Santa Ana Municipal Code § 35-127 Tax imposed

Footnotes:

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Editor's note— Ord. No. NS-2648, § 2, adopted April 5, 2004, changed the title of article V from "Transient Occupancy Tax" to "Hotel Visitors Tax."

This article shall be known as "The Hotel Visitors Tax Ordinance of the City of Santa Ana."

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 2, 4-5-04)

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

(a) Person. The term "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.

(b) Hotel. The term "hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by hotel visitors 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 fixed location, or other similar structure or portion thereof.

(c) Occupancy. The term "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) Hotel visitors. The term "hotel visitors" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement. Any such person so occupying space in a hotel shall be deemed to be a hotel visitors until after the 30th consecutive day of such occupancy and said tax shall continue to be due upon all rent collected or accruing prior to said 30th day of occupancy unless such occupancy is pursuant to a qualifying rental agreement as defined in this article. In determining whether a person is a hotel visitors, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered.

(e) Rent. The term "rent" means the total consideration charged to the hotel visitors as shown on the guest receipt for the occupancy of space in a hotel, including charges for equipment (such as rollaway beds, cribs and television set, etc.), and in-room services (such as movies and other services not subject to state taxes), valued in money, whether received or to be received in money, goods, labor or otherwise. It shall include all receipts, cash, credit, property and services of any kind or nature without any deduction therefrom whatsoever. The costs of additional goods and services, which are not "rent," but which may be sold as a package with the room (such as meals, excursions, and recreational services), must be accounted for in accordance with the rules and regulations promulgated by the finance director.

(f) Operator. The term "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 purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both.

(g) Qualifying rental agreement. The term "qualifying rental agreement" means and shall be limited to a written contract signed by both the landlord and tenant, legally enforceable by either party thereto, and for a rental period of not less than thirty (30) consecutive days. Notwithstanding any other provision thereof, the term "qualifying rental agreement" as used in this article shall expressly exclude:

(1) Any agreement regardless of rental term which is terminated for any reason by either party thereto, or by mutual consent, prior to the 30th consecutive day of tenancy, or

(2) Any agreement regardless of length of rental term which would be unlawful or constitute a violation of any provision of law.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 3, 4-5-04)

(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eleven (11) per cent of the rent charged by the operator. The tax constitutes a debt owned by the transient to the city that 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 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 finance director may require that such tax shall be paid directly to the finance director.

(b) In the event that a qualifying rental agreement exists between the hotel and any person for occupancy, as hereinabove defined, for a period in excess of thirty (30) days and in the event that such person allows occupancy by another person as subtenant, guest, licensee or permittee, the person who has made the agreement with the hotel as aforesaid shall be subject to and shall pay the tax provided for herein.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1694, § 1, 8-15-83; Ord. No. NS-1921, § 1, 7-20-87; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 4, 4-5-04; Ord. No. NS-2673, § 1, 11-2-04; Ord. No. NS-2673, § 1, 11-2-04)

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 herein provided;

(b) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty;

(c) Any federal or state officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a hotel visitors who is employed by the United States government or the state or their respective instrumentalities from payment of the tax when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities.

No exemption shall be granted except upon a claim therefore made at the time rent is collected and under penalty of perjury, upon a form prescribed by the finance director.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 5, 4-5-04)

(a) Each operator shall collect the tax imposed by this article to the same extent and at the same time as the rent is collected from every hotel visitors. The amount of tax shall be separately stated from the amount of the rent charged, and each hotel visitors 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 hereinafter provided. Each operator shall account separately for and maintain separate monthly summary totals for taxable and nontaxable rents and for taxes collected.

(b) The operator shall maintain its financial and accounting records in accordance with established accounting principles acceptable to the finance director. In the event the operator offers paid packages or complementary services to guests, the charges shall be accounted for in accordance with the rules and regulations promulgated by the finance director.

(c) The tax required to be collected (any amount unreturned to the hotel visitors which is not tax but was collected under the representation that it was tax) constitutes a debt owed by the operator to the city and shall be paid to the city with the monthly remittance.

