Ventura Municipal Code Ch. 4.115 Uniform Transient Occupancy Tax

This chapter shall be known as the “Uniform Transient Occupancy Tax Ordinance of the City of San Buenaventura.” (Code 1971, § 1521)

Unless the context otherwise requires, the definitions in this title shall govern the construction of this chapter.

“Hotel” means any commercial establishment, or any portion of any commercial establishment, which provides for the occupancy of transients for dwelling, lodging, or sleeping purposes, whether by the day, week or month, and includes any hotel, inn, motel or commercial establishment of similar nature; and shall further include any space, lot, area or site in any trailer court, recreation vehicle park, mobile home park, camp, park or lot where a trailer, tent, recreational vehicle, mobile home, motor home, or other similar habitation is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes.

“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 “hotel” as used herein means and includes a timeshare facility as defined in this section of this code; and shall further include any space, lot, area or site in any trailer court, recreational vehicle park, mobile home park, camp, park or lot where a trailer, tent, recreational vehicle, mobile home, motor home or other similar habitation is occupied or intended or designed for occupancy by transients 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, or any other capacity. Whether the operator performs the operator’s functions through a managing agent or of any type or character other than an employee, the managing agent shall also be deemed an operator for the purpose of this title and shall have the same duties and liabilities as the agent’s principal. Compliance with the provisions of this title by either the principal or the managing agent shall, however, be considered to be compliance by both.

“Person” means any individual, firm, partnership, joint venture, association, social club, social 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. In the case of timeshare facilities utilized other than as conventional hotel rooms, the rent shall be deemed to be the sum that would be charged for the unit were it being utilized as a conventional hotel room. Said sum shall be determined and established between the operator and tax collector, based upon a schedule submitted to and approved by the tax collector prior to utilization of the facility. Any determination of the tax collector of comparable rates shall be subject to appeal pursuant to Sections 4.115.030(J)(4) through (J)(6) within 15 days from the date of the decision. Such schedule shall be updated every six months thereafter. In the event the operator should fail to have a schedule submitted and approved and collect transient occupancy tax based thereon, the operator shall be subject to payment of any tax difference that may be found to be due.

“Tax collector” means the tax and license collector and the collector’s deputies as authorized by the city of San Buenaventura.

“Timeshare facility” means a facility in which a person receives the right in perpetuity, for life or for a specific period of time, to the recurrent, exclusive use or occupancy of a lot, parcel, unit or portion of real property, for a period of time that has been or will be allocated from the use or occupancy periods into which the facility has been divided. A timeshare use may be coupled with an estate in the real property or it may entail a license, contract, membership or other right of occupancy not coupled with an estate in the real property.

“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 30 consecutive calendar days or for an entire particular calendar month whichever is the lesser, or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days or the entire calendar month 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 this chapter may be considered. (Code 1971, § 1522)

A. Payment Required. For the privilege of occupancy in any hotel in the city, each transient is subject to and shall pay a tax in the amount of 10 percent of the rent charged by the operator. This tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city.

B. Payment by Transient. 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 collector may require the transient to pay such tax directly to the tax collector.

C. Operator’s Duties. 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 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. The operator of a hotel shall not 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.

1. Records. Every operator liable for the collection and payment to the city of any tax imposed by this chapter shall keep and preserve, for not less than three years, all records of the operator which may be necessary in the tax collector’s judgment to determine the amount of such tax.

2. Operator Must Register. Within 30 days after the effective date of this chapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the tax collector. Upon such registration the tax collector shall issue to such operator a “transient occupancy registration certificate.”

3. Posting of Certificate. The operator shall post and at all times keep posted in a conspicuous place on the premises of the hotel the transient occupancy registration certificate.

4. Contents of Certificate. The transient occupancy registration 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. 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 ordinance by registering with the tax collector for the purpose of collecting from transients the transient occupancy tax and remitting said 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 applicable laws. This certificate does not constitute a permit."”

5. Operator Must Report. Each operator 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, shall make a return to the tax collector, on forms provided by them, of the total rents charged and received and the amount of the tax collected for transient occupants.

6. Payment of Tax. 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 shorter, longer, or other reporting periods for any certificate holder if the tax collector deems it necessary or expedient in order to insure collection of the tax. The tax collector may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason.

D. Taxes Held in Trust. Every operator shall hold in trust for the account of the city until payment thereof is made to the tax collector, all taxes collected by such operator.

E. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10 percent of the amount of the tax in addition to the amount of the tax.

