Chapter 3.12 — TRANSIENT OCCUPANCY TAX

This chapter shall be known as "The Uniform Transient Occupancy Tax Ordinance of the Town."

(Code 1990, § 3.12.010; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.010), 3-20-2024)

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Allowable exemptions means certain revenue that is exempt, as set forth in this chapter, from the imposition of transient occupancy tax for qualifying circumstances and requiring documentation. Qualifying circumstances include guest stays of 31 consecutive days or more, Federal government employees on official business with a government issued credit card demonstrating TOT tax exempt eligibility, employees of Federal instrumentalities, officers of a foreign government which is exempt by reason of express provision of Federal or international law, employees of Federal credit unions organized and operating under the Federal Credit Union Act, employees of insurance companies while performing insurance related business and those which pay the California State Gross Premiums Tax annually pursuant to California Constitution Article XIII, Section 28, in lieu of all other taxes, State government employees on official business with documentation showing tax-exempt eligibility and all others designated by the Town.

Certified property means a transient occupancy unit that is certified to conduct transient rentals by the Town.

Collector or Tax Collector means the Finance Director or other person designated by the Town Manager or Town Council to administer this chapter and oversee the collection of transient occupancy taxes.

Delinquency period spans from the 21st day of any month through the 20th day of the following month, except when the 20th day falls on a Saturday, Sunday, or holiday in which case the delinquency period shall be after the next business day or as designated by the Tax Collector.

Employee means any person who performs services for wages or salary under a contract of employment, express or implied, for an employer.

Gross rents means the total amount of revenue received from all sources in connection with the operation of a transient occupancy unit during the period.

Enforcement charges means all costs and expenses, including, but not limited to, administrative costs and enforcement costs including the value of staff time, accounting fees, expert witness fees, attorney's fees, and court costs.

Fraud has the meanings contained in Civil Code §§ 1709 and 1710.

Local 24-hour emergency contact means a business with a Town business tax certificate providing those specific services within their business model, or an operator living within 60 miles of the Town. Failure to maintain a business tax certificate as a local 24-hour emergency contact will eliminate the ability to qualify as a local 24-hour emergency contact. The local 24-hour emergency contact shall be personally available by telephone on a 24-hour basis to respond to calls regarding the condition and/or operation of the unit.

Mobilehome shall be construed as defined in Health and Safety Code § 18008, and the provisions of this chapter shall apply only to such mobile homes as are outside of a mobile home park as defined in the Health and Safety Code, and further, the provisions of this chapter shall not apply to the renting of a mobilehome when the occupant is the owner or operator of the mobile home or his employee.

Occupancy means the use, possession, or the right to use or possession of any portion of any transient occupancy unit for overnight sleeping, lodging, dwelling, or similar purposes.

Operator means the person who is a legal owner of the transient occupancy unit. The term "operator" also means a person who has the legal right to possession of the premises occupied by transients. The term "operator" also means any person who, through lease, mortgage, contract, license, or similar legal right obtains any right to receive or collect any money as rent for the occupancy of the transient occupancy unit by transients. The term "operator" also means any manager, agent, representative, or other similar person acting on the authority of an owner of a transient occupancy unit or on the authority of any person who by reason of lease, mortgage, contract, license, or similar legal right to receive or collect rent for the occupancy of the transient occupancy unit by transients, which agent, manager, or representative has been authorized to receive or collect rent for the occupancy of the transient occupancy unit by transients. Compliance with the provisions of this chapter by any operator of a transient unit shall be deemed to be in compliance by all operators of such transient occupancy unit.

Owner means the legal registered owner or proprietor of the property or unit.

Person means any person, or any group or combination of people acting in a business capacity and shall be considered to include, but not be limited to, the following: individual; firm; partnership, whether limited or general; corporation; real estate or business trust; syndicate; joint tenants; tenants in common; receiver or trustee; unincorporated association; joint venture; joint stock company.

Rent means the charge for the occupancy of any space in any transient occupancy unit and for all services rendered in connection therewith, including, but not limited to, cleaning services, in the form of money, goods, services or similar payment, including, but not limited to, all receipts, cash, credits, goods, property and services of any kind or nature, without any deduction whatsoever, provided that bona fide charges for food and beverages actually consumed, and any amounts paid by the transient occupant which are separately identified on the invoice, receipt, or statement of charges as representing a tourism business improvement district assessment, shall not be considered "rent." The Town Council may, at any time, remove and/or repeal the exception for tourism business improvement district assessments.

Remittance period spans from the first day of any month to the last day of the same month or as designated by the Tax Collector.

Taxable gross rents means the total amount of revenue passed through the renter and received from all sources during the remittance period subject to taxation. Taxable gross rents include, but are not limited to, nightly rent, cleaning fees, additional occupant fees, civic fees, pet fees, resort fees, early/late arrival or departure fees, no show fees, forfeited deposits, online rental platform reservation and booking fees charged to the operator and passed on to the renter.