(d) Whenever an operator who has collected any sum under the representation that it was a tax, which sum is not required to be collected as a tax, remits said sum to the city and thereafter refunds such sum to such person in whole or part, such operator may take the amount of such refund as a credit against future taxes only upon submitting to the finance director a statement under penalty of perjury specifying the reasons for the credit and providing proof of payment of such refund.

(e) Nothing contained in this article shall be deemed to authorize as a credit against taxes owed any amount returned by the operator to any tour promoter, travel agent, or third party other than the hotel visitors. Travel agent commissions are an expense of the operator and may not be deducted from the rent.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 6, 4-5-04)

(a) Within thirty (30) days after commencing business each operator of any hotel renting occupancy to hotel visitors shall register said hotel with the finance director and obtain from him a hotel visitors registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:

(1) The name of the operator;

(2) The address of the hotel;

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

(4) The words:

"This Hotel Visitors registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform Hotel Visitors tax ordinance by registering with the finance director for the purpose of collecting from Hotel Visitors the Hotel Visitors tax and remitting said tax to the finance director. The 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 not limited to those requiring a permit from any board, commission, department or office of this city. This certificate does not constitute a permit."

(b) No hotel visitors registration certificate issued pursuant to this article shall be transferable or assignable; provided, that where a person holding a certificate issued under the provisions of this article changes the name of the business, such person shall upon changing the name make a written application to the finance director to have said certificate amended to reflect the change in name; and provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer shall not be prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity.

(c) Whenever, upon the sale or transfer of an existing hotel, a hotel visitors registration certificate is applied for, the finance director shall require that the succeeding operator produce a certificate of nonliability or other receipt issued by the finance director establishing that no unsatisfied liability for hotel visitors taxes exists.

(d) It shall be unlawful and a misdemeanor to operate a hotel without a valid hotel visitors registration certificate or to fail to post the certificate issued in a conspicuous place at all times.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 7, 4-5-04)

All operators shall report and remit monthly the full amount of hotel visitors taxes collected for the previous month upon the appropriate approved form available from the finance director. Hotel visitors taxes shall be deemed to be collected at that time at which the rent is earned if the operator uses the accrual basis of accounting or the time at which rent is received if the operator uses the cash basis of accounting. The same basis of accounting used for keeping the books and records shall be used for reporting and remitting hotel visitors taxes. The finance director 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 are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is made to the finance director.

(a) Calendar month reporting period. Each operator reporting on a calendar month basis shall, on or before the last day of the following month, make a return to the finance director on approved forms of the total taxable rents charged and the full amount of hotel visitors taxes collected for the previous month. At the time the return is filed, the full amount of the tax collected shall be remitted to the finance director.

(b) Timely returns. Returns and taxes remitted monthly and actually received by the finance director on or before the last day of the following month shall be deemed to be timely filed and remitted; otherwise, the taxes are delinquent and subject to the penalties imposed pursuant to section 35-132. Provided, however, that when the last day upon which a return may be filed and taxes remitted falls on a Saturday, Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon the first following working day. Returns filed and taxes remitted by mail shall be deemed to be timely filed only if the envelope or similar container enclosing the returns and taxes is addressed to the finance director, has sufficient postage and bears a United States postmark or a postage meter imprint prior to midnight on the last day for reporting and remitting without a penalty, if the last day for reporting and remitting said tax falls on a weekend or holiday, a filing shall be deemed to be timely filed if mailed prior to midnight of the first following working day. If such envelope or other container bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall govern in determining whether the filing and remittance are timely.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 8, 4-5-04)

(a) Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten (10) 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 (30) days following the date on which the remittance first became delinquent shall pay an additional delinquency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed. Any operator who fails to remit any delinquent remittance on or before a period of sixty (60) days following the date on which the remittance first became delinquent shall pay an additional delinquency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed together with the additional ten (10) percent penalty imposed.

(c) Audit deficiency. If, upon audit by the city, an operator is found to be deficient in either its return or its remittance or both, the finance director shall immediately assess the operator the amount of the net deficiency plus an audit deficiency penalty of ten (10) percent of the amount of the net deficiency. If said operator's remittance was deficient for a period of greater than thirty (30) days following the date on which remittance was first delinquent, said operator shall pay an additional audit deficiency penalty of ten (10) percent of the net deficiency and the ten (10) percent penalty first imposed. If said operator's remittance was deficient for a period of greater than sixty (60) days following the date on which the remittance first became delinquent, said operator shall pay an additional audit deficiency penalty of ten (10) percent of the amount of the tax and the ten (10) percent penalty first imposed together with the additional ten (10) percent penalty imposed. In addition thereto, the finance director shall assess interest at the rate of one and one-half (1½) percent per month or fraction thereto on the amount of the net deficiency for each month or portion thereof for which said operator's remittance was deficient.

