Chapter 3.32
TRANSIENT OCCUPANCY TAX
Sections:
3.32.020 Imposition and rate of tax.
3.32.040 Collection and refund of tax.
3.32.050 Return and payment of tax.
3.32.070 Failure to collect or to make return or remittance.
3.32.100 Cessation of business.
3.32.010 Definitions.
The following terms, when used in this chapter, shall for the purpose of this chapter, have the following respective meanings except where the context clearly indicates a different meaning:
(a) “Finance division” means the finance division of the city department of administrative services.
(b) “Guest room” means any room in a hotel, as hereinafter defined, occupied, or intended, arranged or designed for occupancy.
(c) “Hotel” means any apartment house, auto court, boardinghouse, bungalow court, club, hotel, inn, lodginghouse, motel, roominghouse, tourist home or other structure, private or public within the city offering or renting to transients lodging in guest rooms for compensation. It does not mean any convalescent home or facility, home for the aged, hospital, jail, military installation, nor does it mean a structure operated exclusively by an association or corporation for religious, charitable or educational purpose or purposes, no part of the earnings of which association or corporation inures to the benefit of any private shareholder or individual.
(d) “Occupancy” means lodging, i.e., the use of or possession, or the right to the use or possession, of any guest room.
(e) “Occupant” means any person who, for a consideration, uses, possesses or has the right to use any guest room.
(f) “Operator” means any person operating a hotel, including but not limited to, the owner, proprietor or manager thereof, the lessee, licensee, mortgagee in possession, sublessee or other person otherwise operating such hotel.
(g) “Permanent lodger” means any occupant who, as of a given date, has occupied or has had the right of occupancy of any guest room in a hotel for at least thirty consecutive days next preceding such date.
(h) “Rent” means the consideration, valued in money, received by the operator for occupancy, whether received in money or otherwise, including all receipts, cash, credits, property or services of any kind or nature. If the charge made by a hotel includes any charge for services in addition to that for occupancy, then such portion of the total charges representing rent shall be distinctly set out and billed as a separate item.
(i) “Return” means any tax return filed or required to be filed herein provided.
(j) “Transient” means any occupant who, for a period of not more than thirty consecutive days, either at his own expense or at the expense of another, obtains the right of occupancy of a guest room, for which occupancy rent is charged. (Ord. 770 § 1 (part), 1996; Ord. 612 § 1 (part), 1983)
3.32.020 Imposition and rate of tax.
Every transient shall pay a tax of twelve percent of the rent for his occupancy of a guest room and said tax shall be collected by the operator from such transient at the time and in the manner provided in this chapter. (Ord. 994 § 1, 2015: Ord. 612 § 1 (part), 1983)
3.32.030 Exemptions.
No tax 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 tax herein provided;
(b) Any federal or state officer or employee when on official business;
Provided, however, that no exemption shall be granted under subsection (a) or (b) of this section except upon claim therefore made at the time rent is collected and under penalty of perjury, upon a form prescribed by the city finance division. (Ord. 612 § 1 (part), 1983)
3.32.040 Collection and refund of tax.
On and after July 1, 1983, every operator receiving any payment for rent with respect to which a tax is due under this chapter shall at the same time collect from the transient or from the person making such payment, the amount of the tax hereby imposed. Where a tax has been collected based on rent for a period of thirty days or less and the occupant subsequently completes thirty-one consecutive days of occupancy, thereby qualifying as a permanent lodger, the operator shall return to such occupant an amount equivalent to the amount of the tax so collected either in cash or by crediting his account unless, however, said tax has been paid over to the finance division. In any latter event, the operator who collected such tax may, within one year from the date of said payment to the finance division, provided he has returned the equivalent amount of such tax to such permanent lodger or credited his account therewith either take credit for the amount so reimbursed on a subsequent return or file a claim for refund of such tax. The taxes required to be collected hereunder shall be deemed, upon collection of same, to be held in trust by the operator until he has remitted the same to the finance division. (Ord. 612 § 1 (part), 1983)
3.32.050 Return and payment of tax.
The operator collecting such tax shall prepare a return upon such forms and set forth therein such information as the finance division may prescribe and require, showing the amount of rent collected and the tax required to be collected, and he shall sign the same and deliver it to the finance division together with a remittance of said tax. Said returns and remittances shall be due on the tenth day of each month covering the amount of tax collected during the preceding month. (Ord. 612 § 1 (part), 1983)
3.32.060 Credit cards.
The tax shall be computed on the total rental, not exempt from taxation by this chapter, without regard for finance charges or discounts paid to credit card companies. (Ord. 612 § 1 (part), 1983)
3.32.070 Failure to collect or to make return or remittance.
If any operator shall fail or refuse to collect said tax or to make, within the time provided in this chapter, any return or remittance required by this chapter, the finance division shall proceed in such manner as it may deem best to obtain facts and information on which to base its estimate of the tax due. As soon as the finance division shall procure such facts and information upon which to base an estimate of the tax due, it shall proceed to determine and assess against such operator the tax and penalties provided for by this chapter and shall notify such operator, by mail sent to his last known address, the amount of such tax and penalties, and the total amount thereof shall be payable within ten days from the deposit in the mail of such notice. (Ord. 612 § 1 (part), 1983)
3.32.080 Penalties.
If any operator shall fail or refuse to remit to the finance division the proper amount of the tax required to be collected and paid under this chapter on or before the last day of the month following the month in which said taxes were collected by the operator, there shall be added to such a tax a penalty of twenty-five percent of the amount of the tax, and if the tax shall remain delinquent and unremitted for another calendar month there shall be added thereto an additional penalty of twenty-five percent of the amount of the tax. (Ord. 612 § 1 (part), 1983)
3.32.090 Records.
Every operator shall keep and preserve, or cause to be kept and preserved, for a period of two years such records as the finance division may determine to be necessary to compute the amount of any tax due under the provisions of this chapter. Such records shall clearly substantiate the operator’s gross receipts, the amount of room rentals, the rentals paid by permanent lodgers, and exemptions claimed by officers and employees of the federal or state government while they are on official business. Such records are to be made available for inspection by the city auditor and city administrative services director or their authorized agents at all reasonable times. It is unlawful for the finance division or for any person having administrative duty under this chapter to make known, in any manner whatever except in the performance of his official duties, the business affairs, operations or information obtained from an investigation of the records of the operator. (Ord. 770 § 1 (part), 1996; Ord. 612 § 1 (part), 1983)
3.32.100 Cessation of business.
Whenever any operator required to collect and remit to the finance division a tax under this chapter shall cease to operate or shall dispose of his business, any tax payable hereunder shall become immediately due and payable and such operator shall immediately file a return and pay the tax due. (Ord. 612 § 1 (part), 1983)
3.32.110 Administration.
It shall be the duty of the finance division to administer the provisions of this chapter. The city may prescribe, adopt and enforce reasonable and necessary rules and regulations relating to the administration and enforcement of this chapter. (Ord. 612 § 1 (part), 1983)