Humboldt County Municipal Code Ch. 2 Transient Occupancy Tax

Title. Definitions. Tax Imposed. Exemptions. Operator’s Duties. Registration. Reporting and Remitting. Penalties and Interest. Failure to Collect and Report Tax; Determination of Tax by Tax Administrator. Appeal. Records. Refunds. Actions to Collect. Penalty; Violations. Tax Lien. 712-1. Title. This chapter shall be known as the Uniform Transient Occupancy Tax Ordinance of the County of Humboldt. (Ord. 1158, § 1, 8/23/1977)

712-2. Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: (a) Person. “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. (b) Living Space. “Living Space” means any structure, or any portion of any structure, which is occupied, 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 living space. “Other Living Space” includes overnight recreational vehicle parks and private campgrounds but does not include any arrangement excluded from taxation pursuant to Revenue and Taxation Code Section 7280(b), or its successor provisions, or facilities operated by a local government entity or any campsite excluded from taxation pursuant to Revenue and Taxation Code Section 7282, or its successor provisions. (c) Occupancy. “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any living space for dwelling, lodging or sleeping purposes. (d) Transient. “Transient” 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 thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a living space shall be deemed to be a transient until the period of thirty (30) days has expired unless there in 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 chapter may be considered. (e) Rent. “Rent” means the consideration charged, whether or not received, for the occupancy of space in a living space valued in money, wither 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. (f) Operator. “Operator” means the person who is proprietor of the living space, 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 purpose 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. (g) Tax Administrator. “Tax Administrator” means the Tax Collector. (Ord. 2005, § 1, 6/22/1993; Ord. 2128, § 2, 8/20/1996; Ord. 1158, § 2, 8/23/1977; Ord. 2690, § 2, 3/8/2022)

712-3. Tax Imposed. For the privilege of occupancy in any living space, each transient is subject to and shall pay a tax in the amount of twelve percent (12%) of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the County which is extinguished only by payment to the operator or to the County. The transient shall pay the tax to the operator of the living space 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 living space. If for any reason the tax due is not paid to the operator of the living space, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator. (Ord. 1158, § 3, 8/23/1977; Ord. 1593, § 1, 5/17/1983; Ord. 2005, § 1, 6/22/1993; Ord. 2690, § 3, 3/8/2022) 712-4. Exemptions. 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 County to impose the tax herein provided; (b) Any Federal or State of California officer or employee when on official business; or, (c) Any officer or employee of a foreign government who is exempt by reason of express provisions of Federal law or international treaty. No exemption shall be granted except upon a claim therefor made at the time rent is collected and, under penalty of perjury, upon a form prescribed by the Tax Administrator. (Ord. 1158, § 4, 8/23/1977) 712-5. Operator’s Duties. 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 funded except in the manner hereinafter provided. (Ord. 1158, § 5, 8/23/1977) 712-6. Registration. Within thirty (30) days after the effective date of this chapter or within thirty (30) days after commencing business, whichever is later, each operator of any living space renting occupancy to transients shall register said living space 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. Said certificate shall, among other things, state the following:

(a) The name of the operator; (b) The address of the living space; (c) The date upon which the certificate was issued; and (d) The following statement: “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 transients 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 living space 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 County. This certificate does not constitute a permit.” (Ord. 1158, § 6, 8/23/1977; Ord. 2005, § 1, 6/22/1993) 712-7. Reporting and Remitting. 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 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 Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he/she deems it necessary in order to insure collection of the tax, and he may require further information in the return. Returns and payments are 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 County until payment thereof is made to the Tax Administrator. (Ord. 1158, § 7, 8/23/1977) 712-8. Penalties and Interest. (a) Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax. (b) Continued Delinquency. Any operator who fails 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 of ten percent (10%) of the amount of the tax in addition to the amount of the tax and the ten percent (10%) penalty first imposed. (c) Fraud. 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 (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section.

(d) Interest. 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 (½%) 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 accrued under the provisions of this section shall become a part of the tax herein required to be paid. (Ord. 1158, § 8, 8/23/1977) 712-9. Failure to Collect and Report Tax; Determination of Tax by Tax Administrator. If any operator shall fail or refuse to collect said tax and to make, within the time provided in this chapter, any report and 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 made 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 be 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 (10) days after the serving or mailing of such notice make application in writing to the Tax Administrator for 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 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 (5) days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said 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 person 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 payable after fifteen (15) days unless an appeal is taken as provided in § 712-10. (Ord. 1158, § 9, 8/23/1977) 712-10. Appeal. 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 Board of Supervisors by filing a notice of appeal with the County Clerk within fifteen (15) days of the serving or mailing of the determination of tax due. The Board of Supervisors shall fix a time and place for hearing such appeal, and the County Clerk shall give notice in writing to such operator at his last known place of address. The findings of the Board of Supervisors 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. 1158, § 10, 8/23/1977)