Transfer means the act by virtue of which title to a property is conveyed from one person, business structure, partnership, corporation, non-profit, trust or other entity in the form of sale, money transfer, lease, license, lien, gift, or any other way of disposing of a property or asset.

Transient means any person who exercises, or is entitled to exercise, occupancy, whether by agreement (oral or written), concession, permit, right of access, license, contract, payment of rent or similar entitlement, for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any person so occupying space in a transient occupancy unit shall be deemed to be a transient until the period of 30 days has expired, unless there is a lease agreement or month-to-month rental agreement in writing between the operator and the transient, providing for a period of occupancy in excess of 30 days. In determining whether a person is a transient, uninterrupted periods of time extending both prior to and subsequent to the effective date of this chapter and any amendments hereto, may be considered by the Tax Collector.

Transient occupancy unit means any place, space or structure, or portion of any place, space or structure, which is or may be occupied, or intended or designed for occupancy by transients for purposes of sleeping, lodging or similar use in conformance with the Town's zoning regulations, and shall include, but not be limited to, the following: hotel, hotel-motel, lodge; inn; dude ranch; apartment; apartment unit; condominium; condominium unit; triplex; duplex; single-family residence; cooperative; mobilehome; motor home, trailer, dormitory; roominghouse; camping site; space where camping or remaining overnight is permitted at a campground, recreational vehicle park; or other similar structure, facility or space. The term "transient occupancy unit" shall not include any of the following: any hospital, sanitarium, medical clinic, convalescent home, rest home, owner-occupied time share estate, owner-occupied time share use, home for aged people, foster home or other similar facility operated for the care or treatment of human beings;

any asylum, jail, prison, orphanage or other unit or facility in which human beings are detained or housed under legal restraint; housing owned or controlled by any educational institution and used exclusively by students and employees of such educational institutions, and officially recognized or approved by it; any housing operated or used exclusively for religious, charitable or educational purposes by an organization having qualified for exemption from property taxes under the laws of the state of California; any housing owned by a governmental agency and used to house its employees or for governmental purposes; any camp as defined in the Labor Code or other housing furnished by any employer exclusively for housing that employer's employees.

Transient rental means occupation of a transient occupancy unit for a period of 30 days or less.

Visitor expectation guide means a guide that is published by the Town on an annual basis and adopted by resolution of the Town Council. The current version of the transient visitor expectation guide must be posted in the transient occupancy unit in a visible location.

(Code 1990, § 3.12.020; Ord. No. 93-08, § 1, 1993; Ord. No. 11-02, § 3(exh. A), 6-15-2011; Ord. No. 11-03, 3(exh. A, 1, 2), 11-30-2011; Ord. No. 13-08, § 2, 8-7-2013; Ord. No. 24-03, exh. A(3.12.020), 3-20-2024)

Operators shall:

(1)

Assist the Town Police Department with respect to law enforcement problems that might arise in conjunction with the occupancy of the operator's transient occupancy unit;

(2)

Allow inspection of the premises at any time by inspectors of the Town and by inspectors of the Town Fire Protection District as provided by law to determine the compliance of the premises with the codes and ordinances of the Town and the codes and ordinances of the Town Fire Protection District.

(3)

Take all reasonable and necessary action to ensure that transients occupying that operator's transient occupancy unit do not interfere with employees of the Town in carrying out their duties.

(4)

Ensure that there is adequate parking spaces available for transients occupying the transient occupancy unit for the maximum number of allowable vehicles as certified by the Town and pursuant to the requirements of this Code. If the transient occupancy unit books rooms with persons who utilize tour buses, the operator of the unit shall be required to furnish, or make suitable arrangements for furnishing, adequate parking for the tour buses utilizing either onsite or offsite facilities at locations where tour bus parking is permitted.

(5)

Maintain a set of books and records, which shall contain all of the information necessary for the computation of any tax due pursuant to this chapter, notify the Tax Collector of the location of such books and records, and permit inspection of such books and records during normal working hours. Upon ten calendar days' written request by the Tax Collector, such records shall be available at operator's expense, in the Town, during normal working hours.

(6)

Accept service of process for the operator's alleged violation of this chapter.

(7)

Not operate any transient occupancy unit in violation of any provision of this chapter.

(8)

Post faithful performance or similar bonds in such amount as may be required by the Tax Collector.

(9)

Operators shall maintain accurate personal contact information on file with the Town at all times.

(Code 1990, § 3.12.030; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.030), 3-20-2024)

For the privilege of occupancy of any transient occupancy facility, each transient is subject to and shall pay a tax in the amount of 15 percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the Town which is extinguished only by payment to the operator or to the Tax Collector. The transient shall pay the tax to the operator of the transient occupancy facility at the time the rent is paid. If the rent is paid in installments, the unpaid tax shall be paid to the operator at the rate of 15 percent. If for any reason the tax due is not paid to the operator of the transient occupancy facility, the Tax Collector may require that such tax be paid by the transient to the Tax Collector.

