Camarillo Municipal Code Ch. 3.16 Transient Occupancy Tax

This chapter shall be referred to as the "Camarillo transient occupancy tax ordinance."

(Ord. 877 § 1 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6200.)

For the purposes of this chapter, certain words and phrases shall be construed and defined as set forth in this Section unless it is apparent from the context that a different meaning is intended:

A. "Hotel" means a hotel, or a motel or any other lodging facility. Hotel and motel are defined as set forth in the city's zoning ordinance.

B. "Motel" has the same meaning as hotel.

C. "Occupancy" means the temporary use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in a hotel for dwelling, lodging or sleeping purposes.

D. "Operator" means a person or an entity owning, managing, or otherwise controlling a hotel. When an owner operates the hotel 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 the managing agent's principal.

E. "Rent" means the consideration charged by an operator, whether or not received, for the occupancy or right to occupy space in the hotel according to the then effective schedule of rates for such room or rooms on the date or dates of such occupancy, whether to be received in money, goods, labor or otherwise, including all receipts, cash credits, property and services of any kind or nature, included in the price of the room, without any deduction or offset therefrom whatsoever.

F. "Tax" means the transient occupancy tax levied pursuant to the provisions of this chapter.

G. "Tax administrator" means the director of finance of the city who is charged with collection of the tax.

H. "Transient" means any person who exercises occupancy or is entitled to occupancy of a room in a hotel by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less. Portions of calendar days shall be counted as full days. A person so occupying a room in a hotel for more than thirty consecutive calendar days shall not be deemed to be a transient for any part of the stay and shall not be obligated to pay the tax.

(Ord. 953 § 1, 2002: Ord. 877 § 1 (part), 1997: Ord. 814 § 1, 1994; Ord. 12 § 1 (part), 1965: prior code §§ 6201—6201.6.)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of nine percent 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 installments, 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. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator.

(Ord. 659 § 1, 1988: Ord. 111 § 1, 1968: Ord. 12 § 1 (part), 1965: prior code § 6202.)

A. No tax shall be imposed upon any person:

1. On whom, or on any occupancy on which, it is beyond the legal authority of the city to impose such as any member of the United States Armed Forces, including a member of the California National Guard, who is traveling on official business, if such person files with the operator a copy of orders or official travel authorization papers.

2. Who occupies a room in a hotel for more than thirty consecutive days.

B. Exemptions for Certain Occupancies. A tax shall not be levied upon either of the following occupancies of a room in a hotel:

1. If the occupancy is of one permitted living unit for the owner/manager; or

2. If the occupancy of a room in a hotel is by an employee of the operator and/or owner which room is utilized by such employee while visiting the premises for business purposes and for which no rent is charged.

C. Claims. No exemption shall be granted except upon a claim therefor made at the time rent is collected. Each such claim shall be made under penalty of perjury upon a form prescribed by the tax administrator.

(Ord. 953 § 2, 2002: Ord. 877 § 1 (part), 1997: Ord. 814 § 2, 1994; Ord. 12 § 1 (part), 1965: prior code § 6203.)

Each operator shall collect the tax imposed by this chapter at the same time as the rent is collected from each transient. The amount of tax shall be separately stated from all other amounts on all receipts and books of record of the hotel, and each transient shall be tendered a receipt for payment from the operator with rent and tax separately stated thereon. No operator shall advertise that the tax or any part thereof will be assumed or absorbed by the operator or that the tax will not be added to the rent or that, if added, any part of the tax will be refunded except in the manner hereinafter provided. Nothing in this section shall be deemed to prevent the operator from paying the tax on behalf of the transient.

(Ord. 953 § 3, 2002: Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6204.)

The tax administrator may promulgate rules and regulations consistent with the provisions of this code as needed to enforce and administer this chapter. Any such rules and regulations which may affect the amount of the tax or tax owed are subject to city council approval. The tax administrator shall file and maintain such rules and regulations. The burden to secure and comply with the rules and regulations shall be upon the operator.

