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HomeMy WebLinkAboutOrdinances_2328_CCv0001.pdf ORDINANCE NO. 2328 AN ORDINANCE E }F THE C'IT'Y OF R 'DLANDS ADDING CHAPTER 3.26 TO THE R DLANDS MUNICIPAL CODE RELATING TO THE E T BBI 14ME 1T OF A ADMISSIONS TA THE PEOPLE OF THE CITY OF REDLANDS DO ORDAIN AS FOLLOWS: Section I Chapter 3.26 relating to the establislinient of an admissions tax is hereby added to the Redlands Municipal Cade to read as follows "Chapter 3.26 ADMISSIONS TAX. Sections: 3.26,0 10 Definitions 3.2 . 20 Tax Imposed 3.26.030 Operator's Duties 3.2 .044 Registration 3.26.050 Contents of Certificate 3.26.060 Term of Certificate ).26.070 Renewal of Certificate 26.080 Non Transferability 3.26.090 Deporting and Remitting 3.2 .100 Penalties and Interest 3.26.110 Collection Security 3.26.120 Forfeiture of Security 3.26.130 Return of Bond 3.26.140 Tax Deemed a Debt 3.26.150 Tax/ of in Lieu 3.26.160 Failure to Collect 3.26.170 Deficiency Determination 3.116,1 OffsettingOft'setting of Overpayment 3.26.190 Notice e of Determination 3.26.200 Hearing 3.26.210 Appeal 3.26.220 Records 3.26.2311 Refund 126.240 "ompli nce Not Excused by Prosecution _3 2 x2513: Exemptions 3.26.2611 Disposition of Funds rAM9,10L�E 1 1 3.26 10 Definitions. A. "Admission charge" shall mean any charge,. whether or not so designated, for the right or privilege to enter,, occupy or use a seat or space in any facility as hereinafter defined, or to participate as a patron in any event, including any charges for parking associated with any event which when paid also permits admission to the event. "Admission charge" shall also mean season passes and subscriptions, free passes, complimentary, promotional and otherwise free-of-charge tickets or passes given by any operator or person permitting admission to an event. B. "City" shall mean the City of Redlands. C. "City Treasurer" shall mean the City Treasurer of the City or his or her authorized designee. D. "Event" shall mean any entertainment,amusement or recreational activity for which an admission charge is made, and shall include, but shall not be limited to: theme and entertainment parks, theatrical and musical performances, bowling, dancing, golf (including miniature golf), swimming and bathing, concerts, athletic contests, races, exhibitions of art, handicrafts or products, sports card shows, exercise gyms and jazzercise, bus tours, air shows, lectures, speeches,fairs,contests,motion picture shows,circuses., carnivals,menageries, amusement rides and devices and all forms of recreation. E. "Facility" shall mean and include any building, structure, place or location wherein or at which any form of event is or may beheld, carried on or conducted. F . "Operator" shall mean any person, association, firm, partnership, business, or corporation owning, conducting, operating, directing, managing, controlling or maintaining, in whole or in part, alone or in colIjunction, with any other person or as principal, agent, officer, employee or independent contractor any event as defined in this Chapter, the admission to which is taxable under this Chapter. For purposes of collecting the tax provided for in this Chapter,there are two classes of operators, as follows: (a) One who conducts, operates or maintains an established fixed facility wherein events are held, carried on or conducted in the operator's normal course of business,hereinafter referred to as a"fixed operator" and(b)an),, other operator, hereinafter referred to as a "non-fixed operator." Cf. "Patron" shall mean any person who pays, or on account of whom is paid, or is provided,, any admission charge or admission price for the right or privilege of being admitted to, or to use, any facility, or to participate in event. any The term "patron" shall not include (1) a bona fide employee of the operator when admission to the facility is incident to said employee's duties, and (Ii) any employee or official of the State of California, or any agency, instrumentality. or department thereof the City or United States Government whose official duty makes it necessary to gain admission to any event. DJIINIT"'011, 2 3.26,020 TaxImposed. There is hereby imposed a tax in an amount equal to three percent(3%)of the price of the admission charge, including a season pass or subscription, and twenty-five cents ($0.25) for each admission by complimentary, prornotional pass, and otherwise free of charge ticket, I for the privilege of admission to any event in or at any facility. Such tax is a debt owed by the patron to the City, which debt shall be extinguished only by payment to the operator or to the City before admission to an event is permitted. Such tax shall be in addition to all other taxes or fees imposed by law. 3.2 6.030 Operator's Duties. Each operator shall collect the tax imposed by this Chapter from any patron when he or she pays an admission charge or purchases an admission ticket or season ticket or subscription, or is permitted admission by complimentary or promotional pass whether or not such ticket or subscription or pass is sold or distributed within the City. Every operator shall hold the tax imposed by this Chapter in trust for the City until the same is paid to the City Treasurer as hereinafter provided, 3.2 ReTistratioa. A. Prior to conducting, operating or maintaining any event which is subject to this Chapter, each operator shall register with the City Treasurer and obtain from him or her an "admission tax collection certificate" to be.at all times posted in a conspicuous place at the facility, and maintained on file with the operator of the facility. B. tjr pon registration, a non-fixed operator shall post security with the City Treasurer in accordance with Section 3.26.110 of this Chapter. 