(Code 1990, § 3.12.040; Ord. No. 91-10, § 1, 1991; Ord. No. 94-10, § 1, 1994; Ord. No. 96-08, § 1, 1996; Ord. No. 96-11, § 1, 1996; Ord. No. 05-04, § 1, 2005; Ord. No. 06-07, § 3, 2006; Ord. No. 24-03, exh. A(3.12.040), 3-20-2024; Ord. No. 24-06, § 2(3.12.040), 11-5-2024)

(a)

Each operator shall collect, and hold in trust for the Town, 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 transient occupancy unit 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.

(b)

Each operator shall have a local 24-hour emergency contact who is available at all times to respond to questions and issues arising out of the transient occupancy. Failure to respond to calls in a timely and appropriate manner on two occasions shall result in revocation of the certified property authorization for the transient occupancy unit and the eligibility as a 24-hour emergency contact. For purposes of this chapter, responding in a timely and appropriate manner shall mean that a response to an initial call shall be made within one hour of the time the call was made, and within 24 hours of the initial call, corrective action shall be commenced to address any violation of this chapter and/or Chapter 5.32. Upon request from the Town, an operator shall furnish the names of each vendor or contractor supplying services to a certified property.

(c)

Each operator shall identify to the Town the cleaning service for each certified property and update the contact information of the cleaning service as necessary. A cleaning service shall be a Town business tax certificate holder pursuant to Chapter 5.04.

(d)

On request from the Town, an operator shall furnish the names of each vendor or contractor supplying services to a certified property.

(Code 1990, § 3.12.050; Ord. No. 91-10, § 1, 1991; Ord. No. 11-02, § 3(exh. A), 6-15-2011; Ord. No. 11-03, 3(exh. A, 3), 11-30-2011; Ord. No. 24-03, exh. A(3.12.050), 3-20-2024)

Each transient occupancy unit shall have a notice posted within the unit in a location clearly marked and accessible to the transient (e.g. posted on the refrigerator, included within a binder with additional information on the unit, etc.), containing all of the following information:

(1)

The maximum number of occupants permitted to stay overnight in the unit.

(2)

The maximum number of vehicles associated with the transient rental allowed to be parked on the property.

(3)

The location of on-site parking spaces and the parking rules for seasonal snow removal.

(4)

Notification that an occupant, as a person responsible for an unlawful large party, may be cited and fined for creating a disturbance or for violating other provisions of Chapter 5.32.

(5)

Notification that trash and refuse shall not be left or stored on the property unless it is deposited in bear resistant containers intended for pickup by the Town's solid waste contractor. Alternatively, trash may be deposited within a dumpster serving the property or at the transfer station for a fee. Trash information should include specific instructions on opening and securing the animal resistant dumpsters.

(6)

Notification that failure to conform to the parking and occupancy requirements for the transient occupancy unit is a violation of this Code.

(7)

The name of the managing agency or agent and a telephone number at which that party may be reached on a 24-hour basis.

(8)

The name and phone number of the cleaning service provider for the certified property.

(9)

Physical street address of the unit and emergency contact information consisting of 911 and non- emergency contact information for the Town Fire Protection District and Town Police Department.

(10)

Evacuation plan for the unit showing exit routes, exits, and fire extinguisher locations. Evacuation plans may be hand-drawn and do not need to be drawn to scale but should clearly show occupants how to exit the premises in the case of an emergency.

(11)

The current version of the visitor expectation guide that is published by the Town on an annual basis as adopted by resolution of the Town Council.

(Code 1990, § 3.12.055; Ord. No. 11-03, 3(exh. A, 4), 11-30-2011; Ord. No. 24-03, exh. A(3.12.060), 3-20- 2024)

(a)

Each transient occupancy unit shall be registered with the Tax Collector prior to commencing business. It shall be unlawful to conduct transient rentals without:

(1)

Having first procured a certified property authorization;

(2)

Paying the tax prescribed in this title; and

(3)

Complying with any and all applicable provisions of this chapter and/or Chapter 5.32.

(b)

Upon proper application and payment, the Tax Collector shall issue a certified property authorization to the operator, in accordance with the provisions of this chapter. Notwithstanding the foregoing or any provision of this chapter, no accessory dwelling unit (ADU) or housing unit which is encumbered by a recorded deed restriction that limits the sale price or rent shall be registered with the Tax Collector, and no certified property authorization shall be issued to the owner or operator of any such unit. The fees for a certified property authorization shall be established by resolution of the Town Council.

