Colton Municipal Code Ch. 3.24 Transient Occupancy Tax

This chapter Shall be known as the "Uniform Transient Occupancy Tax Ordinance of the City of Colton."

(Ord. 1304 § 1, 1967)

Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter.

"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 includes any Hotel, inn, tourist home or house, Motel, studio Hotel, bachelor Hotel, lodging house, rooming house, Apartment house, dormitory, public or Private Club, Mobilehome or house trailer at a fixed location, or other similar Structure or portion thereof.

"Occupancy" means the Use or possession, or the right to Use, or possession of any room or rooms or portion thereof, in any Hotel for Dwelling, lodging or sleeping purposes.

"Operator" means the Person who is proprietor of the Hotel, whether in the capacity of Owner, lessee, sublessee, mortgage in possession, licensee or any other capacity. Where the Operator performs his 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 purposes of this chapter and Shall have the same duties and liabilities as his 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.

"Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, Business trust, receiver, Trustee, syndicate or any other group or combination acting as a unit.

"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 receipt, cash, credits and Property and services of any kind or nature, without any deduction therefrom whatsoever.

"Tax Administrator" means City Manager or such other City Employee/official, as Shall be Designated by the City Council.

"Transient" means any Person who exercises Occupancy or is entitled to occupy by reason of concession, Permit, right of Access, license or other agreement for a period of thirty consecutive calendar Days or less, counting portions of calendar Days as full Days. Any such Person so occupying space in a Hotel Shall be deemed to be a Transient until the period of thirty Days has expired unless there is an agreement in writing between the Operator and the Occupant providing for a longer period of Occupancy. Any individual who exercises or is entitled to Occupancy for a period of thirty Days or less Shall be deemed to be a Transient, regardless of whether the reservation and payment or payment for Occupancy is made directly by the individual exercising Occupancy or another individual or entity. The intent is to tax the individual occupying the Hotel room.

For purposes of this definition, the exercise of or entitlement to Occupancy Shall be evidenced by any of the Following:

1. An individual's signature on a Hotel registration card or form, a Hotel invoice or receipt or any other document associated with an individual's Occupancy in a Hotel; and/or

2. An individual's providing identification to Hotel staff as proof of employment, membership or affiliation with a Person as defined in subsection D. of this section as a condition of or in connection with exercising Occupancy in a Hotel.

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 chapter May be considered.

(Ord. 0-17-03 § 1, 2003; Ord. 1304 § 2, 1967)

For the privilege of Occupancy in any Hotel, each Transient is subject to and Shall pay a tax in the amount of ten 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 of the Hotel at the same time the Rent is paid. If the Rent is paid in installments, proportionate share of the tax Shall be paid with each installment. The unpaid tax Shall be due when the Transient ceases 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. 1639, 1983: Ord. 1472 § 1, 1975: Ord. 1312 § 1, 1967: Ord. 1304 § 3, 1967)

No tax Shall 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 the tax herein provided;

B. Any Federal or State Officer or Employee when on official Business;

C. Any officer or Employee of a foreign government who is exempt by reason of express provision of Federal Law or international treaty.

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

(Ord. 1304 § 4, 1967)

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 provided in Section 3.24.160.

(Ord. 1304 § 5, 1967)

Within thirty Days after July 20, 1967, or within thirty Days after commencing Business, whichever is later, each Operator of any Hotel Renting Occupancy to Transients Shall register the Hotel with the Tax Administrator and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the Premises. The certificate Shall, among other things, state the Following:

A. The name of the Operator;

B. The address of the Hotel;

C. The date upon which the certificate was issued;

D. "This Transient Occupancy Registration Certificate signifies that the Person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from Transient the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does 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 board, Commission, Department or office of this City. This certificate does not constitute a Permit."