(Ord. 953 § 4, 2002)

A. On or before the fifteenth day of the month following the close of each calendar month, each operator shall mail a return postmarked by the fifteenth of the month with the tax administrator, on forms provided by the tax administrator, stating the total rent and the amount of tax due for the preceding month. At the time the return is mailed, the full amount of the tax due shall be remitted to the Tax administrator. Taxes are deemed paid upon the tax administrator receiving a tax return and tax payment and, if applicable, exemption forms. The tax administrator may require additional information to be included in returns. 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 tax administrator.

B. Information filed with the city to comply with this chapter including, without limitation, amounts of gross receipts, adjustments, credits, overcollections, tax, penalty and interest, is confidential to the extent provided by California law. This section does not apply to disclosures made during the course of any administrative, criminal, or civil proceeding to enforce the provisions of this chapter. Nothing in this chapter prevents the city from disclosing statistical or cumulative information derived from tax returns where the identity of taxpayers is protected.

C. Should an operator fail to pay, or if the city finds that additional taxes are due, the tax administrator may order the operator to furnish additional information or provide adequate security as necessary to ensure collection of any taxes due or to become due, and to remit taxes an a daily or weekly basis. The operator shall thereafter report and remit all taxes due under the terms and conditions prescribed by the tax administrator. The tax administrator may amend or rescind such an order upon the operator's full compliance with this code.

(Ord. 953 § 6, 2002: Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6206.)

(Ord. No. 1157, § 3, 10-24-2018)

A. Action by tax administrator. If any operator fails or refuses to collect and/or remit the tax due to the city and/or fails or refuses to file, within the time provided in this chapter any required report or return with the city, then the tax administrator shall investigate in an appropriate manner to determine an estimate of the tax due. The tax administrator shall make an estimate of all taxes due pursuant to this chapter and shall issue an order for the payment of tax ("order") determining and assessing against such operator the full amount of the taxes, including interest and penalties provided for by this chapter. The order shall briefly describe the basis for the estimate of taxes due. The tax administrator shall serve a copy of the order by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator at the operator's last known address. Within ten consecutive calendar days after the service of such order, the operator may file a written request for administrative review with the tax administrator. The tax administrator shall review the matters in the written request and render a decision within thirty days. If relief is denied, within ten consecutive calendar days, the operator may file an appeal in writing with city manager requesting a hearing on the order. The request for an appeal must be accompanied by an administrative fee in an amount determined by the city council resolution. If an appeal by an operator for a hearing is not made within the said ten-day period, the order shall be deemed, for all purposes, final and conclusive and all sums set forth therein shall be immediately due and payable.

B. Appeals. Upon receipt of a timely filed appeal, the city manager shall give not less than five days written notice to the operator and to any person requesting such notice, of the time and place of the appeal hearing, which shall be set by the city manager. At such hearing, the operator and any interested person may appear and offer relevant evidence as to why the tax, interest and penalties should not be imposed as set forth in the order. Based upon the evidence presented at that hearing, the city manager shall determine the total amount of tax due, together with interest and penalties, if any. The city manager shall affirm or modify the order based upon the evidence presented. The city manager shall serve a copy of the written decision upon the operator and any other person requesting the same. The city manager's action on an order shall be deemed final and conclusive and all sums set forth therein shall be immediately due and payable. The written notice of decision shall provide that an action may be filed with the Superior Court of the state pursuant to Code of Civil Procedure Section 1094.5 by filing said action within ninety days following the date of the city manager's written notice.

(Ord. 953 § 7, 2002: Ord. 950 § 2, 2002: Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6208.)

A. Complimentary Occupancies. Except as provided in subdivision B of this section, a tax shall be imposed for the occupancy of a room in a hotel, where such occupancy is permitted by an operator on a complimentary basis, i.e., without charge, to any person. The amount of the tax imposed upon such complimentary occupancies shall be based upon the rent which would otherwise have been charged for a comparable room or rooms on the date or dates of such complimentary occupancy.