(Code 1990, § 3.12.060; Ord. No. 91-10, § 1, 1991; Ord. No. 11-03, 3(exh. A, 5), 11-30-2011; Ord. No. 24- 03, exh. A(3.12.070), 3-20-2024; Ord. No. 26-02, § 1(exh. A), 3-18-2026)

(a)

Any operator who: (i) fails to obtain a certified property authorization for a transient occupancy unit; and/or (ii) operates a transient occupancy unit which is an accessory dwelling unit (ADU) or a housing unit which is encumbered by a recorded deed restriction that limits the sale price or rent, shall be in violation of this chapter and shall be subject to all of the provisions of this chapter, in addition to being subject to all other remedies provided by law. It shall be a separate violation of this chapter for failure to obtain a certified property authorization for each day the operator is required to hold such authorization. It shall be a separate violation of this chapter for an operator to operate a transient occupancy unit which is an accessory dwelling unit (ADU) or a housing unit which is encumbered by a recorded deed restriction that limits the sale price or rent, for each day of such operation.

(b)

In addition to the foregoing, each person, business entity or other entity operating a transient occupancy unit shall be subject to taxation and be liable to the Town for taxes, penalties, interest, and enforcement charges, imposed by this chapter. Such taxes, penalties, interest, and enforcement charges may be collected by the Town as otherwise provided in this chapter.

(c)

When any operator or other person shall by use of any promotional media, including, but not limited to, print, audio, visual or electronic media, including web sites, web marketing, advertising or promotional websites, social media, or traditional promotional methods, including, but not limited to, signs, circulars, bills, cards, telephone books, or newspapers-promote, market, advertise, hold out or represent that they or an entity they own, operate, manage, or control a transient occupancy unit these facts shall be considered prima facie evidence that such person is acting as an operator.

(Ord. No. 24-03, exh. A(3.12.080), 3-20-2024; Ord. No. 26-02, § 1(exh. A), 3-18-2026)

(a)

Operators shall make their return and remittance on or before the 20th day of the month following each and every month, or at the close of any alternate remittance period which may be established by the Tax Collector. If the 20th day of the month following a particular month, or the deadline established at the close of any alternate remittance period which may be established by the Tax Collector, is a Saturday, Sunday, Federal or Town holiday, the return and remittance will be considered timely if received the next working day.

(b)

At the time the return is filed, the full amount of the tax collected shall be paid to the Tax Collector. The Tax Collector shall establish an alternate remittance period for an operator if he/she deems it necessary in order to ensure collection of the tax or due to previous noncompliance with this chapter by the operator, and the Tax Collector may require further information in the return. Returns and payments are due within 15 days 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 Town until payment thereof is made to the Tax Collector. The Tax Collector may, in his/her discretion, require that a separate trust account be established at a financial institution of the Tax Collector's choice, the balance of which shall be payable to the Town, if the Tax Collector deems it necessary in order to insure remittance of the tax.

(c)

Each return filed pursuant to this chapter shall include the following information, as well as such other information as the Tax Collector may deem reasonably necessary for the enforcement of this chapter:

(1)

The number of nights each certified property was available for rent during the remittance period.

(2)

The number of nights of paid occupancy for each certified property during the remittance period.

(3)

The number of unpaid nights each certified property was occupied during the remittance period.

(4)

The gross rents for each certified property, allowable exemptions, taxable gross rents and the amount of the tax, penalties, and interest that is due and payable during the remittance period.

(5)

Other statistical breakdowns as requested by the Tax Collector on the monthly return form.

(d)

The full amount of the rent shall be reported for the certified property on the monthly return based on the departure date of the transient.

(Code 1990, § 3.12.080; Ord. No. 93-08, § 1, 1993; Ord. No. 11-03, 3(exh. A, 7), 11-30-2011; Ord. No. 20- 05, § 2, 4-22-2020; Ord. No. 24-03, exh. A(3.12.090), 3-20-2024)

Any operator who fails to pay any tax or file any return imposed by this chapter within the time required shall pay, in addition to such tax and any interest such tax may accrue, an original delinquency penalty of $10.00 or 15 percent of the amount of the tax, whichever dollar amount is greater. Every penalty imposed, and such interest as accrues under the provisions of this chapter, shall become part of the tax required to be paid. Interest shall accrue on all unpaid taxes until paid.

(Code 1990, § 3.12.090; Ord. No. 93-08, § 1, 1993; Ord. No. 15-07, § 2, 10-7-2015; Ord. No. 24-03, exh. A(3.12.100), 3-20-2024)

(a)

Any operator who fails to pay any delinquent tax, penalties, and interest during the original delinquency period, shall pay an additional delinquency penalty, over and above that provided in Section 3.12.090, of $10.00 or 15 percent of the amount of the tax, penalties and interest then due, whichever is greater.

