HomeMy WebLinkAboutOrdinances_1260_CCv0001.pdf ORDINANCE NO. 1260
AN ORDINANCE OF THE CITY OF REDLANDS IMPOSING A TAX
UPON THE PRIVILEGE OF TRANSIENT OCCUPANCY AND
PROVIDING FOR THE COLLECTION THEREOF
THE CITY COUNCIL OF THE CITY OF REDLANDS does ordain
as follows :
SECTION ONE. That the Redlands Ordinance Code be
amended by the addition of the following.
BUSINESS TRANSIENT OCCUPANCY TAX CHAPTER 26
Ordinance No, 1260
CHAPTER 26
TRANSIENT OCCUPANCY TAX
Article 26o Title - Definition
261 Rate of Tax
262 Exemptions
263 Duties
264 Penalties & Reporting
265 Refunds
266 Tax a Debt
267 Enforcement
Article 260
TITLE & DEFINITION
Sec260v TITLE. This chapter shall be known as the Uni-
form Transient Occupancy Tax Ordinance of the City of Redlands,
Sec , 26017 DEFINITION, Except where the context otherwise
requires , the definition given in this section shall govern the
construction of this chapter ,
Sec . 2601. 1, PERSON, "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 ,
See , 2601 .2 , HOTEL, "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
sleeptng purposes , and includes any hotel, inn, tourist home
or house , motel , studio hotel , bachelor hotel , lodging house ,
rooming house, apartment bouse , dormitory, public or private
club , mobile from or house trailer at a fixed location, or
other similar structure or portion thereof- "Hotel " does not
mean any hospital , convalescent home or sanitarium,
Seco 260 1, 3 . OCCUPANCY, "Occupancy" means the use or
possession, or the right to the use or possession of any room
or portion thereof, in any hotel for dwelling, lodging or
sleeping purposes ,
Sec , 2601 . 4 . TRANSIENT, "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 (30) consecutive calendar days or less ,
counting portions of calendar days as full days , Any such
person occupying space in a hotel shall be deemed to be a tran-
sient untij the period of thirty (30) days has expired unless
there is an agreement in writing between the operator and the
BUSINESS TRANSIENT OCCUPANCY TAX Sec . 260i . 4
occupant providing for a longer perlod of occupancy., In
determining whether a person is a transientuninterrupted
periods of time extending both prior and subsequent to the
effective date of this chapter may be consldered
Sec . 2601- 5 . RENT, "Rent" rtieans the consideration
charged, whether or riot received, for the occupancy of space
in a hotel valued in money, whether to be received In vioney,
goods, labor or otherwise, including all receiptsr cash,
credits and, property and services of any kind or nature,
without any deduction tlierefrom whatsoever
See , 26oi.6., OPERATOR. "Operator" can the person who is
proprietor of the hotel , whether in tho c-apacity of owner,
lessee , sublessee, mortgagee in possession, licensee, or any
other capacityu Where the operator performs his 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 ordinanoe and shall have the same
duties and liabilities as his principal , Compliance with the
provisions of this ordinance by either the principal or the
managing agent shall, however, be considered to be compliance
by both.
Sec, 2601.7 , TAX ADMINISTRATOR. "Tax Administrator't
means the City Treasurer,,
.Article 261,
Rate of Tax
See . 2610, TAX IMPOSED� For, the privilege of occupancy
in any hotel, each transient i5 subject 'to and shall pay a tax
in the amount of four per cent (4%) of the rent charged by the
operator. Said tax constitutes a debt of 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 to shall be due upon the
transient ' s ceas]Lng to occupy spaca in the hotel, If for any
reason the tax due is not paid to the operator of the hatel,
'the Tax Administrator may require that such tax shall be paid
directly, to the Tax Administrator
Article 262
Exemptions
Sec . 2620. EXEMPTIONS. No tax shall be imposed uponu
Sec ,, 22M,� Any person as to whom, or any occupancy as
BUSINESS TRANSIENT OCCUPANCY TAX Sec2620, 1-
to which, it is beyond the power of the city to impose the tax
herein provided:
Sec , 26200o Any federal or State of California officer
or employee when on official businessz
Sec � 2M =,; Any officer or employee of a foreien govern-
ment who is exempt by reason of express provision of federal law
or international treaty,,
