Chapter XVI — TAXATION — Novato Municipal Code

Sections:

16-1 - Gas Tax Street Improvement Fund.

16-1.1 Fund Created. To comply with the provisions of the State Streets and Highways Code, Sections 180 to 207, there is hereby created in the city treasury a special fund to be known as the "Special Gas Tax Street Improvement Fund".

(Ord. No. 23, § 1)

16-1.2 Monies Paid into Account. All monies received by the city from the State under the provisions of the State Streets and Highways Code, Sections 180 to 207, of the acquisition of real property or interests therein, or for the construction, maintenance, or improvement of streets or highways other than State highways shall be paid into the Special Gas Tax Street Improvement Fund.

(Ord. No. 23, § 2)

16-1.3 Monies Expended. All monies in the Special Gas Tax Street Improvement Fund shall be expended exclusively for the purposes authorized by and subject to all of the provisions of the State Streets and Highways Code, Sections 180 to 207.

(Ord. No. 23, § 3)

16-2 - Uniform Hotel Room Tax.

16-2.1 Title. This section shall be known as the "Uniform Occupancy Hotel Room Tax of the City of Novato".

(Ord. No. 275, § 1; Ord. No. 1366, § 1)

16-2.2 Definitions. As used in this section:

"Person" shall mean 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.

"Hotel" shall mean any 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 hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, short-term rental of all or a portion of a dwelling unit for less than 30 days consecutive tenancy, lodging house, apartment house, dormitory, public or private club, mobile home or house trailer, or house trailer tie down pad, at a fixed location, or houseboats or berthing facilities or other similar structure or portion thereof.

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

"Transient" shall mean 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 30 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 30 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 this section may be considered.

"Rent" shall mean 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.

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

"Tax collector" shall mean the duly authorized and constituted city manager of Novato or such other person as may be designated by the city manager to collect the tax provided for herein. In the event State law is, at any time, changed to provide for collection of the tax imposed herein by officials of the State of California, "tax collector" shall thereafter mean such person or agency as may be designated by applicable State law.

(Ord. No. 275, § 2; Ord. No. 1668, § II, 2-23-2021)

16-2.3 Tax Imposed. The rate of the uniform hotel room tax imposed by this section shall be twelve percent (12%). For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve percent (12%) of the rent charged by the operator. The proceeds of said tax shall be placed in the general fund to be used for general fund purposes. The transient shall pay the tax 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. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel. This tax constitutes a debt owed by the transient to the city which is extinguished only by payment from the operator to the city. If for any reason the tax is not paid to the operator of the hotel, the tax collector may require that such tax shall be paid directly to the tax collector.

(Ord. No. 275, § 3; Ord. No. 1165A, § 1)

(Ord. No. 1661, § 2, 12-8-2020)

16-2.4 Exemptions. No tax shall be imposed upon:

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:

Any officer or employee of a foreign government who is exempt by reason or express provision of Federal law of international treaty. No exemption shall be granted except upon a claim therefor made at the time the rent is collected and under penalty of perjury upon a form prescribed by the tax collector.

Any occupancy paid for by the American Red Cross when housing disaster victims in a hotel on a temporary basis.

(Ord. No. 275, § 4; Ord. No. 1271, § 1)

16-2.5 Operator's Duties. Each operator shall collect the tax imposed by this section 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 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 hereinafter provided.

(Ord. No. 275, § 5)

16-2.6 Registration. Within 60 days after the effective date of this section, or within 30 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 Occpancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

The name of the operator.

The address of the hotel.

The date upon which the certificate was issued.

"This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Hotel Room Tax by registering with the Tax Collector for the purpose of collecting from transients the Hotel Room 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 board, commission, department or office of this city. This certificate does not constitute a permit."

(Ord. No. 275, § 6; Ord. No. 1366, § 2)

16-2.7 Reporting and Remitting. 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 insure collection of the tax and he may require further information in the returns. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this section shall be held in trust for the account of the city until payment thereof is made to the tax collector.

(Ord. No. 275, § 7)

16-2.8 Penalties and Interest.

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

Continued Delinquency. Any operator who fails 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 of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed.

Fraud. If the tax collector determines that the non-payment of any remittance due under this section is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in paragraphs a and b of this subsection.

Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this section 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.

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. No. 275, § 8)

16-2.9 Failure to Collect and Report Tax. Determination of tax by tax collector. If any operator shall fail or refuse to collect the tax and to make, within the time provided in this section, any report and remittance of the tax or any portion thereof required by this section, 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 section 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 section. 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 his last known place of 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 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 said notice why said 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 15 days unless an appeal is taken as provided in subsection 16-2.10.

(Ord. No. 275, § 9)

16-2.10 Appeal. Any operator aggrieved by any decision of the tax collector with respect to the amount of such tax, interest and penalty, if any, may appeal to the city council by filing a notice of appeal with the city clerk within 15 days of the serving or mailing of the determination of tax due. The city clerk shall fix a time for hearing such appeal and shall give notice in writing to such operator at his last known place of address. The findings of the city council 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.

(Ord. No. 275, § 10)

16-2.11 Records. It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this section to keep and preserve, for a period of three years, all records as may be necessary

to determine the amount of such tax as he may have been liable for the collection of and payment to the city, which records the tax collector shall have the right to inspect at all reasonable times.

(Ord. No. 275, § 11)

16-2.12 Refunds.

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 section it may be refunded as provided in paragraph b and c of this subsection provided a claim in writing therefor, which complies with the procedures and provisions contained in section 2-17.3 of this code, is filed with the tax collector. The claim shall be on forms furnished by the tax collector.

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.

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 paragraph a of this subsection, 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.

No refund shall be paid under provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

(Ord. No. 275, § 12; Ord. No. 1466 § 2)

16-2.13 Actions to Collect. Any tax required to be paid by a transient under the provisions of this section 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 section shall be liable to an action brought in the name of the City of Novato for the recovering of such amount. In such action, the city shall be entitled to add to the judgment a reasonable sum as and for attorney's fees.

(Ord. No. 275, § 13)

16-2.14 Violations; Misdemeanor. Any person violating any of the provisions of this section shall be guilty of a misdemeanor and shall be liable to the penalty stated in Chapter I, section 1-5.

Any operator or other person who fails or refuses to register as required herein, 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 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 required by this section to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Ord. No. 275, § 14)

16-3 - Uniform Local Sales and Use Tax.

16-3.1 Short Title. This section shall be known as the Uniform Local Sales and Use Tax Ordinance.

(Ord. No. 574, § 1)

16-3.2 Rate. The rate of sales tax and use tax imposed by this section shall be one percent.

(Ord. No. 574, § 2)

16-3.3 Operative Date. This section shall be operative on January 1, 1974.

(Ord. No. 574, § 3)

16-3.4 Purpose. The city council hereby declares that this section is adopted to achieve the following, among other, purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part