Simi Valley Municipal Code Art. 3 Transient Occupancy Taxes

This article shall be known as the "Uniform Transient Occupancy Tax Law of the City of Simi Valley".

(§ 1, Ord. 12)

For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows:

(a) "Hotel" shall mean any type of commercial establishment, or any portion of any type of commercial establishment, which provides for the occupancy of transients for dwelling, lodging, or sleeping purposes, whether by the day, week, or month, including, but not limited to, hotels, inns, and motels.

(b) "Occupancy" shall mean the use or possession, or the right to the use or possession, of any room, or portion thereof, in any hotel for dwelling, lodging, or sleeping purposes.

(c) "Operator" shall mean the person who manages the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity.

(d) "Person" shall mean 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.

(e) "Rent" shall mean the monetary value of the consideration charged for occupancy, including all receipts, cash, credits, property, and services of any kind or nature, without any deduction therefrom whatsoever.

(f) "Tax Collector" shall mean the Finance Director.

(g) "Transient" shall mean any person who exercises occupancy or is entitled to occupancy for a period of thirty (30) consecutive calendar days or less.

(§§ 2 through 9, Ord. 12)

For the privilege of occupancy in any hotel, each transient shall pay a tax in the amount of ten (10%) percent of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be 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. Any unpaid tax shall be paid upon the transient's ceasing to occupy space in the hotel.

(§§ 10 and 11, Ord. 12; repealed and reenacted by §§ 1 and 2, Ord. 644, eff. October 22, 1986; repealed and reenacted by §§ 1 and 2, Ord. 824, eff. October 20, 1994)

Each operator shall collect the tax imposed by the provisions of this article to the same extent and at the same time as the rent is collected from every transient. The amount of the 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 shall advertise or state in any manner that the tax, or any part thereof, will be assumed or absorbed by the operator, or that the tax will not be added to the rent, or that any part of the tax will be refunded, except in the manner provided in this article.

(§ 12, Ord. 12)

(a) Required. Within thirty (30) days after commencing business, each operator shall register the hotel with the Tax Collector and obtain from him a "Transient Occupancy Registration Certificate" which shall be posted in a conspicuous place on the premises of the hotel.

(b) Certificates. Such certificate shall set forth the following information:

(1) The name of the operator;

(2) The address of the hotel;

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

(4) A statement as follows: "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law of the City of Simi Valley by registering with the Tax Collector for the purpose of collecting from transients the transient occupancy tax and remitting such tax to the Tax Collector. This certificate shall 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 the City. This certificate shall not constitute a permit."

(§§ 14 through 16, Ord. 12)

On or before the last day of the month following the close of each calendar quarter, or at the close of any other reporting period which may be established by the Tax Collector, each operator shall file a return with the Tax Collector showing the total rents charged and received, the amount of tax collected, and such other information as may be required by the Tax Collector. At the time the return is filed, the operator shall remit the full amount of the tax collected to the Tax Collector. The Tax Collector may establish such other reporting periods as he deems necessary or expedient to insure the collection of the tax. Returns and payments shall be due immediately upon the cessation of business for any reason. All taxes collected by operators pursuant to the provisions of this article shall be held in trust for the account of the City until payment thereof is made to the Tax Collector.

(§§ 17 through 19, Ord. 12)

(a) Original delinquencies. Any operator who shall fail to remit the tax imposed by the provisions of this article within the time required shall pay a penalty of ten (10%) percent of the tax in addition to the amount of the tax.

(b) Continued delinquencies. Any operator who shall fail to remit any delinquent remittance on or before thirty (30) days following the date on which the remittance first became delinquent shall pay a penalty in the amount of ten (10%) percent of the tax in addition to the amount of the tax and the ten (10%) percent penalty first imposed.

(c) Fraud. For the fraudulent nonpayment of any remittance, a penalty in the amount of twenty-five (25%) percent of the amount of the tax shall be imposed in addition to the penalties set forth in subsections (a) and (b) of this section.

(d) Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this article shall pay interest at the rate of one-half (½) of one (1%) percent per month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent.

(e) Penalties and interest merged with tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall merge and become a part of the tax required to be paid by the provisions of this article.

