Ridgecrest Municipal Code § 9-143 Duties of operators

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State Law reference— Transient occupancy tax, Revenue and Taxation Code § 7280 et seq.

The operator of each hotel within the city shall collect a transient occupancy tax from each transient resident of the hotel as set forth in this article.

(Code 1980, § 3-4.101)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

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 including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof. The term "hotel" does not include a private home, vacation cabin or similar facility which is rented by a person who is not regularly engaged in the business of renting such facility and does so only occasionally and incidentally to his own use thereof.

Occupancy means 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.

Operator means the person who is proprietor of the hotel, whether in the capacity of licensee, or any other capacity. Where the operator performs his function through a managing agent of any type or character other than an operator for the purposes 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.

Permanent resident means any person who, as of a given date, has occupied or has had the right to occupy a room in a particular hotel, as herein defined, for the 30 consecutive days next preceding such date.

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.

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.

Tax administrator means the finance director or designee.

Transient means any person who, for any period of not more than 30 consecutive days, either at his own expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel, as herein defined, for which lodging or use of lodging space a charge is made.

(Code 1980, § 3-4.102)

(a) 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. The tax constitutes a debt owed by the transient to the city which is 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 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 administrator may require that such tax shall be paid directly to the tax administrator.

(b) The first 30 days of occupancy shall be taxed and paid as prescribed even if the taxpayer subsequently becomes a permanent resident.

(Code 1980, § 3-4.103; Ord. No. 91-18, § 2)

State Law reference— Tax authorized, Revenue and Taxation Code § 7280.

(a) The following persons are exempt from payment of the transient occupancy tax:

(1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose 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.

(b) No exemption shall be granted under this section, unless a claim therefor is made at the time the rent is collected under penalty of perjury upon a form prescribed by the tax administrator.

(Code 1980, § 3-4.104)

(a) Within 30 days after the effective date of the ordinance from which this section is derived, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the tax administrator and obtain a transient occupancy registration certificate which may be combined with the business license to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following:

(1) The name of the operator;

(2) The name and address of the hotel;

(3) The date upon which the certificate was issued;

(4) The certificate shall signify that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law by registering with the tax administrator for the purpose of collecting from the transients the transient occupancy tax and remitting the tax to the tax administrator of the city. 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 limited to, those requiring a permit from any board, commission department or office of the city. This certificate does not constitute a permit;

(5) Persons who receive legal service for business in the state;

(6) Such additional information may be required by the city council.

(b) 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 the rent charged, and each transient shall receive a receipt for payment from the operator if he so demands. 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 them; or that, if added, any part will be refunded except in the manner hereinafter provided.

(c) Each operator shall, on or before the last day of the month, following the close of each reporting month, make a return to the tax administrator, on forms provided by him, of the total transient rents charged and received and the amount of tax collected for transient occupancies. The full amount of tax collected shall be remitted to the tax administrator when the return is filed. 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 administrator as provided herein.

(d) 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 any payment to the city, which records the tax administrator shall have the right to inspect at all reasonable times.

(Code 1980, § 3-4.101; Ord. No. 99-05, § 2; Ord. No. 00-01, § 2)

(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 city under this section 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 tax administrator within three years of the date of payment. The claim shall be on forms furnished by the tax administrator.

(b) An operator may claim a refund or take as credit against taxes collected and remitted the amount over-paid, 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.

(c) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city 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 administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the tax administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(d) The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as hereinafter required.

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

(Code 1980, § 3-4.107; Ord. No. 91-18, § 3)

If any operator shall fail to timely make any report of the tax or any portion thereof, the tax administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as such facts are available, the tax administrator shall determine and assess against such operator the tax, interest and penalties. 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. The operator shall, within ten days, pay the amount after the serving or mailing of such notice.

(Code 1980, § 3-4.108)

(a) 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.

(b) If the city council determines that the nonpayment of any remittance due under this article 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 subsection (a) of this section.

(c) In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article 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.

(d) Every penalty imposed and such interest as accrues under the provisions of this article shall become a part of the tax herein required to be paid.

(Code 1980, § 3-4.109)

(a) Any tax required to be paid by any transient under the provisions of this article 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 article shall be liable to an action brought in the name of the city for the recovery of such amount.

(b) 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 city council, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor.

(c) 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 article to be made, is guilty of a misdemeanor.

(Code 1980, § 3-4.110)

All taxes, penalties, interest, and other sums collected pursuant to this article shall be deposited in the general fund account of the city.

(Code 1980, § 3-4.111)