Burbank Municipal Code Art. 6 Transient Occupancy Tax

This article may be referenced as the “Burbank Uniform Transient Occupancy Tax Ordinance”. The Burbank Uniform Transient Tax Ordinance establishes a transient occupancy tax of up to 10 percent, as last approved by the voters. All taxes, interest, and penalties received pursuant to the provisions of this article will be deposited by the Tax Administrator in the City’s General Fund and may be utilized for general governmental purposes, as determined by the City Council, through the annual budget adoption process. [Formerly numbered Section 14-87; renumbered by 3058; amended by 22-3,984; Ord. No. 24-4,018, eff. 12/27/24.]

The following words and phrases in this article are defined as follows:

HOTEL ACCOMMODATIONS: Any room or rooms in any structure, or any portion of a structure, which is occupied or intended or designed for occupancy for dwelling, lodging, or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure. The term “hotel accommodations” does not include an accommodation that a person occupies as their domicile and permanent residence.

OCCUPANCY: The use or possession or the right to the use or possession of any hotel accommodations.

OPERATOR: Any person who engages in the proprietorship of a hotel without regard to their legal estate in the premises. “Operator” includes the executor, administrator, assignee, or immediate successor in interest of the proprietor of a hotel.

RENT: The consideration charged, whether or not received, for the occupancy of space in a hotel 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, excluding any deductions.

TAX ADMINISTRATOR: The City Manager, or the designee of the City Manager.

TOT: The transient occupancy tax imposed under this article.

TRANSIENT: Any person who exercises occupancy or is entitled to occupancy of any hotel accommodation by reason of concession, permit, right of access, license, or other agreement. “Transient” does not include:

A. Any natural person who, by way of an advance monthly payment, is entitled to and actually does occupy a hotel accommodation for a calendar month or, in the alternative, for 30 consecutive calendar days; nor

B. Any natural person who, having occupied a hotel accommodation for a calendar month or, in the alternative, for 30 consecutive calendar days, and after having paid the TOT during this period, continues to occupy said hotel accommodation. [Formerly numbered Section 14-88; renumbered by Ord. No. 3058, eff. 2/21/87; 3110, 3028, 2937, 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

A. For the privilege of occupancy of any hotel accommodation, each transient is subject to and must pay a TOT in the amount as designated in the Burbank Fee Resolution. This TOT constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the TOT must be paid with each installment. The unpaid TOT will be due upon the transient’s ceasing to occupy space in the hotel. If the TOT due is not paid to the operator of the hotel, the Tax Administrator may require that such TOT be paid directly to the Financial Services Department.

B. The City Council may adjust the TOT designated in the Burbank Fee Resolution by resolution after a public hearing. Such TOT designated in the Burbank Fee Resolution may not exceed 10 percent, unless otherwise approved by the voters. [Formerly numbered Section 14-89; renumbered by 3058; amended by 22-3,984; 3828; Ord. No. 24-4,018, eff. 12/27/24.]

No TOT will be imposed upon:

A. Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose this TOT;

B. Any Federal or State officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office;

C. Any officer or employee of a foreign government who is exempt by reason of an express provision of Federal law or international treaty.

No exemption may be granted except upon a request made at the time rent is collected and made under penalty of perjury upon a form prescribed by the Tax Administrator. [Formerly numbered Section 14- 90; renumbered by Ord. No. 3058, eff. 2/21/87; 3110, 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

An operator must collect the TOT imposed by this article to the same extent and at the same time as the rent is collected from every transient. The amount of TOT must be separately stated from the amount of the rent charged, and each transient will receive a receipt for payment from the operator. No operator of a hotel may advertise or state in any manner, whether directly or indirectly, that any amount of the TOT 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 as otherwise provided in this article. [Formerly numbered Section 14-91; renumbered by Ord. No. 3058, eff. 2/21/87; amended by Ord. No. 22-3,984, eff. 1/6/23.]

