19970708 1997-11ORDINANCE NO. 1997- 11
AN ORDINANCE REPEALING SECTION 8-28,
ARTICLE VI, CHAPTER 8 OF THE CODE OF THE
CITY OF FAIRFAX, VIRGINIA AND ENACTING A
NEW SECTION 8-28, APPROVING THE NORTHERN
VIRGINIA CIGARETTE TAX AGREEMENT AND RE-
ESTABLISHING THE NORTHERN VIRGINIA
CIGARETTE TAX BOARD
BE IT ORDAINED by the City Council of the City of
Fairfax, Virginia, that the proposed Agreement titled
Northern Virginia Cigarette Tax Agreement as presented this
date is hereby approved and the City Manager is hereby
authorized to execute the Agreement the terms of which shall
be incorporated in Section 8-28 of the Code of the City of
Fairfax, Virginia as recited hereafter.
BE IT ORDAINED by the City Council of the City of
Fairfax, Virginia, that Section 8-28, Article VI, Chapter 8
of the Code of the City of Fairfax is hereby repealed and a
new Section 8-28 is hereby enacted to read in its entirety
as follows:
Sec. 8-28.
Established.
The Northern Virqinia Tax Board -
By ordinance adopted on Su]y 8, 1997 , and
signed by the Mayor, the City of'Fairfax approved the
Northern Virginia Cigarette Tax Agreement which established
the Northern Virginia Cigarette Tax board and directed that
the terms of the Agreement be included in this section.
8-28.1. Name and Duration.
The board shall be called the Northern Virginia
Cigarette Tax Board. Its duration shall be perpetual,
subject to the provisions of Section 8.28.9 hereof.
8.28.2. Member and Votinq Powers.
The board shall be composed of one representative from
each jurisdiction which is a party to the'Northern Virginia
Cigarette Tax Agreement. Each representative may designate
an alternate to attend meetings and vote in his or her
place; however, each jurisdiction shall be entitled to only
one vote. Action of the board shall be by majority vote.
8.28.3, O~cers and Meetinqs.
Each year, the board shall elect a chairman, vice-
chairman and secretary/treasurer, who shall serve at the
pleasure of the board. The o~cers of the board shall be
chosen from the jurisdictional representatives. Said
o~cers shall be empowered to sign in the name of the board
on all legal documents, including bank deposits, and
withdrawals. The board shall meet from time to time as
deemed necessary by the chairman.
3.28.4 Powers of the Board.
The board shall be delegated the following powers:
a. Assessment, collection and disbursement of the
cigarette tax for each participating jurisdiction;
b. Audit of the sale or use of cigarettes within each
participating jurisdiction;
c. Provision of information for criminal prosecution
by the a~ected participating jurisdictions;
d. Designation of an administrator;
1997-11
e. Management of a general operating fund to ensure
proper funding of board operations on an ongoing basis.
f. Employment of an auditor;
g. Designation of a depository bank or banks;
h. Contracting with a member jurisdiction for
provision of administrative services;
i. To hold and convey personal property; the board
shall have no power to hold or convey real property;
j. To enter into contracts;
k. To hire, supervise and discharge its own
employees;
1. To contract for bene~ts for board employees; and
m. Any other powers granted to the board by the
respective local ordinances and Code of Virginia (1950), as
amended.
8.28.5. Liability Insurance.
The board shall have authority to secure and shall
maintain insurance coverage as deemed appropriate. General
liability insurance shall be maintained through a commercial
policy, in limits of not less than $500,000.00. Any
liability in excess of the amounts of insurance coverage
will be shared by the member jurisdictions proportionately
based upon each jurisdiction's share of the number of
taxable packs of cigarettes reported in the twelve (12)
months preceding the incident which gave rise to the
liability, as compared to the taxable packs of cigarettes
reported during the same time period in all of the
participating jurisdictions.
8.28.6. Administrator.
Normal routine duties of the board in administration
and supervision of the cigarette tax ordinances shall be
delegated to an administrator, who shall be appointed by the
board to serve at the will of the board under such terms and
conditions as it deems appropriate. Actions and decisions
of the administrator shall bind the board unless patently
wrongful or the result of willful misconduct, but the board
may at anytime overrule a decision or action by the
administrator subject to the lawful rights of third parties.
The duties of the administrator shall include, but are
not limited to, the following:
a. Preparation of annual administrative cost
estimates;
b. As authorized by the board, employment of or
contracting for star assistance, equipment and supplies;
providing employee bene~ts; and the establishment and
administration of a retirement system covering o~cers and
employees of the board not covered by the retirement systems
of participating jurisdictions or the Commonwealth of
Virginia;
C ·
and
Preparation of reports as the board may require;
d. Authorization of disbursements from board accounts
including, but not limited to, disbursements to the
participating jurisdictions.
1997-11
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8.28.7. Collection of the Ciqarette Tax.
The cigarette tax shall be assessed and collected on
the basis of the"reporting method" according to the
respective ordinances and according to the rules,
regulations and procedures adopted by the board.
8.28.8.
Funds.
Disbursement of Receipts, Management of
a. Disbursements shall be made to each participating
jurisdiction on a monthly basis. Prior to disbursement to
jurisdictions, expenses for the month shall be deducted from
total revenues and allocated to the jurisdictions
proportionately based upon the number of taxable packs of
cigarettes reported within the jurisdiction during the month
as compared to the total number of taxable packs of
cigarettes reported in all the participating jurisdictions.
The disbursement to each participating jurisdiction shall be
determined by the tax rate of the jurisdiction multiplied by
the taxable packs of cigarettes reported within the
jurisdiction, plus interest and penalties, plus the
jurisdiction's proportional share of all of the revenues,
less discounts and proportional expenses.
b. Total expenses for the ~scal year shall not
exceed six (6) percent of total board revenues for the year.
The board may, by majority vote, authorize an increase in
expenses not to exceed an amount greater than an additional
one (1) percent of the total board revenues for the year.
The board shall maintain an operating fund of $25,000.00.
c. Ail monies shall be deposited in the name of the
Northern Virginia Cigarette Tax Board. All checks drawn on
board accounts shall require signature by the administrator
and one board o~cer.
8.28.9. Termination.
a. In the event any participating jurisdiction
decides, by ordinance, to terminate its participation in the
board, notice to the board shall be given sixty (60) days
prior to its date of termination. The terminating
jurisdiction shall receive within thirty (30) days of its
date of termination its share of total revenues less
proportionate expenses, operating fund, and depreciated
value of physical property used by the board. The
representative of such termination jurisdiction shall not
serve on the board beyond the termination date.
b. In the event the number of jurisdictions which
desire to continue to participate in the board is less than
two (2) in number, the board shall be dissolved and shall
cease to exist. In such event, the board shall liquidate
all assets and disburse to each jurisdiction participating
at the time each such jurisdiction's share of the liquidated
assets and all proceeds and monies held. Such distribution
shall be based upon each jurisdiction's proportionate share
of the number of taxable packs of cigarettes reported in the
preceding twelve (12) months as compared to the taxable
packs of cigarette reported during that same time period in
all the jurisdictions participating in the board at the time
the board is dissolved.
8.28.10. Implementation.
Each jurisdiction shall by ordinance signify its desire
to be a member of the board and its acceptance of the
provisions of the Agreement.
1997.11 -4
This ordinance shall become effective as provided by
law.
INTRODUCED: June 24, 1997
PUBLIC HEARING: July 8, 1997
ENACTED: July 8 , 1997
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Coughlin
Greenfield
Lyman
Mershon
Rasmussen
Silverthorne
Vote
ATTEST:
U 0 City Clerk