Mono County Municipal Code Ch. 3.28 Transient Occupancy Tax

The ordinance codified in this chapter shall be known as "the Uniform Transient Occupancy Tax Ordinance of Mono County."

(Ord. 04-05 § 1 (Att. A, part), 2004.)

For the purposes of this chapter the following words shall have the meanings set forth in this section:

A. "Transient occupancy facility" (or "hotel") means any form of lodging facility the occupancy of which may be legally subjected to a tax under Section 7280 of the California Revenue and Taxation Code, or any successor state law, as the same may be amended from time to time, including but not limited to: spaces at campgrounds and recreational vehicle parks (to the fullest extent authorized by said state law); and any structure or portion of any structure, which is occupied, or intended or designed for occupancy by transients for purposes of sleeping, lodging or similar reasons, including but not limited to a hotel, motel, lodge, inn, dude ranch, apartment and/or apartment unit, condominium or condominium unit, triplex, duplex or similar structure, single-family residence, cooperative, mobile home, dormitory and rooming house.

B. "Mobile home" shall be construed as defined in Section 18008 of the Health and Safety Code of the state and the provisions of this chapter shall apply only to such mobile homes located 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 mobile home when the occupant is the owner or operator of the mobile home or his employee.

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

D. "Operator" means the person who is the owner of the transient occupancy facility, that is, has the exclusive legal right to the premises occupied by transients. The word operator shall also be construed as any person who, through lease, mortgage, contract, license or similar legal right obtains any right to receive or collect any moneys received as rent for the occupancy of the transient occupancy facility by transients. The word operator shall also be construed to mean any manager, agent, representative, or other similar person acting on the authority of the owner of the transient occupancy facility and/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 facility by transients, which agent, manager or representation has been authorized to receive or collect rent for the occupancy of the transient occupancy facility by transients. Compliance with the provisions of this chapter by any operator of a transient occupancy facility shall be deemed to be compliance by all operators of such transient occupancy facility.

E. "Person" means 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; social clubs; joint venture; joint stock company.

F. "Rent" means the consideration charged, whether or not received, for the occupancy of any space in any transient occupancy facility, valued in terms of money, whether to be received in money, goods, services or otherwise, including all receipts, cash, credits, goods, property and services of any kind or nature, without any deduction whatsoever. Rent includes a non-refundable deposit or guaranteed no-show fee paid by or on behalf of any person, whether or not the person actually exercises the right to occupancy by using or possessing any room or rooms or portion thereof, in any transient occupancy facility for dwelling, lodging or sleeping purposes. Rent does not include:

1. A non-refundable deposit or guaranteed no-show fee for conferences or other group-related activities, regardless of whether all or any portion of that non-refundable deposit or guaranteed no-show fee includes any consideration for rooms reserved.

2. The value of paid or complimentary products or services offered to a guest of a transient occupancy facility, if the products or services are included in a package rate, provided:

a. A reasonable allocation of the value of such products or services is separately identified either on the guest receipt or on the operator's accounting records; and

b. No tax pursuant to this chapter is charged or collected by the operator on the value of such products or services.

G. "Tax collector" means the tax collector of Mono County.

H. "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 otherwise, for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any person so occupying space in a transient occupancy facility shall be deemed a transient until the period of thirty days has expired, unless there is an agreement in writing between the operator and the transient, providing for a period of occupancy in excess of thirty 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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Operators of transient occupancy facilities shall have the following general duties:

A. Assist the Mono County sheriff's office with respect to law enforcement problems that might arise in conjunction with the occupancy of such transient occupancy facility;

B. Provide for the examination of the premises to insure that the premises are suitable for continued occupancy at any time the same is being offered for occupancy hereunder*;

C. Assist employees of Mono County should the occupation of the transient occupancy facility by transients interfere with the duties and functions required of said employees by law;

D. Insure that there is adequate parking space(s) available for transients occupying the transient occupancy facility;

E. 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 county working hours. If books and records are kept off-site by a non-resident operator such records shall be available in Mono County, at the operator s expense, within ten working days following a written request by the tax collector **;

F. Accept service of such process as may relate to the occupancy of the transient occupancy facility by transients.

* Attention is called to other law commonly referred to as "Innkeeper Law" concerning certain health requirements such as clean linen, mattress, towels etc., as well as the general condition of the premises, as required by law.

** If a person other than the operator functions for the operator, there must be compliance with state law and the rules and regulations adopted by the California Department of Real Estate.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged and each transient shall receive a receipt for payment from the operator. No operator of a transient occupancy facility 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. 04-05 § 1 (Att. A, part), 2004.)

