3.28 — TIME-SHARE OCCUPANCY TAX

The short title of the ordinance codified in this chapter shall be the "Time-share Occupancy Tax Ordinance."

(Ord. 1214 § 2, 1984)

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

"Occupancy" means the use or possession, or the right or entitlement to the use or possession, of any time-share unit for dwelling, lodging or sleeping purposes.

"Operator" means the person who is proprietor of a time-share project or a time-share unit, whether in a capacity of owner, lessee, sublessee, mortgagee in possession, licensee, owners' association, time-share project or facility manager or operator, or any other capacity. Where the operator performs his or its functions through a managing agent of any type or character, the managing agent shall also be deemed an operator for the purpose of this chapter, and shall have jointly and severally the same duties and liabilities as the 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, owners' association, or any other group or combination acting as a unit.

"Tax administrator" means the city manager or his designated agent.

"Time-share" is a generic term describing the multiple ownership or use of a facility whereby purchasers acquire specific amounts of time or a specific time period during which they may have exclusive use of the facility each year for a term of years.

"Time-share estate" means a right of occupancy in a time-share project which is coupled with an estate in the real property.

"Time-share interest" means a time-share estate or a time-share use.

"Time-share occupancy" means occupancy for a period of thirty consecutive calendar days or less, related to the situation wherein a purchaser receives the right or entitlement in perpetuity, for life, or for a term of years or other extended term, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room or rooms, hotel or portions thereof, or segment of real property, annually or on some other seasonal or periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the time-share project which is involved has been divided. The said right or entitlement to occupancy may attach in advance to a specific lot, parcel, unit, room or rooms, or portion of a hotel, or segment of real property, or may involve designation or selection of the same at a future time or times.

"Time-share occupancy tax" means the tax imposed by Section 3.28.030.

"Time-share occupant" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, time-share arrangement or ownership

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City of Palm Springs, CA

PALM SPRINGS CODE

§ 3.28.020

§ 3.28.050

or agreement, or other agreement of whatever nature, 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 time-share unit shall be deemed to be a time-share occupant if his actual total period of occupancy does not exceed thirty days. Unless days of occupancy or entitlement to occupancy by one person are consecutive without any break, then prior or subsequent periods of such occupancy or entitlement to occupancy shall not be counted when determining whether a period exceeds the stated thirty calendar days.

"Time-share project" means a project in which a purchaser receives the right in perpetuity, for life, or for a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, annually or on some other periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the project has been divided.

"Time-share unit" means a room, apartment, dwelling, space or other physical segment of real property used, owned or occupied on a time-share basis.

"Time-share use" means a license or contractual or membership right of occupancy in a timeshare project which is not coupled with an estate in the real property.

"Transient occupancy tax" means the tax imposed by Section 3.24.030 of this code. (Ord. 1214 § 2, 1984)

For the occupancy of any time-share unit, each time-share occupant is subject to and shall pay a tax of four dollars for each day of occupancy. Insofar as the time-share occupant is concerned, said tax constitutes a debt owed by the time-share occupant to the city which is extinguished only by payment to the operator or to the city.

(Ord. 1214 § 2, 1984)

• (a) No time-share occupancy 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 officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty;

  • (3) More than one time-share occupant for the same occupancy of a time-share unit;

  • (4) Any person who shall have paid the transient occupancy tax for the same period of occupancy of the same time-share unit.

• (b) No exemptions shall be granted under subsections (a) (1) or (a) (2) except upon a claim therefor made under penalty of perjury upon a form prescribed by the tax administrator.

• (Ord. 1214 § 2, 1984)

The time-share occupancy tax imposed by this chapter is separate and distinct from the transient occupancy tax imposed by Chapter 3.24; however, it is not intended that any occupancy of

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.28.050

§ 3.28.090

any time-share unit be subject to both such taxes. If it shall appear that both the transient occupancy tax and the time-share occupancy tax apply to a period of occupancy, then the transient occupancy tax shall be collected and paid as provided in Chapter 3.24. (Ord. 1214 § 2, 1984)

Each operator shall collect the tax imposed by this chapter at the same time and in the same manner as the collection of other recurring, annual or other periodic assessments, maintenance charges, taxes or other charges, however denominated, collected by the operator from owners of time-share interests; provided, however, that if the time-share occupancy tax has not been collected in advance of occupancy, the tax shall be collected at or before the end of the period of occupancy.

• (Ord. 1214 § 2, 1984)

• (a) Every operator of a time-share project shall file with the tax administrator a registration statement for each such time-share project, provided that only one such registration statement need be filed for each time-share project. Every registration statement shall be made upon a form prescribed by the tax administrator, and shall set forth the name under which the operator transacts or intends to transact business, the location of his place of business, the location of the time-share project if different from the location of the operator's business, the name, if any, of the time-share project, or some means of identifying the time-share project, the nature of the time-share interests in the time-share project, the number of time-share units in the time-share project, and the number of timeshare interests in the project.

