Long Beach Municipal Code Ch. 3.64 Transient Occupancy Tax

Footnotes:

--- (9) ---

State Law reference— Provisions authorizing cities to impose a tax on transients who occupy room space within the City, Rev. and T. C. §§ 7280 and 7281.

The following terms, when used in this Chapter, shall for the purpose of this Chapter, have the following respective meanings except where the context clearly indicates a different meaning:

A. "Business license section" means the business license section, City Department of Financial Management.

B. "Guestroom" means any room or rooms or space or portion thereof in a "hotel", as defined in this Section, occupied, or intended, arranged or designed for occupancy.

C. "Hotel" means any apartment house, auto court, boarding house, bungalow court, club, hotel, inn, lodging house, motel, rooming house, camp, studio, dormitory, tourist home or other structure, private or public, or portion thereof, within the City offering or renting to transients for lodging, dwelling, or sleeping purposes, in guestrooms for compensation, and shall further include any trailer court, trailer spaces, or combinations of such spaces and trailers, including mobilehomes, timeshare units not occupied by the timeshare owner or a guest of the owner, and docked boats and ships, occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes. It does not mean any convalescent home or facility, home for the aged, hospital, jail, military installation, fraternity or sorority house recognized and approved by a Long Beach educational institution, nor does it mean a structure operated exclusively by an association or corporation for religious, charitable or educational purpose or purposes, no part of the earnings of which association or corporation inures to the benefit of any private shareholder or individual.

D. "Occupancy" means the use or possession, or the right to the use or possession, of any guestroom or rooms or space or portion thereof in any hotel for lodging, dwelling, or sleeping purposes.

E. "Occupant" means any individual who, for a consideration, uses, possesses or has the right to use any guestroom.

F. "Operator" means the person who is either the proprietor of the hotel or any other person who has the right to rent rooms within the hotel, whether in the capacity of owner, lessee, licensee, mortgagee in possession, sublessee or any other capacity. The owner or proprietor who is primarily responsible for operation of the hotel shall be deemed to be the principal operator. If the principal operator performs or assigns its functions, in whole or in part, through a managing agent, a booking agent, a room seller or room reseller, or any other agent or contractee, including, but not limited to, online room sellers, online room resellers, and online travel agents, of any type or character other than an employee, those persons shall be deemed to be secondary operators.

A secondary operator shall be deemed an operator for purposes of this Chapter and shall have the same duties and liabilities as the principal operator, including, but not limited to, the collection and remittance of the full amount of the tax owed under the provisions of this Chapter to the City. A secondary operator may satisfy its obligations under the provisions of this Chapter by submitting the full amount of tax due under this Chapter, with credit for any taxes remitted to any other operator, either directly to the Director or through the principal operator. The principal operator may satisfy any potential liability it may have for taxes owed by a secondary operator by entering into a legally binding agreement with that secondary operator to remit the portion of the tax owed by the secondary operator directly to the City. Upon request, the principal operator shall provide the Director with copies of any such agreements.

Compliance with the provisions of this Chapter by either the principal operator or the secondary operator shall be deemed to require the payment and/or remittance of any amount other than the full amount of the tax owed by the transient.

G. "Person" means any individual, association, company, partnership, corporation, limited liability company, limited liability partnership, firm, joint venture, social club, fraternal club, organization, joint stock company, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination of individuals acting as a unit.

H. "Permanent lodger" means any occupant who, as of a given date, has occupied or has had the right of occupancy of any guestroom in a hotel for at least thirty (30) consecutive days next preceding such date.

I. "Rent" means the consideration charged, whether or not received, for occupancy of room or space in a hotel, valued in money, whether received in money, or goods, labor, or otherwise, including all receipts, cash, credits, property or services of any kind or nature, without any deduction therefrom whatsoever, including, but not limited to, credit card charges. If the charge made by a hotel includes any charge and services in addition to that for occupancy, such as food, then such amount shall be distinctly set out and billed as separate items with the appropriate tax charged. Nothing in this definition shall be construed to mean that rent is charged directly or indirectly for the occupancy of room or space in a hotel when that room or space is provided to the occupant as a compliment from the operator and where no consideration is charged to or received from any other person.

