§ 21.3

Nothing in this ordinance shall be construed as imposing a tax upon any person when imposition of such a tax upon that person would be in violation of the Constitution of the United States or that of the State of California.

(a) For the purposes of this article, the terms hereafter defined shall have the following meanings:

Person shall mean any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

(b) Lessor shall include a sub-lessor, a licensor or a person granting a concession.

(c) Tenant and Tenancy shall include tenants and tenancies of all types, and persons occupying and the occupation of a building or structure, or space in a building or structure, or a boat slip or mooring, under any license or any concession agreement with a lessor. The right to use or possess such space shall be deemed to be the same as actual occupation. (First Sentence Amended by Ord. No. 163,754, Eff 7/16/88.)

(d) Casual Tenant and Casual Tenancy shall mean any tenant or tenancy where the consideration paid or agreed to be paid consists exclusively of services; or where, after examining all the facts, the Director of Finance determines that the only tenancy is that of one or more tenants paying to a sub-lessor primarily on a cost-sharing basis for the space used involving less than 25% of the space under the control of the sub-lessor and is terminable at will.

(e) Charges shall include all amounts paid by a tenant to a lessor for services performed, or materials used, or utilities or facilities furnished by the lessor on the premises or in connection with the tenant’s use, possession, or the right to possess the premises. Charges shall also include any charges paid by a tenant to a lessor for the use or possession of land, or the right to use or possess land other than that upon which the building or structure is located but which is used or possessed or is available for use or possession by a tenant for purposes related to their tenancy. Charges shall also include all amounts paid as prepaid rent.

(Amended by Ord. No. 141,620, Eff. 4/3/71.)

For the privilege of occupancy as hereafter described, an excise tax is hereby imposed on every tenant renting a building or structure of any kind on land located in the City of Los Angeles from a lessor for purposes other than dwelling, sleeping or lodging, or renting space or the use or possession of space, or the right to use or possess space in such a building or structure for such purposes, and upon every tenant renting a boat slip or mooring, at the rate of $1.48 per calendar quarter or fractional part thereof for the first $1,000.00 or less of charges attributable to said calendar quarter, plus $1.48 per calendar quarter for each additional $1,000.00 of charges or fractional part thereof in excess of $1,000.00. For the purposes of this article, the privilege of occupancy shall, unless an exemption or partial exemption is provided herein, include renting by a tenant of every kind and character, without regard to the length of the term of the tenancy or the date of its commencement, expiration or renewal. A tenant otherwise subject to the tax imposed herein shall not be exempt therefrom by reason of the fact that one or more persons may reside within the building or structure where either the primary purpose of the particular tenancy or the primary use or right of use by the particular tenant is for some purpose other than dwelling, sleeping or lodging. Nor shall a tenant otherwise subject to the tax imposed herein be exempt therefrom by reason of the fact that the tenant proposes to operate or does in fact operate the building or structure as a premises for a business subject to tax under Sec. 21.99 of this chapter. (First Sentence Amended by Ord. No. 166,204, Eff. 10/ 11/90, Oper. 1/1/91.)

Tenants holding the following kinds of tenancies are exempt from the tax imposed by this article.

(a) Tenants to the extent they become so by placing goods in a warehouse or similar structure for storage or safekeeping.

(b) Tenants to the extent they became so by parking or storing an automobile in a building or structure.

(c) Tenants to the extent they become so by being admitted to a theater, exhibition hall or any similar place of public assemblage or entertainment.

(d) Casual tenants.

(e) Tenants to the extent they become so by placing coin-operated machines and devices on or within a premises under the control of the lessor.

(f) Tenants of a person subject to taxation for engaging within the City of Los Angeles in a business described in Sec. 21.98 of this chapter.

(g) Tenants conducting, operating, promoting, or sponsoring a bona fide trade show, as is defined in Section 21.168.4 of Article 1 of Chapter 2, where the show does not exceed 14 days, and their tenants. (Added by Ord. No. 147,632, Eff. 10/2/75.)

