California City Municipal Code Div. 4 Transient Occupancy

This division shall be known as the "Uniform Transient Occupancy Tax Law of the City of California City."

The following terms are defined for the purposes of this division:

(a) "Hotel" means a structure, or portion of a structure, occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes, including a 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, or portion thereof.

(b) "Occupancy" means the use or possession, or the right to the use or possession of a room, or portion thereof, in a hotel for dwelling, lodging, or sleeping purposes.

(c) "Operator" means the person who is the proprietor of the hotel, whether in the capacity of owner, sublessee, mortgagee in possession, licensee, or other capacity. Where the operator performs a function 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 division and shall have the same duties and liabilities as a principal. Compliance with this division by the principal or the managing agent shall be considered compliance by both.

(d) "Rent" means 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 receipts, cash, credits, property, and services of any kind or nature, without deduction whatsoever.

(e) "Tax Administrator" means the City Clerk.

(f) "Transient" means a person who exercised occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the provisions of this division may be considered.

For the privilege of occupancy in a hotel, each transient shall be subject to and shall pay tax in the amount of 6% of the rent charged by the operator.

Such tax shall constitute a debt owed by transient to the City, which debt shall be extinguished only by payment to the operator or to the City. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel.

If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require such tax be paid directly to the Tax Administrator.

No tax shall be imposed upon:

(a) A person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax;

(b) A federal or state officer or employee when on official business; or

(c) An officer or employee of a foreign government, which officer or employee is exempt by reason of express provisions of federal laws or international treaties.

No exemption shall be granted except upon a claim made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Tax Administrator.

Each operator shall collect the tax imposed by this division to the same extent and at the same time as the rent is collected from the 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 shall advertise or state directly or indirectly, the tax, or any part, will be assumed or absorbed by the operator, or it will not be added to the rent, or, if added, any part will be refunded except in the manner provided in this division.

Within thirty (30) days after commencing business, each operator of a hotel renting an occupancy to transients shall register such hotel with the Tax Administrator and obtain from him a "Transient Occupancy Registration Certificate" which shall at all times be posted in a conspicuous place on the premises. Such certificate shall, among other things, set forth the following information:

(a) The name of the operator;

(b) The address of the hotel;

(c) The date upon which the certificate was issued; and

(d) A statement as follows:

"This Transient Occupancy Registration Certificate signifies the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law by registering with the Tax Administrator for the purpose of collecting from transients the transient occupancy tax and remitting such tax to the Tax Administrator. This certificate shall not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any Council, commission, department, or office of this City."

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 operating period which may be established by the Tax Administrator, make a return to the Tax Administrator, on forms provided, 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 Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if necessary to ensure collection of the tax, and require further information in the return. Returns and payments shall be due immediately upon cessation of business. Taxes collected by operators pursuant to this division shall be held in trust for the account of the City until payment is made to the Tax Administrator.

(a) An operator who fails to report and remit the tax imposed by this division within the time required shall pay a penalty in the amount of ten percent of the tax in addition to the amount of the tax.

(b) An operator who fails to remit a delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty in the amount of ten percent of the tax in addition to the amount of the tax and the ten percent first imposed.

(c) If the Tax Administrator determines the nonpayment of a remittance due pursuant to this division is due to fraud, a penalty in the amount of twenty-five percent of the amount of the tax shall be added in addition to the penalties set forth above.

(d) In addition to the penalties imposed, an operator who fails to remit the tax imposed by this division shall pay interest at the rate of ½% 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) Every penalty imposed, and such interest as accrued, pursuant to this section, shall become a part of the tax required to be paid by this division.

(a) If an operator fails or refuses to collect such tax and to make, within the time provided in this division, the report and remittance of such tax, or any portion required by this division, the Tax Administrator shall proceed in such manner deemed best to obtain the facts and information on which to base an estimate of the tax.

(b) When the Tax Administrator procures such facts and information upon which to base the assessment of the tax payable by the operator who has failed or refused to collect the same and to make such report and remittance, the Tax Administrator shall determine and assess against such operator the tax, interest, and penalties provided for in this division.

(c) If such determination is made, the Tax Administrator shall give notice of the amount so assessed by serving it personally or depositing it in the United States mail, postage prepaid, addressed to the operator at the last known place of address.

(d) An operator may, within ten days after the service or mailing of the notice, make an application in writing to the Tax Administrator for a hearing on the amount assessed. If an 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, shall become final and conclusive and immediately due and payable. If such an application is made, the Tax Administrator shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in such notice why the amount specified should not be fixed for such tax, interest, and penalties.

(e) 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 shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner set forth in this section of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is filed.

(f) An operator aggrieved by the decision of the Tax Administrator with respect to the amount of tax, interest, and penalties, may appeal to the Council by filing a notice of appeal with the City Clerk within fifteen days after the service or mailing of the determination of the tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at the last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this division for the service of a notice of hearing. The amount found to be due shall be immediately due and payable upon the service of notice.

Every operator liable for the collection and payment of tax imposed by this division shall keep and preserve, for a period of three years, records necessary to determine the amount of such tax. The Tax Administrator may inspect the records at reasonable times.

(a) Whenever the amount of any tax, interest, or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received, such amount may be refunded if a claim is filed in writing stating under penalty of perjury the specific grounds upon which the claim is founded, with the Tax Administrator within three years after the date of payment. The claim shall be on forms furnished by the Tax Administrator.

(b) An operator may claim a refund or take as 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 Tax Administrator the person from whom the tax has been collected was not a transient. A refund or a credit shall not be allowed unless the amount of the tax so collected has been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(c) A transient may obtain a refund of taxes overpaid, paid more than once, or erroneously or illegally collected or received by the City by filing a claim, 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 the transient has been unable to obtain a refund from the operator who collected the tax.

(d) No refund shall be paid pursuant to this section unless the claimant establishes a right by written records.

The tax required to be paid by a transient pursuant to this division shall be deemed a debt owed by the transient to the City. Such tax collected by an operator but not paid to the City shall be deemed a debt by the operator to the City. Any person owing money to the City pursuant to this division shall be liable to an action brought in the name of the City for the recovery of such amount.

An operator or other person who fails or refuses to register as required, or to furnish a supplemental return or other data required by the Tax Administrator, or who renders a false or fraudulent return or claim shall be guilty of a misdemeanor and punishable as set forth in this Code.

A person required to make, render, sign or verify a report or claim and who makes a false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this division to be made, shall be guilty of a misdemeanor and punishable as provided in this Code.