J. "Return" means any tax return filed or required to be filed as provided in this Chapter.

K. "Tax Collector" means the Tax Collector of the City.

L. "Transient" means any occupant who, for a period of not more than thirty (30) consecutive days, either at his or her own expense or at the expense of another, obtains the right of occupancy of a guestroom, for which occupancy rent is charged.

For an individual to avoid being deemed a transient during a thirty (30) consecutive day period, the individual exercising occupancy rights in a hotel must, prior to occupancy, enter into a written agreement with the hotel operator. The written agreement shall obligate a person to pay rent for the individual's occupancy for a period of at least thirty-one (31) consecutive days. The minimum substance of such written agreement shall contain the guest's name, address, period of occupancy, rent and signature. If the written agreement requirements are satisfied, the individual exercising such occupancy rights shall not be considered a transient under this Chapter and, therefore, shall not be subject to the tax imposed pursuant to Sections 3.64.030 and 3.64.035. In the absence of the written agreement prior to the commencement of occupancy, the individual shall be deemed a transient and subject to the tax until the qualifying period (thirty (30) consecutive days) for nontransient status has been satisfied. On the thirty-first consecutive day, and on each consecutive day thereafter, the tax shall not apply. If the individual fails to stay for at least thirty-one (31) consecutive days, irrespective of the written agreement, then the tax shall be due.

Nothing in this definition or this Chapter shall be construed as prohibiting the operator from refunding or making a credit allowance to a person who has paid tax as required by this Chapter where it is established that the person was not a "transient" as defined herein or was exempt from the tax for any other reason, or had for any reason overpaid the tax.

In determining whether an individual is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified herein may be considered.

M. "Director" means the Director of Financial Management or his or her designee.

N. "Imposition" or "imposed" means the determination that the transient occupancy tax is applicable to and levied upon the transient and attaches as a condition of occupancy or the right to the use or possession of any room or rooms or space or portion thereof in any hotel for dwelling, lodging or sleeping purposes.

O. "Tax" means the transient occupancy tax imposed in Sections 3.64.030 and 3.64.035 which shall include all penalties, interest or other fees, costs and charges, if applicable, for collection purposes.

(ORD-05-0010 §§ 1—10, 2005; Ord. C-7770 §§ 1, 2, 2001; prior code § 2450)

It shall be the duty of the business license section to administer the provisions of this Chapter. The City may prescribe, adopt and enforce reasonable and necessary rules and regulations, forms, policies and procedures relating to the administration and enforcement of this Chapter, which shall be available at the business license office of the City.

(ORD-05-0010 § 11, 2005: prior code § 2459)

Every transient shall pay a tax of six percent (6%) of the rent for his or her occupancy of a guestroom and the tax shall be collected by the operator from such transient at the time and in the manner provided in this Chapter. The tax is imposed for revenue purposes and is needed for the special advertising and promotion fund of the City.

(Prior code § 2451)

In addition to the tax imposed by Section 3.64.030, every transient shall pay a tax of seven percent (7%) of the rent for his or her occupancy of a guestroom, and the tax shall be collected and accounted for separately from the tax imposed by Section 3.64.030 by the operator from such transient at the time and in the manner provided in this Chapter. All the revenues collected from the tax imposed by this Section shall be deposited in the City's general purpose fund.

(Measure B § 1, 2020; Ord. C-7121 § 1, 1993: Ord. C-7008 § 1, 1992: Ord. C-6393 § 1, 1987: Ord. C-6051 § 2, 1984)

No tax shall be imposed under this Chapter 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 in this Chapter;

B. Any federal or State of California officer or employee when on official government business, including employees of federal credit unions, and who provides proof that he or she is on official federal, State or federal credit union business;

Provided, however, that no exemption shall be granted under Subsections A or B of this Section except upon claim therefor made at the time rent is collected and under penalty of perjury, upon a form prescribed by the City business license section.

It shall be the duty of the operator to keep and maintain a written documentation in support of each exemption claimed for a period of five (5) years.