B. Complimentary Services. Unless otherwise required by state law, the value of complimentary services shall not be deducted from the rent for a room and the tax imposed shall be on the full amount of the rent, notwithstanding the value of the complimentary service such as a complimentary meal and/or beverage.

(Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6209.)

A. Registration Cards. The operator of each hotel shall, as each room in a hotel is rented to a transient, fill out and maintain on file registration cards which shall be printed with consecutive numbers, and which contain, at a minimum, the following information:

1. The name of at least one person who will occupy, or who is entitled to occupy, the room;

2. The total number of people who will occupy, or who are entitled to occupy, the room;

3. The identification of each room by number;

4. The date the occupancy commences and the expected date of the departure of the transients; and

5. The daily rate charged and amount collected as and for rent for the room.

B. Daily Summary Sheets. The operator of each hotel shall maintain a dated daily summary sheet for each day the hotel is open for business containing, at a minimum, the following information:

1. The name of at least one person entitled to occupancy of each room which is rented or occupied that day;

2. The room number;

3. The daily rate and amount paid for the rental of the room; and

4. The number of the registration card applicable to the rental of the room.

C. Maid Reports. Each operator shall maintain dated maid reports which shall contain a list of all rooms cleaned on each day during the calendar year.

D. Receipt Book. Each operator shall maintain receipt books with a carbon copy for each receipt issued, or if the operation is computerized, a printout of all charges made on a daily basis.

E. Bank Accounts. The operator shall maintain in a banking institution one or more accounts ("accounts") which shall be used exclusively for the deposit of the receipts of the hotel operation, including rentals and expenditures relating to the hotel. If a deposit is made to such an account, and no written record exists as to its source, the amount(s) shall be deemed to be rent. All receipts from the operation of the hotel shall be deposited in such accounts.

F. Telephone Charges. Each operator shall maintain records which show all telephone, facsimile and related charges for each call made for which a charge is made by the operator or automatic metering equipment.

G. Other Financial Records. After prior notification, each operator shall maintain other financial records as the tax administrator may require.

All of the above records and any other records relevant to the subject matter of the operation of the hotel shall be made available for inspection by the tax administrator within ten calendar days written notice. All records shall be made available for inspection and copying by the city. Any hotel records disclosing the name of any guest or any personal information about a guest shall be treated as confidential by the city.

All of the records referenced in this section, shall be maintained by each operator for a period not less than five years, unless the operator has received notice that the city will be auditing its records or the city is in the process of auditing the operator's records. If the operator has notice of an impending or ongoing audit, then the operator shall keep the required records for the time period specified in the notice until the audit has been completed and all obligations under this section are paid in full; however, under no circumstances shall the records be maintained for less than five years from the date the record was created.

An operator may apply to the tax administrator for modification of the recordkeeping requirements of this section if the operator demonstrates that the operator has an alternate recordkeeping system which provides proper safeguards to ensure compliance with the requirements of this chapter. However, the tax administrator shall not extend the length of time specified in this section that records shall be required to be kept. The decision of the tax administrator may be appealed to the city manager. The decision of the city manager shall be final and conclusive for all matters.

The tax administrator, upon completion of a proceeding which involves the use of records copied from the original records in the possession or custody of an operator shall return all such copies, or, at the direction of such operator, destroy the same. No return or destruction of records shall occur without the written consent of the city attorney.

(Ord. 953 § 8, 2002; Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6210.)

A. 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 chapter, it may be refunded as provided in subsections B, C and D of this section; provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within three years after the date of payment. All such claims shall be on forms furnished by the tax administrator.

B. An operator may claim a refund for, or receive as a credit against taxes collected and remitted, the amount overpaid, paid more than once or erroneously or illegally collected or received when the tax administrator reasonably determines such to be the case, 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 paid by the transient to the operator.

C. 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 and paid the same to the city.

D. An operator may claim a refund for, or receive as a credit against taxes collected and remitted, the amount overpaid by the operator based on the operator's clerical or computation error. The operator shall not be entitled to such a refund or credit until the operator has established the existence of such clerical or computation error to the satisfaction of the tax administrator.