(§§ 20 through 24, Ord. 12)

If any operator shall fail or refuse to collect the tax required by the provisions of this article and to make, within the time provided in this article, any report or remittance of such tax, or any portion thereof, the Tax Collector shall estimate the amount of tax due and assess against such operator the tax, interest, and penalties provided for by this article. The Tax Collector shall give a notice in writing of the amount so assessed by serving such notice personally or by depositing it in the United States mail, postage prepaid, addressed to the operator at his last known place of business. Such operator may, within ten (10) days after the service or mailing of such notice, make an application in writing to the Tax Collector for a hearing on the amount assessed. If an application by the operator for a hearing is not made within the time prescribed, the tax, penalties, and interest determined by the Tax Collector shall become final and conclusive.

Upon the receipt of an application for a hearing, the Tax Collector shall give not less than five (5) days' written notice, in the manner set forth in this section, to the operator to appear at the time and place set forth in such notice and to offer evidence showing why the amount assessed should not be fixed for such tax, penalties, and interest. After such hearing the Tax Collector shall determine the tax, penalties, and interest to be remitted and shall give written notice thereof to the person in the manner set forth in this section. The amount so determined shall be paid within fifteen (15) days unless an appeal is filed as provided in Section 3-5.309 of this article.

(§§ 25 through 27, Ord. 12)

An operator aggrieved by any decision of the Tax Collector, as set forth in Section 3-5.308 of this article, may appeal to the Council by filing a notice of appeal with the City Clerk within fifteen (15) days after the service or mailing of the determination of the Tax Collector. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give not less than five (5) days' written notice to the appellant of the time and place of the hearing. At the time set for the hearing, or at the date to which the hearing may be continued by the Council, the Council shall hear and receive evidence bearing on the appealed determination of the Tax Collector. The Council may place any witnesses under oath. The Council shall determine from the evidence what tax, penalties, or interest, if any, are due to the City from the operator. The findings of the Council shall be final and conclusive. The City Clerk shall serve a copy of the decision upon the appellant in the manner set forth in Section 3-5.308 of this article. The amount found to be due shall be immediately due and payable upon the service of such notice.

(§§ 28 through 31, Ord. 12)

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions of this article to keep and preserve, for a period of not less than three (3) years, all records necessary to determine the amount of such tax, which records shall be available for inspection by the Tax Collector.

(§ 13, Ord. 12)

(a) Whenever the amount of any tax, penalty, or interest has been overpaid or erroneously or illegally collected or received by the City pursuant to the provisions of this article, the operator so paying may have such amount applied to subsequent taxes due or refunded, as provided in subsections (b) and (c) of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds and specific facts upon which the claim is founded, is filed with the Tax Collector within three (3) years after the date of payment. Such claims shall be on forms furnished by the Tax Collector.

(b) Any operator may deduct from subsequent taxes the amount overpaid or erroneously or illegally collected or received from a person who was not a transient when 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) When an operator establishes a right to a credit as provided in this article, shows to the satisfaction of the Tax Collector that he no longer is operating a hotel in the City, or will cease such operation before the credit can be applied, and such operator has filed a written claim therefor, the City shall refund to such operator the amount overpaid, paid more than once, or erroneously or illegally collected or received.

(d) A transient may obtain a refund of taxes overpaid, paid more than once, or erroneously or illegally collected or received by the City by filing a written claim in the manner set forth in subsection (a) of this section. Such claim shall set forth facts showing that the transient paid the tax directly to the Tax Collector or that the transient paid the tax to the operator and was unable to obtain a refund from the operator who collected the tax.

(e) No refund shall be paid pursuant to the provisions of this section unless the claimant presents written records showing entitlement thereto.

(§§ 32 through 36, Ord. 12)

The taxes required to be paid by transients pursuant to the provisions of this article shall be deemed a debt owed to the City by such transients. Any such taxes collected by operators, which taxes have not been paid to the City, shall be deemed a debt owed to the City by such operators. Any person owing money to the City pursuant to the provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount.

(§§ 37 and 38, Ord. 12)

It shall be a misdemeanor for any person to:

(a) Fail or refuse to register as required by the provisions of this article;

(b) Fail or refuse to furnish any return required by the provisions of this article to be made or fail or refuse to furnish a supplemental return or other data required by the Tax Collector;

(c) Render a false or fraudulent return;

(d) Make any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due;

(e) Collect the tax due pursuant to the provisions of this article from any transient and fail to pay such tax to the City; and

(f) Violate in any way any provision of this article.

(§ 39, Ord. 12)