(Ord. 1304 § 6, 1967)

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 reporting period which May be established by the Tax Administrator, make a return to the Tax Administrator, on forms provided by him, of the total Rents charged or chargeable as provided in Section 3.24.030, whether or not received, including any Rentals charged for occupancies exempt under the provisions of Section 3.24.020(D) and Section 3.24.040 and the amount of tax collected for Transient occupancies. Amounts claimed on the return as exempt from the tax under Section 3.24.020(D) and Section 3.24.040 Shall be fully itemized and explained on the return or supporting schedule. 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 he deems it necessary in order to insure collection of the tax and he May require further information in the return. 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.

Each Operator Shall notify the Tax Administrator ten Days prior to the Sale or cessation of Business for any reason, and returns and payments are due and payable to the Tax Administrator immediately upon the Sale or cessation of Business.

(Ord. 1304 § 7, 1967)

Any Operator who fails to remit any tax imposed by this chapter within the time required in Section 3.24.070, Shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

(Ord. 1304 § 8(a), 1967)

Any Operator who fails to remit any delinquent remittance on or before a period of thirty calendar Days Following the date on which the remittance first became delinquent Shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed.

(Ord. 1304 § 8(b), 1967)

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 stated in Sections 3.24.080 and 3.24.090.

(Ord. 1304 § 8(c), 1967)

In addition to the penalties imposed, any Operator who fails to remit any tax imposed by this chapter Shall pay interest at the rate of one-half of one percent 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.

(Ord. 1304 § 8(d), 1967)

Every penalty imposed and such interest as accrues under the provisions of Sections 3.24.080 through 3.24.110 Shall become a Part of the tax herein required to be paid.

(Ord. 1304 § 8(e), 1967)

If any Operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report or remittance of said tax or any portion thereof required by this chapter, the Tax Administrator 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 Administrator Shall procure such facts and information as he is able to obtain 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, he Shall proceed to determine and assess against such Operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Tax Administrator Shall give a 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 his last known place of address. Such Operator may, within ten Days after the serving or mailing of such Notice, make Application in writing to the Tax Administrator for a hearing on the amount assessed. If Application by the Operator for a hearing is not made within the prescribed time, the tax, interest and penalties, if any, determined by the Tax Administrator Shall become final and conclusive and immediately due and payable. If such Application is made, the Tax Administrator 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 the Notice why the amount specified therein 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 Shall determine the proper tax to be remitted and Shall thereafter give Written Notice to the Operator in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due Shall be paid within fifteen Days unless an Appeal is taken as provided in Section 3.24.140.

(Ord. 1304 § 9, 1967)

Any Operator aggrieved by any Decision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, May Appeal to the City Council by filing a Notice of Appeal with the City Clerk within fifteen Days of the serving or determination of tax due, as provided in Section 13.24.130. The City Council Shall fix a time and place for hearing such Appeal, and the City Shall give Notice in writing to such Operator at his last known place of address. The findings of the City 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 be immediately due and payable upon the service of Notice.

(Ord. 1304 § 10, 1967)

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 three Years, all records as May be necessary to determine the amount of such tax as he May have been liable for the collection of any payment to the City, which records the Tax Administrator Shall have the right to inspect at all reasonable times.

(Ord. 1304 § 11, 1967)

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 A. and B. of this section, provided that 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 of the date of the payment. The claim Shall be on forms furnished by the Tax Administrator.

A. An Operator May claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received by the City 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; provided, however, that neither a refund nor a credit Shall be allowed unless the amount of the tax so collected and remitted by the Operator has either been refunded to the Transient or credited to Rent subsequently payable by the Transient, such refund or credit made by the Operator.

B. 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 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.

C. No refund Shall be paid under the provisions of this section unless the claimant establishes his right thereto by Written records showing entitlement thereto.

(Ord. 1304 § 12, 1967)

Any tax required to be paid by any Transient under the provisions of this chapter Shall be deemed a debt owed by the Transient to this City. Any such tax collected by an Operator which has not been paid to the City 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 in the name of the City for the recovery of such an amount.

(Ord. 1304 § 13, 1967)

Any Person violating any of the provisions of this chapter is 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 fails to furnish any return required to be made, or fails or refuses to furnish a supplemental return or other data required by the Tax Administrator, 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 of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Ord. 1304 § 14, 1967)