126.050 Contents of Certificate. The admission tax collection certificate issued pursuant to this Chapter shall include, but not be limited to, the following: (1) The name of the operator: (2) The address or location of the facility; (3) The date upon which the certificate was issued; (4) The date-upon which the taxes imposed b- y this Chapter shall be remitted to the City Treasurer; (5) If issued to a non-fixed operator, the period of time during which the event will be conducted, or if successive events in consecutive days, the total period of time for all events, (6) A statement that the admission tax collection certificate signifies that the operator DAIMLE identified on the face of the certificate has fulfilled the registration requirement of this Chapter for the purpose of collectins; from patrons the admission tax and remitting the tax to the City Treasurer. 'The certificate does not authorize any person or entity to conduct tarry unlawful business or to conduct any lawful business in an unla f.al manner. The certificate does not imply that the business is either lawfully or unlawfully conducted and it does not constitute a permit. 1,26.060 Term of Certificate. Certificates issued pursuant to this Chapter shall be valid for the following periods: A. Certificates issued to fixed operators shall be valid for one year,and:may be renewed am-orally thereafter. B. Certificates issued to non-fixed operators shall be valid for the period of each specific event for which the certificate is issued. A separate certificate shall be required for each individual event except for events which are scheduled to occur on consecutive days,, in which case a single certificate shall be valid for all successive occurrences of the event. 3.26.070 Renewal of Certificate. Upon the filing of a completed application, the City Treasurer shall issue or renew a certificate under this Chapter except-upon his or her determination that; . The applicant for such certificate or renewal has willfully failed to remit or has expressed his or her intent to fail to remit taxes imposed by this Chapter; or B. The applicant for such certificate or renewal has failed to supply the City Treasurer with information or records required to be submitted pursuant to this Chapter. 126.080 Non-TransfeLability, o admission tax collection certificate may be transferred or assigned without the prior written consent of the City Treasurer. 3y26.090 Reporting and Remittinfn Each operator shall, on the date or within the time hereinafter prescribed, make a return to the;City Treasurer, on forms provided by the City Treasurer, of the total admission charg collected and received and the amount of tats:collected froiaa patrons. At the time the return is filed, the Rill an-outfit of any tax collected and due shall be remitted to the City Treasurer. Thos€ tai: arnounts neat paid shall in-imediately become delinquent. The City Treasurer may, establish special reporting periods for any operator if the City Treasure-deems it necessary to assure collection of the tMM97011 tax,and the City'Treasurer may require further inforniation to be included in,the return. Returns and payments are due and payable immediately uponcessation of business by the operator for any reason. The regular remittance and reporting period shall be as follows: A. For each fixed operator, on or before the last day of the month following the close of the prior month, or at the close of any shorter reporting period that may be established by the City Treasurer; B. For each non-fixed operator,not later than ten days after the conclusion of the event, or within such shorter reporting period that may be established by the City Treasurer. The City Treasurer shall calculate any additional tax due that exceeds the amount of the non-fixed operator's, deposit, and that amount shall be immediately paid by the operator to the City Treasurer, If reconciliation of the deposit amount with the return indicates a refund is due,the refund,will,be paid to the, operator within fifteen days. 3.26.l0 Penalties and Interest. A. 'Rie failure of an operator to pay to the City Treasurer the entire amount of taxes due under the provisions of this Chapter at the time and in the manner herein prescribed, shall automatically cause the amount of such taxes then unpaid to become delinquent, and a penalty of ten percent (10%) of the taxes so delinquent shall be added and paid by the operator to the City Treasurer. B. Any operator who fails to remit any delinquent taxes and penalties on or before a period of thirty days following the date on which the remittance first became delinquent shall pay an additional delinquency penalty of ten percent (10%) of the, amount of the tax and penalties for each thirty-day period or fraction thereof of delinquency thereafter. The total delinquency shall not exceed fifty percent (50%) of the to imposed. C. 