(b)

The Tax Collector shall give written notice to any operator who fails to report or remit tax, penalties, and interest for two delinquency periods. The notice shall include the intention to revoke the business tax certificate and/or certified property authorization after 15 days from the date on the notice should the returns due not be filed and/or the taxes, penalties, and interest then due not be paid. Written notice shall be deemed given when a copy of the same is enclosed in a sealed envelope with postage thereon fully prepaid and certified in the United States mail and addressed to that address given by the operator in the application for the business tax certificate and/or certified property. The business tax certificate and/or certified property authorization shall be revoked upon lapse of the 15 days provided in the notice, if all taxes, penalties, and interest are not paid in full within the 15-day period.

(Code 1990, § 3.12.100; Ord. No. 91-10, § 1, 1991; Ord. No. 14-11, § 2A, 12-3-2014; Ord. No. 15-07, § 2, 10-7-2015; Ord. No. 24-03, exh. A(3.12.110), 3-20-2024)

Notwithstanding Sections 3.12.090 and 3.12.100, if the Tax Collector determines that any of the requirements established by the Town for notifying an operator of a transient occupancy unit is delinquent in remitting a return and paying tax as required by this chapter have not been met, the Tax Collector may reduce the penalty and interest due on an account to only one month of penalties and interest.

(Code 1990, § 3.12.105; Ord. No. 17-04, § 2, 3-15-2017; Ord. No. 24-03, exh. A(3.12.120), 3-20-2024)

(a)

If the Tax Collector determines that the nonpayment 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 all other penalties provided in this chapter.

(b)

In addition to the penalty established in the preceding sentence, if an operator without a business tax certificate is found to have committed a violation of nonpayment of any remittance due under this chapter for a second or subsequent instance the operator will be deemed to have committed fraud and is subject to an additional penalty of 25 percent of the amount of the tax due for each case.

(c)

An operator who collects taxes and fails to remit shall be deemed to have committed fraud.

(Code 1990, § 3.12.110; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.130), 3-20-2024)

In addition to the penalties imposed by this chapter, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of 1.5 percent per month or fraction thereof on the amount of the tax, inclusive of penalties, from the date on which the remittance first become delinquent, until paid.

(Code 1990, § 3.12.120; Ord. No. 91-10, § 1, 1991; Ord. No. 15-07, § 2, 10-7-2015; Ord. No. 24-03, exh. A(3.12.140), 3-20-2024)

If any operator fails or refuses to collect the tax imposed by this chapter and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the Tax Collector 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, or by estimation if no records are available. As soon as the Tax Collector procures such facts and information as the Tax Collector is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by an operator who has failed or refused to collect the same and to make such report and remittance, the Tax Collector shall proceed to determine and assess against such operator the tax, interest, penalties, and enforcement charges provided for by this chapter. In case such determination is made, the Tax Collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, first class postage prepaid and certified, addressed to the operator so assessed at the operator's last known address. Such operator may, within 15 days after the serving or mailing of such notice, make application in writing to the Tax Collector for a hearing on the amount assessed. If application by the operator for hearing is not made within the time prescribed, the tax, interest, penalties, and enforcement charges, if any, determined by the Tax Collector, shall become final, conclusive, and immediately due and payable. If such application is made, the Tax Collector shall give not less than five days' written notice in the manner prescribed in this

chapter to the operator to show cause at the time and place fixed in the notice why the amount specified therein should not be fixed at such tax, interest, penalties, and enforcement charges. At such hearing, the operator may appear and offer clear and convincing evidence why such specified tax, interest, penalties, and enforcement charges should not be so fixed. After such hearing the Tax Collector shall determine the proper amount to be remitted and shall thereafter give written notice to the person in the manner prescribed in this chapter of such determination and the amount of such tax, interest, penalties, and enforcement charges, including enforcement charges related to the hearing. The amount determined to be due shall be payable within 15 days unless an appeal is taken as provided in Section 3.12.150. On good cause, the certified property authorization may be suspended by the Tax Collector pending the hearing as herein appeal thereof. An operator who fails to secure a certified property authorization for the transient occupancy unit prior to conducting transient rentals or soliciting for transient rentals through any promotional media shall be subject to enforcement charges regardless of whether tax, penalties, or interest are found to be due.

(Code 1990, § 3.12.130; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.150), 3-20-2024)

(a)

Any operator aggrieved by any decision of the Tax Collector with respect to the amount of such tax, interest, penalties, enforcement charges or suspension, if any, may appeal to the Town Council by filing a notice of appeal with the Town Clerk within fifteen days of the serving or mailing of the determination of tax due, provided, that the operator has completed all administrative procedures and sought all administrative remedies in Section 3.12.160, including appearance in person or through legal counsel at all administrative hearings. The Town Council shall fix a time and place for hearing such appeal, and the Town Clerk shall give notice in writing and/or via electronic mail to such operator at his last known place of address. The findings of the Town Council shall be final and conclusive and shall be served upon the appellate 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.

(b)

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 Town 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.

