Petaluma Municipal Code Ch. 4.24 Transient Occupancy TAX1

1 Editor’s Note: For statutory provisions authorizing cities to impose a tax on transients who occupy room space

within the city limits see Rev. and Tax. Code §§7280, 7281.

This chapter shall be known as the "Uniform Transient Occupancy Tax Law" of the city. (Ord. 781 NCS § 1; prior

code §23.13.)

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed

to them in this section:

A. "Campground" means the area or place used for a camp, for camping or for a camp meeting.

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 any 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 Lxed 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

portions thereof in any hotel for dwelling, lodging or sleeping purposes. "Occupancy" shall also mean the use or

possession or the right to the use or possession of any campsite in a campground for recreational vehicles or

tents.

D. "Operator" means the person who is proprietor of the hotel, or campground, 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 article 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, Lrm, 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 a space in a hotel or

campground, 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.

G. "Tax administrator" means the tax collector.

H. "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 persons so occupying space in a hotel or campground

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 occupancy 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

ePective date of this article may be considered.

(Ord. 1702 NCS §1, 1987; Ord. 781 NCS §1; prior code §23.14.)

For the privilege of occupancy in any hotel or private campground, each transient is subject to and shall pay a tax

in the amount of ten percent of the rent charged by the operator as of November 5, 1990. Such tax constitutes a

debt owed by the transient to the city which is extinguished only by payment to the operator of the hotel or campground 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 space in the hotel

or campground. If for any reason the tax due is not paid to the operator of the hotel or campground, the tax

administrator may require that such tax shall be paid directly to the tax administrator. (Ord. 1829 NCS §1, 1990;

Ord. 1702 NCS §2, 1987; Ord. 1691 NCS §1, 1987; Ord. 1583B NCS §1, 1984; Ord. 1001 NCS §1; Ord. 781 NCS §1;

prior code §23.15.)

The following persons are exempt from the tax imposed in this chapter:

A. 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;

B. Any oNcer or employee of a foreign government who is exempt by reason of express provision of federal law

or international treaty.

No exemption shall be granted except under a claim therefor made at the time rent is collected and under penalty

of perjury under a form prescribed by the tax administrator. (Ord. 1001 NCS §2; Ord. 781 NCS §1; prior code

§23.16.)

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 or campground

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. 1702 NCS §3, 1987; Ord. 781 NCS §1; prior code

§23.17.)

Within thirty days after the ePective date of the ordinance codiLed in this chapter or within thirty days after

commencing business, whichever is later, each operator of any hotel or campground renting occupancy to

transients shall register such hotel or campground with the tax administrator and obtain from him/her a

"transient occupancy registration certiLcate" to be at all times posted in a conspicuous place on the premises.

Such certiLcate shall, among other things, state the following:

A. The name of the operator;

B. The address of the hotel or campground;

C. The date upon which the certiLcate was issued;

D. "This Transient Occupancy Registration CertiLcate signiLes that the person named on the face hereof has

fulLlled the requirements of the Uniform Transient Occupancy tax Ordinance by registering with the Tax

Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to

the Tax Administrator. This certiLcate 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, or campground without strictly

complying with all local applicable laws, including but not limited to those requiring a permit from any board,

commission, department or oNce of this City. This certiLcate does not constitute a permit."

(Ord. 1702 NCS §4, 1987; Ord. 781 NCS §1; prior code §23.18.)

Each operator, shall, within Lfteen days of the end of the previous month, provide a report to the tax

administrator of the total rents charged and received and the amount of tax collected for transient occupancies

during the previous month. At the time the report is Lled, the full amount of the tax collected shall be remitted to

the tax administrator. If the full amount of tax collected the previous month is not remitted to the tax

administrator within Lfteen days of the end of the previous month, all or a portion of tax not remitted shall be

delinquent and subject to penalties and interest. The tax administrator may establish a diPerent reporting and

delinquency period for any certiLcate holder if deemed necessary in order to insure collection of the tax and may

require further information in return. Returns and payments are due immediately upon cessation of business for

any reason. All taxes collected by the operators pursuant to this chapter shall be held in trust for the account of

the city until payment thereof is made to the tax administrator. (Ord. 1829 NCS §2, 1990; Ord. 781 NCS §1; prior

code §23.19.)