F. 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 percent of the amount of the tax in addition to the amount of the tax and the 10 percent penalty first imposed.

G. Fraud. If the tax collector determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections E and F of this section.

H. 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.

I. Penalties Merged With Tax. Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the tax herein required to be paid.

J. Failure to Collect and Report Tax. 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 the tax or any portion thereof required by this chapter, the tax collector shall proceed in such manner as the collector may deem best to obtain facts and information upon which to base the collector’s estimate of the tax due. As soon as the tax collector procures such facts and information, the tax collector shall proceed to determine and assess against such operator the tax, interest and penalties provided for in this chapter.

1. Notice. If the tax collector makes a determination pursuant to this chapter, the tax collector shall give notice of the amount so assessed, either by serving such notice 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 business.

2. Application for Hearing. Within 10 days after the serving upon any operator of such notice, such operator may apply in writing to the tax collector 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 tax collector shall become final and conclusive and immediately due and payable.

3. Hearing and Determination of Tax. If such application is made, the tax collector shall give not less than five days’ written notice in the manner prescribed herein 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. 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 collector shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be paid within 15 days unless an appeal is taken as provided in this chapter.

4. Appeal. Any operator deeming themselves aggrieved by any decision of the tax collector with respect to the amount of the tax, interest and penalties found to be due may appeal to the city council by filing a notice of appeal with the city clerk within 15 days of the serving or mailing of the determination of the tax due.

5. Notice of Hearing. Upon the filing of a notice of appeal, the city clerk shall fix a time and place for hearing such appeal and shall give not less than five days’ notice in writing, either personally or by United States mail, postage prepaid.

6. Hearing and Decision on Appeal. The city council shall hear and consider all evidence produced by the appellant and other witnesses and written findings thereon, which shall be final, shall be served upon the appellant in the manner prescribed in subsection (J)(5) of this section. (Code 1971, § 1523)

A. Request for Refund. 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, the operator may request such amount be credited to subsequent taxes, or the amount may be refunded as in this chapter provided.

B. Refund to Transient. Refund or credit in the amount overpaid, paid more than once or erroneously or illegally collected or received shall be approved by the city only when it is established to the satisfaction of the tax collector that the person from whom the tax was collected was not a transient and that the amount of the tax so collected has in fact been refunded to the transient or credited to the account of the transient.

C. Other Refunds. When an operator shows to the satisfaction of the tax collector that the operator 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 proper claim therefor, in lieu of such credit, the tax collector shall refund to such operator the amount overpaid, paid more than once or erroneously or illegally collected or received.

D. Refund to Transient – Claim. A transient or other guest of a hotel 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, if the tax was paid by the transient or other guest directly to the tax collector, or if the transient or other guest has paid the tax to the operator and established to the satisfaction of the tax collector that the transient or other guest has been unable to obtain a refund from the operator who collected the tax.

E. Determination of Refunds. The tax collector shall consider all competent evidence in support of any claim for refund. (Code 1971, § 1524)

Any tax required to be paid by any transient under the provisions of this title 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. (Code 1971, § 1525)

Any person owing money to the city under the provisions of this chapter shall be subject to an action brought in the name of the city of San Buenaventura for the recovery of such amount. (Code 1971, § 1526)

Every person is guilty of a misdemeanor who:

A. Fails or refuses to register as required by this chapter.

B. 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.

C. Renders a false or fraudulent return.

D. If required by this chapter to make, render, sign or verify any report or claim, makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due.

E. Collects the tax due pursuant to this chapter from any transient and fails to pay the same to the city.

F. Violates in any way other provisions of this chapter. (Code 1971, § 1527)

Taxes collected hereunder shall be deposited in the city’s general fund for general governmental purposes, including community improvements. Such taxes may be used for any and all general governmental purposes including community improvements as determined by the city council from time to time. (Code 1971, § 1528)

The tax imposed by this chapter shall not be imposed upon:

A. 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.

B. Any federal or state of California officer or employee when on official business.

C. Any officer or employee of a foreign government who is exempt by reason of express provision of the federal law or international treaty.

D. Any person to whom rent is charged at the rate of $2.00 per day or less.

No exemption shall be granted under subsection A, B or C 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 manager. (Code 1971, § 1529)

No judgment, order, injunction or writ of mandate, or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the city or an officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this chapter; and payment of all such tax, interest and penalties shall be required as a condition precedent to seeking judicial review of any tax liability. (Ord. No. 2010-003, § 1, 3-22-10)