Nevada City Municipal Code Ch. 3.24 Transient Occupancy Tax

This chapter shall be known as "the transient occupancy tax ordinance of the city of Nevada City."

(Ord. 332 § 1, 1967)

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

"Hotel" means any area or structure, or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any campsite, hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar area or structure or portion thereof.

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

"Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

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

"Rent" means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

"Tax collector" means the city clerk.

"Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered.

(Ord. 332 § 2, 1967; Ord. No. 2015-03, § I, 1-28-2015)

A. For the privilege of occupancy in any hotel or motel, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator.

B. The tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city.

C. The transient shall pay the tax to the operator of the hotel or motel 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 paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel or motel. If for any reason the tax due is not paid to the operator of the hotel or motel, the tax collector may require that such tax shall be paid directly to the tax collector.

(Ord. 83-9 § 1, 1983: Ord. 332 § 3, 1967)

For the privilege of occupancy in any hotel or motel, each transient is subject to and shall pay an additional tax in the amount of two (2) percent of the rent charged by the operator in addition to the eight (8) percent transient occupancy tax required by Section 3.24.030, such that the total tax required by Sections 3.24.030 and 3.24.035 shall be ten (10) percent of the rent charged. Said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the additional tax to the operator of the hotel or motel 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 paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel or motel. If for any reason the tax due is not paid to the operator of the hotel or motel, the tax collector shall require that such tax shall be paid directly to the tax collector.

(Ord. 91-06 § 1, 1991)

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 city to impose the tax herein provided;

2. Any federal or state officer or employee when on official business;

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

4. Any occupant of a hospital, medical clinic, convalescent home or home for aged people.

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

(Ord. 332 § 4, 1967)

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 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.

(Ord. 332 § 5, 1967)

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 hotel renting occupancy to transients shall register the hotel 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 certificate shall, among other things, state the following:

A. The name of the operator;

B. The address of the hotel;

C. The date upon which the certificate was issued;

D. A statement as follows:

This Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Ordinance of the City of Nevada City 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, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any commission, department or office of this City. This certificate does not constitute a permit.

(Ord. 332 § 6, 1967)

A. 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 remitted to the tax collector. The tax collector may establish shorter reporting periods for any certificate holder if he deems it necessary in order to ensure collection of the tax, and he may require further information on the return.

B. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the tax collector.

(Ord. 332 § 7, 1967)

If any operator fails or refuses to collect the tax or 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. As soon as the tax collector shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any 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 written notice of the amount so assessed, by serving such notice personally upon the operator so assessed, or by depositing it in the United States mail, postage prepaid, addressed to the operator at his last known place of address. The 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 immediately due and payable. If the application is made, the tax collector shall give not less than ten days' written notice to the operator, in the manner described in this section, 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 operator, in the manner prescribed in this section, of such determination and the amount of the tax, interest and penalties.

(Ord. 332 § 9, 1967)

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

B. Continued Delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed.

C. Fraud. 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 subsections A and B of this section.

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

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

(Ord. 332 § 8, 1967)

Any operator aggrieved by any decision of the tax collector with respect to the amount of the tax, interest and penalties, if any, may appeal to the city council by filing a written notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due.

The council shall fix a time and place for hearing such appeal, and the city clerk shall give written notice of hearing to the appellant at least ten days prior to the date of the hearing, such notice to be given in the manner prescribed for the giving of notice in Section 3.24.090 of this chapter. The findings of the council, upon such hearing, shall be final and conclusive, and notice thereof shall be given the appellant in the manner prescribed in this section for the giving of notice of hearing. Any amount thus found to be due shall be immediately due and payable.

(Ord. 332 § 10, 1967)

It shall be the duty of every operation liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records that may be necessary to determine the amount of such tax, which records the tax collector shall have the right to inspect at all reasonable times.

(Ord. 332 § 11, 1967)

A. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than once, or has been erroneously or illegally collected or received by the city under this chapter, it 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 tax collector within three years of the date of payment. The claim shall be on forms furnished by the tax collector.

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 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.

C. A transient may obtain a refund of taxes overpaid, or paid more than once or erroneously or illegally collected or received by the city, by filing a claim in the manner provided in subsection A of this section, 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.

D. No refund shall be paid under the provisions of this section unless the claimant establishes by written records that he is entitled thereto.

(Ord. 332 § 12, 1967)

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

(Ord. 332 § 13, 1967)

A. It is unlawful for any operator to fail or refuse to register or to furnish any return or report as required by this chapter, or to fail or refuse to furnish any supplemental return or report or other data required by the tax collector. No person required by this chapter to make, render, sign or verify any return or report shall make any false or fraudulent return or report with intent to defeat or evade the determination of the amount of tax due hereunder.

B. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor.

(Ord. 90-4 § 3 (part), 1990: Ord. 332 §§ 14, 15, 1967)