A. No tax shall be imposed upon:

1. Any person as to whom, or any occupancy as to which, it is beyond the power of the county to impose the tax provided in this chapter;

2. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and

3. Any person for whom emergency housing is provided pursuant to a voucher issued by a non-profit, tax exempt agency or organization.

B. No exemption shall be granted except upon a claim for exemption made at the time rent is collected under penalty of perjury and upon a form prescribed by the tax collector.

C. Federal employees on official business are eligible for exemption from the tax. The exemption claim shall not be approved by the operator unless the person requesting the exemption shows satisfactory credentials and payment is made by federal check, warrant, credit card, voucher of other form of payment indicating the occupancy is pursuant to the current performance of official business.

1. A copy of the credentials of the person requesting the exemptions shall be attached to the exemption claim form;

2. A separate exemption claim must be filed for each occupied room subject to rental for which the exemption is requested.

D. State and local government employees, contractors and subcontractors of any level of government are not eligible for exemption from the tax.

E. Original exemption claim forms and all supporting documents must be retained by the operator for a period of four years.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

The following reductions to room revenue when supported by documentation including the date, name of guest, room number, dollar amount of adjustment, reason for adjustment, and signature of person authorizing the adjustment, shall be permitted:

A. Complimentary rooms provided for purposes of advertising or public relations;

B. Adjustments to room rates due to customer complaints regarding unsatisfactory services or accommodations;

C. Travel or other special discounts offered by the transient occupancy facility;

D. Corrections of errors or disputed room charges.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

For the privilege of occupancy of any transient occupancy facility, each transient is subject to and shall pay a tax in the amount of fifteen percent of the rent charged. The tax constitutes a debt owed by the transient to the county which is extinguished only by payment to the operator or to the county. The transient shall pay the tax to the operator of the transient occupancy facility 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 transient occupancy facility. 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 shall be paid directly to the tax collector.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

(Ord. No. 24-008, § 1, 11-5-2024)

Within thirty days after the effective date of the ordinance codified in this chapter, or within thirty days after commencing business whichever is later, each operator of any transient occupancy facility renting occupancy to transients shall register the transient occupancy facility with the tax collector and obtain from him a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises The certificates shall, among other things, state the following:

A. The name, address and phone number of the operator, and operators designee, if any;

B. The address of the transient occupancy facility;

C. The date upon which the certificate was issued; and

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 Ordinance by registering with the Tax Collector for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Collector. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner or to operate a transient occupancy facility without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department or office of this County. This certificate does not constitute a permit."

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the tax collector, make a return to the tax collector, 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 paid to the tax collector. The tax collector may establish a shorter reporting period for any certificate holder if he deems it necessary in order to insure collection of the tax and he may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the county until payment thereof is made to the tax collector.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Any operator who fails to pay any tax imposed by this chapter within the time required shall pay a penalty of fifteen percent of the amount of the tax in addition to the amount of the tax. Every penalty imposed, and such interest as accrues, under the provisions of this chapter shall become a part of the tax required to be paid. No penalties or interest shall accrue from the date of the filing of any successful appeal from the imposition of the tax as provided by this chapter.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

A. Any operator who fails to pay any delinquent tax on or before the lapse of thirty days following the date on which the tax first became delinquent shall pay a second penalty of fifteen percent of the amount of the tax, penalties and interest then due.

B. If the tax, penalties and interest are not paid within sixty days from the date on which the tax became delinquent, the tax collector shall give written notice to the operator in whose name the transient occupancy registration certificate was issued of his intention to cancel the certificate within fifteen days from the date on the notice should the taxes, penalties and interest then due not be paid. Written notice shall be deemed given when a copy of same is enclosed in a sealed envelope with postage thereon fully prepaid in the United States mail and addressed to that address given by the operator in the application for the certificate. The transient occupancy registration certificate shall be cancelled upon lapse of the fifteen days provided in the notice and nonpayment of taxes, penalties and interest within said fifteen-day period.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

If the tax collector determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in Sections 3.28.090 and 3.28.100.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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 and one-half 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. Any delinquent taxes due but unpaid as of the effective date of the ordinance codified in this section shall accrue interest at the rate set by this section until paid.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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 or she may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the tax collector procures such facts and information deemed necessary 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, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax collector shall give a 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 the operator's last known address. Such operator may within ten 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 a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax collector, shall become final and conclusive and shall be 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 herein to the operator to show cause at a time and place fixed in the 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 tax collector shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.28.140. On good cause, the occupancy certificate of the operator may be suspended by the tax collector pending the hearing as herein provided or any appeal thereof.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Any operator aggrieved by a decision of the tax collector with respect to the amount of such tax, interest, penalties, or suspension, if any, may appeal to the board of supervisors by filing a notice of appeal with the clerk of the board of supervisors within fifteen days of the serving or mailing of the determination of tax due. The board of supervisors shall fix a time and place for hearing such appeal, and the clerk of the board of supervisors shall give notice in writing to such operator at his last known place of address. The findings of the board of supervisors shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

Upon good cause, the board may waive any or all of any accrued penalty and may authorize the tax collector to approve and enter into a payment-plan agreement with the operator for accrued tax, interest and/or penalties upon such terms and conditions as the tax collector determines to be just and proper.