(d) Fraud. If the finance director determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of twenty-five (25) percent of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section.

(e) Interest. 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 and one-half (1½) 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.

(f) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)

If any operator shall fail or refuse to collect said tax and to make, within the time provided in this article, any report and remittance of said tax or any portion thereof required by this article, the finance director 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 finance director shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this article 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 article. In case such determination is made, the finance 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 his last known place of address. Such operator may, within ten (10) days after the serving or mailing of such notice, make application in writing to the finance director 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 finance director shall become final and conclusive and immediately due and payable. If such application is made, the finance director shall give not less than five (5) days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said 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 finance director 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 fifteen (15) days unless an appeal is taken as provided in section 35-134.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)

(a) Any person aggrieved by any decision of the finance director or designee with respect to the amount of such tax, interest and penalties, if any, may appeal within fifteen (15) days pursuant to chapter 3 of this Code. In the event no appeal is filed within the time prescribed, the decision of the finance director or designee shall become final and conclusive and shall render any subsequent appeal null and void and shall further act as a waiver against future action.

(b) Notwithstanding any other provisions contained in this article or any other provision contained in this Code to the contrary, any operator tendering payment of any tax, interest or penalties to the city pursuant to any provision of this article shall for all purposes thereafter be precluded and barred from appealing, contesting or otherwise challenging the validity or amount of any such tax, interest or penalties pursuant to any otherwise available procedure set forth in this article, or otherwise available by law, unless said payment is made under written protest to the city. Said written protest shall be deemed made for the purposes of this article only by one (1) of the following methods: (1) a written notation set forth on the check, draft, money order, or other negotiable instrument by which payment is tendered, indicating that such payment is made under protest; or (2) a written notice addressed and delivered to the finance director at the time of payment indicating that such payment is made under protest.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-1235, § 14, 12-9-74; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. 2792, § 16, 8-17-09)

(a) 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 the period of the current calendar year and for the prior period of the three (3) calendar years immediately preceding, 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 finance director shall have the right to inspect at all reasonable times.

(b) Each operator within the city is hereby required to permit an examination of such books and records for the purposes aforesaid at a location within the City of Santa Ana. In the event such books and records cannot be made available within the City of Santa Ana, the operator is hereby required to reimburse the city for the cost of all transportation, lodging, meals, portal to portal travel time, and other incidental costs reasonably incurred by the city in obtaining said audit.

(c) The information furnished or secured pursuant to this article shall be confidential to the extent allowed by law; provided, however, this section shall not apply to any disclosures made in connection with any appeal proceeding pursuant to this article, or any civil action relating to the recovery of such taxes, interest or penalties, or any prosecution of any person for violation of any provisions of this article.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)

(a) When made. 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 subparagraph (b) and (c) of this section provided a claim in writing therefore, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the finance director within one (1) year of the date of payment. The claim shall be on forms furnished by the finance director.

(b) Refund to hotel visitors. 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 finance director that the person from whom the tax has been collected was not a hotel visitors; 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 hotel visitors or credited to rent subsequently payable by the hotel visitors to the operator.

(c) Hotel visitors recourse. A hotel visitors may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in subparagraph (a) of this section, but only when the tax was paid by the hotel visitors directly to the finance director, or when the hotel visitors having paid the tax to the operator, establishes to the satisfaction of the finance director that the hotel visitors has been unable to obtain a refund from the operator who collected the tax.

(d) Written records. 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. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)

(a) Actions to collect. Any tax required to be paid by any hotel visitors under the provisions of this article shall be deemed a debt owed by the transient hotel visitors 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 tax, penalties, interest, and administrative costs incurred in connection therewith, including attorney fees.

