Alhambra Municipal Code Ch. 5.70 Transient Occupancy Tax

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

HOTEL. A facility offering transient lodging accommodations to the general public and providing additional services; such as, restaurants and meeting rooms.

MOTEL. An establishment which provides transient accommodations and contains six or more rooms with at least 25% of all rooms having direct access to the outside without the necessity of passing through the main lobby of the building.

OCCUPANCY. The use or possession, or the right to the use or possession of any room or rooms, or portions thereof, in any hotel or motel for dwelling, lodging or sleeping purposes.

OPERATOR. The person who is the proprietor of the hotel or motel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an OPERATOR for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

RENT. The consideration charged, whether or not received, for the occupancy of space in a hotel or motel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

TRANSIENT. Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 21 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel or motel shall be deemed to be a transient until the period of 21 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy.

('86 Code, § 5.70.010) (Ord. 3917, passed - - ; Am. Ord. 4040, passed - - )

For the privilege of occupancy in any hotel or motel, each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator. The tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in install-ments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel or motel. If, for any reason, the tax due is not paid to the operator of the hotel or motel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance.

('86 Code, § 5.70.020) (Ord. 3917, passed - - ; Am. Ord. 4174, passed - - ) Penalty, see § 5.70.130

(A) No tax shall be imposed upon;

(1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax herein provided;

(2) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

(3) Any federal or State of California officer or employee when on official business.

(B) No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by and to the Director of Finance.

('86 Code, § 5.70.030) (Ord. 3917, passed - - ; Am. Ord. 4458, passed 2-23-04)

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel or motel shall advertise or state in any manner, whether directly or indirectly, that the tax, or any part thereof, will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided.

('86 Code, § 5.70.040) (Ord. 3917, passed - - ) Penalty, see § 5.70.130

Within 30 days after the effective date of this chapter, or within 30 days after commencing business, whichever is later, each operator of any hotel or motel renting occupancy to transients shall register the hotel or motel with the Director of Finance and obtain from him a “transient occupancy registration certificate” to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

(A) The name of the operator;

(B) The address of the hotel or motel;

(C) The date upon which the certificate was issued;

(D) “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of Chapter 5.70 of the Alhambra Municipal Code, `Transient Occupancy Tax' by registering with the Director of Finance for the purpose of collecting from transients the Transient Occupancy Tax and remitting the tax to the Director of Finance. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel or motel without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit or license from any board, commission, department or office of this city. This certificate does not constitute a permit or license.”

('86 Code, § 5.70.050) (Ord. 3917, passed - - ) Penalty, see § 5.70.130

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Director of Finance, make a return to the Director of Finance on forms provided by him of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax and he may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the Director of Finance.

('86 Code, § 5.70.060) (Ord. 3917, passed - - )

(A) Original delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.

(B) Continued delinquency. Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(C) Fraud. If the Director of Finance deter-mines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in division (A) and (B) of this section.

(D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of 1% per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(E) Penalties merged with tax. 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 paid.

('86 Code, § 5.70.070) (Ord. 3917, passed - - )

If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax, or any portion thereof required by this chapter, the Director of Finance shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the Director of Finance shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided by this chapter. In case such determination is made, the Director of Finance shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the Director of Finance for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Director of Finance shall become final and conclusive and immediately due and payable. If such application is made, the Director of Finance shall give not less than five days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the Director of Finance shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 5.70.090.

('86 Code, § 5.70.080) (Ord. 3917, passed - - ) Penalty, see § 5.70.130

Any operator aggrieved by any decision of the Director of Finance with respect to the amount of such tax, interest and penalties, if any, may appeal such decision by following the appeals procedure set forth in § 5.82.050 of this code.

('86 Code, § 5.70.090) (Ord. 3917, passed - - )

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the city, which records the Director of Finance shall have the right to inspect at all reasonable times.

('86 Code, § 5.70.100) (Ord. 3917, passed - - ) Penalty, see § 5.70.130

(A) Claims required. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been illegally, erroneously or wrongfully collected or received by the city under this chapter, it may be refunded or credited as provided in divisions (B) and (C) hereof; provided that a claim in writing therefor, duly verified by the person paying such tax or penalty, his or her attorney, duly authorized agent, guardian, or his or her executor or administrator, shall have been filed with the Director of Finance within one year after the date or payment of the amount sought to be refunded. Such claim shall include the name and address of the claimant, the amount and date of payment sought to be refunded, and state under penalty of perjury the reasons or grounds upon which the claim for refund is based. The claim shall be on forms furnished by the Director of Finance. In no case shall any judgment be rendered for the plaintiff in any proceeding brought to enforce the payment of any claim arising hereunder if such action or proceeding is brought by any person other than the persons designated herein. Except as expressly provided herein, § 3.16.060(C) of this code shall apply to claims filed hereunder.

(B) Operators. An operator may claim a refund or take a 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 person from whom the tax has been collected was not a transient; 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 transient or credited to rent subsequently payable by the transient to the operator.

(C) Transients. A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim provided in division (A) of this section, but only when the tax was paid by the transient directly to the Director of Finance, or when the transient having paid the tax to the operator establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) Burden on claimant. No refund shall be paid or credit taken under this section unless the claimant establishes his or her right thereto by written records showing entitlement thereto.

('86 Code, § 5.70.110) (Ord. 3917, passed - -; Am. Ord. 4320, passed 3-24-97)

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

('86 Code, § 5.70.120) (Ord. 3917, passed - - )

Any operator or other person who violates any of the provisions of this chapter or who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Director of Finance, or who renders a false or fraudulent return or claim, is guilty of an infraction, and is punishable as provided in § 1.12.011 of this code.

('86 Code, § 5.70.130) (Ord. 3917, passed - - )