(ORD-05-0010 § 12, 2005: prior code § 2451.1)

Every transient subject to the transient occupancy tax imposed pursuant to Ordinance No. R.A. 1-90 of the Redevelopment Agency of the City, shall receive a credit against his or her obligation to pay the tax imposed pursuant to Section 3.64.030 in an amount equal to the transient occupancy tax due to the Redevelopment Agency of the City pursuant to such ordinance.

(Ord. C-6685 § 1, 1990)

A. On and after November 1, 1972, every operator receiving any payment for rent with respect to which a tax is due under this Chapter shall at the same time collect from the transient, or from the person making such payment, the amount of the tax imposed by this Chapter. 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.

B. 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.

C. The tax required to be collected under this Chapter shall be deemed to be held in trust for the account of the City by the person or persons required to collect the tax for the account of the City until payment thereof is made to the City. Any such tax imposed and required to be collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City.

D. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount. Any operator who undertakes legal or collection action to recover unpaid rent due from a transient shall include the amount of tax due from the transient in the amount sought to be recovered.

(ORD-05-0010 § 13, 2005: prior code § 2452)

A. Where a tax has been collected based on rent for a period of thirty (30) days or less and the occupant subsequently completes thirty-one (31) consecutive days of occupancy, thereby qualifying as a permanent lodger, the operator shall return to such occupant an amount equivalent to the amount of the tax so collected either in cash or by crediting his or her account unless, however, the tax has been paid over to the business license section. In the latter case, the operator who collected the tax may within one (1) year after the date of the payment to the business license section, provided the operator has returned the equivalent amount of the tax to the permanent lodger or credited the lodger's account with that amount, either take credit for the amount so reimbursed on a subsequent return or file a claim for refund of the tax. Refund of the tax shall be made from the fund mentioned in Sections 3.64.035 and 3.64.100 in this Chapter in the same percentage.

B. Whenever the amount of tax has been overpaid, it shall be refunded or credited provided a claim is submitted in writing signed under penalty of perjury stating the specific grounds upon which the claim is founded and filed with the business license section upon forms furnished by the business license section within one (1) year of the date of payment to the City.

C. 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 business license section that the individual 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.

D. 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 of this Section, but only when the tax was paid by the transient directly to the business license section, or when the transient having paid the tax to the operator, establishes to the satisfaction of the business license section that the transient has been unable to obtain a refund from the operator who collected the tax.

E. No refund shall be paid under this Section unless the claimant establishes claimant's right to the refund by written records showing entitlement to the refund and unless claimant files the claim for refund within one (1) year after the date of payment of the tax to the City. Section 3.48.040 of this Title relating to the conditions of payment of refunds shall apply.

(ORD-06-0011 §§ 2, 3, 2006; ORD-05-0010 § 14, 2005)

The tax shall be computed on the total room rental, not exempt from taxation by this Chapter, without regard for finance charges or discounts paid to credit card companies.

(Prior code § 2453.1)

The operator collecting such tax shall prepare a return upon such forms and set forth therein such information as the business license section may prescribe and require, showing the amount of rent collected and the tax required to be collected and he or she shall sign the same and deliver it to the business license section together with a remittance of such tax. The returns and remittances shall be due on the tenth day of each month covering the amount of tax collected during the preceding month.

(Prior code § 2453)

A. It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, or cause to be kept and preserved, for a period of five (5) years all records as may be necessary to compute the amount of any tax due under the provisions of this Chapter. Such records shall clearly substantiate the operator's gross receipts, the amount of room rentals, the rentals paid by permanent lodgers and exemptions claimed by officers and employees of the federal or State of California government and federal credit unions while they are on official business. Such records shall be made available for inspection by the City Auditor and City Finance Director or their authorized agents at all reasonable times.

B. The records maintained by the operator under this Section shall include, but not be limited to, the following:

1. Daily summary sheets for each day the hotel is open for business containing, at a minimum, the following:

a. The name of at least one (1) individual occupying the room;

b. The registration card number applicable to the room;

c. The room number;

d. The daily rate charged and amount collected or charged by credit card for rental of the room;

e. The date occupancy commenced.

