Corcoran Municipal Code Ch. 2 Taxes

ARTICLE A. UNIFORM LOCAL SALES AND USE TAX

SECTION:

This Chapter shall be known as the UNIFORM LOCAL SALES AND USE TAX ORDINANCE. (Ord. 297)

The rate of sales tax and use tax imposed by this Chapter shall be .98 percent. (Ord. 297)

This Chapter shall be operative on January 1, 1974. (Ord. 297)

The City Council hereby declares that this Chapter is adopted to achieve the following, among others, purposes and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in part 1.5 of division 2 of the Revenue and Taxation Code (commencing with section 7200);

B. To adopt a sales and use tax ordinance which incorporates provisions identical to those of the sales and use tax law of the State insofar as those provisions are not inconsistent with the requirements and limitations contained in part 1.5 of division 2 of the Revenue and Taxation Code;

C. To adopt a sales and use tax ordinance which imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State sales and use taxes;

D. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of part 1.5 of division 2 of the Revenue and Taxation Code, minimize the cost of collecting City sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this Chapter. (Ord. 297)

Prior to the operative date, this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax Chapter; provided, that if this City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this Chapter. (Ord. 297)

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the City at the rate stated in Section 3-2A-2 of this Chapter of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after the operative date. (Ord. 297)

For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his/her agent to an out-of-State destination or to a common carrier for delivery to an out-of-State destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. 297)

An excise tax is hereby imposed on the storage, use or other consumption in this City of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this City at the rate stated in Section 3-2A-2 of this Chapter of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. (Ord. 297)

Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of part 1.5 of division 2 of the Revenue and Taxation Code, all of the provisions of part 1 of division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this Chapter as though fully set forth herein. (Ord. 297)

In adopting the provisions of part 1 of division 2 of the Revenue and Taxation Code (commencing with section 6001), wherever the State is named or referred to as the taxing agency, the name of this City shall be substituted therefor. The substitution, however, shall not be made when the word "State" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury or the Constitution of the State of California; the substitution shall not be made when the result of that substitution would require action to be taken by or against the City, or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of part 1 of division 2 of the Revenue and Taxation Code, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provisions of that Code; the substitution shall not be made in sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in section 6203 or in the definition of that phrase in section 6203. (Ord. 297)

If a seller's permit has been issued to a retailer under section 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this Chapter. (Ord. 297)

There shall be excluded from the measure of tax, and the amount subject to tax shall not include such items, conditions and activities as provided for in the California Revenue and Taxation Code. (1996 Code)

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with part 1.5 of division 2 of the Revenue and Taxation Code shall automatically become a part of this Chapter. (Ord. 297)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or this City, or against any officer of the State or this City, to prevent or enjoin the collection under this Chapter, or part 1.5 of division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 297)

Any person violating any of the provisions of this Chapter shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be subject to penalty as provided in Section 1-4-1 of this Code. (Ord. 297; 1996 Code)

ARTICLE B. TRANSIENT OCCUPANCY TAX

SECTION:

Except where the context otherwise requires, the definitions given in this Section shall govern the construction of this Chapter.

HOTEL: 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: The use or possession, or the right to the use or possession, of any room, or portion thereof, in any hotel for dwelling, lodging, or sleeping purposes.

OPERATOR: 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/her 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/her principal. Compliance with the provisions of this Chapter by either the principal or the managing agent, however, shall be considered to be compliance by both.

PERSON: 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: 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: 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 thirty (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 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 Chapter may be considered. (Ord. 456 N.S., 7-5-1988)

For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of eight percent (8%) 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 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 Director of Finance may require that such tax be paid directly to the Director of Finance. (Ord. 456 N.S., 7-5-1988)

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 Chapter;

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

C. Any officer or employee of a foreign government, which officer or employee is exempt by reason of express provisions of Federal law or international treaty; or

D. Any occupant whose rent is of a value of less than two dollars ($2.00) per day.

No exemption shall be granted pursuant to subsections A, B, and C of this Section except upon a claim therefor made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Director of Finance. (Ord. 456 N.S., 7-5-1988)

Each operator shall collect the tax imposed by the provisions of 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 this Chapter. (Ord. 456 N.S., 7-5-1988)

Within thirty (30) days after commencing business, each operator of any hotel renting an occupancy to transients shall register such hotel with the Director of Finance and obtain 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;

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 Director of Finance for the purpose of collecting from transients the transient occupancy tax and remitting such tax to the Director of Finance. 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 shall not constitute a permit"; and

E. Such additional information as may be required by the Director of Finance. (Ord. 456 N.S., 7-5-1988)

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 Director of Finance, make a return to the Director of Finance, 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 Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if deemed necessary in order to insure collection of the tax, and 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 the provisions of this Chapter shall be held in trust for the account of the City until payment thereof is made to the Director of Finance. (Ord. 456 N.S., 7-5-1988)

If a remittance to cover a payment required by the provisions of this Chapter to be made to the Director of Finance on or before a specified date is sent through the United States mail, properly addressed, with postage prepaid, it shall be deemed to have been received by the Director of Finance on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance or on the date it was mailed if proof satisfactory to the Director of Finance establishes that the mailing occurred on an earlier date. Nothing in this Section shall be construed as constituting payment of any remittance required unless such remittance is actually received by the Director of Finance. (Ord. 456 N.S., 7-5-1988)

A. Original Delinquency: Any operator who shall fail to remit any tax imposed by the provisions of this Chapter within the time required shall pay a penalty in the amount of ten percent (10%) 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 thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty in the amount of ten percent (10%) of the tax in addition to the amount of the tax and the ten percent (10%) penalty first imposed.