• (b) The operator shall pay a registration fee of five dollars at the time of filing such registration statement.

• (Ord. 1214 § 2, 1984)

The tax imposed under Section 3.28.030 is:

• (1) Due to the tax administrator at the time it is collected by the operator; and

• (2) Becomes delinquent and subject to penalties if not received by the tax administrator on or before the last working day of the month following the end of the period of occupancy.

• (Ord. 1214 § 2, 1984)

• (a) Each operator shall, on or before the last working day of the month following the close of each calendar month, file a return with the tax administrator on forms provided by him, disclosing as to each time-share unit:

  • (1) The number of days during the calendar month that the time-share unit was occupied; and

  • (2) The number of days during the calendar month that the time-share unit was not

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City of Palm Springs, CA § 3.28.090

PALM SPRINGS CODE

§ 3.28.120

occupied; and

• (3) The number of days that the time-share unit was occupied but exempt from time-share occupancy tax pursuant to:

  • (A) Section 3.28.040 (a) (1),

  • (B) Section 3.28.040 (a) (2), or

  • (C) Section 3.28.040 (a) (4);

• (4) The amount of time-share occupancy tax due for such time-share unit during the calendar month.

• (b) The return shall also state the total amount of time-share occupancy tax collected and the total amount of time-share occupancy tax due, and the total amount of time-share occupancy tax remitted with the return for the time-share project for the calendar month and shall explain any difference among such amounts. Each such return shall contain a declaration under penalty of perjury, executed by the operator or his authorized agent, that to the best of the signator's knowledge, the statements in the return are true, correct and complete. At the time the return is filed, the time-share occupancy tax due by reason of occupancy during the calendar month, and not previously paid, shall be remitted to the tax administrator. The tax administrator may establish other reporting periods, and may require a cash deposit or bond or a separate trust fund bank account for any operator if he deems it necessary in order to insure collection of the tax, and he may require further information in the return. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until remittance thereof is made to the tax administrator.

• (Ord. 1214 § 2, 1984)

Any operator who fails to remit any tax to the city or any amount of tax required to be collected and remitted to the city, including amounts based on determination made by the tax administrator under Section 3.28.120, within the time required, shall pay a penalty of ten percent of the tax or amount of the tax in addition to the tax or amount of tax plus interest at the rate of one half percent per month, or fraction thereof, from the date on which the tax or the amount of tax required to be collected becomes delinquent until the date of remittance or payment. Any operator who fails to pay any penalty imposed under this section within ten days after receipt of notice thereof shall pay interest thereon at the rate of one half percent per month, or fraction thereof, from the date on which the penalty becomes due and payable to the city until the date of payment.

(Ord. 1214 § 2, 1984)

If the tax administrator determines that the failure to make any remittance due under this chapter is due to fraud, a penalty of one hundred percent of the amount of the tax and penalties shall be added thereto in addition to the penalties stated in Section 3.28.100. (Ord. 1214 § 2, 1984)

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.28.120

§ 3.28.150

If any operator fails or refuses to collect the tax 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 administrator 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 administrator procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter 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 administrator 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 address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator 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 administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator 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 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 administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of the determination of 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 3.28.130. (Ord. 1214 § 2, 1984)

Any operator aggrieved by any decision of the tax administrator with respect to the amount of any tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within fifteen days of the serving of the assessment or determination of tax and penalties, if any, due. The city council shall fix a time and place for hearing the appeal and the city clerk shall give notice in writing to the operator at his last known 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. 1214 § 2, 1984)

It shall be the duty of every operator liable for the collection and remittance to the city of any tax imposed by this chapter to keep and preserve in the city, for a period of three years, records in such form as the tax administrator may require to determine the amount of such tax. The tax administrator shall have the right to inspect such records at all reasonable times and may subpoena the records of any operator who refuses to make them available for examination. (Ord. 1214 § 2, 1984)

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City of Palm Springs, CA § 3.28.150

PALM SPRINGS CODE

§ 3.28.190

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, a claim for refund may be filed pursuant to the city's claims for money or damages procedures in Sections 3.16.015 and 3.16.016.

• (Ord. 1214 § 2, 1984; Ord. 1617 § 4, 2002)

Failure or refusal of the operator of any time-share project to file the registration statement required by Section 3.28.070, or to collect or remit the time-share occupancy tax before delinquency, or to file returns as provided by this chapter shall constitute grounds for revocation or modification of the conditional use permit pursuant to which the time-share project was established.