712-11. Records. It shall be the duty of every operator liable for the collection and payment to the County of any tax imposed by this chapter to keep and preserve, for a period of three (3) 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 County, which records the Tax Administrator shall have the right to inspect at all reasonable times. (Ord. 1158, § 11, 8/23/1977) 712-12. Refunds. (a) Whenever the amount of any tax, interest or penalty has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the County under this chapter, it may be refunded as provided in subparagraphs (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 Tax Administrator within three (3) years of the date of payment. The claim shall be on forms furnished by the Tax Administrator. (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 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 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 County by filing a claim in the manner provided in subparagraph (a) of 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. (d) No refund shall be paid under the provisions of this section unless the claimant establishes his/her right thereto by written records showing entitlement thereto. (Ord. 1158, § 12, 8/23/1977) 712-13. Actions to Collect. 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 the County. Any such tax collected by an operator which has not been paid to the County shall be deemed a debt owed by the operator to the County. Any person owing money to the County under the provisions of this chapter shall be liable to an action brought in the name of the County of Humboldt for the recovery of such amount. (Ord. 1158, § 13, 8/23/1977)

712-14. Penalty; Violations. (a) Penalty. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor. (b) Violations. Any operator or other person who fails or refuses to register as required herein, or to furnish any return any return required to be made, or who 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. 1158, § 14, 8/23/1977) 712-15. Tax Lien. (a) The Tax Collector is authorized to record a Certificate of Delinquency of Transient Occupancy Tax Lien with the Humboldt County Recorder against any operator who fails to remit taxes, penalties, or interest due under this chapter within the times required herein. The Tax Collector shall add to the amount of the lien the costs incurred by the County in collecting the tax due, such costs specified in Section 712-8 above. The Certificate of Delinquency of Transient Occupancy Tax Lien may be filed by the Tax Collector: (Ord. 2449, § 1, 05/03/2011) (1) Ten (10) days after the serving or mailing of the notice required by Section 712-9, if the Operator does not file the application for appeal permitted by Section 712-9. (Ord. 2449, § 1, 5/3/2011) (2) If the Operator files the application permitted by Section 712-9, thirty (30) days after the Tax Collector’s determination of the amount of tax to be remitted pursuant to Section 712-9, unless the Operator files an appeal pursuant to Section 712-10. (Ord. 2449, § 1, 5/3/2011) The Certificate of Delinquency of Transient Occupancy Tax Lien shall be filed within three (3) years after the tax becomes due. The Certificate of Delinquency of Transient Occupancy Tax Lien shall specify the amount due, the name and last known address of the Operator liable for the same, and a statement that the Tax Collector has complied with all provisions of this article with respect to the computation and levy of the tax owed by the Operator. From the time of the recording of the Certificate of Delinquency of Transient Occupancy Tax Lien, the amount required to be paid, together with penalties, constitutes a lien upon all real property in the county owned by the Operator or thereafter acquired before the lien expires. The lien has the force, effect, and priority of a judgment lien and shall continue for ten (10) years from the filing of the Certificate of Delinquency of Transient Occupancy Tax Lien, unless sooner released or otherwise discharged. Within ten (10) years of the date of the recording of the Certificate of Delinquency of Transient Occupancy Tax Lien (or within ten (10) years of the date of the last extension of the lien), the Tax Collector may extend the lien by filing for record a new certificate in the Office of the Humboldt County Recorder, and from the time of filing the lien under the original Certificate of Delinquency of Transient Occupancy Tax Lien shall be extended for an additional ten (10) years, unless sooner released or otherwise discharged. The lien shall not be removed until the delinquent taxes, penalties for delinquency, and costs of collection are fully paid or the property is sold for payment of the delinquent taxes, penalties for delinquency, and costs of collection. (Ord. 2449, § 1, 5/3/2011) (b) At any time within three (3) years after the recording of a Certificate of Delinquency of Transient Occupancy Tax Lien under subsection (a) above, the Tax Collector may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of any tax and penalties required to be paid to the County under this article. The warrant shall have the same effect as a writ of execution, and be executed in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. The Tax Collector may pay or advance to the sheriff or marshal such fees, commission, and expenses for services as are provided by law for similar services pursuant to a writ of execution. (Ord. 2449, § 1, 5/3/2011) (c) In lieu of issuing a warrant under subsection (b), at any time within the three (3) years after a Certificate of Delinquency of Transient Occupancy Tax Lien was recorded under subsection (a), the Tax Collector may collect the delinquent amount by seizing, or causing to be seized, any property, real or personal, of the Operator and sell any non-cash or non-negotiable property, or a sufficient part of it, at public auction to pay the amount of tax due, together with any penalties, interest, and any costs incurred on account of the seizure and sale. Any seizure made to collect taxes due shall only be of property of the Operator not exempt from execution under the provisions of the Code of Civil Procedure. (Ord. 2449, § 1, 5/3/2011) § 713-1. § 713-2. § 713-3. § 713-4. § 713-5. § 713-6. § 713-7. § 713-8. § 713-9. § 713-10. § 713-11. § 713-12. § 713-13. § 713-14.