(b) Recording of a certificate of lien. If any amount required to be paid under this article is not paid when due, the finance director or his designated agent may record in the office of the county recorder(s) of such counties as the finance director may determine a certificate which specifies the amount of tax, penalties and interest due, the name and address of the operator liable for the same, a statement that the finance director has complied with all provisions of this article in the determination of the amount required to be paid, and a legal description of the real property owned by the operator. From the time of the recording of the certificate, the amount required to be paid together with penalties and interest constitutes a lien upon all real property in the county owned by the operator or thereafter acquired before the lien expires. The lien shall have the force, effect and priority of a tax lien and shall continue for ten (10) years from the filing of a certificate unless sooner released or otherwise discharged.

(c) Warrant for collection of tax. At any time within three (3) years after the recording of a certificate of lien, the finance director or his designated agent may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of any taxes, penalties and interest required to be paid to the city under this article. The warrant shall have the same effect as a writ of execution and be executed in the same manner and with the same effect as a levy and sale pursuant to a writ of execution.

(d) Seizure and sale. In lieu of issuing a warrant under subsection (c), at any time within three (3) years after an assessment was issued or a certificate of lien was recorded under subsection (b), the finance director or his designated agent may collect the delinquent amount by seizing or causing to be seized any property, real or personal, of the operator and sell any non-cash or nonnegotiable property or a sufficient part of it at public auction to pay the amount of tax due together with any penalties and any costs incurred on account of the seizure and sale. Any seizure made to collect taxes due shall only be of property of the operator not exempt from execution under provisions of the Code of Civil Procedure.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)

(a) 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 finance director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and upon conviction thereof, is punishable as provided for in section 1-8 of this Code. Each day any such violation of this article shall continue shall constitute a separate offense.

(b) 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 and is punishable as aforesaid.

(c) Any operator violating any of the other mandatory provisions of this article shall be guilty of misdemeanor and is punishable as aforesaid. The commencement of criminal proceedings shall neither preclude nor abate administrative or civil actions to collect taxes due under this article.

(d) It shall not be a defense to violations of this article that the operator, including a resident manager, had forwarded any return due or taxes collected to its principal or corporate headquarters, nor that any failure to file or remit taxes was based on the direction or inaction of such principal or corporate headquarters.

(Ord. No. NS-1091, § 1, 8-16-71; Ord. No. NS-2162, § 1, 6-15-92)

(a) To ensure compliance with hotel visitors tax payment requirements, the finance director shall require each new operator subject to such requirements to deposit with the city within one (1) year after the effective date of this article, or within thirty (30) days after commencing business, whichever is later, such security in a form acceptable to the finance director in the amount not greater than the person's estimated average liability for the first period for which a return must be filed or the sum of ten thousand dollars ($10,000.00), whichever is the lesser. To recover hotel visitors taxes, including penalties and interest, remittable by the depositor, the finance director may apply the security deposited with the finance director.

(b) At least fifteen (15) days prior to the application of a security deposit, the finance director shall serve upon the depositing operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing operator at his hotel. Any portion of the security remaining after satisfaction of outstanding hotel visitors taxes, penalties, interest and costs of sale may be retained by the finance director for security or may be paid over by him to the depositing operator.

(c) In the case of the transfer or cessation of business by the depositor, the finance director shall refund or release the security amount required pursuant to this section, upon depositor's presentation to the finance director of either a receipt from the finance director showing that all hotel visitors taxes, including any penalty, interest or other charges or costs outstanding, have been paid or a certificate of nonliability stating the nonliability of the depositor for payment of hotel visitors tax as hereunder provided in section 35-140.

(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 9, 4-5-04)

(a) Operator's duty to notify. An operator who is transferring, selling or terminating his business shall notify the finance director in writing of such sale, transfer or termination and the name and address of the purchaser or transferee at least thirty (30) days in advance of the date of the transfer, sale or termination, unless the decision to sell, transfer or terminate was made within less than a thirty-day period prior to the transfer, sale or termination, in which case the operator shall then immediately notify the purchaser or transferee of their responsibility for unpaid taxes as set forth in subsections (c) and (d) below, and further certify in writing to the finance director that the transferee or purchaser was notified of the requirements of this article regarding its responsibility for unpaid collected taxes.