(Code 1990, § 3.12.140; Ord. No. 91-10, § 1, 1991; Ord. No. 10-10, 9-22-2010; Ord. No. 24-03, exh. A(3.12.160), 3-20-2024)

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 such tax, interest, penalties, and enforcement charges, as may have been due to the Town, which records the Tax Collector or Tax Collector's agent shall have the right to inspect at all reasonable times. All tax returns and information furnished by any operator pursuant to this

chapter shall be confidential and shall not be open to the public inspection nor the specific contents thereof disclosed by any officer or employee except as necessary in the performance of official duty pursuant to this chapter, or in the course of proceedings, hearing or litigation involving the existence or amount of tax, interest, penalties or enforcement charges, or with the written consent of the operator or his authorized representative.

(Code 1990, § 3.12.150; Ord. No. 91-10, § 1, 1991; Ord. No. 17-06, § 2, 8-16-2017; Ord. No. 24-03, exh. A(3.12.170), 3-20-2024)

If the Tax Collector determines that any operator has fraudulently misrepresented the financial condition determining the amount of revenue collected or tax owed by providing false or misleading information, the operator shall be subject to an administrative fine of $1,000.00 dollars and revocation of the associated business tax certificate and all certified property authorizations. No new business tax certificates or certified property authorizations shall be issued to the operator or for the transient occupancy unit for a period of three months for the first violation, six months for the second violation, and 12 months following all subsequent violations.

(Ord. No. 24-03, exh. A(3.12.180), 3-20-2024)

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 provided in Sections 3.12.200 and 3.12.210, 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 Collector within three years of the date of payment. Persons claiming refunds shall provide all information required by the Tax Collector to determine the validity of refunds claimed. No refund shall be paid unless the claim has been reviewed and the entitlement to the refund determined to be valid by the Tax Collector. The Tax Collector shall not refund any tax, interest or penalties if said tax, interest or penalties have previously been determined as final by the Town Council.

(Code 1990, § 3.12.160; Ord. No. 93-08, § 1, 1993; Ord. No. 24-03, exh. A(3.12.190), 3-20-2024)

Any operator may claim 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 Collector 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.

(Code 1990, § 3.12.170; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.200), 3-20-2024)

A transient may obtain a refund of tax, penalty or interest overpaid or paid more than once or erroneously or illegally collected or received by the Town by filing a claim in the manner provided in Section 3.12.180, but only when the tax was paid by the transient directly to the Tax Collector, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Tax Collector that the transient has been unable to obtain a refund from the operator who collected the tax.

(Code 1990, § 3.12.180; Ord. No. 93-08, § 1, 1993; Ord. No. 24-03, exh. A(3.12.210), 3-20-2024)

No refund shall be paid under the provisions of Sections 3.12.180 through 3.12.200 unless the claimant establishes the right thereto by written records showing entitlement thereto by clear and convincing evidence.

(Code 1990, § 3.12.190; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.220), 3-20-2024)

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 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 of such amount, including interest, penalties, and enforcement charges. Property owners, including those represented by an operator other than the owner, shall be liable for any and all unpaid taxes, penalties, interest, and enforcement charges and subject to all enforcement actions pursuant to this chapter.

(Code 1990, § 3.12.200; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.230), 3-20-2024)

All certified properties applicants shall identify the business tax certificate by which the reporting required in Section 3.12.080 will be submitted to the Town and shall report gross receipts on a monthly basis, even when the gross receipts total is zero. Remittance of taxes, penalties, and interest can be completed under one monthly return as long as all rents, allowable exemptions, and statistical data for each certified property authorization are included. The Town shall revoke the certified property authorization for any transient occupancy unit without a business tax certificate after 30 days.

(Code 1990, § 3.12.210; Ord. No. 93-08, § 1, 1993; Ord. No. 24-03, exh. A(3.12.240), 3-20-2024)

If any tax, interest, or penalty imposed under this chapter is not paid by the 20th day of the month succeeding the delinquency date, the Tax Collector may file no sooner than ten days after the mailing of the notice required in Subsection (2) of this section, in the office of the County Clerk, without fee, a certificate specifying as follows:

(1)

The fact that a notice of intent to file the certificate had been sent, by certified mail, to the operator, at the operator's last known address, not less than ten days prior to the date of the certificate.

(2)

The fact that the notice required in Subsection (1) of this section set forth the following information:

a.

The name of the property owner;

b.

The fact that judgment will be sought in the amount of the tax, penalty, interest, and enforcement charges that will remain unpaid at the time of the filing of the certificate;

c.

The fact that, upon the issuance and recordation of such judgment, additional penalties and interest will continue to accrue at the rate prescribed by law, and that any bond premium posted or other costs to enforce the judgment shall be an added charge; and

d.

The fact that a recording fee of $5.00 per page will be required to be paid for the purpose of the recordation of any release of the judgment lien.

(3)

The amount for which judgment is to be entered.

(4)

The fact that there has been compliance with all provisions of this chapter in the computation and the levy of the tax, penalty, interest, and enforcement charges.