2. Registration cards shall be prenumbered and bear consecutive numbers preprinted on the registration cards by a print shop or manufacturer of the cards. Registration cards shall be maintained in sequential order. Voided cards shall be kept by operator for audit purposes. All registration cards shall be accounted for and the amount of the tax stated separately on the card.

3. Numbered Rooms. The operator shall fill out and maintain on file a registration card for each guestroom occupied which shall contain, at a minimum, the following information:

a. The name of at least one (1) individual who will occupy, or be entitled to occupy, the room;

b. The total number of people who will occupy or be entitled to occupy the room;

c. The identification of room by number;

d. The date the occupancy commences and the expected date of the departure of the transient; and

e. The daily rent charged and amount collected as and for rental of the room with the amount of tax stated separately.

4. Exemptions. A written record of each occupancy charge for which an exemption is claimed, including the name of the individual occupying the room, dates of occupancy and reason(s) for exemption.

5. Bank Accounts. All operators shall keep bank statements and deposit slips showing hotel rents and other revenue for verification of the total revenue from operations.

6. Other data substantiating occupancy, rents, exemptions, claimed revenues and exemptions on tax payments, financial documentation, books and ledgers, bank records and similar financial information.

C. Every operator shall keep such records, receipts, invoices, registration cards and other pertinent papers in such form as the business license section may require.

D. The business license section or City Auditor, or any person authorized by the Director, may examine the books, papers, records, registration cards or other pertinent papers and records of any operator and may investigate the character of the business of the operator in order to verify the accuracy of the return made, or, if no return has been made by the operator, to ascertain and determine the amount required to be paid.

E. It is unlawful for the business license section or for any person having audit or administrative duty under this Chapter to make known, in any manner whatever except in the performance of his or her official duties, the business affairs, operations or information obtained from an investigation of the records of the operation.

(ORD-05-0010 15, 2005: prior code § 2457)

A. Within thirty (30) days after the operative date of this Section, the Director of Finance shall establish procedures which would allow a purchaser, transferee, or other person or entity attempting to obtain ownership of a hotel property which is required to collect tax, to make a written application for a "tax clearance certificate" to establish that the hotel operator has no unpaid taxes due to the City.

B. An administrative fee to cover the cost of issuing the certificate shall be established by resolution of the City Council and applications shall be available from the City Clerk and the business license section. No application for a certificate shall be accepted unless the application is fully completed and the administrative fee is paid in full.

C. Within ninety (90) days of receiving an application and payment of the administrative fee, the City shall do either of the following:

1. Issue the tax clearance certificate, or

2. Request the current hotel operator to make available the operator's transient occupancy tax records for the purpose of conducting an audit regarding transient occupancy taxes that may be due and owing from the operator.

D. The City shall complete an audit performed pursuant to Subsection 3.64.085.C.2 on or before ninety (90) days after the date that the current or former hotel operator has provided all books, records and information necessary to perform a complete tax audit.

E. Within thirty (30) days after completing the audit pursuant to Subsection 3.64.085.D, the City shall notify the applicant of one (1) of the following:

1. The City will issue a tax clearance certificate to the applicant; or

2. After completing the audit, the City has made a determination that the current operator has unpaid transient occupancy tax due and owing and no certificate will be issued; or

3. The operator's records are insufficient to make a determination of whether transient occupancy taxes may be due and owing and therefore the City will not issue a tax clearance certificate due to the insufficiency of the prior owner's records.

F. If the City does not comply with Subsections C through E, the purchaser, transferee, or other person or entity that obtains ownership of the hotel property shall not be liable for any transient occupancy tax obligations incurred prior to the purchase or transfer of the property from the operator.

G. For a tax clearance certificate issued under this Section, all of the following apply:

1. The certificate shall state the amount of tax due and owing for the subject property, if any.

2. The certificate shall state the period of time for which it is valid.

3. The purchaser, transferee, or other person or entity who obtains ownership of the property may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate.

H. Any purchaser, transferee, or other person or entity who does not apply for and obtain a tax clearance certificate under this Section, or who obtains a tax clearance certificate that indicates that tax is due and fails to withhold, for the benefit of the City sufficient funds in the escrow account for the purchase of the property to satisfy the transient occupancy tax liability, shall be held liable for the amount of tax due and owing from the operator on the property.

