Chapter 4.08 — TRANSIENT OCCUPANCY TAX

This chapter shall be known as the "Uniform Transient Occupancy Tax Ordinance of the City of Santa Barbara."

(Ord. 2987 §1, 1964; Ord. 4458, 1987)

For the purposes of this chapter, the following words and phrases shall have the meaning indicated, unless the context or usage clearly requires a different meaning:

Director of Finance. The person who is the supervisor of the Finance Department or other person designated by the Director of Finance or the City Administrator.

Hotel. Any structure, any portion of any structure, or any property or portion thereof 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, overnight recreational vehicle and camping park (as defined in Titles 28 and 30 of this code), or other similar structure or portion thereof.

Occupancy. 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.

Operator. The person who is proprietor of the hotel, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee or any other capacity. Where the operator performs his or her 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 or her 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.

Person. 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. 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.

Transient. 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; provided that an occupant of an apartment unit, constructed under a building permit as such, or in buildings which have been legally converted into apartments, shall not be deemed to be a transient if his or her occupancy is for a period of more than 30 days and with or without such written agreement.

(Ord. 2987 §2, 1964; Ord. 3395 §1, 1969; Ord. 4269, 1984; Ord. 4458, 1987; Ord. 5798, 2017)

For the privilege of occupancy in any hotel, each transient is subject to, and shall pay a tax in the amount of 10% 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 each installment. The unpaid tax shall be due upon the transient ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance.

(Ord. 3262 §1, 1967; Ord. 3477 §1, 1971; Ord. 4209, 1983; Ord. 4458, 1987)

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 in the manner provided. (Ord. 2987 §5, 1964; Ord. 4458, 1987)

Within 30 days after commencing business, each operator of any hotel renting occupancy to transients shall register the hotel with the Director of Finance and obtain from the Director of Finance a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. The 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. This transient occupancy certificate signifies that the person named on the face hereof fulfilled the requirements of this chapter by registering with the Director of Finance for the purpose of collecting from transients the transient occupancy tax and remitting the tax to the Director of Finance. 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 not limited to, those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit.

• (Ord. 2987 §6, 1964; Ord. 4458, 1987)

Each operator shall, on or before the 10th day after the close of each calendar month, or at the close of any shorter reporting period which may be established by the Director of Finance, make a return to the Director of Finance, on forms provided by the Director of Finance, 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 Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if the Director of Finance deems it necessary in order to insure collection of the tax and the Director of Finance 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 City until payment thereof is made to the Director of Finance.

(Ord. 2987 §7, 1964; Ord. 4458, 1987)

Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax. (Ord. 2987 §8(a), 1964; Ord. 4458, 1987)

Any operator who fails 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 of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(Ord. 2987 §8(b), 1964; Ord. 4458, 1987)

If the Director of Finance determines that the non-payment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in Sections 4.08.080 and 4.08.090. (Ord. 2987 §8(c), 1964; Ord. 4458, 1987)

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 become delinquent until paid.

(Ord. 2987 §8(d), 1964; Ord. 4458, 1987)

Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the tax herein required to be paid. (Ord. 2987 §8(e), 1964; Ord. 4458, 1987)

If any operator shall fail or refuse to collect the tax and to make within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the Director of Finance shall proceed in such a manner as the Director of Finance may deem best to obtain facts and information on which to base the Director of Finance's estimate of the tax due. As soon as the Director of Finance shall procure such facts and information as the

Director of Finance 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, the Director of Finance 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 Director of Finance 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 its last known place of address. Such operator may within 10 days after the serving or mailing of such notice make application in writing to the Director of Finance 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 Director of Finance shall become final and conclusive and immediately due and payable. If such application is made, the Director of Finance shall give not less than five 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 Director of Finance 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 15 days unless an appeal is taken as provided in Section 4.08.140. (Ord. 2987 §9, 1964; Ord. 4458, 1987)

Any operator aggrieved by any decision of the Director of Finance with respect to the amount of such tax, interest and penalties, if any, may appeal pursuant to the provisions of Section 1.30.050 of this code.

(Ord. 2987 §10, 1964; Ord. 4458, 1987; Ord. 5136, 1999)

It shall be the duty of every operator liable for the collection and payment to the City 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 or she may have been liable for the collection of and payment to the City, which records the Director of Finance shall have the right to inspect at all reasonable times.

(Ord. 2987 §11, 1964; Ord. 4458, 1987)

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 chapter it may be refunded as provided in Sections 4.08.170 and 4.08.180 provided a claim in writing therefore, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director of Finance within three years of the date of payment. The claim shall be on forms furnished by the Director of Finance.

(Ord. 2987 §12(a), 1964; Ord. 4458, 1987)

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 Director of Finance 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. 2987 §12(b), 1964; Ord. 4458, 1987)

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 filing a claim in the manner provided in Section 4.08.160, but only when the tax was paid by the transient directly to the Director of Finance, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operator who collected the tax.

(Ord. 2987 §12(c), 1964; Ord. 4458, 1987)

The Director of Finance may approve a refund of a payment collected by an operator for transient occupancy tax, upon a finding that:

• A. The claim for refund is supported by adequate documentary evidence, evidence of suitable identification, and a declaration, under penalty of perjury, of the basis for such refund;

• B. The claim was made within 90 days after such tax had been paid; and,

• C. It appears that such refund is required by applicable state or federal law, treaty, rule, regulation, exemption or other legislation.

• (Ord. 4458, 1987; Ord. 4764, 1992)

No refund shall be paid under the provisions of Sections 4.08.160 through 4.08.180 unless the claimant establishes his or her right thereto by written records showing entitlement thereto. (Ord. 2987 §12(d), 1964; Ord. 4458, 1987)

Any tax required to be paid by any transient under 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 under the provisions of this chapter shall be liable to an action brought in the name of the City of Santa Barbara for the recovery of such amount. (Ord. 2987 §13, 1964; Ord. 4458, 1987)

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 Director of Finance, 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. 2987 §14, 1964; Ord. 4458, 1987)