Compton Municipal Code § 3-2 Transient Occupancy Tax

[1]

Editor's Note: For statutory provisions concerning the City's power to tax hotels and lodging houses, see Gov. Code § 51030.

[Added by Ord. #1267, § 6900; adopted June 1, 1965; tax imposed eff. July 1, 1965]

This section shall be known as the Uniform Transient Occupancy Tax Law of the City.

[Added by Ord. #1267, § 6901]

As used in this section:

HOTEL

Shall mean 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 shall include 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, or portion thereof.

OCCUPANCY

Shall mean 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.

OPERATOR

Shall mean the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee 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 section and shall have the same duties and liabilities as his principal. Compliance with the provisions of this section by either the principal or the managing agent, shall however, be considered to be compliance by both.

PERSON

Shall mean 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

Shall mean 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, property, and services of any kind or nature, without any deduction therefrom whatsoever.

TRANSIENT

Shall mean any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 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 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 this section may be considered.

[Added by Ord. #1267, § 6902; Ord. #1326; tax imposed eff. Oct. 1, 1968; Ord. #1656, § 1]

For the privilege of occupancy in any hotel, such transient shall be subject to and shall pay a tax in the amount of 7.5% of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at 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 that tax due is not paid to the operator of the hotel, the City Controller may require that such tax shall be paid directly to the City Controller.

[Added by Ord. #1267, § 6903]

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 provided for in this section;

b. Any Federal or State officer or employee when on official business; or

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

[Added by Ord. #1267, § 6904]

Each operator shall collect the tax imposed by this section 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 this section.

[Added by Ord. #1267, § 6905]

Within 30 days after the effective date of this section or within 30 days after commencing business, whichever is later, each operator of any hotel renting an occupancy to transients shall register such hotel with the City Controller and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. Such 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; and

d. A statement as follows: "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law by registering with the City Controller for the purpose of collecting from transients the Transient Occupancy Tax and remitting such tax to the City Controller. 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 board, commission, department, or office of this City. This certificate does not constitute a permit."

[Added by Ord. #1267, § 6906; Ord. #1656, § 3]

Each operator shall, on or before the last day of each month, or at the close of any shorter reporting period which may be established by the City Controller, make a return to the City Controller, on forms provided by him, 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 City Controller. The City Controller may establish shorter reporting periods for any certificate holder if he deems it necessary in order to ensure collection of the tax, and he may require further information in the return. Returns and payments shall be due immediately upon cessation of business for any reason. 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 City Controller.

[Added by Ord. #1267, § 6907; Ord. #1656, § 2]

a. Original Delinquency. Any operator who shall fail to remit any tax imposed by the provisions of this section within the time required shall pay a penalty of 15% of the amount of the tax in addition to the amount of the tax.

b. Continued Delinquency. Any operator who shall fail to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquent penalty of 15% of the amount of the tax in addition to the amount of the tax and the 15% penalty first imposed.

c. Fraud. If the City Controller determines that the nonpayment of any remittance due pursuant to the provisions of this section is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in paragraphs a and b of this subsection.

d. Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this section shall pay interest at the rate of 1 1/2% 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. Penalties Merged with Tax. Every penalty imposed, and such interest as accrues pursuant to the provisions of this subsection shall become a part of the tax required to be paid by the provisions of this section.

[Added by Ord. #1267, § 6908]

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 such tax, or any portion thereof, required by the provisions of this section, the City Controller 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 City Controller shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by the provisions of this section and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the City Controller shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by this Chapter. In the event such determination is made, the City Controller 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 10 days after the serving or mailing of such notice, make application in writing to the City Controller 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 City Controller shall become final and conclusive and immediately due and payable. If such an application is made, the City Controller 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 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 City Controller shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed 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 15 days unless an appeal is filed as provided in subsection 3-2.10.

[Added by Ord. #1267, § 6909]

Any operator aggrieved by any decision of the City Controller 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 within 15 days after 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 his 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 section for the service of the notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice.

[Added by Ord. #1267, § 3910]

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions of this section 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 and payment to the City, which records the City Controller shall have the right to inspect at all reasonable times.

[Added by Ord. #1267, § 6911]

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 section, it may be refunded as provided in paragraphs 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 City Controller within three years of the date of payment. The claim shall be on forms furnished by the City Controller.

b. 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 when it is established in a manner prescribed by the City Controller that the person from whom the tax has been collected was not a transient; provided, however, 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, paid more than once, or erroneously or illegally collected or received by the City by filing a claim in the manner provided in paragraph a of this subsection but only when the tax was paid by the transient directly to the City Controller, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the City Controller that the transient has been unable to obtain a refund from the operator who collected the tax.

d. No refund shall be paid pursuant to the provisions of this section unless the claimant shall establish his right thereto by written records showing entitlement thereto.

[Added by Ord. #1267, § 6912]

Any tax required to be paid by any transient pursuant to the provisions of this section shall be deemed a debt owed by the transient to the 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 pursuant to the provisions of this section shall be liable to an action brought in the name of the City for the recovery of such amount.

[Added by Ord. #1267, § 6913]

Any person violating any of the provisions of this section shall be guilty of a misdemeanor and shall be liable to the penalty established in Chapter 1, Section 1-6.

Any operator or other person who fails or refuses to register as required by the provisions of this section, 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 City Controller, or who renders a false or fraudulent return or claim shall be guilty of a misdemeanor and punishable as provided in this section. 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 section to be made shall be guilty of a misdemeanor and punishable as provided in this section.