Del Rey Oaks Municipal Code Ch. 3.08 Admission Tax

For purposes of this chapter, certain words and phrases shall be construed as follows:

Admission charge means any charge, whether or not so designated, for the right or privilege to enter, occupy or use a seat or space in any facility as hereinafter defined as a spectator or otherwise, or to participate as a patron in any event. It shall also mean season passes or subscriptions but shall not include complimentary, promotional or otherwise free-of-charge tickets or passes given by any operator or person. The term shall also include "donations" if such donation is required as a condition of admittance to any event.

City means the city of Del Rey Oaks.

Director means the city manager of city or his or her designee.

Facility means and includes any building, structure, place or location, whether indoors or out, wherein or at which any form of event is or can be held, carried on or conducted.

Event means any entertainment, amusement or recreational activity, for which an admission charge as defined herein is made, and shall include, but shall not be limited to: automobile or motorcycle races, dances, demonstrations, circuses, motion picture shows, shows of all kinds, all sporting contests and athletic events, health clubs, exhibitions of art or handicrafts or products, concerts, lectures, theatrical and musical performances, speeches, fairs, carnivals, amusement rides and devices and all forms of recreation in or at amusement parks, or any other form of entertainment, diversion, sport, pastime of recreation.

Operator means any person conducting, operating or maintaining in whole or in part as principal, agent, officer, employee or independent contract any event or facility taxable under this chapter. For purposes of collecting the tax provided for in this chapter, there are two classes of operators, as follows: (1) One who conducts, operates or maintains an established fixed facility, wherein events are held, carried on or conducted in the operator's normal course of business, hereinafter referred to as a "fixed operator;" and (2) Any other operator, hereinafter referred to as a "non-fixed operator."

Patron means any person who pays, or on account of whom is paid, any admission charge or admission price for the right or privilege of being admitted to or to use any facility, or to participate in any event. The term "patron" shall not include: (1) a bona fide employee of the operator when admission to the facility is incidental to the employee's duties; and (2) any employee or official of the State of California, or any agency, instrumentality or department thereof, the city, or United States Government whose official duty makes it necessary to gain admission to any event.

(Ord. 230 § 1 (part), 1994)

There is imposed a tax on patrons of events in an amount equal to ten percent of the price of the admission charge, including any season ticket or subscription, for the privilege of admission to any event in or at a facility. Such tax is a debt owed by the patron to the city, which debt shall be extinguished only by payment to the operator or to the city. Such tax shall be in addition to all other taxes or fees imposed by law.

(Ord. 230 § 1 (part), 1994)

Each operator shall collect the tax imposed by Section 3.08.020 from any patron when he or she pays an admission charge or purchases an admission ticket or season ticket or subscription. Every operator shall hold the tax imposed by this chapter separately in trust until the same is paid to the director as hereinafter provided and shall not use or convert these funds for the operator's own use for any reason whatsoever.

(Ord. 230 § 1 (part), 1994)

An application may be filed with the director for an exemption imposed by Section 3.08.020 for a one-day event which will have no adverse impact on the city. The director may require such information in the application for exemption, or in addition thereto, as will enable the director to determine whether the charge for which the exemption is sought is eligible therefor.

(Ord. 230 § 1 (part), 1994)

Each operator shall, on or before the last day of the month following the close of the prior month, or at the close of any shorter reporting period that may be established by the director make a return to the director, on forms provided by the director, of the total admissions charges collected and received and the amount of tax collected from patrons. At the time the return is filed, the full amount of any tax collected and due shall be remitted to the director. Those amounts not paid shall immediately become delinquent. The director may establish special reporting periods for any operator if deemed necessary to assure collection of the tax, and the director may require further information to be included in the return. Returns and payments are due and payable immediately upon cessation of business by the operator for any reason.

(Ord. 230 § 1 (part), 1994)

A. Tax Returns and Remittance of Deficiency Determinations.

1. Original Delinquency. Any operator who fails to file a tax return, remit the collected tax, or pay a deficiency determination within the time required shall pay a penalty of ten percent of the total tax or deficiency in addition to the amount of the tax or deficiency.

2. Continued Delinquency. Any operator who fails to file a tax return or pay a deficiency determination on or before a period of 30 days following the date on which it first became delinquent shall pay a second delinquency penalty of 15 percent of the amount of tax or delinquency in addition to the amount of tax or delinquency and the ten percent penalty first imposed.

B. Tax Returns and Deficiency Determinations.

1. Negligent Failure to Pay. If the director determines that any tax found to be due under this chapter or the delinquent filing of a tax return is due to negligence, a penalty of 15 percent of the amount of tax shall be added thereto in addition to any other penalties which may be imposed.

2. Intentional Failure to Pay or Fraud. If the director determines that any tax found to be due under this chapter or the delinquent filing of tax return is due to fraud or an intentional disregard or failure to comply with the provisions of this chapter or an intent to evade this part or authorized rules and regulations, a penalty of 40 percent of the tax shall be added thereto in addition to any other penalties which may be imposed.

