Arvin Municipal Code Ch. 3.28 Transient Occupancy Tax

The following words and phrases, when used in this chapter shall, for the purposes of this chapter, have the following respective meanings, except where the context clearly indicates a different meaning:

A. "Hotel" means any public or private hotel, inn, hostelry, tourist home or house, motel, roominghouse or other lodging place within the city offering lodging for five (5) or more persons at any one time, and the owner and operator thereof who, for compensation, furnishes lodging to any transient as defined in this section. However, notwithstanding the foregoing, the council has determined that there has been a severe shortage of housing in the city which is affordable to persons of low or moderate income and/or to migrant or seasonal farm workers who are passing through the region and that certain local public agencies have, in this short supply of housing, incurred indebtedness to construct such facilities. Therefore, "hotel" does not mean and does not include any facility which would otherwise fit the definition given in the first sentence of this subsection, if that facility meets both of the following criteria:

1. The construction of that facility has been funded by tax exempt bonds, certificates of participation or other similar evidence of public indebtedness, so long as the debt has not yet been paid in full, and so long as that debt was issued by a tax exempt public agency, including but not limited to the city, the housing authority of the city or any agency or subsidiary thereof; and

2. The facility is primarily or exclusively for the purpose of housing persons of low or moderate income and/or migrant or seasonal farm workers.

B. "Person" means any individual, corporation, company, association, firm, copartnership, or any group of individuals acting as a unit.

C. "Room rental" means the total charge made by any such hotel for lodging or lodging space furnished by any such transient. If the charge made includes any charge for services or accommodations in addition to that of lodging, or the use of lodging space, then such portion of the total charge as represents only room or lodging space rental shall be distinctly set out and billed to such transient by such hotel as a separate item.

D. "Tax collector" means the tax collector of the city.

E. "Transient" means any person who, for any period of not more than thirty (30) consecutive days, either at his own expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel, as defined in this section, for which lodging or use of lodging space a charge is made.

(Ord. 267 §1, 1993; Ord. 242 (part), 1990).

On any date after the effective date of the ordinance codified in this chapter, a tax shall be imposed and levied by a resolution of the city council on each and every transient occupying a hotel room in the city, which tax shall be collected from such transient at the time and in the manner hereinafter provided. The tax is levied for revenue purposes, and is necessary for the usual financial operation of the city, and when collected shall be made a part of the general funds of the city.

(Ord. 242 (part), 1990).

No tax shall be payable under this chapter in any of the following instances:

A. On room rental paid by any federal, state or city official or employees, when on official business;

B. On room rental paid to any hospital, medical clinic, convalescent home or home for aged people.

(Ord. 242 (part), 1990).

It shall be the duty of the tax collector to ascertain the name of every person operating a hotel in the city, liable for the collection of the tax levied by this chapter, who fails, refuses or neglects to collect the tax, or to make, within the time provided by this chapter, the reports or remittances required in this chapter.

(Ord. 242 (part), 1990).

On and after the effective date of the ordinance codified in this chapter, as amended, every person receiving any payment for room rental with respect to which a tax is levied under this chapter, shall collect the amount of tax hereby imposed from the transient on whom the same is levied, or from the person paying for such room rental, at the time of payment for such room rental until remitted as required in this chapter.

(Ord. 242 (part), 1990).

A. The person collecting any such tax shall prepare a report upon such forms, and setting forth such information as the tax collector may prescribe and require, showing the amount of room rental charges collected, and the tax required to be collected, and shall sign and deliver it to the tax collector with a remittance of the tax.

B. Reports and remittances shall be due the first day of each month, covering the amount of tax collected during the preceding month, the first report and remittance hereunder being due on the first day of December, covering the amount of tax collected during the month of November.

C. Any person operating a hotel regularly throughout the year may, upon written application to, and with the written consent of the tax collector, make reports and remittances on a quarterly basis in lieu of the monthly basis hereinbefore provided. Such quarterly reports and remittances shall be due on the first days of January, April, July and October in each year, and shall cover the amounts collected during the three (3) months immediately preceding the months in which reports and remittances are required. If the remittance is by check or money order, it shall be payable to the city.

(Ord. 242 (part), 1990).

If any person liable for any amount under this chapter sells out his business or quits the business, his successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the tax collector showing that all taxes due from the person quitting, selling or assigning his business have been paid, or a certificate stating that no amount is due.

(Ord. 242 (part), 1990).

If the purchaser of a business fails to withhold the purchase price as required in Section 3.28.070, he shall personally be liable for the payment of the amount requested to be withheld by him to the extent of the purchase price, valued in money. Within sixty (60) days after receiving a written request from the purchaser for a certificate, or within sixty (60) days from the date the former owner's records were made available for audit, whichever period expires the later, but in any event not later than ninety (90) days after receiving the request the tax collector shall either issue the certificate or mail notice to the purchaser at his address, as it appears in the records of the tax collector, of the amount that must be paid as a condition of issuing the certificate.

(Ord. 242 (part), 1990).

If any person fails or refuses to remit to the tax collector the tax required to be collected and paid under this chapter, in the amount specified in this chapter, on or before the last day of the month in which the remittance becomes due, there shall be added to such tax by the tax collector a penalty of ten (10) percent of the amount of the tax; and if the tax remains delinquent and unpaid thereafter for a period of thirty (30) days, there shall be added thereto by the tax collector an additional penalty of ten (10) percent.

(Ord. 242 (part), 1990).

If any person fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance required by this chapter, the tax collector 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 tax collector shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax payable by any person who has filed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such person the tax and penalties provided for by this chapter, and shall notify such person, by mail sent to his last known place of address, or the total amount of such tax, and interest and penalties, and the total amount thereof shall be payable within ten (10) days from the date of such notice.

(Ord. 242 (part), 1990).

Any person violating any of the provisions of this chapter, or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in reporting the taxes herein provided for, shall be guilty of a misdemeanor, and upon conviction thereof, be fined not less than twenty-five ($25.00) dollars nor more than five hundred ($500.00) dollars, and each violation or failure shall constitute a separate offense. Such conviction shall not relieve any such person from the payment, collection or remittance of the tax, as provided in this chapter.

(Ord. 242 (part), 1990).