Within 30 days after the operator undertakes the proprietorship of a hotel, every operator renting occupancy to transients must register the hotel with Tax Administrator and obtain from the Tax Administrator a “Transient Occupancy Registration Certificate”. The certificate issued by the Tax Administrator is personal to each operator and may not be transferable from person to person or from place to place. [Formerly numbered Section 14-92; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

The Transient Occupancy Registration Certificate issued to each registered operator must be posted by the operator in a conspicuous place on the hotel premises. The certificate will be entitled “Transient Occupancy Registration Certificate” and must state:

(1) The name of the registered operator.

(2) The name and address of the hotel.

(3) The date of issuance of the certificate.

(4) The statement, “This certificate does not constitute a permit. It signifies that the person named hereon has fulfilled the requirements of the Burbank Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting and remitting the required TOT. This certificate does not authorize any person to operate a hotel without strictly complying with all state and local laws including those requiring a permit from any board, commission, office or department of the City of Burbank”; and

(5) The statement:

THIS CERTIFICATE IS NOT TRANSFERABLE. A new proprietor of this hotel must obtain a new Transient Occupancy Registration Certificate from the Tax Administrator within thirty (30) days. A new proprietor is liable for all accrued and unpaid transient occupancy taxes.

[Formerly numbered Section 14-93; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

Each operator must, on or before the last day of the month following the close of each month make a return to the Tax Administrator, on forms provided by the Tax Administrator, of the total rents charged and received and the amount of TOT collected for transient occupancies. Returns are due on or before the last day of the month following the close of each month. At the time the return is filed, the full amount of the TOT collected must be remitted to the Tax Administrator. The Tax Administrator may require further information in the return if necessary to ensure collection of the TOT. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article must be held in trust for the account of the City until payment is made to the Tax Administrator.

Taxes collected subject to this article are delinquent if not received by the Tax Administrator on or before the due date as set forth in the City’s tax remittance form or in any other correspondence from the Tax Administrator. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on or before the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by an operator in satisfaction of their obligations under this section will be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City’s account on or before the following business day. [Formerly numbered Section 14-94; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

Whenever the Tax Administrator deems it reasonably necessary to ensure remittance of the TOT, the Tax Administrator may require any operator to deposit security for their payment of the TOT. The type and amount of security deposit will be determined by the Tax Administrator but may not exceed a sum or value equal to twice the estimated TOT payable by the operator for any one calendar quarter. To recover TOT, including penalty and interest, remittable by the depositor, the Tax Administrator may apply or sell at public auction the security deposited with them. Security deposits in the form of bearer bonds issued by the United States of America or by the State may be sold by the Tax Administrator at private sale for the current market price. At least 10 days before the application or sale of a security deposit, the Tax Administrator may serve upon the depositing operator notice of intent to apply or sell the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing operator at operator’s hotel. Any portion of the proceeds from the sale of security remaining after satisfaction of outstanding TOT, penalty, interest, and costs of sale, may be retained by the Tax Administrator for security or may be paid to the depositing operator. [Formerly numbered Section 14-95; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.

A. Operator’s Duty to Notify: Any operator who conveys or quits the hotel business must notify the Tax Administrator in writing of such event, and provide the name and address of the purchaser or transferee, in the event of a sale or transfer, at least 30 days in advance of the conveyance or close of the business. If the decision to convey or quit was made less than 30 days prior to the purchase, transfer, or close of the business, operator must provide written notice immediately.

B. Successor’s Liability: If an operator conveys or quits operator’s hotel business, operator’s assignee or successor in interest may withhold sufficient of the purchase price to cover the accrued or outstanding TOT liability of the operator until the operator produces a certificate of the Tax Administrator stating the nonliability of the operator for payment of TOT. If the assignee or successor in interest

fails to withhold the amount required to pay the tax liability, the assignee or successor in interest is personally liable for the payment of the amount required to be withheld by the assignee or successor in interest.

C. Certificate of Nonliability: Within 30 days from the date of receipt of the application of any operator for a certificate of nonliability for the payment of TOT, the Tax Administrator will issue the certificate if the operator’s tax liability has been satisfied to the date of application. If TOT has accrued to that date, the Tax Administrator will give notice to the operator of the amount which must be paid as a condition of issuing the certificate. [Formerly numbered Section 14-96; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

A. Original Delinquency: Any operator who fails to remit any TOT within the time required must pay a penalty of 10 percent of the amount of the TOT in addition to the amount of the TOT.