See , 2620.31 . No exemption shall be granted except upon a
claim therefor made at the time rent is collected and under
penalty of perjury utaon a form prescribed by the Tax Administra-
tor,
Sec , 2620. 4 . A corporation or association organized and
operated exclusively for religious , charitable or educational
purposes , or for one or more such purposes , no part of the net
earnings of which inures to the benefit of any. private share-
bolder or individual,
Sec , 2620. 5 , Where the rent is at the rate of two dollar5
($2 ) a day or less ,
Article 263
Duties
Sec263% OPERATOR' S DUTIES, Each operator shall collect
the to 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 hotel shall ad-,
vertise 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 whil be refunded except in the manner
hereinafter provided,
Sec , 2631 , REGISTRATIOM Within thirty (30) days after
the effective date of this ordinance , or within thirty (30)
days after commencing business , whichever is later, each opera-
tor of any hotel renting occupancy to transients sball register
said hotel with the Tax Administrator and obtain from him a
"Transient Occupancy Registration Certificate" to be at all
Nitta es posted in a conspicuous place on the premises . Said,
certificate shall , among other things, state the following ;
( 1) The name of the operator ;
(2) The address of the hotel ;
(3 ) The date upon which the certificate was issued,
BUSINESS TRANSIENT OCCUPANCY TAX Sec , 2632
See ; 2632 , TRANSIENT OCCUPANCY CERTIFICATE� The certifi -
cate haat_ t, state, in part , as follows ; "This Transient Occupancy
Registration Certificate signifies that the person named on the
Lace hereof has fulfilled the requirements of the Uniform Trans-
lent Occupancy Tax Ordinance by registering with the Tax Adminis-
trator for the purpose of collecting from transients the Transient
Occupancy Tax and remitting said to to the Tax Administrator ,
This certificate does not authorize any person to conduct any
unlawful business or to conduct any lawful business in an un-
lawful manner , nor to operate a hotel without strictly complyin ,,,
with all local applicable laws , including but not limited to
those vequiring a parmit from any board, commission, department
or office of this city . This certificate does not constitute a
permit . ''
Sec . 2633 , REPORTING AND REMITTING. Each operator shall ,
on or before the last day, of the month following the ciose of
each calendar quarter, or at the closv of any shorter rvporttit 4,,,
period which may be established by the Tax Administrator, make
a return to the Tax Administrator, on forms provided by him of
the total rents charged and received and the amount of tax col-
lected for transient occupancies , At the time th, return is
filed, the full amount of`` the to collected shall be remitted
to the Tax Adm inistratorThe Tax Administrator mayestabLish
shorter reporting periods for any certificate holder if he
deems it neces8ary in order to insure collection of the tax
and he may require further information in the return , Peturns
and payments are due lmmcdiately upon cessation of business
for any rea8on . All taxeF collected by operator5 pursuant to
this ordinance shall be held in trust for the account of the
city until payment thereof is made to the Tax Administrator ,
Art ic1c 264
Penalties and Reporting,
Sec , 264o, PENALTIES AND TNTEREST,,
Sec - 26ho, i ORIGINAL DELINQUENCY , Any operator who fails
to remit any tax imposed by this chapter within the time requi-
red shall pay a penalty of 101§ of the amount of the tax in
addition to the amount of the tax ,,
Sec , 260. 2 , CONTINUED DELINQUENM Any operator who
fails to remit any delinquent remittance on or before a period
of thirty (10) days followine the date on which the remittance
first became delinquent sball pay a second delinquency penalty
of 104 of the amount of the tax in addition to the amount of
the tax and the 10-"
./o penalty first imposed
BUSINESS TRANSIENT OCCUPANCY TAX See , 264o.3
See. 26400 , FRAUD. If the Tax Administrator determines
that the non-payment of any remittance due under this chapter
is due to fraud, a penalty of 25% of the amount of the tax
shall be added thereto in addition to the penalties stated in
subparagraphs 264 and 264o,2 of this section.