(b) Remitting and reporting requirements. Each operator upon the transfer or cessation of business for any reason shall, on or before the last day of the next month following the transfer or cessation of business, make a return to the finance director on approved forms of the total taxable rents charged, the amount of tax collected for the reporting period, remittances made, if any, and the balance of the tax due, if any, shall be remitted to the finance director.

(c) Closeout audit. After filing the final return and remitting the balance due, the operator shall make his records of account available for a closeout audit by the finance director or duly authorized employee or agent of the city. If, upon audit by the city, the operator transferring or quitting his business is found to have satisfied all hotel visitors liability, the finance director shall issue to such operator a certificate of nonliability stating the nonliability of the operator for payment of hotel visitors taxes. If, upon audit by the city, the operator transferring or quitting his business is deficient in either his return or his remittance or both, the finance director shall immediately assess such operator the amount of the net deficiency in accordance with section 35-132 above. Upon such operator's remittance of the deficient amount plus any penalty and interest assessed, the finance director shall issue a certificate of nonliability.

(d) Successor's duty to notify. If an operator who is liable for any hotel visitors taxes, penalties or interest under this article sells or otherwise transfers his business, his assignee or successor in interest shall notify the finance director of the date of the sale or transfer at least thirty (30) days before the date of the sale or transfer. If the decision to sell or transfer was made within less than a thirty-day period prior to the sale or transfer, the assignee or successor in interest shall notify the finance director immediately and shall withhold an amount equal to the accrued or outstanding hotel visitors tax liability of the operator until the transferring operator produces either a receipt from the finance director showing that the tax, including any penalty, interest or other charge or cost outstanding, has been paid or a certificate of nonliability stating the nonliability of the operator for payment of hotel visitors tax. If the transferor does not present a receipt or notice of nonliability within thirty (30) days after such sale or transfer after such assignee or successor commences to conduct business, the assignee or successor shall deposit the withheld amount with the finance director pending settlement of the account of the transferor.

(e) Successor's liability. If the assignee or successor in interest fails to withhold the amount required to satisfy the tax liability, he shall become personally liable for the payment of the amount required to be withheld by him and shall be subject to penalty and interest charges as set forth in section 35-132.

(f) Certificate of nonliability. Within thirty (30) days from the receipt of the application of any operator for a certificate of nonliability for the payment of hotel visitors taxes, the finance director after conducting an audit therefore shall issue the certificate if the operator's tax liability has been satisfied to the date of the application. If tax has accrued to that date, the finance director shall give notice to the operator of the amount which must be paid as a condition of issuing the certificate.

(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04)

(a) The finance director shall have the power and duty to enforce this article and shall have the power to adopt rules and regulations not inconsistent with the provisions of this article for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. A copy of all such rules and regulations adopted by the finance director shall be maintained on file in the offices of the finance director. Where uncertainty exists regarding the interpretation of any provision of this article or its application to a specific hotel, operator or hotel visitors, the finance director shall determine the intent of the provision. Such determination shall take the form of a written memorandum of intent. A copy of all such memoranda issued by the finance director shall be maintained on file in the offices of the finance director.

(b) The finance director shall have the further power, for good cause shown, to extend the time for filing any required report and remitting any taxes collected for thirty (30) days; and shall have the further power, for good cause shown, to waive or release any cash deposit, bond, bankshare, lien, or other security required and to compromise any claim as to any penalty imposed or charge demanded.

(c) The finance director may with the consent and approval of the city attorney enter into written agreements with persons liable for the payment of delinquent taxes, penalties and interest, in monthly installments, or more often, extending over a period not exceeding one (1) year. In any agreement so entered into, such person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid, principal together with interest, shall become immediately due and payable. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee, including attorney fees. The execution of such an agreement shall not prevent the prior accrual of penalties and interest on unpaid balances at the rate provided hereinabove, but no penalties or additional interest shall accrue as hereinafter provided on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment and during such time as such operator shall not be in breach of the agreement. The execution of such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against future action.

(d) In addition to all other authority conferred upon him, the finance director, upon the concurrence of the city attorney, shall have the authority to discontinue the collection of any claim if it appears that further proceedings would be without merit.

(Ord. No. NS-2162, § 1, 6-15-92; Ord. No. NS-2648, § 10, 4-5-04)