I. This Section may not be construed to relieve an operator or property owner of transient occupancy tax obligations incurred when an operator or owner of the property.

(Ord. ORD-05-0010 § 16, 2005)

A. Whenever any operator required to collect and remit to the business license section a tax under this Chapter ceases to operate, dissolves, abandons, terminates, liquidates, sells, transfers, or disposes of his business, any tax payable under this Chapter shall become immediately due and payable and such operator shall immediately file a return and pay the tax due.

B. Upon cessation of operations, termination, dissolution, liquidation, bankruptcy or abandonment of a hotel operations by the operator, any operator, officer, or other person having control or supervision of, or who is charged with the responsibility for the filing of returns or payment of the tax, or who is under a duty to act for the operator in complying with this Chapter, shall be personally liable for any unpaid tax or penalty.

(Ord. ORD-05-0010 § 17, 2005: prior code § 2458)

All monies, including penalties, collected pursuant to Section 3.64.030 shall be deposited to a special fund to be known as the special advertising and promotion fund, which fund is created and established. Such fund shall be a continuing fund and not subject to transfer at the close of the fiscal year. Money credited to the special advertising and promotion fund may be expended for the following purposes only:

A. Refunds made pursuant to the provisions of Section 3.64.055;

B. For advertising, promotional, and public relations projects calling attention to the City, its natural advantages, resources, enterprises, attractions, climate, and facilities;

C. For paying obligations incurred or to be incurred by the City to solicit and encourage developments and improvements on the tide and submerged lands granted to the City by the State by Chapter 676, Statutes of 1911, Chapter 102, Statutes of 1925, Chapter 158, Statutes of 1935, as further described in Chapter 29, Statutes of 1956, first extraordinary session, and Chapter 138, Statutes of 1964, first extraordinary session; provided, however, only monies collected and remitted to the City for occupancy of a guestroom situated on the tide and submerged lands and penalties and interest earnings attributable to such monies shall be expended for the purpose described in this Subsection.

(Ord. ORD-05-0010 § 18, 2005; Ord. C-6051 § 1, 1984: Ord. C-5545 § 1, 1979: prior code § 2455)

A. If any operator fails or refuses to collect the tax or to make, within the time provided in this Chapter, any return or remittance required by this Chapter, the business license section shall proceed in such manner as it may deem best to obtain facts and information on which to base its estimate of the tax due including, but not limited to, an audit of operator's records. As soon as the business license section procures such facts and information upon which to base an estimate of the tax due, it shall proceed to determine and assess against such operator the tax and penalties provided for by this Chapter. If an audit discloses underreporting or underpayment of ten percent (10%) or more of the tax, then the operator shall be charged for the cost of the audit, not to exceed one thousand five hundred dollars ($1,500.00).

B. The Director shall notify such operator with a notice of determination of tax due, which notice shall include both tax and penalties, if applicable, by first class mail, postage prepaid, to the operator's last known address.

(Ord. ORD-05-0010 § 19, 2005: prior code § 2456)

A. Any operator not in agreement with the notice of tax determination shall request a hearing in writing on the amount assessed within ten (10) days of the date contained in the notice of determination and pay a hearing fee which shall be the same fee as set by resolution for business license hearings. Upon a timely, written request and fee payment from the operator, the Director or his designee shall give not less than ten (10) days' written notice by mail to the operator to show cause at a time and place fixed in said notice, why the assessed amount should not be fixed for tax and penalty. The request for hearing shall be filed with the business license section.

B. Conduct at hearing. The operator may appear and offer evidence why the assessed tax and penalties should not be fixed. The operator may be represented by counsel.

C. Determination. The Director or his designee shall determine the proper tax and penalties to be remitted and shall give a written notice of final tax determination to the operator by first class mail, postage prepaid, containing the amount of tax and penalties due. The amount determined to be due shall be delinquent fifteen (15) days following the date on the final notice of tax determination, unless an appeal is taken to the City Council as provided in Section 3.64.115.

D. Failure to timely request a hearing with the Director shall be deemed a waiver of the right to appeal as prescribed in Section 3.64.115 and to seek judicial review. The notice of determination assessed by the business license section shall become conclusive and immediately due and payable.