See. 264o.4. INTEREST. In addition to the penalties im-
posed, any operator who fails to remit any tax imposed by this
chapter shall pay interest at the rate of one-half of 1% 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,
See . 264o. 5. 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,
Sec . 2641, DETERMINATION OF TAX DY TAX ADMINISTBAT= if
any operator shall fail or refuse to collect said tax and to make,
within the time provided in this chapter, any report and remit-
tance of said tax or any portion thereof required by this chapter,
the Tax Administrator shall proceed in such manner as he may deem
best to obtain facts and information on which to base hives estimate
of the tax due, As soon as the Tax Administrator shall procure
such facts and information as he 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 the same and
to make such report and remittance , he shall proceed to deter-
mine and assess against such operator the tax, interest and penal-
ties provided for by this chapter, If 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 his 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, 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 Administra-
tor shall become final and conclusive and immediately due and
payable . If such application is made , the Tax Adminiatrator
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 said notice why said amount specified
therein should not be fixed for such tax, interest and penal-
ties < At such hearing, the operator may appear and offer
evidence why such specified tax, in and penalties should
not be so fixed, After such hearing the Tax Administrator
shall determine the proper tax to be remitted and shall there-
after give written notice to the person in the manner
BUSINESS TRANSIENT OCCUPANCY TAX Sec . 2641 , -
presecibed herein of such determination and the amount of such
tax, interst and penalties , The amount determined to be due
shall be payable after fifteen (1 5) days unless an appeal is
taken as provided in Section 2642
See , 2642, APPEAL, Any operator aggrieved by any decision
of the Tax Administrator with respect to the amount of such tax,
interest and penalties, if any, may appeal to the Council by
filing a notice of appeal with the City Clerk within fifteen (15)
days of the serving or mailing of the determination of the tax due
The 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 findings of the Council
shall be final and conclusive and shall be served upon the appel-
lant 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 ,
See , 2643 , RECORDS. 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 the preserve, for a period of
three years, all records of rents and transients as required by
the Tax Administrator, who shall have the right to inspect such
records at reasonable times,,
Article 265
Refunds
Sec , 2650, CLAIM FOR REFUND. Whenever the amount of any
tax, interest or penalty has been overpaid or paid more than
Dace or has been erroneously or illegally collected or received
by the city under this chapter it may be refunded as provided in
subparagraphs 2651 and 2652 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 Tax
Administrator within three years of the date of payment. The
claim shall be on forms furnished by the Tax Administrator,
Sec , 2651 , CLAIM OF OPERATOR, 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 ; pro-
vided, 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.
BUSINESS TRANSIENT OCCUPANCY TAX Sec. 2652.
Sec . 2652. CLAIM OF TRANSIENT, A transient may obtain a
refund of taxes overpaid, paid more than once, or erroneously
or illegally collected or received by the city, by filing a
claim in the manner provided in subparagraph 2650 of this sec-
tion, 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.
Sec . 2653. ENTITLEMENT TO REFUND. No refund shall be paid
under the provisions of this section unless the claimant estab-
lishes his right thereto by written records showing entitlement
thereto,
Article 266
Tax a Debt
Sec. 266o. ACTIONS TO COLLECT. Any tax required to be paid
in accordance with this ordinance 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 of Redlands for the recovery of such amount.
Article 267
Enforcement
See . 2670, VIOLATIONS; MISDEMEANOR. Any person violating
any of the provisions of this chapter shall be guilty of a mis-
demeanor and shall be punishable therefor by a fine of not more
than five hundred dollars ($500.00) or by imprisonment in the city
jail for a period of not more than six months or both such fine
and imprisonment.
Sec. 2671. VIOLATIONS; MISDEMEANORAny 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 data required by the Tax
Administrator, 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 of any amount due required by
this chapter to be made, is guilty of a misdemeanor and is punish-
able as aforesaid.
BUSINESS TRANSIENT OCCUPANCT TAX sec . AM
Sec2672� SEVERABILITY. If any 8ection, subsection,
subdivision , paragraph, sentence, clause or phrase of this
chapter or any part thereof is for any reason held to be uncon-
stitutional , such decision shall not affect the validity of tho
remaining portions of this ordinanae or any part thereof� Th,,--�
City Council hereby declare5 that it would have passed each
section, subsection, subdivision, pqragraph, Fentence , clause or
phrase thereof, irrespective of the fact that any one or more
section , subsections, subdivisions , paragraphs, sentences , clauses
or phrases be declared unconstitutional ,
SECTION TWO ; This ordinance shll be in force and take
effect on October 1 , 196V
SECTION THREE: The City Clerk shall certify to thte
adoption of this ordinance and cause it to be published
once in the Redlands Duily Facts , a newspaper of general
circulation printed and published in the City of Redlands .
ATTEST,,
Waldo F',
Mayor of the City of kid dlairids
C lity Cle
I '74e
APPROVED FOR P01UNI :
TtIl or_____
5/
Ed w a r d F 0_11,�j 0-r _
City Attorney
1 , Hazel M, Soper, City Clerk, City of Redlands , hereby
certify that the foregoing ordinance was duly adopted by
the City Council at a regular meeting thereof hold on the
fourth day of August , 1964 by the following vote ,.
AYES : Councilmen Martinez , Wagner, Cummings ; Vice-mayor
Hartzell
NOES : None
ABSENT Mayor Burroughs
City C ork