(Ord. 1214 § 2, 1984)

• (a) If any amount required to be remitted or paid to the city under this chapter is not remitted or paid when due, the tax administrator may, within three years after the amount is due, file for record in the office of the Riverside County recorder, a certificate specifying the amount of tax, penalties and interest due, the name and address as it appears on the records of the tax administrator of the operator liable for the same, the name and address of each timeshare occupant liable for the tax, if known, and the fact that the tax administrator has complied with all provisions of this chapter in the determination of the amount required to be remitted and paid.

• (b) From the time of the filing for record, the amount required to be remitted together with penalties and interest constitutes a lien upon all real property in the county owned by the operator or by such time-share occupant. The lien shall have the same force, effect and priority as a judgment lien, and shall continue for ten years from the time of filing of the certificate unless sooner released or otherwise discharged.

• (Ord. 1214 § 2, 1984)

At any time within three years after any operator is delinquent in the remittance or payment of any amount herein required to be remitted or paid, or within three years after the last recording of a certificate under Section 3.28.170, the tax administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to any sheriff, marshal or constable, and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner with the same effect as a levy of a sale pursuant to a writ of execution. The tax administrator may pay or advance to the sheriff, marshal or constable the same fees, commissions and expenses for his services as are provided by law for similar services pursuant to a writ of execution. The amount of such fees, commissions and expenses shall be added to the amount to be collected pursuant to such warrant.

(Ord. 1214 § 2, 1984)

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.28.190

§ 3.28.230

At any time within three years after any operator is delinquent in the remittance or payment of any amount, the tax administrator, as an alternate and supplemental remedy, may forthwith collect the amount in the following manner: The tax administrator shall seize any property, real or personal, of the operator and sell the property, or a sufficient part of it, at public auction to pay the amount due together with any penalties and interest imposed for the delinquency and any costs incurred on account of the seizure and sale. Any seizure made to collect time-share occupancy taxes due shall be only of the property of the operator not exempt from execution under the provisions of the Code of Civil Procedure. (Ord. 1214 § 2, 1984)

At any time that an operator shall fail or refuse to collect or remit the time-share occupancy tax, or shall be found to be repeatedly delinquent in reporting or remitting such tax, the tax administrator may designate a keeper to enter upon the premises of the time-share project to insure the direct collection of such tax. The keeper shall be empowered to employ any reasonable methods to ensure that the tax for each time-share unit is collected for each day of occupancy, which methods of collection may include but are not limited to personal notice to the occupant of each time-share unit of the nature of the tax, the amount thereof, and the penalties for nonpayment thereof.

(Ord. 1214 § 2, 1984)

Any tax required to be paid by any time-share occupant under the provisions of this chapter shall be deemed a debt owed by the time-share occupant to the city. Any such tax collected by an operator which has not been remitted to the city is a fiduciary obligation of the operator to the city and collectible in the same manner as a debt. Any person owing money to the city under the provisions of this chapter shall be liable in an action brought in the name of the city for the recovery of such amount.

(Ord. 1214 § 2, 1984)

• (a) Any operator or other person who knowingly or wilfully fails or refuses to remit time-share occupancy tax collections to the tax administrator prior to the time of delinquency as specified in Sections 3.28.080 through 3.28.100 is guilty of a misdemeanor.

• (b) Any person knowingly violating any of the provisions of this chapter shall be guilty of a misdemeanor.

• (c) Any operator or other person who wilfully 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 his supplemental return or other data required by the tax administrator, or who renders a false or fraudulent return or claim is guilty of a misdemeanor.

• (Ord. 1214 § 2, 1984)

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City of Palm Springs, CA § 3.28.230

PALM SPRINGS CODE

§ 3.28.260

The tax administrator, for good cause, may extend for not to exceed one month the time for making any return or paying any amount required to be paid under the chapter. The extension may be granted at any time, provided a request therefor is filed with the tax administrator within or prior to the period for which the extension may be granted. Any person to whom the extension is granted shall pay, in addition to the tax, interest at the rate of one percent per month or fraction thereof, from the date on which the tax would have been due without the extension until the date of payment.

(Ord. 1214 § 2, 1984)

It is unlawful for any person having an administrative duty under this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of the records of any operator or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to knowingly permit any return or copy thereof or any abstract or particulars thereof to be seen or examined by any person not directly interested therein. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the amounts of any unpaid tax or amounts of tax, penalties and interest required to be collected. (Ord. 1214 § 2(part), 1984)

The expense for staff and collection of the tax herein provided shall be paid from the gross receipts.

(Ord. 1214 § 2, 1984)

The net proceeds from the tax imposed herein shall be placed in the general fund of the city. (Ord. 1214 § 2, 1984)

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City of Palm Springs, CA

REVENUE AND FINANCE

§ 3.29.010

§ 3.29.020