(5)

The fact that a request is therein made for the issuance and entry of judgment against the transient occupancy tax registration certificate holder.

(Code 1990, § 3.12.220; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.250), 3-20-2024)

The County Clerk, immediately upon the filing of the certificate, shall enter a judgment for the Town against the property owner in the amount of the tax, penalty, interest, and enforcement charges set forth in the certificate. The County Clerk may file the judgment in a looseleaf book entitled "Town of Mammoth Lakes Transient Occupancy Tax Judgments."

(Code 1990, § 3.12.230; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.260), 3-20-2024)

An abstract or a copy of the judgment shall be recorded, without fee, in the office of the County Recorder. From the time of the recording, the amount of the tax, penalty, interest, and enforcement charges set forth constitutes a lien upon all property of the owner, owned by him/her or afterward acquired by him/her, and before the lien expires. The lien has the force, effect, and priority of a judgment lien and continues for ten years from the date of the recording unless sooner released or otherwise discharged.

(Code 1990, § 3.12.240; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.270), 3-20-2024)

In addition to any penalty or fee imposed pursuant to this chapter, a penalty equal to the amount of any bond premium posted or other costs incurred to enforce the judgment entered pursuant to this chapter shall be imposed.

(Code 1990, § 3.12.250; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.280), 3-20-2024)

Execution shall issue upon the judgment upon request of the Tax Collector in the same manner as execution may issue upon other judgments, and sales shall be held under such execution as prescribed in the Code of Civil Procedure.

(Code 1990, § 3.12.260; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.290), 3-20-2024)

(a)

The judgment is satisfied and the lien removed when, but not before, the certificate of release or discharge from the judgment lien is recorded in the office of the County Recorder. In addition to the judgment amount, and any additional penalty or interest accruing on the judgment, the Tax Collector shall collect the recording fee of $5.00 per page for the recording of the lien release or discharge document and transmit it to the County Recorder together with the documents for release or discharge.

(b)

The judgment is also satisfied and the lien removed when, but not before, the tax is legally canceled and a release or discharge from the judgment lien is recorded in the office of the County Recorder. A recording under this subdivision shall be made without a fee.

(Code 1990, § 3.12.270; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.300), 3-20-2024)

(a)

Any person, including any transient, who violates any of the provisions of this chapter shall be guilty of an infraction. Each such person shall be guilty of a separate offense for each and every day during any portion

of which any violation of any provision of this chapter is committed, continued or permitted by such person, and may be punished accordingly. The foregoing notwithstanding, in the discretion of the District Attorney or the Town Attorney, upon a showing of gravity of offense, any violation of any provision of this chapter may be prosecuted as a misdemeanor.

(b)

Other than delinquent tax remittal addressed in Sections 3.12.080 through 3.12.100, any person, including any transient, who violates any provision of this chapter may be subject to administrative fines as set forth in Chapter 8.32, provided that such violations shall be subject to a fine not exceeding $1,500.00 for a first violation, a fine not exceeding $3,000.00 for a second violation of this chapter or Chapter 5.40 within one year, and a fine not exceeding $5,000.00 for each additional violation of this chapter or Chapter 5.40 within one year of the first violation. Any violation of any provision of this chapter which occurs on more than one day shall constitute a separate violation for each day or portion thereof during which such violation occurs.

(c)

Notwithstanding Subsection B of this section, the $1,500.00, $3,000.00, and $5,000.00 fines set forth therein shall not apply to: (i) a first time offense of failing to obtain a Certified Property authorization or business tax certificate or pay a fee for either of those; or (ii) violations committed in connection with the transient rental of a commercially operated hotel, motel, bed and breakfast inn, time-share property as defined by subdivision (aa) of Section 11212 of the Business and Professions Code, lodge, inn, camping site, space where camping or remaining overnight on a transient basis is permitted at a campground or recreational vehicle park, or the rental of anything that is not a " transient occupancy unit" as defined in Section 3.12.020.

(d)

Town staff shall establish a process for granting a hardship waiver to reduce the amount of the fine upon a showing by the responsible party that the responsible party has made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party.

(e)

(1)

Notwithstanding Subsection (a) of this section, any operator or other person who fails or refuses to register as required in this chapter, 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 Tax Collector, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor.

(2)

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 as required by this chapter to be made is guilty of a misdemeanor.

(f)

Any transient occupancy unit operated without a certified property authorization or without collecting and paying transient occupancy taxes to the Town as required in this chapter is a public nuisance and may be abated as provided for in Chapter 8.20.

(Code 1990, § 3.12.280; Ord. No. 91-10, § 1, 1991; Ord. No. 11-02, § 3(exh. A), 6-15-2011; Ord. No. 12-01, § 3, 3-7-2012; Ord. No. 22-10, § 1(exh. A), 11-16-2022; Ord. No. 24-03, § 1(exh. A), 3-20-2024)

At or prior to the time of registration, an operator shall maintain a record of the name and address of the transient occupant to whom every transient occupancy facility unit is let, together with a record of the number of persons who are allowed to occupy the transient occupancy facility unit. The operator shall retain such records for a period of three years.

