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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