Montclair Municipal Code Ch. 3.32 Transient Occupancy Tax

A. This chapter shall be known as the "Transient Occupancy Tax Law" of the City.

B. Purpose. This chapter imposes a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, campsite, recreational vehicle park, mobile or manufactured home outside a mobile home park, or other lodging unless the occupancy is for any period of more than 30 consecutive days.

C. Exclusions. This chapter does not include facilities operated by a government agency nor does it affect the right of an owner of a timeshare estate, the owner of a membership campsite facility, or the owner of a private residence or their guest(s) to occupy the room(s), camping sites in National or State Park systems, or other real property in which the owner retains noncommercial interest.

(Ord. 99-791 Exh. A (part); prior code § 3-5.301)

For the privilege of temporary occupancy in a hotel, the occupant(s) of each room or other living space in a hotel shall submit to the City a tax in the amount of 10 percent of the rent charged by the operator of the hotel. The tax shall be collected by and paid to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. If, for any reason, the tax due is not paid to the hotel, or if the operator of the hotel fails to collect the tax, the City Treasurer may require the operator of the hotel to pay the tax to the City Treasurer.

(Ord. 99-791 Exh. A (part); prior code § 3-5.303)

A. No tax shall be imposed upon:

1. Any officer of a foreign government who is exempt by provision of federal law or treaty;

2. An federal, state, county, or municipal employee when on official business;

3. Any person for whom it is beyond the power of the City to impose the tax provided for in this chapter.

B. No exemption shall be granted except upon a claim therefor made at the time the rent is due upon a document prescribed as an "occupancy tax-exemption form."

(Ord. 99-791 Exh. A (part); prior code § 3-5.304)

Each operator shall collect the tax imposed by the provisions or this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded, except in the manner provided in this chapter.

(Prior code § 3-5.305)

Within 30 days after commencing business, each operator of any hotel shall register such hotel with the City. Upon registration, the City will issue a "Transient Occupancy Registration Certificate" which shall at all times be posted in a conspicuous place on the hotel premises. Such certificate shall, among other things, set forth the following information:

A. The name of the operator;

B. The address of the hotel;

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

D. The following statement: "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Law by registering with the City Treasurer for the purpose of collecting from transients the Transient Occupancy Tax and remitting such tax to the City Treasurer. This certificate shall not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws. This certificate shall not constitute a permit."

(Ord. 99-791 Exh. A (part); prior code § 3-5.306)

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 City Treasurer, make a report to the City Treasurer, on forms provided by the City, of the total rents charged and received and the amount of tax collected from transients. At the time the report is made, the full amount of tax collected shall be remitted to the City Treasurer. The City Treasurer may establish shorter reporting periods deemed necessary to ensure collection of the tax. All taxes shall be due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to the provisions of this chapter shall be held in trust until payment is made to the City Treasurer.

(Ord. 99-791 Exh. A (part); prior code § 3-5.307)

A. Original Delinquency. Any operator who shall fail to remit any tax imposed by the provisions of this chapter within the time required shall pay a penalty in the amount of 10 percent of the tax in addition to the amount of the tax.

B. Continued Delinquency. Any operator who shall fail to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty in the amount of 10 percent of the tax in addition to the amount of the tax and the 10 percent penalty set forth in subsection A of this section.

C. Fraud. If the City Treasurer shall determine that the nonpayment of any remittance due pursuant to the provisions of this chapter is due to fraud, a penalty in the amount of 25 percent of the amount of the tax shall be added thereto in addition to the penalties set forth in subsections A and B of this section.

D. Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this chapter shall pay interest at the rate of ½ of 1 percent per month, or fraction thereof, on the amount of the tax, exclusive of penalties, form the date on which the remittance first became delinquent until paid.

E. Penalties Merged with Tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this chapter.

(Ord. 99-791 Exh. A (part); prior code § 3-5.308)

A. Failure to Collect and Report Tax. If any operator fails or refuses to collect or report the tax as provided for in this chapter, the City Treasurer shall proceed to obtain the facts and information on which to estimate the tax due. As soon as the City Treasurer procures such facts and information and estimates the tax due the City, including interest and penalties, the City Treasurer shall proceed to assess against such operator the taxes, interest and penalties due. The City Treasurer shall give notice of the amount so assessed by serving the operator in person or by certified mail.

B. Appeal. Such operator may, within 10 calendar days after receiving notification by certified mail or in person from the City Treasurer of the amount due, appeal in writing the decision of the City Treasurer to the City Manager pursuant to the provisions set forth in Chapter 1.08 of this Code. If an appeal in writing is not received within the time prescribed, the decision of the city Treasurer shall become final and the estimated tax, penalties and interest shall immediately become due and payable. The city is authorized to collect any such tax as provided in Chapter 1.12 of this Code.

(Ord. 99-791 Exh. A (part); prior code § 3-5.309)

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions or this chapter to keep and preserve, for a period of three years, 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 City, which records the City Treasurer shall have the right to inspect at all reasonable times.

(Ord. 99-791 Exh. A (part); prior code § 3-5.311)

A. Whenever the amount of any such tax, interest or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received by the City, such amount may be refunded as provided in subsections B and C of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the City Treasurer within three years after the date of payment. The claim shall be on forms furnished by the City Treasurer.

B. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the City Treasurer that the person from whom the tax has been collected was not a transient; provided, however, neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

C. A transient may obtain a refund of taxes overpaid, paid more than once, or erroneously or illegally collected or received by the 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 City, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the City Treasurer that the transient has been unable to obtain a refund from the operator who collected the tax.

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

(Ord. 99-791 Exh. A (part); prior code § 3-5.312)

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

(Prior code § 3-5.313)

Any person violating or failing to comply with any of the requirements of this chapter or who renders a false or fraudulent report or claim shall be deemed guilty of a violation pursuant to Chapter 1.12 of this Code. Any person found guilty of a violation of failing to comply with this chapter shall continue to be responsible for the payment of any taxes, penalties, and interest due the City.

(Ord. 06-889 § 6: Ord. 99-791 Exh. A (part); prior code § 3-5.314)