Redondo Beach Municipal Code Ch. 2 Uniform Transient Occupancy Tax

This chapter shall be known as the "Uniform Transient Occupancy Tax Law" of the City.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

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

"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 shall include 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 fixed location, or other similar structure, or portion thereof.

"Occupancy"

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

"Operator"

shall mean the person who is the 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, however, shall be considered to be compliance by both.

"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.

"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, property, and services of any kind or nature, without any deduction therefrom whatsoever.

"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, including, but not limited to a contract for a Long Term Contract Renter as defined in Section 82.04B. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the provisions of this chapter may be considered.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964, as amended by § 2, Ord. 2752 c.s., eff. December 7, 1995)

For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of up to 12% of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City which debt shall be extinguished only by payment to the operator or to the City. 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 space in the hotel. If for any reason the tax due 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.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964, as amended by § 1, Ord. 1958 c.s., eff. January 25, 1968; tax operative eff. February 1, 1968, § 1, Ord. 2367 c.s., eff. July 5, 1983, § 1, Ord. 2551 c.s., eff. July 18, 1989, § 1, Ord. 2591 c.s., eff. July 17, 1990, and § 1, Ord. 2953 c.s., eff. March 18, 2005; tax operative eff. July 1, 2005)

No tax shall be imposed upon:

(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax provided for in this chapter;

(b) Any Federal or State officer when on official business;

(c) Any officer, employee or consultant/contractor of the City when on official business;

(d) Any officer or employee of a foreign government who is exempt by reason of express provisions of Federal law or intentional treaty;

(e) That portion of the rent allocable to food and beverage products of every kind provided by the hotel for consumption by transients and invitees of transients.

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.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964, as amended by § 1(48), Ord. 2844 c.s., eff. November 4, 1999, and § 1, Ord. 2951 c.s., eff. December 16, 2004)

(a) A long term contract renter shall receive a partial exemption from the transient occupancy tax on room rents charged by the operator of a hotel in accordance with the formula set forth in subsection (e) of this section.

(b) "Long term contract renter" shall mean a person that has entered into a contract with a hotel to rent a block of nine or more rooms for a continuous period of at least 12 months.

(c) "Rent for a room night" shall mean the rent charged for a room for one night in accordance with the provisions of such contract.

(d) A long term contract renter shall receive a base partial exemption from the transient occupancy tax for room rentals pursuant to the following four categories:

(1) A long term contract renter occupying a hotel that has charged rents for 500 or less room nights for any month shall receive an 80% exemption from the amount of transient occupancy tax owed therefor.

(2) A long term contract renter occupying a hotel that has charged rents for 501 to 1,500 rooms nights for any month shall receive a 70% exemption from the amount of transient occupancy tax owed therefor for each room night greater than 500 and less than 1,501.

(3) A long term contract renter occupying a hotel that has charged rents for 1,500 to 2,000 room nights for any month shall receive a 55% exemption from the amount of transient occupancy tax owed therefor for each room night greater than 1,500 and less than 2,001.

(4) A long term contract renter occupying a hotel that has charged rents for more than 2,000 room nights for any month shall receive a 15% exemption from the amount of transient occupancy tax owed therefor for each room night over 2,000.

(e) STEP 1: Ascertain the number of room nights in each of the above four categories charged to the long term contract renter by the hotel in a given month (e.g. 1,000 room nights a month in category (2)) and multiply the number of such room nights by the percentage exemption for such category (e.g. 1,000 room nights x 70% equals 700); then add the sums so ascertained for each of the four categories (e.g. 400 for category (1), 700 for category (2), 275 for category (3) and 312 (variable) for category (4)) and obtain the total base partial exemption for such month (e.g. 1,687).

STEP 2: Ascertain the total number of room nights charged by the hotel to all long term contract renters for such month (e.g. 4,081) and multiply such figure by 55% (e.g. 2,245).

