West Covina Municipal Code § 21-52 Appeal

Footnotes:

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Cross reference— Definitions for Code generally, §§ 1-8—1-26.

State Law reference— Transient occupancy tax authorized, Rev. & T. Code, § 7280.

This article shall be known as the "Uniform Transient Occupancy Tax Ordinance."

(Code 1960, § 6400)

For the purposes of this article, certain words and phrases are defined and shall be construed as herein set forth unless it is apparent from the context that a different meaning is intended.

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 any 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 all for the temporary use of a transient individual who remains as a guest of such establishment less than thirty (30) days, but shall not include jails, hospitals, asylums, sanitariums, orphanages, prisons, detention homes and similar buildings where human beings are housed and detained under a legal restraint.

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.

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. Where the operator performs his or her functions through a managing agent of any type of character other than an employee, the managing agent shall also be deemed an operator for the purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of the article by either the principal or the managing agent shall, however, be considered to be compliance by both.

Register means such records, receipts, invoices and other pertinent papers in such forms as the tax administrator may require which reflect the name, home street and city of each and every guest or person renting or occupying a room therein, together with the number of each room assigned, the time at which the room was rented, and the time at which the room was vacated by the guest.

Rent means the consideration charged, whether or not received, for the occupancy of space in a hotel valued 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 finance officer of the city, or his or her designee, who is charged with the administrator of the tax.

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 less than thirty (30) consecutive 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 twenty-nine (29) days has expired. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered.

(Code 1960, § 6401; Ord. No. 1760, § 1, 11-23-87; Ord. No. 1919, § 2, 4-20-93)

For the privilege of occupancy in any hotel, any transient is subject to and shall pay a tax in an amount to be set by resolution of the city council. Such 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 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 is not paid to the operator of the hotel, the tax administrator may require that such tax be paid directly to the tax administrator.

(Code 1960, § 6402; Ord. No. 1387, § 1, 6-26-78; Ord. No. 1649, § 1, 10-1-84)

(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 solely by reason of express provision of federal law or international treaty.

(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.

(Code 1960, § 6403; Ord. No. 1919, § 3, 4-20-93)

Each operator shall collect the tax imposed by this article 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.

(Code 1960, § 6404)

Before October 1, 1965, or within thirty (30) days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register such hotel with the tax administrator and 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;

(d) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Occupancy Tax Ordinance by registering with the tax administrator for the purposes 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 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."

(Code 1960, § 6405; Ord. No. 1919, § 4, 4-20-93)

(a) Each operator on or before the last day of the month following the close of each calendar month, commencing January 1, 1988, or at the close of any shorter reporting period which may be established by the tax administrator, shall make a return to the tax administrator, on forms provided by the city 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 deemed necessary in order to ensure collection of the tax and the tax administrator may require further information in the return.

(b) Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is made to the tax administrator.

(c) If any operator liable for any amount under this section sells out his or her business or quits the business, the operator's successors or assignees shall withhold sufficient of the purchase price to cover such amount until the former owner produces either a receipt from the tax administrator showing that the taxes have been paid, or a certificate stating that no amount is due.

(d) If the purchaser of a business fails to withhold the purchase price as required, such purchaser becomes personally liable for the payment of the amount required to be withheld by the purchaser to the extent of the purchase price, valued in money.

(e) The tax administrator, or his or her authorized designee, in the exercise of the duties imposed upon him or her under this article, shall have the authority to perform audits of all relevant hotel records to ascertain whether the provisions of this article have been complied with fully. If an audit reveals that a hotel operator has not complied with the provisions of this article, the hotel operator shall reimburse the city for the total cost of the audit as determined by the tax administrator.

(f) If any person fails to furnish any information or records required by this article upon demand by the administrator, the tax administrator may issue a subpoena demanding that such person supply the requested information or records. The subpoena shall specifically identify the information or records sought, and indicate the place, date, and time at which the information or records must be presented. If any person fails to comply with a regularly issued subpoena, the tax administrator may apply to the superior court for an order requiring compliance with the subpoena.

(g) The auditor/tax administrator shall make one (1) trip to obtain information and records required by this section. The auditor/tax administrator shall notify the hotel operator of the records requested and the date and time he/she shall meet with operator to obtain them. The hotel operator shall reimburse the city for costs related to any additional return trips resulting from failure by the hotel operator to provide all documents requested in writing by the tax administrator.