C. Interest. In addition to the penalties imposed above, any operator who fails to remit any tax or delinquency imposed by this chapter shall pay interest at the rate of one and one-half percent per month or fraction thereof on the amount of unpaid tax or delinquency, exclusive of penalties, from the last day of the month following the monthly period for which the amount or any portion thereof should have been paid until the date of payment.

D. Relief from Penalties and Interest. If the director finds that an operator's failure to make a timely return or payment is due to reasonable cause and circumstances beyond the operator's control, and occurred, notwithstanding the exercise of ordinary care and the absence of willful neglect, the director may waive the penalty provided for in subsection (A) above. Any person seeking to be relieved of the penalty shall file with the director a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.

(Ord. 230 § 1 (part), 1994)

If any operator required to collect and remit the tax imposed by these sections fails to file and return a remittance, the director shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the director obtains such facts and information on 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 or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter.

(Ord. 230 § 1 (part), 1994)

If the director has reasonable cause to believe the return or returns of the amount of tax required to be paid to the city by any operator are erroneous, he or she shall compute and determine the amount required to be paid upon the basis of (1) facts contained in the return or returns, (2) other substantial evidence, or (3) application of standard accounting techniques. A deficiency determination for one period shall not constitute a release or waiver for other deficiencies in the same or another period.

(Ord. 230 § 1 (part), 1994)

In making a determination pursuant to Sections 3.08.060 and 3.08.070, the director may offset any overpayments for a period or periods, against penalties, and against interest on underpayments. Interest on overpayments (for purposes of offsetting as in this section provided) and underpayments shall be computed in the manner set forth in Section 3.08.060.

(Ord. 230 § 1 (part), 1994)

The director shall give to the operator written notice of any determinations made pursuant to Sections 3.08.060 and 3.08.070. This notice may be served personally or by depositing in the United States postal service, postage prepaid, and addressed to the operator at his or her address as it appears in the records of the director. In case of service made by mail of any notice required, the service is complete at the time of deposit of the notice.

(Ord. 230 § 1 (part), 1994)

Any operator served pursuant to Section 3.08.100 may within 15 days after serving or mailing such notice, make application in writing to the director for a hearing by the director to review the amounts determined and assessed under Sections 3.08.060 and 3.08.070. 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 director shall become final and conclusive and immediately due. Any operator against whom interest or penalties have been assessed pursuant to Section 3.08.060 may make an application in writing for a hearing with the director to review the amounts of tax owing and accrued penalties and interest thereon within 30 days after notice of delinquency. If such application is made, the director shall give not less than five days written notice in the manner prescribed by Section 3.08.100 to the operator to show cause at a time and place fixed in such notice why such amount specified therein should not be assessed including such tax, interest and penalties, if any. 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 director shall determine the proper tax together with interest and penalties thereon to be remitted and shall thereafter give written notice thereof to the operator in the manner prescribed in Section 3.08.100. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in Section 3.08.120.

(Ord. 230 § 1 (part), 1994)

Any operator aggrieved by any decision of the director with respect to the amount of such tax or interest and penalties, if any, may appeal to the city council. The decision of the council shall be final and conclusive. Any amounts determined shall be due and payable on the service of notice of the decision, which shall be served in the manner set forth in Section 3.08.100.

(Ord. 230 § 1 (part), 1994)

Every operator liable for the collection and payment to the city of any tax imposed by this chapter shall keep and preserve all records sufficient in nature to determine the amount of such tax as the operator may have been liable for the collection of payment to the city. Records which shall be kept shall include, but are not limited to, records of admission on a daily basis by number and price and all cash register tapes. The director may examine the books, papers, records and equipment of any operator liable for the tax imposed by Section 3.08.020 at any time.

(Ord. 230 § 1 (part), 1994)

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 these sections, it may be refunded as provided herein; 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 director within one year of the date of payment. The claim shall be on forms furnished by the director.

B. An operator may claim a refund or take as credit against taxes collected and remitted any amount overpaid, paid more than once or erroneously or illegally collected or received. Neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the patron or credited to an admission charge subsequently payable by the patron to the operator.

C. A patron 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), but only when a tax was paid by the patron directly to the director or when the patron, having paid the tax to the operator, establishes to the satisfaction of the director that the patron has been unable to obtain a refund from the operator who collected the tax.

D. No refund shall be paid unless the claimant establishes his or her right thereto by written records showing entitlement thereto.

(Ord. 230 § 1 (part), 1994)

Any tax required to be paid by any patron under the provisions of these sections shall be deemed a debt owed by the patron 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 under the provisions of these sections shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. 230 § 1 (part), 1994)

All taxes and penalties received pursuant to this chapter shall constitute general tax revenues of the city and shall be deposited in the general fund.

(Ord. 230 § 1 (part), 1994)

A. Criminal Penalties. Violations of this chapter shall be punished in accordance with the provisions of city of Del Rey Oaks Municipal Code Section 1.16.010.

B. Attorney's Fees. Any patron or operator against whom a civil action is filed for violation of any provision of this chapter shall be liable for the costs of that action, including reasonable attorney's fees and costs, as set forth in city of Del Rey Oaks Municipal Code Section 1.16.010.

(Ord. 233 § 6, 1995: Ord. 230 § 1 (part), 1994)