E. No refund shall be paid under the provisions of this section unless the claimant establishes his or her right thereto by written records showing such entitlement.

(Ord. 877 § 2 (part), 1997: Ord. 12 § 1 (part), 1965: prior code § 6211.)

A. Tax as Civil Debt. Any tax required to be paid pursuant to this chapter:

1. Which is collected by an operator and has not been paid to the city in the time prescribed by this chapter, shall be deemed to be a civil debt owed by the operator to the city; and

2. By a transient, which tax is not collected for any reason by the operator whether or not rent is collected by such operator from such transient, the amount of such tax shall be deemed to be a civil debt owed by the operator and the transient to the city.

B. Civil Actions.

1. If a civil action is required to enforce the collection of a tax from any person, and a recovery of such tax in any amount is granted in such a civil judicial proceeding, the city shall be entitled to recover its reasonable attorneys fees, court costs, and its costs of the administrative process under this chapter, including, but not limited to other direct and indirect costs incurred by the city with reference to such litigation.

2. Recording of a Certificate of Lien. If any tax is not paid when due, the tax administrator may record in the office(s) of county recorder(s) of such counties as the tax administrator may determine, a certificate which specifies the amount of tax due and the name and address of the operator owing the tax. The certificate shall include a statement that the tax administrator has complied with all legal requirements in the determination of the tax owed and a legal description of the real property of the owner. Upon recording of the certificate, the tax constitutes a lien upon all real property owned or thereafter acquired by the operator. The lien has the force, effect and priority of a judgment lien.

(Ord. 953 § 9, 2002: Ord. 877 § 2 (part), 1997: Ord. 814 § 3, 1994: Ord. 12 § 1 (part), 1965: prior code § 6212.)

A. Any operator liable for any tax who sells or otherwise disposes of a hotel, and the operator's successor, shall notify the tax administrator of the date of sale at least thirty days prior to the date of the sale or immediately if the agreement to sell or otherwise dispose of the hotel was made less than thirty days prior to the date of the sale. The successor shall withhold from the operator in trust for the city a portion of the purchase price sufficient to pay the amount of the tax owed to the city until the operator secures a written tax clearance notification from the tax administrator stating that no tax is due from the operator through the date of the sale. If no tax clearance notification is presented by the operator to the successor within thirty days after the successor commences operation of the hotel, the successor shall immediately deposit with the tax administrator the amount withheld from the purchase price to be applied to the amount of the tax owed by the prior operator.

B. If the successor fails to withhold the amount required by this chapter, the successor is liable to the city for payment of the tax owed by the operator.

C. The tax administrator shall, within thirty days of receipt of a written request for a tax clearance notification, either issue the notification or give written notice to the operator, with a copy to the successor, of the amount of tax which must be paid to secure issuance of the tax clearance notification. The tax clearance notification shall be a defense, available solely to the successor and not the operator, to any claim the city may assert against the successor for taxes owed by the operator.

D. Any operator from which the successor has withheld and paid to the city a portion of the purchase price may challenge the city's determination pursuant to Section 3.16.080, by making application in writing for a hearing on the amount determined by the city within ten days of mailing by the tax administrator. Following receipt of a timely request for hearing, the hearing provisions of Section 3.16.080 shall apply.

(Ord. 953 § 10 (part), 2002)

All remedies prescribed by this chapter or any other provisions of law and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

(Ord. 953 § 10 (part), 2002)

A. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty in an amount equal to ten percent of the amount of the tax due, per month, in addition to the amount of the tax, until the tax is paid in full, or the total penalty equals one hundred percent of the tax due.

B. If the tax administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties referred to in Subsection A of this Section, 3.16.130.

C. Every penalty imposed upon a tax levied pursuant to this chapter shall be deemed for the purpose of collection merged in the tax to which it relates and the full amount thereof shall be due, payable and subject to collection as provided in this chapter.