STEP 3: Compare the figures derived in step 1 (e.g. 1,687) and step 2 (e.g. 2,245) and select the lesser of these figures (e.g. 1,687).

STEP 4: Multiply the figure selected in step 3 (e.g. 1,687) by the contracted room rate charged by the hotel for rooms rented to all long term contract renters during such month (e.g. Fifty-six and no/100ths ($56.00) Dollars) and obtain the product in dollars (e.g. Ninety-four Thousand Four Hundred Seventy-two and no/100ths ($94,472.00) Dollars).

STEP 5: Multiply the figure obtained in step 4 (e.g. Ninety-four Thousand Four Hundred Seventy-two and no/100ths ($94,472.00) Dollars) by 10% and obtain the product (e.g. (Nine Thousand Four Hundred Forty-seven and no/100ths ($9,447.00) Dollars). This is the amount of exemption from the transient occupancy tax allowed for a particular long term contract renter for a given month.

(§ 1, Ord. 2752 c.s., eff. December 7, 1995)

Each operator shall collect the tax imposed by the provisions of 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.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

On or before October 23, 1964, or within 30 days after commencing business, whichever is later, each operator of any hotel renting an occupancy to transients shall register such hotel with the Tax Collector and obtain from him a "Transient Occupancy Registration Certificate" which shall at all times be posted in a conspicuous place on the premises. Such certificate shall, among other things, set forth the following information:

(a) The name of the operator;

(b) The address of the hotel;

(c) The date upon which the certificate was issued; and

(d) A statement as follows: "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law by registering with the Tax Collector for the purpose of collecting from transients the Transient Occupancy Tax and remitting such tax to the Tax Collector. This certificate shall 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 shall not constitute a permit."

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

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 return. Returns and payments shall be due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to the provisions of this chapter shall be held in trust for the account of the City until payment thereof is made to the Tax Collector.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

(a) Original delinquency. Any operator who shall fail to remit any tax imposed by the provisions of this chapter within the time required shall pay a penalty in the amount of 10% of the tax in addition to the amount of the tax.

(b) Continued delinquency. Any operator who shall fail 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 in the amount of 10% of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(c) Fraud. If the Tax Collector shall determine that the nonpayment of any remittance due pursuant to the provisions of this chapter is due to fraud, a penalty in the amount of 25% of the amount of the tax shall be added thereto in addition to the penalties set forth in subsections (a) and (b) of this section.

(d) Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this chapter shall pay interest at the rate of 1/2 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, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this chapter.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

If any operator shall fail or refuse 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 the provisions of this chapter, the Tax Collector shall proceed in such manner as he may deem best to obtain the 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 the provisions of this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the Tax Collector shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the provisions of this chapter. In the event such determination is made, the Tax Collector shall give 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 10 days after the service or mailing of such notice, make an application in writing to the Tax Collector for a hearing on the amount assessed. If an 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 an application is made, the Tax Collector shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in such 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 person in the manner prescribed in this section 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 filed as provided in Section 8-2.10 of this chapter.

(§ l, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

Any operator aggrieved by any decision of the Tax Collector with respect to the amount of such tax, interest, and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days after the service or mailing of the determination of the tax due. The Council shall fix 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 findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this chapter for the service of the notice of hearing. Any amount found to be due shall immediately become due and payable upon the service of the notice.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions of 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 City, which records the Tax Collector shall have the right to inspect at all reasonable times.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

(a) Whenever the amount of any such tax, interest, or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received by the City, such amount 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 after 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, 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, 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 pursuant to the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

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

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)

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

Any operator or other person who fails or refuses to register as required, 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 shall be guilty of a misdemeanor and shall be punishable as set forth in Section 1-2.01 of this Code. Any person required to make, render, sign, or verify any report or claim and 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 shall be guilty of a misdemeanor and punishable as aforesaid.

(§ 1, Ord. 1852 c.s., eff. September 23, 1964; tax operative eff. October 1, 1964)