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 must pay a second delinquency penalty of 20 percent of the amount of the TOT in addition to the amount of the TOT and the 10 percent penalty first imposed.

C. Fraud: If the Tax Administrator determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of 25 percent of the amount of the TOT will be added in addition to the penalties stated in subsections A and B of this section.

D. Interest: In addition to the penalties imposed, any operator who fails to remit any TOT imposed by this article must pay interest at the rate of two percent per month or fraction thereof of such rate on the amount of TOT from the date on which the remittance first became delinquent until paid.

E. Penalties for Failure to Keep and Preserve Required Records: If any person subject to record-keeping under this section unreasonably denies the Tax Administrator access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Tax Administrator may impose a penalty of $2,000 or five percent of the tax already reported for the audit period, whichever is greater, on such person following: 1) the initial date that the person refuses to provide such access; or 2) the due date for production of records as set forth in the administrative subpoena. This penalty is in addition to any other penalty imposed under this article.

F. Audit Deficiency: If, upon audit by the City, an operator is found to be deficient in either their return or their remittance or both, the Tax Administrator may immediately assess the operator the amount of the net deficiency plus all applicable penalties and interest, as specified in Section 2-4-611, on the amount of the net deficiency for each quarter or portion thereof for which said operator’s remittance was deficient.

G. Penalties Merged with Tax: Every penalty imposed and such interest as accrues under the provisions of this section will become a part of the tax required to be paid. [Formerly numbered Section 14-97; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

If any operator fails or refuses to collect this TOT and to make, within the time provided in this article, any report and remittance of TOT or any portion of TOT required by this article, the Tax Administrator may proceed in such manner as the Tax Administrator deems best to obtain facts and information on which to base the Tax Administrator’s estimate of the tax due. As soon as the Tax Administrator procures such facts and information upon which to base the assessment of any tax imposed by this article and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the Tax Administrator may determine and assess against such operator the tax, interest, and penalties provided for by this article. In case such determination is made, the Tax Administrator will give 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 operator’s last known place of address.

If the operator desires to challenge the amount assessed, the operator must, within 10 days after the serving or mailing of such notice, make a written request to the Tax Administrator for a hearing on the amount assessed. If the application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Tax Administrator is final and conclusive and immediately due and payable.

If a written request for a hearing is made, the Tax Administrator will give not less than five days written notice according to the notice procedure described above to the operator to show cause at a time and place fixed in the notice why the amount specified in the notice 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 Tax Administrator may determine the proper tax to be remitted and after will give written notice to the applicant in the manner prescribed herein of such determination and the amount of such tax, interest, and penalties. The amount determined to be due must be paid after 15 days unless an appeal is taken as provided in Title 2, Chapter 1, Article 15 of this code. [Formerly numbered Section 14-98; renumbered by Ord. No. 3058, eff. 2/21/87; 3078, 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

A. Right of Inspection: The reports or statements of the operator and each of the several items in such reports and statements is subject to audit and verification by the Tax Administrator, their deputies, or authorized agents of the City, who are authorized to examine, audit, and inspect such books and records of any operator as may be necessary in their judgment to verify or ascertain the tax due.

B. Maintenance of Records: Every operator must keep and preserve for a period of not less than three years all records as may be necessary to determine the amount of any tax liability under this article, which records the Tax Administrator, or their deputies or agents may inspect and copy at all reasonable times upon demand. Each operator within the City must permit an examination of such books and records for the purposes described in this section and at a location within the City of Burbank. In the event such books and records cannot be made available within the City of Burbank, the operator must reimburse the City for the costs of all transportation, lodging, meals, travel time, and other incidental costs reasonably incurred by the City in obtaining the audit.

C. Record Format: Records must be prepared in accordance with established accounting principles and include information to thoroughly support filing claims for gross rent, exemptions, taxable rent, and transient occupancy tax for all occupancies.

