Thousand Oaks Municipal Code Ch. 14 Transient Occupancy Taxes

This chapter shall be known as the “Uniform Transient Occupancy Tax Law” of the City.

(§ 1, Ord. 26)

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

(a) “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.

(b) “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.

(c) “Occupancy” shall mean 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.

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

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

(f) “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.

(g) “Tax Collector” shall mean the Director of Finance of the City.

(§§ 2 through 8, Ord. 26; and § 9, Ord. 26, as amended by § 2, Ord. 171)

For the privilege of occupancy in any hotel in the incorporated area of the City, 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 and shall be extinguished only by payment to the operator or to the City.

(§ 10, Ord. 26, as amended by § 1, Ord. 171, and § 1, Emergency Ord. 678-NS, eff. June 27, 1978; readopted July 11, 1978: Ord. 984-NS, eff. December 1, 1987)

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.

(§ 11, Ord. 26)

Each operator shall collect the tax imposed by the provisions of this chapter 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. Each transient shall receive a receipt for payment. The operator shall not 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 chapter.

(§ 12, Ord. 26)

Every operator liable for the collection and payment to the City of any tax imposed by the provisions of this chapter shall keep and preserve for not less than three (3) years all records necessary to determine the amount of such tax. The operator shall make such records available for inspection by the Director of Finance.

(§ 13, Ord. 26, as amended by § 2, Ord. 171)

Within thirty (30) days after April 1, 1965, or within thirty (30) days after commencing business, whichever is later, each operator shall register the hotel with the Tax Collector. Upon such registration, the Tax Collector shall issue to such operator a “Transient Occupancy Registration Certificate.”

(§ 14, Ord. 26)

The operator shall post the Transient Occupancy Registration Certificate in a conspicuous place on the hotel’s premises.

(§ 15, Ord. 26)

The Transient Occupancy Registration Certificate shall state the following:

(a) The name of the operator;

(b) The address of the hotel;

(c) The date the certificate was issued; and

(d) The following notice: “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 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 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 the 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.”

(§ 16, Ord. 26)

On or before the last day of the month following the close of the 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 the tax collected, and such other information as may be required by the Tax Collector.

(§ 17, Ord. 26)

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 assure collection of the tax. Returns and payments shall be due immediately upon cessation of business for any reason.

(§ 18, Ord. 26)

Every operator shall hold all taxes collected in trust for the account of the City until payment thereof is made to the Tax Collector.

(§ 19, Ord. 26)

Any operator who fails to remit the tax within the time required shall pay a penalty in the amount of ten (10%) percent of the amount of the tax.

(§ 20, Ord. 26)

Any operator who fails to remit any delinquent remittance within 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 amount of the tax in addition to the amount of the tax and the ten (10%) percent penalty first imposed.

(§ 21, Ord. 26)

For 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 Sections 3-14.13 and 3-14.14 of this chapter.

(§ 22, Ord. 26)

In addition to any penalties imposed, an operator who fails to remit any tax imposed by the provisions of this chapter shall pay interest at the rate of one-half (.5%) of one percent per month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent.

(§ 23, Ord. 26)

Every penalty imposed and such interest as accrues pursuant to the provisions of this chapter shall merge and become a part of the tax.

(§ 24, Ord. 26)

If any operator shall fail or refuse to collect the tax or to make, within the prescribed time, any report or remittance of the 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 in this chapter. 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, and addressed to the operator at his last known place of business.

(§ 25, Ord. 26)

Within ten (10) days after the service of a notice, the operator may apply in writing to the Tax Collector 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 determined by the Tax Collector shall become final and conclusive.

(§ 26, Ord. 26)

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

(§ 27, Ord. 26)

An operator may appeal the Tax Collector's decision to the Council by filing a notice of appeal with the City Clerk within fifteen (15) days of the serving or mailing of the determination.

(§ 28, Ord. 26)

The Council shall fix a time and place for hearing an appeal. The City Clerk shall give not less than five (5) days' written notice to the appellant of the time and place of the hearing.

(§ 29, Ord. 26)

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.

(§ 30, Ord. 26)

The Council shall determine from the evidence what tax, interest, or penalties, if any, are due to the City from the operator. Such decision shall be final and conclusive. The City Clerk shall serve a copy of the decision upon the operator. The amount shall be immediately payable upon the service of the notice.

(§ 31, Ord. 26)

Whenever the amount of the tax, interest, or penalty has been overpaid or erroneously or unlawfully collected or received by the City, the operator so paying may have such amount applied to subsequent taxes due or refunded as provided in this chapter if, within three (3) years after the date of payment, the operator files a claim in writing with the Tax Collector. Such claim by the operator shall state under penalty of perjury the specific grounds and specific facts upon which the claim is founded. The claims shall be on forms furnished by the Tax Collector.