C. Fraud: If the Director of Finance shall determine that the nonpayment of any remittance due pursuant to the provisions of this Chapter is due to fraud, a penalty in the amount of twenty five percent (25%) of the amount of the tax shall be added thereto in addition to the penalties set forth in subsections A and B of this Section.

D. Interest: In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this Chapter shall pay interest at the rate of one-half of one percent (.5%) 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 And Interest Merged With Tax: Every penalty imposed, and such interest as accrues, pursuant to the provisions of this Section, shall become a part of the tax required to be paid by the provisions of this Chapter. (Ord. 456 N.S., 7-5-1988)

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 Chapter, the Director of Finance shall proceed in such manner as may be deemed best to obtain the facts and information on which to base the estimate of the tax due. As soon as the Director of Finance shall procure such facts and information as is able to be obtained upon which to base the assessment of any such tax imposed by the provisions of this Chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the Director of Finance shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the provisions of this Chapter. In the event such determination is made, the Director of Finance shall give 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/her last known place of address. Such operator may, within ten (10) days after the service or mailing of such notice, make an application in writing to the Director of Finance 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 Director of Finance shall become final and conclusive and immediately due and payable. If such an application is made, the Director of Finance shall give not less than five (5) 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 shall not be so fixed. After such hearing the Director of Finance shall determine the proper tax to be remitted and shall thereafter give written notice to the operator 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 fifteen (15) days after the service or mailing of such notice unless an appeal is filed as provided in Section 3-2B-11 of this Chapter. (Ord. 456 N.S., 7-5-1988)

If the Director of Finance is not satisfied with a return filed by an operator or the amount of the tax required to be paid to the City pursuant to a return, he/she may compute and determine the amount required to be paid upon the basis of the facts contained in the return or upon the basis of any information within his/her possession, or that may come into his/her possession. One or more deficiency determinations may be made of the amount due for any period. The Director of Finance shall give to the operator written notice of the determination in the same manner as provided in Section 3-2B-9 of this Chapter. The operator shall be entitled to apply for a hearing on the amount assessed to him/her pursuant to the procedure set forth in Section 3-2B-9 of this Chapter and shall thereafter be entitled to appeal to the Council in accordance with the provisions of Section 3-2B-11 of this Chapter. The penalties and interest provided in Section 3-2B-8 of this Chapter shall be applicable to the amount of deficiency established pursuant to the provisions of this Section. (Ord. 456 N.S., 7-5-1988)

Any operator aggrieved by any decision of the Director of Finance 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 fifteen (15) 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 his/her last known place of address. The decision of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this Chapter for the service of a notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. 456 N.S., 7-5-1988)

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 Chapter to keep and preserve, for a period of three (3) years and six (6) months, all records as may be necessary to determine the amount of such tax as he/she may have been liable for the collection of and payment to the City, which records the Director of Finance shall have the right to inspect at all reasonable times. (Ord. 456 N.S., 7-5-1988)

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 by the City pursuant to the provisions of this Chapter, such amount may be refunded as provided in subsections 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 Director of Finance within three (3) years after the date of payment. The claim shall be on forms furnished by the Director of Finance.

B. Any 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 Director of Finance 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 subsection A of this Section but only when the tax was paid by the transient directly to the Director of Finance, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Director of Finance 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 establishes his/her right thereto by written records showing entitlement thereto. (Ord. 456 N.S., 7-5-1988)

Any tax required to be paid by any transient pursuant to the provisions of this Chapter 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 Chapter shall be liable to an action brought in the name of the City of the recovery of such amount. (Ord. 456 N.S., 7-5-1988)

All funds collected pursuant to the provisions of this Chapter, including interest and penalties collected for delinquencies, shall be deposited in the General Fund and shall be used for the purposes for which such Fund may be used. Any refund paid pursuant to the provisions of this Chapter shall be paid out of such Fund. (Ord. 456 N.S., 7-5-1988)

Any operator or other person who fails or refuses to register as required, 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 Director of Finance, or who renders a false or fraudulent return or claim shall be guilty of an infraction. Any person required to make, render, sign or verify any report or claim and who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by the provisions of this Chapter to be made shall be guilty of an infraction. (Ord. 456, N.S., 7-5-1988)