(Ord. 07-09 § 1, 2007: Ord. 04-05 § 1 (Att. A, part), 2004.)

It shall be the duty of every operator liable for the collection and payment to the county of any tax imposed by this chapter to keep and preserve, for a period of four years prior to the last reporting quarter, all records as may be necessary to determine the amount of such tax as the operator may have been liable for the collection of and payment to the county, which records the tax collector shall have right to inspect or audit 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 any proceedings, hearing or litigation involving the existence or amount of the tax liability of such operator, or with the written consent of the operator or his authorized representative.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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 county under this chapter, it may be refunded as provided in Sections 3.28.170 and 3.28.180, provided a claim in writing, 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. The claim shall be on forms furnished by the tax collector

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Any operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the tax 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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the county by filing a claim in the manner provided in Section 3.28.160, 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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

No refund shall be paid under the provisions of Sections 3.28.160 through 3.28.180 unless the claimant establishes his right thereto by written records showing entitlement thereto.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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

(Ord. 04-05 § 1 (Att. A, part), 2004.)

A current business license for the premises must exist before issuance of any occupancy registration certificate, all as provided for in this chapter.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Any person who willfully violates any of the provisions of this chapter is guilty of a misdemeanor and is subject to prosecution and punishment as provided in Section 1.04.060 of this code.

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 fails to keep any record required to be kept under this chapter, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due as required by this chapter to be made is guilty of a misdemeanor and is punishable as aforesaid.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

If any tax, interest or penalty imposed under this chapter is not paid by the last day of the month succeeding the delinquency date, the treasurer/tax collector collecting these moneys may file, no sooner than ten days after the mailing of the notice required in subsection B of this section, in the office of the county clerk, without fee, a certificate specifying as follows:

A. The fact that a notice of intent to file said certificate had been sent, by registered mail, to the assessee, at his last known address, not less than ten days prior to the date of the certificate.

B. The fact that the notice required in subsection A of this section set forth the following information:

1. The name of the transient occupancy tax certificate holder;

2. The fact that judgment will be sought in the amount of the tax, penalty or interest that will remain unpaid at the time of the filing of the certificate;

3. The fact that, upon the issuance and recordation of such judgment, additional penalties 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

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

C. The amount for which judgment is to be entered.

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

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

(Ord. 04-05 § 1 (Att. A, part), 2004.)

The county clerk, immediately upon the filing of the certificate, shall enter a judgment for the county against the transient occupancy tax certificate holder in the amount of the tax, penalty and interest set forth in the certificate. The county clerk may file the judgment in a loose-leaf book entitled "County Transient Occupancy Tax Judgments."

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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 and interest set forth constitutes a lien upon all property of the transient occupancy tax certificate holder, owned by him or afterward, and before the lien expires, acquired by him. 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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Notwithstanding any other provisions of law relating to interest authorized or allowed as a result of any judgment duly entered, the additional penalty provided for in this division shall be imposed in lieu of any such judgment interest.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Within ten years from the date of the recording or within ten years from the date of the last extension of the lien in the manner provided for in this section, the lien may be extended by recording in the office of the county recorder an abstract or copy of the judgment. From the time of the recording the lien extends to the property for ten years unless sooner released or otherwise discharged.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

Execution shall issue upon the judgment upon request of the treasurer/tax collector on the transient occupancy tax 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.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

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 authorized by this part, the treasurer/tax collector shall collect the recording fee 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 cancelled 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 fee.

(Ord. 04-05 § 1 (Att. A, part), 2004.)

A. Pursuant to Revenue and Taxation Code Section 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 facility, 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 ninety 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 facility. Any such audit must be completed within ninety days after the date the records of the subject transient occupancy facility have been made available to the tax collector and a tax clearance certificate issued within thirty 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 thirty 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 the request for a tax clearance certificate, the purchaser, transferee or other person that obtains ownership of the transient occupancy facility 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 an 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 county, 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. 04-05 § 1 (Att. A, part), 2004.)