(§ 32, Ord. 26)

An operator may deduct from subsequent taxes the amount overpaid or erroneously or unlawfully 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.

(§ 33, Ord. 26)

When an operator establishes a right to a credit as provided in this chapter, shows to the satisfaction of the Tax Collector that he no longer is operating a hotel in the incorporated area of the City or will cease such operation before the credit can be applied, and files a written claim therefor, the City shall refund to such operator the amount overpaid, paid more than once, or erroneously or unlawfully collected or received.

(§ 34, Ord. 26)

A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or unlawfully collected or received by the City by filing a written claim in the manner provided in Section 3-14.25 of this chapter. The written claim shall set forth facts showing that the transient has paid the tax directly to the Tax Collector or that the transient has paid the tax to the operator and has been unable to obtain a refund from the operator who collected the tax.

(§ 35, Ord. 26, as amended by § 2, Ord. 171)

A refund shall not be paid pursuant to the provisions of this chapter unless the claimant presents written records showing that he is entitled thereto.

(§ 36, Ord. 26)

The tax required to be paid by any transient pursuant to 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 tax has not been paid to the City, shall be deemed a debt owed by the operator to the City.

(§ 37, Ord. 26)

Any person owing money to the City pursuant to the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount.

(§ 38, Ord. 26)

(a) Violations. Every person shall be guilty of a violation of this Code who:

(1) Fails or refuses to register as required by the provisions of this chapter;

(2) Fails or refuses to furnish any return required to be made, or fails or refuses to furnish a supplemental return or other data required by the Tax Collector;

(3) Renders a false or fraudulent return;

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

(5) Collects the tax due pursuant to the provisions of this chapter from any transient and fails to pay the same to the City; or

(6) Violates in any way any other provisions of this chapter.

(b) Penalties. The penalty for the violation of any provision of this chapter shall be as set forth in Chapter 2 of Title 1 of this Code.

(§§ 39 and 40, Ord. 26, as amended by § V, Ord. 770-NS, eff. February 26, 1981)

The Director of Finance, whenever he deems it necessary to insure compliance with the provisions of this chapter, may require any person subject thereto to place with him such security as the Director of Finance may determine. The amount of the security shall be fixed by the Director of Finance but, except as noted below, shall not be greater than twice the estimated average liability of persons filing returns for monthly periods or Ten Thousand and no/100ths ($10,000.00) Dollars, whichever amount is the lesser. The limitations herein provided shall apply regardless of the type of security placed with the Director of Finance. The amount of the security may be increased or decreased by the Director of Finance subject to the limitations herein provided. The Director of Finance may sell the security at public auction if it becomes necessary to do so in order to recover any tax or amount required to be collected, interest, or penalty due. Notice of the sale may be served upon the person who placed the security personally or by mail; if by mail, service shall be addressed to the person at his address as it appears in the records of the Director of Finance. Security in the form of a bearer bond issued by the United States or the State, which bond has a prevailing market price, may, however, be sold by the Director of Finance at private sale at a price not lower than the prevailing market price thereof. Upon any sale any surplus above the amounts due shall be returned to the person who placed the security.

In lieu of the foregoing security requirements, any person subject to the provisions contained herein may request the establishment by the Director of Finance of a public funds account with any bank of the person's choice within the Thousand Oaks area. At the times such person deposits general hotel receipts, but no later than weekly, he shall deposit in said public funds account hotel tax receipts collected pursuant to the provisions of this chapter. Upon the receipt of the tax return forms provided by the City, the Director of Finance will transfer into the general funds of the City the amounts indicated on the tax return forms.

(§ 1, Ord. 215-NS, eff. July 15, 1971)

If any person liable for any amount under the provisions of this chapter sells out his business or quits the business, his successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the Director of Finance, showing that all taxes due from the person quitting, selling, or assigning his business have been paid, or a certificate stating that no amount is due.

(§ 2, Ord. 215-NS, eff. July 15, 1971)

If the purchaser of a business fails to withhold the purchase price as required in Section 3-14.34 of this chapter, he shall be personally liable for the payment of the amount requested to be withheld by him to the extent of the purchase price, valued in money. Within sixty (60) days after receiving a written request from the purchaser for a certificate, or within sixty (60) days from the date the former owner's records were made available for audit, whichever period expires the later, but in any event not later than ninety (90) days after receiving the request, the Director of Finance shall either issue the certificate or mail a notice to the purchaser at his address as it appears in the records of the Director of Finance of the amount that must be paid as a condition of issuing the certificate.

(§ 3, Ord. 215-NS, eff. July 15, 1971)

No tax shall be imposed upon:

(a) Any Federal or State of California officer or employee when on official business;

(b) Any officer or employee of a foreign government who is exempt by express provision of federal law or international treaty.

No exemption shall be granted under subsections (a) and (b) of this section except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the City.

(§ 1, Ord. 991-NS, eff. March 22, 1988)