§ 5-25

For the privilege of occupancy in any hotel in the City, 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 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 Administrator may require that such tax be paid directly to the Tax Administrator. (Amended by Ord. 71.124 § 1, 1993)

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 the Federal or State Government, or any political subdivision thereof, when on official business;

(c) Any officer 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 upon a form prescribed by the Tax Administrator.

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 transient. The amount of tax shall be separately stated from the amount of 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 hereinafter provided.

Within thirty days after the effective date of this Article, or within thirty days after commencing business, whichever is later, each operator of any hotel in the City renting occupancy to transients shall register the hotel with the Tax Administrator and obtain from him 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 Registration Certificate signifies that the person named on the face hereof has fulfilled 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 certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in any unlawful manner, nor to operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of the City of Saratoga. This certificate does not constitute a permit."

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 Administrator, make a return to the Tax Administrator, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupancies. All records, returns and payments submitted by each operator shall be treated as confidential by the Tax Administrator and all persons having an administrative duty under this Article and shall not be released except upon order of a court of competent jurisdiction or to an officer or agent of the United States, the State of California, the County

(Saratoga Supp. No. 49, 3-22)

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5-25.070

of Santa Clara or the City of Saratoga for official use only. At the time the return is filed, the full amount of tax collected shall be remitted to the Tax Administrator. The Tax Administrator 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 Tax Administrator.

(Ord. No. 383, § 1(Exh. A, § 7), 11-17-2021)

(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 percent of the amount of the tax.

(b) Continued delinquency. Any operator who fails to pay any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the ten percent penalty first imposed.

(c) Fraud. If the Tax Administrator determines that the nonpayment of any remittance under this Article is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (a) and (b) of this Section.

(d) 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 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 under the provisions of this Section shall become a part of the tax herein required to be paid.

(a) Assessment of estimated tax. If any operator fails or refuses to collect the tax and to make, within the time provided in this Article, any report and remittance of the tax or any portion thereof required by this

Article, 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 procures 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.

(b) Notice of assessment; hearing; determination of tax. 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 at his last known 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 the 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 final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five days' written notice in the manner prescribed herein for the operator to appear at a time and place fixed in the notice and show cause as to why the amount specified therein should not be fixed for such tax, interest and penalties. After such hearing, the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the operator 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 paid in full within ten days after notice of such determination is given to the operator, unless an appeal is taken as provided in Section 5-25.100.

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of any tax, interest or penalties imposed under this Article, may appeal such decision to the City Council in accordance with the procedure set forth in Section 2-05.030 of this Code.

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

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(Saratoga Supp. No. 49, 3-22)

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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, which records the Tax Administrator shall have the right to inspect at all reasonable times.

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 Tax Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, punishable as provided in Chapter 3 of this Code.

(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 Article, it may be refunded in accordance with Section 2-50.010 of this Code.

(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 to the satisfaction of 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 person who paid the tax has submitted a written claim to the operator in the form prescribed in Section 2-50.010 of this Code, and the amount of the tax so collected has either been refunded to the person who paid the tax or credited to rent subsequently payable by such person to the operator. (Amended by Ord. 71-162 § 4, 1996)

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 remitted 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.

The proceeds derived from the transient occupancy tax shall be deposited in the City's general fund and shall be expended for general operating expenses incurred by the City or for capital improvements or such other legal uses and purposes as determined by the City Council.

Any operator or other person who violates any of the provisions of this Article or who fails or refuses to

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