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 (25%) of the amount of tile tax shall be added thereto in addition to the penalties stated in subsections "A" and "B." D� 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 tile.tax, exclusive of penalties and interest, from the date on which the remittance first became delinquent until paid. 3.26.110 Collection Seeurij,y. The City Tremurer,whenever he or she deems it necessary to ensure faithful compliance with this Chapter,niay require any operator subject to the provisions of this Chapter to deposit,at the tirlic of registration for a certificate, security for payment of taxes. Such security may be in the. form of WIN1497OLE 5 cash, cashier's check, or certified check made payable to the City, or a surety bond inuring to the benefit of the City,which bond shall be executed by a corporation authorized to do business in the State of California. 126,120 Forfeiture of 5ecuriLv. If the operator fails to account at the time and in the manner required by this Chapter, or if the operator fails to permit inspection of his records when demand for such inspection is made by the City Treasurer, the City Treasurer inay, upon notification of any such facts, declare such operator's security forfeited. Such forfeiture shall not relieve the operator from liability for any taxes due as a result of admissions to any event. 126.130 Return of Security. Upon the expiration of the period for which any event shall have been scheduled by the operator, and upon certification by the City Treasurer that all accounts required of an operator under this Chapter have been made by the operator and audited by the City Treasurer and that all taxes and penalties due thereunder have been paid over to the City, the City Treasurer shall cause all security theretofore deposited by the operator with the City under this Chapter and not previously declared forfeited as hereinbefore provided, to be refunded to the operator in the manner and forst provided for other City warrants. 3.26-140 La—x De—emed,.a ELebt. The amount of any tax or any penalty imposed by this Chapter shall be deemed a debt to the City,and any operator violating any of the provisions of the Chapter shall be liable in an action in the narne of the City in any court of competent jurisdiction for the amount of taxes and penalties imposed by this Chapter, and attachment shall issue on verified complaint without any bond or affidavit given or required on behalf of the City. 3.26.150 'rax/Not in Lieu. The tax imposed by this Chapter is in addition to any other L%x.license or permit fee that may be required of any operator by any ordinance, resolution, rule or requirement of the City. 3.2 .160 Failure to Collect. I f any operator required to collect and remit the tax imposed by this Chapter tai I s to fiI e a return and a remittance, the City 'treasurer shall proceed in such manner as deemed best to obtain facts and information on which to base an estimate of the tax due. As soon as the citv 'rreasurer obtains such facts and information on 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 City Treasurer shall proceed to determine and assess against such operator F)JMQ7,OLE 6 the tax, interest and penalties provided for by this Chapter, 3.26.1711 Deficiency Determination. If the City Treasurer has reasonable cause to believe the return or returns of the amount of tax required to be paid to the City by any operator are erroneous, the Cite Treasurer shall compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns or upon the basis of any information available or that may come into the City Treasurer's possession. One or more deficiency determinations may be made of the amount due for one or more periods. 3.26.180 Offsetting of Qverp�kyment. In making a determination pursuant to Sections 3.26.160 and 3.26.170, the City Treasurer may offset any overpayment for a period or periods against underpayment for another period or periods, against penalties, and against the interest on underpayment. 3.26.1 cit} Notice of Determination. The CityTreasurer shall give written notice to the operator of any determinations made pursuant to Sections 3.26.160 and 3.26.170: This notice may be serval personally or by deposit in the United States Postal Service, postage prepaid:, and addressed to the operator at the address as shown in the records of the City Treasurer. In case of service by mail of any notice required under this Chapter, the service is complete at the time of deposit of the notice. 3.26.200 Hearing. .any operator served pursuant to Section 3.26.190 may within fifteen days after service or mailing of such notice,make application in writing to the City'Treasurer for a hearing to review the arxounts determined and assessed under Sections 3.26.160 and 3.26,170: 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. Any operator against whom interest or penalties have been assessed pursuant to Section 3.26..100 may make application in writing for a hearing with the City Treasurer to review the amounts of tax owing and accrued penalties and interest thereon within thirty days after notice of delinquency. If such application is made,the City Treasurer shall give net less than five days written notice it the manner prescribed by Section 3.26.190 to the operator to showy cause at a time and place fired in such notice:why such amount specified therein should not be assessed including such;tax interest acid penalties,if any. 