Scotts Valley Municipal Code Ch. 3.24 Uniform Transient Occupancy Tax

The ordinance codified in this chapter shall be known as the uniform transient occupancy tax ordinance of the city.

(Ord. 76 § 1, 1978)

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

A. "City" means the City of Scotts Valley.

B. "Finance director" means the director of finance as defined in Chapter 2.08 of the city's Municipal Code.

C. "Hotel" means any structure or any portion of any structure in the city, including but not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, guesthouse, bed and breakfast inn, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes. The term "hotel" shall also include any space in a mobile home park, travel trailer park or similar facility which is occupied or intended or designed for occupancy by transients who occupy the space with a mobile home, travel trailer, camper or similar vehicle or portion thereof for dwelling, lodging or sleeping purposes

D. "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. The term "occupancy" shall also include the use or possession or the right to the use or possession of any space or portion thereof in a mobile home park, travel trailer park or similar facility by a person who occupies or has the right to occupy the space with a mobile home, travel trailer, camper or similar vehicle designed for dwelling, lodging or sleeping purposes.

E. "Operator" means 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 its 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 its 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.

F. "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.

G. "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 service of any kind or nature, without any deduction therefrom whatsoever.

H. "Transient" means:

1. Any person, other than an individual, who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement, for any period of time; or

2. Any individual who personally exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement, for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such individual so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy.

(Ord. 76 § 2, 1978; Ord. 76.1 §§ 1 and 2, 1984; Ord. No. 76.2, § 1, 8-1-2018)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eleven 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 city finance director may require that such tax shall be paid directly to the city finance director.

(Ord. 76 § 3, 1978; Ord. No. 76.3, § 1, 12-19-2018)

A. No tax shall be imposed upon:

1. 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;

2. Any federal or state officers or employees when on official business;

3. 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 except upon a claim therefor made at the time rent is collected, and under penalty of perjury, upon a form prescribed by the finance director.

(Ord. 76 § 4, 1978; Ord. No. 76.2, § 2, 8-1-2018)

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 except in the manner provided in Section 3.24.160.

(Ord. 76 § 5, 1978)

Not later than thirty days after commencing business, each operator of any hotel renting occupancy to transients shall register the hotel with the city finance director and obtain 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 of the City of Scotts Valley by registering with the city finance director for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the city finance director. This certificate does not authorize any person to conduct any unlawful 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. 76 § 6, 1978; Ord. No. 76.2, § 3, 8-1-2018)

A. Each operator shall, on or before the last day of each calendar month, prepare a tax return to the city finance director, on forms provided by the city, of the total rents charged and received and the amount of tax collected for transient occupancies for the preceding calendar month. At the time the tax return is filed, the full amount of the tax collected shall be remitted in a form of payment acceptable to the city.

B. All tax returns shall be completed on forms provided by the finance director.

(Ord. 76 § 7, 1978; Ord. No. 76.2, § 4, 8-1-2018)

Any operator who fails to remit any tax imposed by this chapter 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.

(Ord. 76 § 8(a), 1978)

Any operator who fails to remit 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 amount of the tax and the ten percent penalty first imposed.

(Ord. 76 § 8(b), 1978)

If the city finance director determines that the failure to remit any tax on or before the due date set forth in this chapter is because of an intentional, material misrepresentation or omission, or fraud by the operator, the finance director shall impose an additional penalty in the amount of twenty-five percent of the delinquent tax.

(Ord. 76 § 8(c), 1978; Ord. No. 76.2, § 5, 8-1-2018)

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 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.

(Ord. 76 § 8(d), 1978)

Every penalty imposed and such interest as accrues under the provisions of Sections 3.24.080 through 3.24.110 and this section shall become a part of the tax required to be paid by this chapter.

(Ord. 76 § 8(e), 1978)

A. If any operator fails or refuses 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 city finance director shall proceed in such manner deemed best to obtain facts and information on which to base the estimate of the tax due.

B. As soon as the city finance director procures such facts and information as the director 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 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 city 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 the operator's last known place of address.

C. Such operator may within ten days after the serving or mailing of such notice make application in writing to the city 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 city finance director shall become final and conclusive and immediately due and payable.

D. If such application is made, the city finance director 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 the notice why the amount specified therein should not be fixed for such tax, interest and penalties.

E. 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 city finance director 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 fifteen days unless an appeal is made as provided in Section 3.24.140.

(Ord. 76 § 9, 1978; Ord. No. 76.2, § 6, 8-1-2018)

Any operator aggrieved by any decision of the city finance director 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 fifteen days of the serving or mailing of the determination of 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 its 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 above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice.

(Ord. 76 § 10, 1978; Ord. No. 76.2, § 7, 8-1-2018)

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 may have been liable for the collection of and payment to the city, which records the city finance director shall have the right to inspect at all reasonable times. Such records shall be maintained at the operator's premises or shall be available for delivery to the city finance director within one week after request. The records shall include at least the following:

A. Daily summary of room occupancies, rents charged, and tax imposed and collected;

B. A record of each occupancy charge for which an exemption is claimed, including the name of the individual occupying the room, dates of occupancy, and reasons for exemption.

C. List of bad debts claimed for exemption, including names and addresses of debtor and amount of room rent unpaid.

(Ord. 76 § 11, 1978; Ord. No. 76.2, § 8, 8-1-2018)

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 chapter, it may be refunded as provided in subsections B and C of this section, provided a written claim for refund, stating under penalty of perjury, the specific grounds upon which the claim is founded, is filed with the city finance director within two years of the date of payment. The claim shall be on forms furnished by the city finance director.

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 city finance director 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 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 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 city finance director, or when the transient having paid the tax to the operator, establishes to the satisfaction of the city finance director that the transient has been unable to obtain a refund from the operator who collected the tax.

D. No refund shall be paid under the provisions of this section unless the claimant establishes its right thereto by written records showing entitlement thereto.

(Ord. 76 § 12, 1978; Ord. No. 76.2, § 8, 8-1-2018)

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 for the recovery of such amount.

(Ord. 76 § 13, 1978)

Editorial Note: Ord. No. 76.2, § 9, adopted August 1, 2018, repealed § 3.24.180, which pertained to violation—Penalty and derived from Ord. 76 § 14, 1978.