Sonora Municipal Code § 3.20 Transient Occupancy Tax

Footnotes:

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Editor's note— Ord. 871, adopted Nov. 3, 2020, repealed and replaced the former Ch. 3.20, which derived from Ord. 340, 1964; Ord. 378, 1967; Ord. 451, 1973; Ord. 579,1983; and Ord. 790, 6-8-2010.

State Law reference— For statutory provisions authorizing local taxes on transient occupancies, see Rev. and Tax Code §§ 7280 and 7281.

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

(Adopted by Ord. 871 on 11/3/2020)

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

"Hotel" means any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and includes, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, lodging house, rooming house, apartment house, dormitory, public or private club, camping site, space at a recreational vehicle park, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.

"Hotel" does not mean any of the following:

A. Any hospital, sanitarium, medical clinic, convalescent home, rest home, home for aged people, foster home, or other similar facility operated for the care or treatment of human beings;

B. Any asylum, jail, prison, orphanage or other facility in which human beings are detained and housed under legal restraint;

C. Any housing owned or controlled by an education institution and used exclusively to house students, faculty or other employees, and any fraternity or sorority house or similar facility occupied exclusively by students and employees of such education institution, and officially recognized or approved by it;

D. Any housing owned by a governmental agency and used for governmental purposes;

E. Any facilities operated by a local government entity;

F. Any camp as defined in the Labor Code or other housing furnished by an employer, exclusively for employees;

G. Any housing occupied by persons under the age of eighteen years which is owned or controlled by an organization having qualifications for exemption from property taxes under the laws of California, and which is operated or used exclusively for religious, charitable or educational purposes; provided, that the burden of establishing that the housing or facility is not a "Hotel" as defined in this section shall be upon the operator thereof, who shall file with the tax administrator such information as tax administrator requires to establish and maintain such status;

H. Any lodging excluded pursuant to Revenue and Taxation Code Section 7280(b); and

I. Any campsite in a unit of the state park system.

"Occupancy" means the use or possession, or the right to the use or possession, of one or more rooms, sites, or spaces, or portions thereof, in any hotel for dwelling, lodging, or sleeping purposes.

"Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, concessionaire or any other capacity. Where the operator performs his/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/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.

"Persons" 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.

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

"Tax administrator" means the chief of police of the city, who is the tax collector of the city.

"Transient" means 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 thirty consecutive calendar days, or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel or other lodging 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. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered.

(Adopted by Ord. 871 on 11/3/2020)

For the privilege of occupancy in any hotel or other lodging within the City of Sonora, each transient is subject to and shall pay a tax in the amount of twelve 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 or other lodging at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be due with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel or other lodging. If for any reason the tax due is not paid to the operator of the hotel or other lodging, the tax administrator may require that such tax shall be paid directly to the tax administrator.

(Adopted by Ord. 871 on 11/3/2020)

The tax imposed in Section 3.20.030 applies to the privilege of renting a mobile home, as defined in Section 18008 of the Health and Safety Code, which is located outside a home park for occupancy on a transient basis, unless such occupancy is for any period of more than thirty days. This section does not apply when the tenant of such mobile home is an employee or owner or operator of the mobile home.

(Adopted by Ord. 871 on 11/3/2020)

A. No tax shall be imposed upon any officer or employee of a foreign government who is exempt by reason of express provision of any law or international treaty of the United States of America.

B. No exemption as provided in this section shall be granted, except on a claim made therefor at the time rent is collected, and under penalty of perjury, upon a form prescribed by the tax administrator.

(Adopted by Ord. 871 on 11/3/2020)

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 hereinafter provided.

(Adopted by Ord. 871 on 11/3/2020)

Within thirty days after the effective date of the ordinance codified in this chapter, or within thirty days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the tax administrator and obtain from him/her 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; and

D. That "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 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."

(Adopted by Ord. 871 on 11/3/2020)

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/her, 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 tax administrator. The tax administrator may establish shorter reporting periods for any certificate holder if he/she deems it necessary in order to insure collection of the tax and he/she 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.

(Adopted by Ord. 871 on 11/3/2020)

A. Original Delinquency. 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.

B. Continued Delinquency. 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.

C. Fraud. If the tax administrator determines that the nonpayment of any remittance due under this chapter 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 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 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 required in this chapter to be paid.

(Adopted by Ord. 871 on 11/3/2020)

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 tax administrator shall proceed in such manner as he/she may deem best to obtain facts and information on which to base his/her estimate of the tax due. As soon as the tax administrator procures such facts and information as he/she 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 tax administrator 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 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 so assessed at his/her last known place of 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 application by the operator for 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 in this section to the operator to show cause at a time and place fixed in said notice, why the 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 tax administrator 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 taken as provided in Section 3.20.110.

(Adopted by Ord. 871 on 11/3/2020)

Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest, and penalties, if any, may appeal to the city 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 city council shall fix a time and place for hearing such appeal and the city clerk shall give notice, in writing, to such operator at his/her last known place of address. The finding of the city council shall be final and conclusive, and shall be served upon the appellant in the manner prescribed in this chapter of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Adopted by Ord. 871 on 11/3/2020)

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/she may have been liable for the collection of and payment to the city, which records the tax administrator shall have the right to inspect at all reasonable times.

(Adopted by Ord. 871 on 11/3/2020)

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 claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within three 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 to be 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 subsection A of 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 his/her right by written records showing entitlement thereto.

(Adopted by Ord. 871 on 11/3/2020)

Any tax required to be paid by any transient under the provisions of this chapter shall be 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 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 Sonora for the recovery of such amount.

(Adopted by Ord. 871 on 11/3/2020)

No person shall violate this chapter. The city may enforce this chapter pursuant to Chapter 1.08 of the Sonora Municipal Code. Any operator or other person who fails or refuses to register as required in this chapter, or to furnish any return required to be made, or 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 punishable pursuant to Chapter 1.08 of the Sonora Municipal Code. Any person required to make, render, sign, or verify any report or claim and 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 punishable pursuant to Chapter 1.08 of the Sonora Municipal Code.

(Adopted by Ord. 871 on 11/3/2020)