(Ord. ORD-05-0010 § 20, 2005)

A. Any operator not in agreement with the Director's final notice of determination with respect to the amount of tax and penalties as determined by the Director may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days of the date on the Director's final notice of determination of tax due. All fees for an appeal shall be the same as required for business license appeals as set by resolution and paid at the time of filing.

B. The City Council appeal and hearing shall be according to the procedures established in Chapter 2.93, except Section 2.93.060.

C. The decision of the City Council shall be final and conclusive and any amount determined to be due for tax and penalties shall be due and payable within ten (10) days of the date on the notice of decision.

(Ord. ORD-05-0010 § 21, 2005)

A. If any operator fails or refuses to remit to the business license section the proper amount of the tax required to be collected and paid under this Chapter on or before the last day of the month following the month in which said taxes were collected by the operator, and up to a period of thirty (30) days thereafter, shall have added to such tax a penalty of twenty-five percent (25%) of the amount of the tax, in addition to the amount of the tax, which penalty shall immediately become a part of the tax due for collection purposes.

B. Any operator who fails or refuses to remit to the business license section the proper amount of the tax required to be collected and paid under this Chapter for any period more than thirty (30) days following the date on which the remittance first became delinquent shall pay a delinquency penalty of fifty percent (50%) of the amount of the tax in addition to the amount of the tax, which penalty shall immediately become part of the tax due for collection purposes.

C. An additional penalty of one percent (1%) per month shall be assessed on the tax remaining unpaid more than sixty (60) days following the date on which the remittance first became delinquent.

(Ord. ORD-05-0010 § 22, 2005: Ord. C-5584 § 1, 1980: Ord. C-5508 § 1, 1979: prior code § 2454)

A. 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 City.

B. Failure of an operator to collect tax required to be paid by a transient shall not excuse the operator from the operator's obligation under this Chapter. 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 tax required to be paid by any transient which is not collected by the operator is deemed a debt owed by the operator to the City.

C. Any person owing money to the City under the provisions of this Chapter shall be liable to an action brought in the name of the City for the recovery of such amount including a reasonable attorney fee.

D. Assessment and lien. Whenever delinquent tax and penalties are not paid to the City after proper notification to the property/business owner and operator, the total uncollected amount including tax and penalties and administrative fees may become assessments, and the City Clerk or the City Clerk's duly authorized representative may compile a list of such assessments together with parcel number designations and address upon which the assessments are being fixed.

After notice and hearing, and upon confirmation of the imposition of the liens by resolution of the City Council and Mayor, the City Clerk shall file a certified copy of the approved resolution with the Los Angeles County Tax Collector, State of California, directing that all unpaid transient occupancy taxes, penalties and administrative fees be entered as lien charges against said property as it appears on the current assessment rolls. Liens will be collected at the same time and in the same manner, subject to the same penalties and interest upon delinquencies, as the general real property taxes are collected for the City of Long Beach. The City Clerk shall present for recording appropriate notices of the imposition of these liens with the Los Angeles County Recorder.

This Chapter does not give the City a preference over any recorded lien which attached prior to the date when the amounts required to be paid became a lien.

(Ord. ORD-05-0010 § 23, 2005)

A. 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 City or an officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this Chapter and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial review of any tax liability.

B. No suit or proceeding shall be maintained in any court for recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for each refund or credit has been duly filed pursuant to Section 3.64.055.

(Ord. ORD-05-0010 § 24, 2005)

In the case of an audit or investigation by the City, the Director may make a deficiency determination or assessment for transient occupancy tax not paid or remitted by a person required to pay or remit, as evidenced by information provided by such person or other persons to the Director, or based upon a reasonable estimate of the Director if complete evidence is not provided by the operator or person required to pay or remit the tax. Such reasonable estimate shall be entitled to a rebuttable presumption of correctness. Notwithstanding any other provision of law, except in the case of fraud or the failure of an operator to file a transient occupancy tax return, the City may institute an action to collect unpaid transient occupancy taxes within four (4) years of the date on which the transient occupancy taxes were required to be paid.

(ORD-05-0010 § 25, 2005)