Chico Municipal Code § 3.52.010 Short title

This chapter shall be known as, and for all purposes may be referred to as, the Uniform Transient Occupancy Tax Law of the City of Chico.

(Prior code § 25.75 (Ord. 849 §1 (part)))

Except where the context otherwise requires, the definitions given in Sections 3.52.030 to 3.52.070 govern the construction of this chapter.

(Prior code § 25.76 (Ord. 849 §l (part)))

Hotel means any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging or sleeping purposes, and is held out as such to the public and includes, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, short-term home-sharing and/or vacation rental unit under thirty-one days, dormitory, public or private club, mobile home or house trailer, at a fixed location, or other similar structure or portion thereof. Short-term home-sharing and/or vacation rental-units consist of home-sharing, where a residential or dwelling unit is shared. in whole or in part, and/or vacation rentals, where the residential or dwelling unit is exclusively used for occupancy as defined in this Chapter.

(Prior code §25.76-2 (Ord. 849 §l (part), Ord. 2512 §2))

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

(Prior code § 25.76-3 (Ord. 849 §1 (part)))

Transient means any person who exercises occupancy, or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement, for less than thirty-one consecutive calendar days. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. Any person occupying space in a hotel shall be deemed a transient until a period of thirty-one days has expired, except in a hotel qualifying as exempt under the provisions of Section 3.52.090.

(Prior code § 25.76-4 (Ord. 849 §1 (part)))

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 all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever; provided, however, that “rent” shall not include lodging furnished in kind to an employee by an employer solely for the convenience of the employer.

(Prior code § 25.76-5 (Ord. 849 §1 (part)))

Operator means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. When the operator performs operator’s 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 purpose of this chapter and shall have the same duties and liabilities as managing agent’s 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.

(Prior code § 25.76-6 (Ord. 849 §1 (part)), Ord. 2268)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 10 percent of the rent charged by the operator. Such 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 finance director may require that such tax be paid directly to the finance director.

(Prior code § 25.77 (Ord. 849 §1 (part), Ord. 906 §1, Ord. 1268 §1, Ord. 1737 §1), Ord. 1985 §1)

A. No tax shall be imposed upon 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.

B. No tax shall be imposed upon the occupants of a hotel, nor shall the provisions of this chapter apply to the owner or operator of a hotel that has had issued to it a “Nontransient Occupancy Registration Certificate” by the finance director, as authorized by this chapter.

(Prior code § 25.78 (Ord. 849 §1 (part), Ord. 2113 §1))

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 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.

(Prior code § 25.79 (Ord. 849 §1 (part), Ord. 1972 §1)

Within thirty days after the effective date of this chapter, or within thirty days after commencing business, whichever is later, the operator of any hotel shall register that fact with the finance director upon forms provided, setting out all information required thereon to enable the finance director to determine as to whether said operator is operating a transient or nontransient business. If required information is or has been furnished by the operator at the time of application for a business license, the finance director need not require any additional form or certificate by the operator.

(Prior code § 25.80 (Ord. 849 §1 (part), Ord. 2113 §1))

When the information furnished to the finance director as required by Section 3.52.110, establishes that the operator of the hotel is in the business of renting to transients, the finance director shall issue to the operator a Transient Occupancy Registration Certificate. Such certificate shall be in the form approved by the finance director containing the words Transient Occupancy Registration Certificate with such additional legend in words and/or numerals as the finance director shall determine necessary to give appropriate notice to hotel guests that the licensee has complied with the registration requirements of this chapter.

(Prior code §25.80-1 (Ord. 849 §1 (part), Ord. 2113 §1, Ord. 2512 §3))

When the information furnished to the finance director as required by Section 3.52.110, establishes that the operator of the hotel is in the business of renting to nontransients, the finance director shall issue to the operator a Nontransient Occupancy Registration Certificate. Such certificate shall be in the form approved by the finance director containing the words Nontransient Occupancy Registration Certificate with such additional legend in words and/or numerals as the finance director shall determine necessary to give appropriate notice to hotel guests that the licensee has complied with the registration requirements of this chapter.

(Prior code §25.80-2 (Ord. 849 §1 (part), Ord. 2113 §1, Ord. 2512 §4))

Each transient operator shall, on or before the last day of each month, make a return to the finance director, on forms provided by the finance director, of the total rents charged and the amount of tax due for transient occupancies for the preceding month. At the time the return is filed, the full amount of the tax due shall be remitted to the finance director. Returns and payments are due immediately upon cessation of business for any reasons. All taxes due by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the finance director.

