Isleton Municipal Code Ch. 3.16 Transient Occupancy Tax

Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter:

A. 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. Hotel means 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 includes any hotel, inn, bed and breakfast inn, tourist home or house, motel, boatel, marina, studio, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home, house trailer, or recreation vehicle at a fixed location, or other similar structure or portion thereof.

C. Occupancy means 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.

D. 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 less than seven consecutive calendar days 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 seven 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 Code may be considered.

E. Rent means 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 of nature, without any deduction therefrom whatsoever.

F. Operator means the person who is a 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 purpose of this Code and shall have the same duties and liabilities as his principal. Compliance with the provisions of this Code by either the principal or the managing agent shall, however, be considered to be compliance by both.

(Ord. No. 270)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the city which is 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 or campground. If for any reason the tax due is not paid to the operator of the hotel, the city may require that such tax shall be paid directly to the city clerk. The rate of tax proposed in this section shall constitute a maximum rate of tax for such taxes. Accordingly, the city council may reduce said rate of tax to a lesser rate of tax at any time by the adoption of a resolution or code doing so. If any of said rate of tax has been reduced by the city council to a rate less than the maximum, rate for that tax, then the council may increase said rate of tax to a rate that does not exceed the maximum rate for that tax provided in this Code by the adoption or a resolution or ordinance doing so.

(Ord. No. 270)

No tax shall be imposed upon any person as to whom, or any occupancy as to which, it is beyond the power of city to impose the tax herein provided. No exemption shall be granted except upon a claim therefor, under penalty of perjury, made at the time rent is collected upon a form prescribed by the city clerk.

(Ord. No. 270)

Each operator shall collect the tax imposed by this Code 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 hereinafter provided.

(Ord. No. 270)

Within 60 days after the effective date of this Code, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the city clerk and obtain from him a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. The 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;

D. "This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform transient occupancy tax by registering with the city clerk for the purpose of collecting from transients the transient occupancy tax and remitting the tax to the city. This certificate does not authorize any person to conduct 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."

(Ord. No. 270)

The tax to be remitted pursuant to this Code shall be paid to the city at the end of each calendar quarter, covering the tax collected during the preceding three-month period and shall be delinquent if not remitted within 30 days thereafter. Each operator shall, on or before the last day of the month following the close of each calendar quarter, make a return to the city clerk 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. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this Code shall be held in trust for the account of the city until payment thereof is made to the city clerk.

(Ord. No. 270)

An operator is relieved from liability for the remission to the city of the tax imposed under this Code insofar as the measure of the tax is represented by accounts which have been found to be worthless and charged off for income tax purposes. If the operator has previously remitted the tax, he may, pursuant to procedures prescribed by the city clerk, take as deduction the amount of tax previously remitted for the worthless and charged off account. If any such accounts are thereafter in whole or in part collected by the operator, the amount so collected shall be included in the first return filed after such collection and the tax on such amount paid with the return.

(Ord. No. 270)

A. Original delinquency. Any operator who fails to remit any tax imposed by this Code within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

B. Fraud. If the city clerk determines that the non-payment of any remittance due under this Code is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsection A.

C. 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 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.

D. Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a party of the tax herein required to be paid.

(Ord. No. 270)

If any operation shall fail to refuse to collect the tax and to make, within the time provided in this Code any report and remittance of said tax or any portion thereof required by this Code, the city clerk 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 clerk shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this Code and payable by this Code and payable by any operator who has failed or refused to collect the same and to make such report and remittances, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this Code. In case such determination is made, the city clerk 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 last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the city clerk 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 city clerk shall become final and conclusive and immediately due and payable. If such application is made, the city clerk 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 said 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 clerk 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 15 days unless an appeal is taken as provided in section 3.16.100.

(Ord. No. 270)

Any operator aggrieved by any decision of the city clerk with respect to the amount of such tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within 15 days of the serving or mailing of the determination of tax due. The city council shall give notice in writing to such operator at his last known place of address. The findings of the city council 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. No. 270)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this Code 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 clerk shall have the right to inspect at all reasonable times.

(Ord. No. 270)

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 Code it may be refunded as provided in subsection 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 clerk within three years of the date of payment. The claim shall be on forms furnished by the city clerk.

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 clerk 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 to the transient or the operator.

C. A transient 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 the tax was paid by the transient directly to the city clerk, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the city clerk that the transient has been unable to obtain a refund from the operator who collected the tax.

D. No refund shall be paid under provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

(Ord. No. 270)

Any tax required to be paid by any transient under the provisions of this Code 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 under the provisions of this Code shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. No. 270)

Any person violating any of the provisions of this Code shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than $500.00, or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

Any operator or other person who fails or refuses to register as required herein 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 clerk, 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 with intent to defeat or evade the determination of any amount due required by this Code to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Ord. No. 270)