Seal Beach Municipal Code Ch. 4.35 Transient Occupancy Tax

For the purpose of this chapter, the following words and phrases shall mean:

Hotel:

any structure, or any portion of any structure, that is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes. "Hotel" includes without limitation: 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.

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, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator utilizes 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 the 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.

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.

Tax Administrator:

city treasurer.

Transient:

any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement.

(Ord. 1515)

A. Rate. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 12% of the rent charged by the operator.

B. Payment. 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 shall be paid directly to the tax administrator.

C. Liability. 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 that 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 in an action brought in the name of the city for the recovery of such amount.

D. Maximum. Any individual who exercises occupancy or is entitled to occupancy in a hotel shall not be required to pay the tax for any day in excess of 30 consecutive days of such occupancy.

(Ord. 1515; Ord. 1541)

In the event that an agreement exists between the hotel and any person for occupancy for a period in excess of 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 shall be subject to and shall pay the tax provided for herein.

(Ord. 1515)

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 officer or employee 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.

4. Any individual who exercises occupancy or is entitled to occupancy in a hotel for a period of 31 consecutive days or more pursuant to an agreement in writing between the operator and the occupant.

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 tax administrator.

(Ord. 1515)

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.

(Ord. 1515)

No operator of a hotel shall advertise or state in any manner 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.

(Ord. 1515)

Within 30 days after commencing business, each operator of any hotel renting occupancy to transients shall register such hotel with the tax administrator and shall obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises. Such 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.

(Ord. 1515)

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 that may be established by the tax administrator, make a report to the tax administrator, on forms provided by such official, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the report is filed, the full amount of the tax collected shall be remitted to the tax administrator. The tax administrator may establish shorter reporting periods for any certificate holder if deemed necessary in order to insure collection of the tax and 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 tax administrator.

(Ord. 1515)

A. Original Delinquency. 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.

B. Continued Delinquency. 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.

C. Fraud. If the tax administrator determines that the nonpayment 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.

D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the prime lending rate 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.

(Ord. 1515)

A. 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 such tax or any portion thereof required by this chapter, the tax administrator shall proceed in such manner as deemed appropriate to obtain facts and information on which to estimate the tax due. Upon gathering sufficient facts, the tax administrator shall determine and assess against such operator the tax, interest and penalties referenced in this chapter.

B. The tax administrator shall provide notice of the assessment to the operator. An operator may within 10 days after the service of notice request a hearing with the tax administrator. If the operator fails to file a timely request, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If a request is timely filed, the tax administrator shall provide not less than 5 days written notice to the operator of a hearing to show cause at a time and place fixed in such notice. At such hearing, the operator may appear and offer evidence contesting the assessment, or any portion thereof. After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person of such determination and the amount of tax, interest and penalties. The operator shall pay such amount within 15 days unless an appeal of the tax administrator's determination is appealed as provided in this chapter.

(Ord. 1515; Ord. 1533)

An operator may appeal the determination made pursuant to Section 4.35.050 by filing a notice of appeal with the city clerk within 10 days of the service of the determination. The city clerk shall fix a time and place for a hearing before the city council, and provide written notice to the operator at least 5 days before the hearing. After the hearing, the city council shall issue its decision and findings. The decision and findings of the city council shall be final and conclusive. The city shall provide written notice to the operator of the council's decision and findings within 10 days of the decision. Any amount assessed shall be immediately due and payable upon the service of notice.

(Ord. 1515; Ord. 1533)

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 3 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.

(Ord. 1515)

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 this section if a written claim, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within 3 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 overpaid, 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 by filing a claim in the manner provided in 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. No refund shall be paid under the provisions of this section unless the claimant establishes a right thereto by written records showing entitlement thereto.

(Ord. 1515)

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor. 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 tax administrator, 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 that makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due is guilty of a misdemeanor.

(Ord. 1515)