Any operator who fails to remit any tax imposed by this article 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. (Ord. 781 NCS §1; prior code §23.20(a).)

Any operator who fails to remit any delinquent remittance on or before a period of thirty days following the date

on which the remittance Lrst 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 Lrst imposed. (Ord. 781 NCS

§ 1; prior code §23.20(b).)

If the tax administrator determines that the nonpayment of any remittance due under this article is due to fraud, a

penalty of twenty-Lve percent of the amount of the tax shall be added thereto in addition to the penalties stated in

Sections 4.24.080 and 4.24.090. (Ord. 781 NCS § 1; prior code §23.20(c).)

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 Lrst became delinquent until paid. (Ord. 781 NCS §1; prior code

§23.20(d).)

Every penalty imposed and such interest as accrues under the provisions of Sections 4.24.080 through 4.24.110

shall become a part of the tax required in this chapter to be paid. (Ord. 781 NCS §1; prior code §23.20(e).)

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 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 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

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 place of 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

Lnal and conclusive and immediately due and payable. If such application is made, the tax administrator shall give

not less than Lve days’ written notice in the manner prescribed herein to the operator to show cause at a time and

place Lxed in such notice why such amount speciLed therein should not be Lxed for such tax, interest and

penalties. At such hearing, the operator may appear and oPer evidence why such speciLed tax, interest and

penalties should not be so Lxed. 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 such

determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after Lfteen days unless an appeal is taken as provided in Section 4.24.140. (Ord. 781 NCS §1; prior code

§23.21.)

Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest

and penalties, if any, may appeal to the city council by Lling a notice of appeal with the city clerk within Lfteen days

of the serving or mailing of the determination of tax due. The city council shall Lx a time and place for hearing

such appeal, and the city clerk shall give notice in writing to such operator at his last-known place of address. The

Lndings of the city council shall be Lnal 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. 781 NCS §1; prior code §23.22.)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this

article 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

administrator shall have the right to inspect at all reasonable times. (Ord. 781 NCS §1; prior code §23.23.)

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 article, it may be refunded as provided in

Sections 4.24.170 and 4.24.180; provided, a claim in writing therefor, stating under penalty of perjury the speciLc

grounds upon which the claim is founded, is Lled with the tax administrator within three years of the date of

payment. The claim shall be on forms furnished by the tax administrator. (Ord. 781 NCS §1; prior code §23.24(a).)

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 administrator 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. (Ord.

781 NCS § 1; prior code §23.24(b).)

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 Lling a claim in the manner provided in Section 4.24.160, but only when the tax was paid by

the transient directly to the tax administrator or when the transient, having paid the tax to the operator,

established to the satisfaction of the tax administrator that the transient has been unable to obtain a refund from

the operator who collected the tax. (Ord. 781 NCS §1; prior code §23.24(c).)

No refund shall be paid under the provisions of Sections 4.24.160 through 4.24.180 unless the claimant

establishes his right thereto by written records showing entitlement thereto. (Ord. 781 NCS § 1; prior code

§23.24(d).)

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owned 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 to an action brought in the name of the city for the recovery of such amount. (Ord. 781 NCS §1; prior

code §23.25.)

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 tax

administrator or who renders a false or fraudulent return or claim is guilty of a misdemeanor. 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. (Ord. 781 NCS §1; prior code §23.26.)

All fees and revenues collected pursuant to the authority of this article shall be used for such promotional

purposes as the council shall Lnd will contribute to the growth, enlargement and prosperity of the city and will

forward, encourage, advance, help, aid and assist in the growth, enlargement and prosperity of the city. The

moneys collected hereunder by the city shall be used only for the purposes as set forth in this section, and the city may place the moneys collected in a separate fund earmarked only for the purposes as set forth in this section.

(Ord. 787 NCS §2; prior code §23.27.)