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 City Treasurer .shall determine the proper tar together with interest and penalties thereon to be remitted and shall thereafter give written notice thereof the operator in the manner prescribed. in Section 3.26.190 The amount determined to be due shall be payable after fifteen days unless an appeal is taken as DA197011LL 7 provided in Section 3).26.2 10 3.2 .210 Appeal. Any operator aggrieved by any decisionof the City Treasurer with respect to the amount of tax or interest and penalties, if any, may appeal to the City,Council by filing a notice of appeal with the City Clerk within fifteen days of the serving or mailing of the determination of tax due. TheCity 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 last known place of address. The decision of the City Council shall be final and conclusive, Any amounts determined, shall be due and payable upon the service of notice of the decision. 3,26-220 Records. Every operator liable for the collection and payment to the City of any tax imposed by this Chapter shall keep and preserve all records as maybe necessary to detern-iine the,amount of such,tax as the operator may have been liable for the collection of and payment to the City. Records which shall be kept shall include, but are not limited to, records of admission on a daily basis by number and price and all cash register receipts. The City Treasurer may examine the books, papers, records and equipment of any operator liable for the tax imposed by this Chapter and may investigate the character of the business of the operator in order to verify the accuracy of any return made, or if no return is made by the operator, to ascertain and determine the amount required to be paid. 3,26.230 Refund. A. )M-lenever 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 herein; 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 City Treasurer within one year of the date of payment. The claim shall be on forms furnished by the City Treasurer. B. Any operator may claim a refund or take as credit against taxes collected and remitted any arnourit overpaid,paid more than once or erroneously or illegally collected or received. Neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the patron or credited to an admission charge subsequently payable by the patron to the operator. C, A patron may obtain a refund of taxes overpaid or paid more,than once or erroneously or ly illeg collected or received by the City by filing a claim in the manner provided in subsection. ,,al , "A," but only when tl-,te tax Nvass paid by the patron directly to the,City Treasurer or when the patron, having paid the tax to the operator,establishes to the satisfacti on of the City Treasurer that the patron has been unable to obtain a refund from the operator who collected the tax. DJIM970LE 8 D. No refund shall be paid unless the claimant establishes his or her right thereto by written records showing entitlement thereto. 3. ,24 Compliance Not Excused by RLo sL ecution. The conviction or punishment of any person for the violation of any provision of this Chapter shall not excuse or exempt such person from payment of any license, tax, fee or penalty due or unpaid wider this Chapter or under any other provision of this Code or any ordinance,, resolution or regulation of the City. 3.26.250 Exemptions. This Chapter shall not be deemed or construed to require the payment of an admissions tax for the following: A, When the conduct of the activity is by an institution or organization existing wholly for the benefit of charitable purposes, nor shall any admissions tax be required if the entertainment, concert,exhibition, or lecture on scientific,historical, literary,religious, or moral subject within the City from which the receipts are to be appropriated to any church or school or to any, religious or benevolent purpose; B. When an entertairmient, dance, concert, exhibition, or lecture by any religious, charitable, fraternal, educational, military, state, county, or municipal organization or association conducts the event and the receipts of such event, are to be appropriated for the purpose for which such organization or association was formed and from which profit is not derived, either directly or indirectly-, C. Charges levied as membership fees for memberships in social, fraternal or nonprofit clubs or organizations,where annual membership is required as a condition to admission to the club's or organizations's facilities; D. Charges for registration or participation in educational events or activities held or conducted by established public or private schools which operate and maintain fixed facilities devoted to educational purposes; E. Charges levied as tuition fees for the privilege of attendance at a class or lecture or Z series of classes or lectures of an educational nature, conducted by any public or private high school or college. 3.26260 Disfpasijt t Funds. 'rhe first three hundred fliousand,dollars($300,000)of all taxes and penalties thus received steal I be deposited into a special account for youth and senior activities and the remainder of any DYN1197011F 9 taxes and penalties shall be deposited into the General Fund." cetiot li .itN% If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such holding shall not affect the validity of the remaining portions of this Ordinance, The pity Council hereby declares that it would have passed this Ordinance mid each section, subsection, sentence. clause and phrase hereof. irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.. Section I The Mayor shall sign this Ordinance and the City Clerk shall certify to the adoption of this Ordinance and shall cause it, or a summary of it to be published once in the Redlands Daily Facts, a newspaper of general circulation within the City and thereafter, this Ordinance shall tale effect as provided by law. Mayor of the City of Redland Attest:' City Olen to 1,7.I,L147"471.E