Yuba City Municipal Code Art. 4 Hotel/Motel Surcharge

This article shall be known as the "Hotel/Motel Surcharge."

(§ 2, Ord. 05-00, eff. August 31, 2000)

There is hereby established and imposed a hotel/motel surcharge at the rate set forth in this article.

(§ 2, Ord. 05-00, eff. August 31, 2000)

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

(a) "City" means the City of Yuba City.

(b) "Hotel/motel" shall mean 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, for periods of 30 days or less, and includes, but is not limited to, any hotel, inn, bed and breakfast inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, dormitory, public or private club, mobile home or house trailer at a fixed location, which is used for the purpose of transient lodging or other similar structure or portion thereof.

(c) "Occupancy" shall mean the temporary use or possession, or the right to the use or possession of any room or portion thereof, in any hotel/motel for dwelling, lodging or sleeping purposes.

(d) "Operator" shall mean the person who is the proprietor of the hotel/motel, 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 or 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 or her principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both.

(e) "Room rate" shall mean the hotel/motel consideration charged, whether or not received, for the occupancy of space in a motel 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" shall mean 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 less, counting portions of calendar days as full days. Any such person so occupying space in a hotel/motel shall be deemed to be transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy.

(§ 1, Ord. 05-00, eff. August 31, 2000)

(a) For the privilege of occupancy in any hotel/motel, each transient is subject to and shall pay a surcharge in the amount of 10% of the rent charged by the operator.

(b) Said surcharge 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 surcharge to the operator of the hotel/motel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the surcharge shall be paid with each installment. The unpaid surcharge shall be due upon the transient's ceasing to occupy space in the hotel/motel. If for any reason the surcharge due is not paid to the operator of the hotel/motel, the Director of Administrative Services may require that such surcharge shall be paid directly to the Director of Administrative Services.

(§ 1, Ord. 05-00, eff. August 31, 2000; § 1, Ord. 09-00, eff. January 18, 2001)

No surcharge levied by this chapter shall 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 surcharge herein provided.

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

(c) Any person occupying a room pursuant to an emergency shelter grant from the Red Cross or similar organization as a result of a natural disaster such as fire or flood.

No exemption shall be granted except upon a claim therefore made at the time rent is collected and under penalty of perjury upon a form prescribed by the Director of Administrative Services.

(§ 1, Ord. 05-00, eff. August 31, 2000)

Each operator shall collect the surcharge imposed by this article to the same extent and at the same time as the room rate is collected from every transient. The amount of surcharge shall be separately stated from the amount of the room rate charged. No operator of a hotel/motel shall advertise or state in any manner, whether directly or indirectly, that the surcharge or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the room rate, or that, if added, any part will be refunded except in the manner provided in this article.

(§ 1, Ord. 05-00, eff. August 31, 2000)

Within 30 days after commencing business, each operator of any hotel/motel renting occupancy to transients shall register the motel with the Director of Administrative Services and obtain from him or her a "hotel/motel 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/motel.

(c) The date upon which the certificate was issued.

(d) "This Hotel/Motel Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Hotel/Motel Ordinance by registering with the Director of Administrative Services for the purpose of collecting from Transients the Hotel/Motel Surcharge and remitting said Surcharge to the Director of Administrative Services. 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/Motel 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."

(§ 1, Ord. 00-05, eff. August 31, 2000)

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 Director of Administrative Services, make a return to the Director of Administrative Services, on forms provided by him or her, of the total room rates charged and received and the amount of surcharge collected for transient occupancies. At the time the return is filed, the full amount of the surcharge collected shall be remitted to the Director of Administrative Services. The Director of Administrative Services may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to insure collection of the surcharge and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All surcharges 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 Director of Administrative Services.

(§ 1, Ord. 00-05, eff. August 31, 2000)

(a) Original delinquency. Any operator who fails to remit any surcharge imposed by this article within the time required shall pay a penalty of 10% of the amount of the surcharge in addition to the amount of the surcharge.

(b) 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% of the amount of the surcharge in addition to the amount of the surcharge and the 10% penalty first imposed.

(c) Fraud. If the Director of Administrative Services determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of 25% of the amount of the surcharge 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 surcharge imposed by this article shall pay interest at the rate of 1% per month or fraction thereof on the amount of the surcharge, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(e) Penalties merged with surcharge. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the surcharge required to be paid.

(§ 1, Ord. 00-05, eff. August 31, 2000)

If any operator fails or refuses to collect the surcharge imposed by this article and to make, within the time provided in this article, any report and remittance of the surcharge or any portion thereof required by this article, the Director of Administrative Services shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the surcharge due. As soon as the Director of Administrative Services procures such facts and information as he or she is able to obtain upon which to base the assessment of any surcharge imposed by this article and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the surcharge, interest and penalties provided for by this article. In case such determination is made, the Director of Administrative Services 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 within ten days after the service or mailing of such notice make application in writing to the Director of Administrative Services for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the surcharge, interest and penalties, if any, determined by the Director of Administrative Services shall become final and conclusive and immediately due and payable. If such application is made, the Director of Administrative Services 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 be fixed for such surcharge, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified surcharge, interest, and penalties should not so be fixed. After such hearing, the Director of Administrative Services shall determine the proper surcharge 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 surcharge, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in Section 3-6.411.

(§ 1, Ord. 00-05, eff. August 31, 2000)

Any operator aggrieved by any decision of the Director of Administrative Services with respect to the amount of such surcharge, interest, and penalties, if any, 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 surcharge 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 or her last known place of address. The findings of the City Council 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.

(§ 1, Ord. 00-05, eff. August 31, 2000)

It shall be the duty of every operator liable for the collection and payment to the City of any surcharge imposed by this article to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such surcharge as he or she may have been liable for the collection of a payment to the City, which records the Director of Administrative Services shall have the right to inspect at all reasonable times.

(§ 1, Ord. 00-05, eff. August 31, 2000)

(a) Whenever the amount of any surcharge 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 subsections (b) and (c) of this section provided a claim in writing therefore, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director of Administrative Services within three years of the date of payment. The claim shall be on forms furnished by the Director of Administrative Services.

(b) An operator may claim a refund or take as credit against surcharges 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 Director of Administrative Services that the person from whom the surcharge has been collected was not a transient, provided that neither a refund nor a credit shall be allowed unless the amount of surcharge 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 surcharges 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 surcharge was paid by the transient directly to the Director of Administrative Services, or when the transient having paid the surcharge to the operator, establishes to the satisfaction of the Director of Administrative Services that the transient has been unable to obtain a refund from the operator who collected the surcharge.

(d) No refund shall be paid under the provisions of this section unless the claimant establishes his or her right thereto by written records showing entitlement thereto.

(§ 1, Ord. 00-05, eff. August 31, 2000)

Any surcharge 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 surcharge 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 for the recovery of such amount.

(§ 1, Ord. 00-05, eff. August 31, 2000)

Any person violating any of the provisions of this article shall be guilty of a misdemeanor and shall be punishable therefore by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other date required by the Director of Administrative Services or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign, or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination or any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(§ 1, Ord. 00-05, eff. August 31, 2000)