(Code 1960, § 6407; Ord. No. 1760, § 2, 11-23-87; Ord. No. 1919, § 5, 4-20-93)

(a) Original delinquency. Any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten (10) 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 (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty 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.

(c) Subsequent delinquency. If an operator is delinquent pursuant to subsection (a), and, during the following one-year period, that operator again fails to remit any tax imposed by this article within the time required, then, instead of a ten (10) percent penalty, the operator shall pay a penalty of fifty (50) percent of the amount of the tax in addition to the amount of the tax. The continued delinquency provisions of subsection (b) shall apply.

(d) Fraud. If the tax administrator determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of twenty five (25) percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (a), (b), and (c) of this section.

(e) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this article shall pay interest at the rate of ten (10) to twelve (12) percent per month or the otherwise maximum allowable by law, or fraction thereof, on the amount of the tax and penalties, from the date on which the remittance first became due until paid.

(f) 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.

(Code 1960, § 6407; Ord. No. 1744, § 6, 6-22-87; Ord. No. 1778, § 1, 4-25-88; Ord. No. 1919, § 6, 4-20-93)

(a) If any operator shall fail or refuse to collect the tax imposed by this article and to make, within the time provided in this article any report and remittance of such tax or any portion thereof required by this article, the tax administrator shall proceed in such manner deemed best to obtain facts and information on which to base an estimate of the tax due. As soon as the tax administrator shall procure such facts and information 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 article.

(b) 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 the operator's last known place of address. Such operator may within ten (10) days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed.

(c) 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 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 (5) days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in such notice why such 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 herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in section 21-52.

(Code 1960, § 6408; Ord. No. 1919, § 7, 4-20-93)

Any operator aggrieved by any decision of the tax administrator with respect to the amount of the tax imposed by this article, interest and penalties, if any, may appeal to the tax administrator by filing a notice of appeal with the tax administrator within fifteen (15) days of the serving or mailing of the determination of tax due. The tax administrator shall fix a time and place for hearing such appeal, and shall give notice in writing to such operator at the operator's last known place of address. The findings of the tax administrator shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Code 1960, § 6409; Ord. No. 1919, § 8, 4-20-93)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this article to keep and preserve, for a period of five (5) years, all registers and other records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city.

(Code 1960, § 6410; Ord. No. 1744, § 7, 6-22-87; Ord. No. 1919, § 9, 4-20-93)

(a) Whenever the amount of any tax imposed by this article, 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 article it may be refunded as provided in paragraphs (b) and (c) of this section; provided that, a claim in writing therefor, stating under penalty of perjury, the specific grounds upon which the claim is founded, is filed with the tax administrator within three (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 paragraph (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 right thereto by written records showing entitlement thereto.

(Code 1960, § 6411)

Any tax required to be paid by any transient under the provisions of this article 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. Any person owing money to the city under the provisions of this article shall be liable to an action brought in the name of the city.

(Code 1960, § 6412)

Every person conducting any motel, lodging house, trailer court, or hotel in the city shall at all times keep and maintain therein a register, which shall contain the name and home address of each and every guest or person renting or occupying a room therein, the number of each room assigned to or occupied by each such guest, and the time when such room is rented. The register shall be inscribed with ink or indelible pencil, and shall be signed by the person renting or occupying each room. Until the entries required by this section are made in the register, no guest shall be permitted to privately occupy any room. When the occupants of each room rented quit and surrender the same, it shall be the further duty of the proprietor or his or her agent to enter the time thereof in the register opposite the name of such occupants.

(Ord. No. 1744, § 2, 6-22-87)

Erasures or alterations on the register required by section 21-56 shall not be made or permitted to be made.

(Ord. No. 1744, § 3, 6-22-87)

No person shall write or cause to be written, or knowingly permit to be written in any register in any motel, lodging house, trailer court, or hotel, any other or different name or designation than the true name of the person registering therein, or the name by which the person is generally known.

(Ord. No. 1744, § 4, 6-22-87)

No person, except as provided in this article, shall let for sleeping or lodging purposes any room in any motel, lodging house, trailer court, or hotel in the city more than once, between the hours of 6:00 a.m. and 5:59 p.m., and no more than once between the hours of 6:00 p.m. and 5:59 a.m. of the following morning.

(Ord. No. 1744, § 5, 6-22-87)