Chapter 3.24 — TRANSIENT OCCUPANCY TAX

The ordinance codified in this chapter shall be known as the "Uniform Transient Occupancy Tax Ordinance of the Town of Paradise." (Ord. 14 §1, 1980)

For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

A.

"Administrative services director" means the administrative services director of the town.

B.

"Hotel" means 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, but is not limited to, any hotel, inn, bed and breakfast, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer, at a fixed location, or other similar structure or portion thereof.

C.

"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.

D.

"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 purpose 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.

E.

"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.

F.

"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; provided, however, that "rent" shall not include lodging furnished in kind to an employee by an employer solely for the convenience of the employer.

G.

"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 less than thirty-one consecutive calendar days. 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. Any person occupying space in a hotel shall be deemed a transient until a period of thirty-one days has expired, except in a hotel qualifying as exempt under the provisions of Section 3.24.040. (Ord. 216 §1, 1992; Ord. 73 §2(part), 1982; Ord. 14 §2, 1980)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the town which is extinguished only by payment to the operator or to the town. 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's ceasing to occupy the space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the finance director may require that such tax shall be paid directly to the town. (Ord. 73 §2(part), 1982; Ord. 14 §3, 1980; Ord. No. 406, § 1, 11-12-2003)

No tax shall be imposed upon any person as to whom, or any occupancy as to which, it is beyond the power of the town to impose the tax provided for in this chapter. (Ord. 14 §4, 1980)

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. 14 §5, 1980)

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 or any hotel renting occupancy to transients shall register such hotel with the administrative services director and obtain from him a "Transient Occupancy Registration Certificate," to be at all times posted in a conspicuous place in the premises. Such 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.

The following:

 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 Administrative Services Director for the purpose of collecting from transients the Transient Occupancy Tax, and remitting said tax to the Administrative Services Director. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, not 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 Town. This certificate does not constitute a permit.

(Ord. 73 §2 (part), 1982; Ord. 14 §6, 1980)

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 administrative services director, make a return to the administrative services director, 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 administrative services director. The administrative services director 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 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 town until payment thereof is made to the administrative services director. (Ord. 73 §2 (part), 1982; Ord. 14 §7, 1980)

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 the amount of the tax in addition to the amount of the tax and the ten-percent penalty first imposed.

C.

Fraud. If the administrative services director determines that 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 chapter, shall become a part of the tax required in this chapter to be paid. (Ord. 73 §2 (part), 1982; Ord. 14 §8, 1980)

If any operator fails or refuses to collect such tax, and to make, within the time provided in this chapter, any report and remittance of such tax or any portion thereof required by this chapter, the administrative services director shall proceed in such manner as he may deem best to obtain fact and information on which to base his estimate of the tax due.

A.

As soon as the administrative services director procures 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 administrative services director 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 this 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 town clerk for a hearing on the amount so assessed.

B.

If application by the operator for a hearing is not made within the time prescribed in subsection A of this section, the tax, interest and penalties, if any, determined by the administrative services director shall become final and conclusive, and immediately due and payable. If such application is made, the town council shall give not less than five days written notice in the manner prescribed in this chapter to the operator to show cause at a time and place fixed in such notice why such amount specified therein should not be fixed for such tax, interest and penalties.

C.

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 town council shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this chapter of such determination and the amount of such tax, interest and penalties. The findings of the town council shall be final and conclusive, and shall be served upon the operator in the manner prescribed above in this section for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. 73 §2 (part), 1982; Ord. 14 §9, 1980)

It shall be the duty of every operator liable for the collection and payment to the town of any tax imposed by 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 he may have been liable for the collection of and payment to the town of, which records the administrative services director shall have the right to inspect at all times. (Ord. 73 §2 (part), 1982; Ord. 14 §10, 1980)

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 town 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 administrative services director within three years of the date of payment. The claim shall be on forms furnished by the administrative services director.

B.

An operator may claim a refund or take as credit against taxes to be 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 administrative services director 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 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 town 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 administrative services director, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the administrative services director 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 his right thereto by written records showing entitlement thereto. (Ord. 73 §2 (part), 1982; Ord. 14 §11, 1980)

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the operator to the town. Any person owing money to the town under the provisions of this chapter shall be liable to an action brought in the name of the town, in any court of competent jurisdiction within the county, or within the county of residence of such person, at the option of the administrative services director, for the recovery of such amount. (Ord. 73 §2 (part), 1982; Ord. 14 §12, 1980)

A.

Any person violating any of the provisions of this chapter is guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars, or by imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment.

B.

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 administrative services director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as provided in subsection A of this section. 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 chapter to be made, is guilty of a misdemeanor and is punishable as provided in subsection A of this section.

(Ord. 73 §2 (part), 1982; Ord. 14 §13, 1980)