D. Interest equal to one percent per month on the full amount of taxes, calculated from the first day immediately following the due date to the date of payment shall be added to the tax.

(Ord. 953 § 11, 2002: Ord. 877 § 2 (part), 1997: Ord. 814 § 4, 1994; Ord. 12 § 1 (part), 1965: prior code § 6207.)

A. No reports or statements of an operator shall be conclusive as to any matter affected by this chapter nor shall the city be precluded from collecting any sum actually due and payable. Each report or statement and each of the items therein are subject to audit and verification by an auditor appointed by the city.

B. The tax administrator may require any operator, upon reasonable written notice, to provide the tax administrator with access to all of the operator's books and records relating to the operator's operation of the hotel, including rents charged by such operator which are subject to a tax pursuant to this chapter. If, as a result of any such audit, it is determined that a return required to be filed by such operator pursuant to Section 3.16.070 hereof is inaccurate and did not include and report the correct amount of tax due pursuant to this chapter, the operator shall forthwith pay to the city all taxes which are shown to be due as a result of such audit, regardless of whether the operator collected such taxes.

C. Every operator shall keep and preserve for a period of not less than five years all records as may be necessary to determine the tax, which records shall be made available upon demand of the city at all reasonable times. Such operator shall permit an examination of such books and records at a location within the city's jurisdiction.

D. If an audit conducted pursuant to the provisions of this Section 3.16.140 reflects that in any calendar month there was under-reporting of taxes due by five percent or more, which under-reporting was not corrected by the operator prior to the commencement of the audit, all costs associated with the audit shall be borne by the operator and the cost thereof shall be subject to collection as a civil debt by the city.

(Ord. 953 § 12, 2002: Ord. 814 § 5, 1994.)

A. If the operator determines that a transient is exempt from the payment of the tax pursuant to the provisions of this chapter, the operator shall file a copy of each claim under Section 3.16.040(C) with the tax administrator not later than the date upon which the next return required by this chapter is required to be filed with the tax administrator.

B. Claims for exemptions shall be made on forms provided for that purpose by the tax administrator. All information required on the form shall be completed by the person who claims to be exempt from payment of the tax. Each operator is obligated to review each claim to ensure that it is fully completed. When an operator submits to the tax administrator a claim of exemption which is either not timely filed or is incomplete, the tax administrator shall reject such claim of exemption and give the operator a brief statement of reasons therefor. When the rejection is based upon the form not being properly completed, the operator may within ten consecutive calendar days from the date of return of the rejected claim for exemption refile the same with all information required to be placed thereon included in the refiled claim.

C. When a claim of exemption is defective, the operator:

1. Shall be responsible for all taxes due with respect to the purported exempt transient; and

2. Shall pay to the city a service charge of five dollars ("service charge") for each claim of exemption which is rejected by the tax administrator as incomplete or inappropriate; and

3. The tax administrator shall give notice to the operator of all taxes due as a result of rejection of the exemption claims and the amount of service charges imposed. The operator shall pay all sums due within ten working days of notification.

D. The amount of the service charge shall be increased on or after January 1st of each year in an amount equal to the increase in the consumer price index for all urban consumers (Los Angeles-Riverside-Orange County) during the preceding calendar year. For the purpose of this chapter, service charges imposed shall be deemed for all purposes to have merged into the tax due, and shall be subject to collection in the time and manner as set forth in this chapter.

E. If an operator consistently files claim forms which are either not timely filed, or are incomplete, the tax administrator may require the operator to place a cash deposit in an amount not to exceed two hundred fifty dollars with the tax administrator for the purpose of ensuring that taxes due and service charges imposed as a result of defective claims for exemption are timely paid. If such a deposit is required, the operator shall maintain the deposit in an amount not less than that set by the tax administrator.

(Ord. 896 § 1, 1998: Ord. 877 § 2 (part), 1997.)

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than one thousand dollars or by imprisonment in the county jail for a period of not more than six months or by both such fine and imprisonment.

(Ord. 877 § 2 (part), 1997.)