(Prior code § 25.81 (Ord. 849 §1 (part), Ord. 1972 §2, Ord. 2113 §1), Ord. 2268)

A. Tax due date. Tax due date means the last day of the month following the month in which the tax shall be collected by an operator from a transient.

B. Failure to pay. If an operator fails to pay the tax to the city on the tax due date, the operator is in violation of this section and a penalty shall be assessed by the finance director on the first day of each calendar month following the tax due date. The penalty shall be assessed as follows:

1. First violation within a six-month period - ten percent (10%) of the amount of the unpaid tax shall be added on the first day of each calendar month after the tax due date until the tax is paid.

2. Second and subsequent violations within a six-month period - fifteen percent (15%) of the amount of the unpaid tax shall be added on the first day of each calendar month after the tax due date until the tax is paid.

3. The cumulative penalty applicable to the unpaid tax for any month shall not exceed fifty percent (50%) of the amount of the tax due.

C. Interest accrued. In addition to the penalties imposed pursuant to subsection B, any operator who fails to pay to the city, on the tax due date, any tax imposed by this chapter shall pay interest at the rate of one percent per month, or fraction thereof, on the amount of the unpaid tax, exclusive of penalties, from the date the tax first became delinquent and until paid.

(Prior code § 25.82 (Ord. 849 §1 (part), Ord. 1511, Ord. 1924 §3, Ord. 2113 §1, Ord. 2151 §5, Ord. 2314))

A. If any operator shall fail or refuse to collect such tax, and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the finance director shall proceed in such manner as the finance director may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the finance director shall procure such facts and information able to be obtained 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, the finance director shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by this chapter.

B. In case such determination is made, the finance director shall give a notice of the amount assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at the operator’s last known place of address. Such operator may, within 10 days after the serving or mailing of such notice, make application in writing to the city manager for a hearing on the amount assessed.

1. 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 finance director shall become final and conclusive, and immediately due and payable.

2. If such application is made, the city manager 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 such notice why such amount specified therein should not be fixed for such tax, interest, and penalties.

a. At such hearing, the operator may appear and offer evidence why such specified tax, interest, and penalties should not be so fixed.

b. After such hearing, the city manager 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.

c. The amount determined to be due shall be payable after 15 days, unless an appeal is taken as provided in this chapter.

(Prior code § 25.83 (Ord. 849 §1 (part), Ord. 2113 §1), Ord. 2268)

Any operator aggrieved by any decision of the finance director or the city manager with respect to the amount of such tax, interest, and penalties, if any, may appeal to the council by filing a notice of appeal with the city clerk within15 days of the serving or mailing of the determination of 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 operator’s 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 above for service of notice of hearing. Any amount found to be due shall immediately be due and payable upon the service of notice.

(Prior code § 25.84 (Ord. 849 §1 (part), Ord. 2113 §1), Ord. 2268)

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 one year, all records as may be necessary to determine the amount of such tax as the operator may have been liable for the collection of and payment to the city, which records the finance director shall have the right to inspect at all reasonable times.

(Prior code § 25.85 (Ord. 849 §1 (part), Ord. 2113 §1), Ord. 2268, Ord. 2418 §1)

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 subparagraphs B and C 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 finance director within one year of the date of payment. The claim shall be on forms furnished by the finance director.

B. An operator may claim a refund or, at the option of the city, take as credit against taxes to be 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 finance director 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. 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 subparagraph A of this section, but only when the tax was paid directly by the transient to the finance director, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the finance director that the transient has been unable to obtain a refund from the operator who collected the tax.

D. No refund shall be paid under the provisions of this section unless the claimant establishes a right thereto by written records showing entitlement thereto.

(Prior code § 25.86 (Ord. 849 §1 (part), Ord. 2113 §1), Ord. 2268, Ord. 2418 §2)

Any tax required to be paid by any transient under the provisions of this chapter 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, in any court of competent jurisdiction within the county, or within the county of residence of such person, at the option of the finance director, for the recovery of such amount.

(Prior code § 25.86-1 (Ord. 849 §1 (part), Ord. 2113 §1))

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 five hundred dollars, or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

Any operator or other person 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 finance director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination or any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Prior code § 25.87 (Ord. 849 §1 (part), Ord. 2113 §1))

All revenues derived from the taxes imposed by this chapter shall be deposited in the city's general fund and thereafter appropriated by the city council for any municipal purpose; provided, however, that the city council shall, in each fiscal year, endeavor to appropriate 40% of such revenues for the promotion of tourism, economic development, the support of a community center, community art projects, and for any other similar community projects or programs.

(Ord. 1737 §2, Ord. 1985 §2)