Chapter 3.20 — TRANSIENT OCCUPANCY TAX

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

(Prior code § 6500)

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

A.

"Lodging Facility" 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, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof, so as not to be in conflict with other provisions of the Municipal Code.

B.

"Occupancy" means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any lodging facility for dwelling, lodging or sleeping purposes.

C.

"Operator" means the person who is proprietor of the lodging facility, whether in the capacity of owner, lessee, sub- lessee, mortgagee in possession, licensee, 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.

D.

"Person" 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.

E.

"Rent" means the consideration charged, whether or not received, for the occupancy of space in a lodging facility 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.

F.

"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 calendar days or less, counting portions of calendar days as full days. A person shall not be deemed a transient where the occupancy is pursuant to a written agreement providing for a stay of thirty consecutive days or longer, so long as the agreement is permitted under Title 18 of this code for the subject property. Notwithstanding the existence of a valid agreement for any period of time, a person shall be considered a transient for purposes of this chapter if for any reason the actual period of occupancy does not exceed thirty days. 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.

(Prior code § 6501)

(Ord. No. 2917, §§ 1—5, 1-27-09; Ord. No. 3112, § 2, 2-25-20)

For the privilege of occupancy in any lodging facility, each transient is subject to and shall pay a tax in the amount of ten 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 transients shall pay the tax to the operator of the lodging facility 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 lodging facility. If for any reason the tax due is not paid to the operator of the lodging facility, the city treasurer may require that the tax shall be paid directly to the city treasurer.

(Ord. 2673 § 1, 1995: prior code § 6502)

(Ord. No. 2917, § 6, 1-27-09; Ord. No. 3112, § 5, 2-25-20)

Editor's note— Per Ord. 2721, Ord. 2673 was ratified by voters in the April 14, 1998 election.

A.

No tax shall be imposed upon:

Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this chapter;

Any federal or state officer or employee when on official business;

Any officer or employee of a foreign government who is exempt 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 city treasurer.

(Prior code § 6503)

(Ord. No. 3112, § 5, 2-25-20)

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 lodging facility 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 provided in this chapter.

(Prior code § 6504)

(Ord. No. 2917, § 7, 1-27-09)

Within thirty days after the effective date of this chapter, or within thirty days after commencing business, whichever is later, each operator of any lodging facility renting occupancy to transients shall register the lodging facility with the city treasurer 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 lodging facility;

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 Transient Occupancy Tax Ordinance by registering with the city treasurer for the purpose of

collecting from transients the Transient Occupancy Tax and remitting said tax to the city treasurer. 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 lodging facility 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."

(Prior code § 6505)

(Ord. No. 2917, § 8, 1-27-09; Ord. No. 3112, §§ 2, 5, 2-25-20

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 city treasurer, make a return to the city treasurer, 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 city treasurer. The city treasurer 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 city treasurer.

(Prior code § 6506)

(Ord. No. 3112, §§ 2, 5, 2-25-20)

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 city treasurer 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.

(Prior code § 6507)

(Ord. No. 3112, § 5, 2-25-20)

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 city treasurer shall proceed in such manner as he/she deems best to obtain facts and information on which to base his/her estimate of the tax due. As soon as the city treasurer 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 it and to make the report and remittance, he/she shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this chapter. In case the determination is made, the city treasurer shall give 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. The operator may within ten days after the serving or mailing of the notice make application in writing to the city treasurer 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 city treasurer shall become final and conclusive and immediately due and payable. If the application is made, the city treasurer 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 the notice why the amount specified therein should not be fixed for the tax, interest and penalties. At the hearing, the operator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed. After the hearing, the city treasurer 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 the determination and the amount of the 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 3.20.100.

(Prior code § 6508)

(Ord. No. 3112, §§ 2, 5, 2-25-20)

Any operator aggrieved by any decision of the city treasurer with respect to the amount of the tax, interest and penalties, if any, may appeal to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of the tax due. The city clerk shall fix a time and place for hearing the appeal by the city council, and the city clerk shall give notice in writing to the operator at his/her last known place of address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.20.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Prior code § 6509)

(Ord. No. 3112, § 2, 2-25-20; Ord. No. 3120, § 10, 7-28-20)

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

(Prior code § 6510)

(Ord. No. 3112, §§ 2, 5, 2-25-20)

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 therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the city clerk within three years of the date of payment. The claim shall be on forms furnished by the city clerk.

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 city treasurer 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 to the operator by the transient.

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 city treasurer, or when the transient under the provisions of this chapter is deemed a debt owed by the city treasurer 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 thereto by written records showing entitlement thereto.

(Prior code § 6511)

(Ord. No. 3112, §§ 2, 5, 2-25-20)

Any tax required to be paid by any transient under 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 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 chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Prior code § 6512)