovery of the failure to file.
SECTION 17 . SUCCESSORS ' LIABILITY.
(a) If a vendor liable for any amount of tax under this
ordinance sells out his business or stocks and goods, the vendee
shall make an inquiry to the City Clerk and withhold from the
purchase price any amount of tax that may .be due under this or-
dinance until such. time as the vendor produces receipt stating
that no amount is due.
(b) . If the purchaser of, business or stock of goods fails
to withhold from the purchase price as above required, he is
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personally liable for the payment of the amount required to be
withheld by him which amount shall become immediately due and
payable with interest as herein provided and suit may be filed
within the time limit set forth in Section 16 (a) of this ordinance.
SECTION 18 . GENERAL ADMINISTRATION BY 'CITY CLERK.
(a) The City Clerk shall enforce the provisions of this
ordinance and may prescribe, adopt and enforce rules and regu-
lations relating to its administration and enforcement. The
City Clerk may employ qualified auditors for examination of tax-
payers ' books and records, and shall also employ such accountants,
investigators, assistants, clerks, and other personnel as are
necessary for the efficient administration of this ordinance, and
may delegate authority to his representatives to conduct hearings,
or perform other duties imposed by this ordinance.
(b) Every hotel-motel owner and seller of liquor by-the-,
drink in this City shall keep such records, receipts, invoices,
and other pertinent papers as the City Clerk- may require. Every
such hotel-motel owner and seller of liquor .by-the-drink who
files tax payments required under this ordinance shall keep all
. such "records for not less than four (4) years after making such
payments unless the City Clerk in writing authorizes their
destruction.
(c) The City Clerk, or any person authorized in writing by
the Clerk, may examine the books, . papers, records and equipment
of any person selling liquor by-the-drink and any hotel-motel
owner or any person liable for any tax, andmay investigate
the character of .the business of the.. person in order to verify
the accuracy of any return made, or if no return is made by
the person to ascertain and determine the amount required to be
paid. Any hotel-motel owners- or persons who sell liquor. by-the-
drink whose pertinent records are kept outside of the City must
bring the records to the City for examination by the City Clerk
upon request- of the latter, or by agreement with the City
Clerk permit an auditor designated by the City Clerk to visit
the place where the records are kept, and there audit such
records.
SECTION 19 . PENALTIES.
� (a) Any person who violates any provision of this ordinance
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shall be guilty of a misdemeanor, punishable by up to one (1)
year in the county jail, and/or Three Hundred Dollars ($300 . 00)
fine, or both. Furthermore, each month in which a person fails
to report, or intentionally fails to accurately compute, or
intentionally fails to accurately disclose the total amount of
sales or rentals or the amount of tax to be paid, as imposed
under this ordinance, shall be considered a separate offense. .
(b) Any person who violates any provision of this ordinance
shall have his municipal nonproperty tax permit and tax number
revoked. The City Clerk shall send written notice of revocation
of said permit and tax number to the permit holder by mailing
same certified mail to the address given on the permit applica-
tion. The- permit holder shall have ten , (10) days from the date
of said notice is mailed to .file a written request'.for appeal
with the City Council, challenging said revocation. If no
appeal is timely made said revocation becomes final. Whenever
a person subject to this ordinance has had said permit and tax
number revoked, the City Clerk shall not reissue said permit nor
issue a new permit to said person until said person places with
the City Clerk a bond or other sufficient security in the amount
equal to three (3) times the actual, determined or estimated
average monthly amount of tax payable by such person pursuant
to this ordinance.
(c) The City Clerk, whenever it is deemed necessary to
insure compliance with this ordinance, may require any person
subject to this ordinance to place with him such security as he
may determine. The amount of said security shall not be greater
than three (3) times the estimated average monthly amount pay-
able by such persons pursuant to this ordinance. The amount of
the security may be increased or decreased by the City Clerk
at any time, sub ject_-to the-_.limitatio.ns..set-'':forth.-.:above.
(d) Any person who violates any provision of this ordinance
shall' have all municipal beer license (s) , and wine license (s) ,
and retail liquor by-the-drink license (s) revoked.
(e) Any amount of tax due under this ordinance for which
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a person fails to report or accurately compute, shall become
a lien upon the property of said taxpayer on the date that the
same becomes due, and the 'City may seek to enforce said lien
and collect all taxes and interest due together with the reason-
able costs of collection, including attorney' s fees, in a court
of competent jurisdiction.
(f) For the purposes of proper administration ,of this
ordinance, and to prevent evasion of said nonproperty taxes, the
burden of proving that a sale o_f liquor by--the-drink or rental ,
ofa hotel-motel room isnot a sale under this ordinance is
upon the person who makes the sale or rental in question.
SECTION 20. PENALTY CHARGE.
(a) Any person who is required to collect, truthfully
account for, and pay over any tax imposed by this ordinance and
who willfully fails to collect such a tax or truthfully account
for or pay over such a tax, or willfully attempts in any manner
to evade or defeat such a tax or payment thereof, shall, in
addition to other penalties provided by- law, be liable to a penalty
equal to the amount of the tax evaded, or not collected, or
not accounted for and paid over. The City Clerk shall determine
and assess such penalties, and the same shall become due and
payable upon notice and demand from the City Clerk. The City
Clerk shall send written notice of such penalty charge to the
permit holder by mailing same certified mail to the address given
on the permit application. The permit holdershall have ten (10)
days from the date said notice is mailed to file a written
request of appeal with the City Council challenging said penalty
charge determination. If no appeal is timely made, said penalty
charge determination becomes. f_inal.
SECTION 21. EXEMPTIONS.
All transactions by the State of Idaho, otherwise; subject
to imposition of said taxes, are exempt from the provisions of
this ordinance.
SECTION 22. SEVERABILITY.
It i-s hereby declared to be the legislative intent that the
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provisions; . and parts thereof, of this ordinance shall be sever-
able... -Should
ever-able... -Should any -section; subsection, paragraph, clause or phrase
of this ordinance, -or any particular application thereof, be
declared invalid or unconstitutional fbr 'a' ny reason bya court of
competent 'jurisdiction,, such decision. shall not affect the re-
maining portions. of said section, subsection, paragraph, clause
or phrase of, this ordinance.
SECTION 23 . This ordinance shall be in ' full force and
ef'fedt on October 1, 1982, and -after voter approval, passage by
"City Council, approval by the Mayor, and publication pursuant
to—law prior to October 1, 1982.
PASSED..BY .THE CITY- COUNCIL and approved by the Mayor
this day of September, 1982.
Attest: pR J'S Ido-a j
C ' ty Clerk