(h) Tenants to the extent they become so by being exhibitors at an antique show or collectors’ exchange show or vendors at a swap meet. (Added by Ord. No. 161,524, Eff. 8/17/86.)

(i) Tenants to the extent they become so by using a boat slip or mooring exclusively for commercial purposes. (Added by Ord. No. 163,754, Eff. 7/16/88.)

(a) The tax imposed by this article shall be collected from the tenant by the lessor. The amount of tax collected in one calendar quarter shall be remitted to the Director of Finance on or before the last day of the month following the close of each calendar quarter. The tax shall be collected insofar as practicable at the same time as and along with the charges made in accordance with the lessor’s regular billing practice. If the amount paid by a tenant is less than the full amount of the charge and the tax which has accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid.

(b) The duty to collect tax from a tenant shall commence with the first payment of charges by the tenant on or after the operative date of this article.

(a) Taxes collected from a tenant which are not remitted to the Director of Finance on or before the due dates provided in this article are delinquent. Taxes payable hereunder for periods other than quarterly periods shall be deemed delinquent at the times designated by the Director of Finance in the Director’s rules and regulations.

(b) Interest and penalties for delinquency in remittance of any tax collected, or any deficiency determination shall attach and be paid by the person required to collect and remit at the rates and in the same manner as is provided in Sec. 21.05 of this chapter for delinquency in payment of Business Tax.

(c) The Director of Finance shall have power to impose additional penalties upon persons required to collect and remit taxes under the provisions of this Article for fraud or negligence in reporting and remitting in the same manner and at the same rates as are provided in Sec. 21.05 of this Chapter for such penalties upon persons required to pay Business Tax.

(d) (Amended by Ord. No. 174,085, Eff. 8/19/01.) For collection purposes only, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be remitted.

Any tax required to be paid by a tenant under the provisions of this article shall be deemed a debt owed by the tenant to the City. Any such tax collected from a tenant which has not been remitted to the Director of Finance shall be deemed a debt owed to the City by the person required to collect and remit. Any person owing money to the City under the provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount.

(a) The Director of Finance shall have the power and duty and is hereby directed to enforce each and all of the provisions of this article.

(b) In administering and enforcing the provisions of this article, the Director of Finance shall have the same powers and duties with respect to collecting the tax provided herein as the Director of Finance has under Sec. 21.15 of this chapter with respect to collecting the Business Tax.

(c) The provisions of Sections 21.17, 21.20, and 21.21 of this chapter shall apply to the administration and collection of the tax imposed under the provisions of this article in the same manner as they apply to the administration and collection of the Business Tax.

(d) Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, the Director of Finance may establish reporting periods greater than quarterly, but not to exceed one year, for lessors who rent only occasionally. The Director of Finance may establish shorter reporting periods for any lessor if the Director of Finance deems it necessary in order to insure collection of the tax.

(a) The Director of Finance may make an assessment for taxes not remitted by a person required to remit for any reason specified in Sec. 21.16 of this chapter for making an assessment for unpaid Business Tax. The Manner of making and providing notice of such assessment the right to a hearing and the conduct of such hearing; the preparation and service of findings, filing exceptions, and passing upon exceptions shall be the same as provided in Sec. 21.16 of this chapter.

(Amended by Ord. No. 173, 587, Eff. 12/7/00.)

Each person required to collect any tax imposed by this article must keep, for a period of four years, all records necessary to determine the amount of the tax that the person was responsible for collecting. The Office of Finance has a right to inspect those records at any reasonable time.

(a) Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Director of Finance under this article it may be refunded as provided in this section. Except as otherwise provided in this section, refunds of overpaid taxes shall be made in the same manner as provided in Sec. 21.07 of this chapter for refunds of overpayments in Business Taxes.

(b) A person required to collect and remit taxes imposed under this article may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance that the tenant from whom the tax has been collected did not owe the tax; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the tenant or credited to charges subsequently payable by the tenant to the person required to collect and remit.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes their right thereto by written records showing entitlement thereto.