D. Confidentiality: Except as specifically provided in this subsection, the information furnished or secured under this article will be treated as confidential. Any unauthorized disclosure or use of such information by any officer, agent, or employee of the City of Burbank may be a misdemeanor and such officer, agent, or employee may be punished by the penalty provisions of this code, in addition to any other penalties provided by law. However, this subsection will not apply to any disclosures made in connection with any appeal proceeding pursuant to this article or any civil action relating to the recovery of such taxes, interest, or penalties, or any prosecution of any person for violation of any provisions of this article. Further, the confidentiality provision of this subsection does not apply to the monthly or annual gross revenues of an operator taxable under this article, the amount of tax paid by an operator under this article, or any other information required or permitted to be disclosed under applicable federal, state, or local law. [Formerly numbered Section 14-100; renumbered by Ord. No. 3058, eff. 2/21/87; 3110, 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

A. Claim Must Be in Writing: Whenever the amount of any tax, interest, or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City under this article, such amount may be refunded as provided in subsections B and C of this section, if the requester files a written claim, stating under penalty of perjury the specific grounds upon which the claim is founded, with the Tax Administrator within three years of the date of payment that is subject to refund. The written claim must be on forms furnished by the Tax Administrator.

B. Operator’s Refund; Options: An operator may claim a refund or take as a credit against taxes collected and remitted any amount overpaid, or paid more than once or erroneously or illegally collected or received, from a person, when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient. No refund nor credit will be given to operator unless operator has already refunded to the non-transient or credited to rent such amounts.

C. Transient Refund: 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 in the manner provided in subsection A of this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

D. Records Required: No refund will be paid unless the claimant shows proof through written records. [Formerly numbered Section 14-101; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

Any tax required to be paid by any transient under the provisions of this article is a debt owed by the transient to the City. Any such tax collected by an operator which has not been paid to the City is a debt owed by the operator to the City. Any person owing money to the City under the provisions of this article is liable under an action brought in the name of the City for the recovery of such an amount. [Formerly numbered Section 14-102; renumbered by Ord. No. 3058, eff. 2/21/87; amended by Ord. No. 22-3,984, eff. 1/6/23.]

Any person is guilty of a misdemeanor if that person does any of the following:

A. Fails or refuses to register as required by this article; or

B. Fails or refuses to furnish any return required to be made by this article; or

C. Fails or refuses to furnish a supplemental return or other data required by the Tax Administrator; or

D. Renders a false or fraudulent return or claim; or

E. Fails to submit to an examination, audit, and inspection of books and records if required under this article; or

F. If that person is required to make, render, sign or verify any report or claim, under this article, and makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount required by this article. [Formerly numbered Section 14-103; renumbered by Ord. No. 3058, eff. 2/21/87; 2926; amended by Ord. No. 22-3,984, eff. 1/6/23.]

The Tax Administrator has the power to enforce this article and may adopt rules and regulations not inconsistent with the provisions of this article to carry out and enforce the payment, collection, and remittance of the TOT. Where uncertainty exists regarding the interpretation of any provision of this article or its application to a specific operator or transient occupant, the Tax Administrator may interpret and determine the intent of the provision.

The Tax Administrator may, with the consent and approval of the City Attorney, enter into written agreements with persons liable for the payment of delinquent taxes, penalties, and interest, in monthly installments, or more often, extending over a period not exceeding 1 year. In any such agreement, such person must acknowledge the obligation owed the City and agree that, if the person fails to make timely payment of any installment, that the whole amount unpaid, principal together with interest, is immediately due and payable. The execution of such an agreement will not prevent any accrual of penalties and interest on unpaid balances at the rate provided above. No penalties or additional interest will accrue on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment and after if the person complies with the terms of the agreement. The execution of such an agreement may render any subsequent appeal null and void and may constitute a waiver by the operator against future action.

In addition to any other authority, the Tax Administrator, upon the concurrence of the City Attorney, may discontinue the collection of any claim. [Formerly numbered Section 14-104; renumbered by Ord. No. 3058, eff. 2/21/87; amended by Ord. No. 22-3,984, eff. 1/6/23.]