Fairfax Municipal Code Ch. 3.32 Hotel Users Tax

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

HOTEL. Any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by hotel users for dwelling, lodging or sleeping purposes and includes any hotel, inn, bed and breakfast inn, tourist home or house, motel, mobile home or other lodging. HOTEL shall not include any structure, or any portion of any structure, exempted by the provisions of the Cal. Gov’t Code §§ 7280 and 7281.

OCCUPANCY. 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. The person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character, other than an employee, the managing agent shall also be deemed an operator and shall have the same duties and liabilities as his or her 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. 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 entity.

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

TRANSIENT. Changed to HOTEL USER. HOTEL USER means 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 persons occupying space in a hotel shall be deemed to be a hotel user 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 hotel user, uninterrupted periods of time extending both prior and

subsequent to the effective date of the ordinance codified in this chapter may be considered.

(Prior Code, § 3.32.010) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

(A) For the privilege of occupancy in any hotel, each hotel user is subject to, and shall pay, a tax equal to the following percentage of the rent charged by the operator:

(1) For the fiscal year commencing July 1, 1997, at the rate of seven percent of the rent charged;

(2) For the fiscal year commencing July 1, 1998, at the rate of eight percent of the rent charged;

(3) For the fiscal year commencing July 1, 1999, at the rate of nine percent of the rent charged; and

(4) For the fiscal year commencing July 1, 2000, and for each fiscal year thereafter at the rate of ten percent of the rent charged.

(B) (1) The tax constitutes a debt owed by the hotel user to the town which is extinguished only by payment to the operator or to the town. The hotel user shall pay the tax to the operator of the hotel at the time the rent is paid.

(2) 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 hotel user’s ceasing to occupy space in the hotel.

(3) If, for any reason, the tax due is not paid to the operator of the hotel, the Town Manager may require that such tax shall be paid directly to the Town Manager.

(Prior Code, § 3.32.020) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

In addition to the exemptions provided for in Cal. Gov’t Code §§ 7280 and 7281, no tax shall be imposed upon any person as to whom, or any occupancy as to which, it is beyond the power of the town to impose the tax.

(Prior Code, § 3.32.030) (Ord. 641, passed - -1995)

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 hotel user. The amount of tax shall be separately stated from the amount of the rent charged and each hotel user 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.

(Prior Code, § 3.32.040) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

(A) Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing business, whichever is later, the operator of any hotel renting occupancy to hotel users shall register the hotel with the town and obtain from the town a hotel users registration certificate to be at all times posted in a conspicuous place on the premises.

(B) The certificate shall, among other things, contain the following:

(1) The name of the operator;

(2) The address of the hotel;

(3) The date upon which the certificate was issued; and

(4) The following statement: “This Hotel User’s Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of Chapter 3.32 of the Fairfax Town Code by registering with the Town Manager for the purpose of collecting from hotel users the hotel users tax and remitting that tax to the Town Manager. 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 applicable laws, including, but not limited to those requiring a permit from any board, commission, department or office of the Town of Fairfax.”

(Prior Code, § 3.32.050) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

(A) 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 Town Manager, make a return to the Town Manager on forms provided by the town of the total rents charged and received and the amount of tax collected for hotel user occupancies. The Town Manager may establish shorter reporting periods for any certificate holder, if necessary, in order to insure collection of the tax and the Town Manager may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason.

(B) All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the town until payment thereof is made to the Town Manager.

(Prior Code, § 3.32.060) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

The tax imposed by this chapter shall be a general tax and not a special tax. The proceeds of the tax shall be deposited in the town’s general fund and shall be available for all municipal purposes.

(Prior Code, § 3.32.070) (Ord. 641, passed - -1995)

(A) Any operator who fails to remit any tax imposed by this chapter within the required time shall pay an initial penalty of ten percent of the amount of the tax in addition to the amount of the tax. Any operator who fails 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 delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and ten percent penalty first imposed.

(B) If the Town Manager determines that the non-payment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the foregoing penalties. 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 0.5 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. Every penalty imposed and the interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

(Prior Code, § 3.32.080) (Ord. 641, passed - -1995)

(A) If any operator fails or refuses to collect the tax and to make, within the time required, any report and remittance of the tax or any portion thereof, the Town Manager shall proceed in a manner as he or she may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the Town Manager shall procure the facts and information as he or she 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 the report and remittance, the Town Manager shall proceed to determine and assess against the operator the tax, interest and penalties provided for in this chapter.

(B) In case of the determination, the Town Manager shall give notice of the amount so assessed by serving it personally or by depositing it in the U.S. mail, postage prepaid, addressed to the operator so assessed at his or her last known place of business.

(C) The operator may, within ten days after the serving or mailing of the notice, make application, in writing, to the Town Manager for a hearing on the amount assessed. 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 Town Manager shall become final and conclusive and shall be immediately due and payable. If such application is made, the Town 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 the notice, why the amount specified therein shall not be fixed for the tax, interest and penalties.

(D) At the hearing, the operator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed. After the hearing, the Town Manager 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 the determination and the amount of the tax, interest and penalties. The amount determined to be due shall be payable after 15 days.

(Prior Code, § 3.32.090) (Ord. 641, passed - -1995)

It shall be the duty of every operator to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of the tax as the operator may have been liable for the collection of and payment to the town, which records the Town Manager shall have the right to inspect at all reasonable times.

(Prior Code, § 3.32.100) (Ord. 641, passed - -1995)

(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 town under this chapter, it may be refunded as hereinafter set forth provided a claim therefor, in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Town Manager within 90 days of the date of payment. The claim shall be on forms furnished by the Town Manager.

(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 Town Manager that the person from whom the tax has been collected was not a hotel user. Neither a refund, nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the hotel user or credited to rent subsequently payable by the hotel user to the operator.

(C) A hotel user may obtain a refund of taxes overpaid, or paid more than once, or erroneously or illegally collected or received by the town, by filing a claim in the manner hereinabove set forth, but only when the tax was paid by the hotel user directly to the Town Manager or when the hotel user, having paid the tax to the operator, establishes to the satisfaction of the Town Manager that the hotel user 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 the right thereto by written records showing entitlement thereto.

(Prior Code, § 3.32.110) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)

Any tax required to be paid under the provisions of this chapter shall be deemed a debt owed by the hotel user to the town. Any such tax collected by an operator which has not been paid to the town shall be deemed a debt owed by the operator to the town. Any person owing money to the town under the provisions of this chapter shall be liable to an action brought in the name of the town for the recovery thereof.

(Prior Code, § 3.32.120) (Ord. 641, passed - -1995; Am. Ord. 669, passed - -1997)