(Code 1990, § 3.12.300; Ord. No. 91-10, § 1, 1991; Ord. No. 24-03, exh. A(3.12.320), 3-20-2024)

(a)

Pursuant to Revenue and Taxation Code § 7283.5, and as that section may from time to time be amended, a purchaser, transferee, or other person attempting to obtain ownership of a transient occupancy unit, may request in writing from the Tax Collector the issuance of a tax clearance certificate stating the amount of tax and any accrued penalties and interest due and owing, if any.

(b)

The Tax Collector shall, within 90 days of the receipt of the written request for a tax clearance certificate, issue the tax clearance certificate, or may conduct an audit of the subject transient occupancy unit. Any such audit must be completed within 90 days after the date the records of the subject transient occupancy unit have been made available to the Tax Collector and a tax clearance certificate issued within 30 days of the completion of the audit.

(c)

If, following an audit, the Tax Collector determines that the current operator's records are insufficient to assess the amount of tax due and owing, the Tax Collector shall, within 30 days of making that determination, notify the prospective purchaser, transferee, or other person that a tax clearance certificate will not be issued.

(d)

If the Tax Collector does not comply with his/her obligations under this section, the purchaser, transferee, or other person that obtains ownership of the transient occupancy unit shall not be liable for any transient occupancy tax obligation incurred prior to the date of the purchase or transfer of the property.

(e)

The tax clearance certificate shall state the following:

(1)

The amount of tax, interest, and penalties then due and owing;

(2)

The period of time for which the tax clearance certificate is valid; and

(3)

That the purchaser, transferee, or other person 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.

(f)

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

(Ord. No. 24-03, exh. A(3.12.330), 3-20-2024)

(a)

It is a violation of this chapter for any person to knowingly aid or engage in the practice commonly known in the lodging industry as stacking. Stacking occurs when a transient occupant who is the registered occupant of a transient occupancy unit, allows other persons to share occupancy of that unit for any night for which those persons are not registered, with intent to defraud the operator of a transient occupancy unit.

(b)

Stacking fraudulently deprives the Town of tax revenue to which the Town is entitled. Any transient who allows stacking to take place in the unit for which that person is registered, and any transient who occupies a unit knowing that his/her occupancy has not been paid for, shall be in violation of this chapter. Any such violation shall be prosecuted as a misdemeanor, or, in the discretion of the prosecuting attorney, may be prosecuted as an infraction.

(Code 1990, § 3.12.310; Ord. No. 91-15, § 1(exh. B), 1991; Ord. No. 24-03, exh. A(3.12.340), 3-20-2024)

Pursuant to Civil Code § 1102.6(a), sellers of residential property shall disclose to purchasers of such property the provisions of this chapter and Chapter 5.40 and shall further disclose to purchasers the residential zones in which transient occupancy is permitted and the zones in which it is prohibited. This

disclosure obligation shall be satisfied by providing to each purchaser a "Local Option Real Estate Transfer Disclosure Statement" specified by the Town.

(Code 1990, § 3.12.320; Ord. No. 11-02, § 3(exh. A), 6-15-2011; Ord. No. 24-03, exh. A(3.12.350), 3-20- 2024)

(a)

A violation of any provision of this chapter, and/or operating a transient rental unit without the remittance of transient occupancy tax is subject to the general penalty provisions and/or the administrative citation provisions set forth in Chapters 1.16 and 1.18, respectively, and any other civil or administrative remedy allowed by law.

(b)

A person committing a second or subsequent violation of any provision of this chapter, and/or the renting of a transient occupancy unit without the remittance of transient occupancy tax shall be subject to a minimum enforcement charge of $2,500.00.

(c)

Notwithstanding Chapter 1.16, the administrative fine for violation of any provision of this chapter, the operation of any transient occupancy unit or advertising for transient rentals, without a valid business tax certificate, certified property authorization by the Town or the operation of any transient occupancy unit in violation of applicable zoning requirements of the Town shall be $1,500.00 dollars per day for the first violation, $3,000.00 per day for a second violation, and $5,000.00 for every subsequent violation.

(d)

The Town may revoke the business tax certificate or certified property authorization upon non-compliance by an operator of the requirements for registration and operation of transient occupancy units. No new business tax certificates or certified property authorizations shall be issued for a period of three months for the first violation, six months for the second violation, and twelve months following all subsequent violations.

(Ord. No. 24-03, exh. A(3.12.360), 3-20-2024)

Certified property authorizations shall not be construed as providing property rights or vested interests and entitlements in continued operation of a transient occupancy unit. Certified property authorizations are a revocable status which expires annually. Certified property authorizations shall not run with the land.

(Ord. No. 24-03, exh. A(3.12.370), 3-20-2024)