Chapter 3.36
ADMISSION TAX

Sections:

3.36.010    Definitions.

3.36.020    Tax imposed.

3.36.030    Rebate.

3.36.040    Operator’s duties.

3.36.050    Reporting and remitting.

3.36.060    Penalties and interest.

3.36.070    Failure to collect.

3.36.080    Deficiency determination.

3.36.090    Offsetting of overpayment.

3.36.100    Notice of determination.

3.36.110    Records.

3.36.120    Refunds.

3.36.130    Actions to collect.

3.36.140    Violations.

3.36.010 Definitions.

For purposes of this chapter, certain words and phrases shall be construed as follows:

(1) “Admission ticket” means any charge whether or not so designated for the right or privilege to enter and occupy a seat or space in any facility as hereinafter defined. It shall also mean season passes or subscriptions but shall not be construed to include complimentary, promotional or otherwise free-of-charge tickets or passes given by any operator or person.

(2) “Director” means the director of administrative services or his or her designee.

(3) “Facility” means and includes any building, structure, or place, wherein or at which an event as defined in this section can be held.

(4) “Event” means theatrical performances, musical performances, operas, exhibitions of art or handicrafts or products, lectures, speeches, menageries, or any other such live activity conducted in a facility for which an admission ticket is sold for the privilege of viewing such activity; provided such activity is not sponsored by an educational institution, or a nonprofit association or corporation organized primarily for educational, veteran, patriotic, welfare, civic betterment or charitable purposes, or political events held by recognized individuals or organizations with an identification number issued by the appropriate election jurisdiction.

(5) “Operator” means any person conducting, operating or maintaining in whole or in part as principal, agent, officer, employee or independent contractor any event, admission to which is subject to a tax under the ordinance codified in this chapter.

(6) “Patron” means any person who pays or on account of whom is paid any charge or admission price for the right or privilege of being admitted to any facility for the purpose of attending any event. (Ord. 770 § 1 (part), 1996; Ord. 613 § 1 (part), 1983)

3.36.020 Tax imposed.

There is imposed a tax in an amount equal to six percent of the price of an admission ticket, including season ticket or subscription, for the privilege of admission to any event as defined in Section 3.36.010. Such tax is a debt owned by the patron to the city, which debt shall be extinguished only by payment to the operator or to the city. Such tax shall be in addition to all other license taxes or fees provided by this code. (Ord. 613 § 1 (part), 1983)

3.36.030 Rebate.

Within thirty days following the adoption of the ordinance codified in this chapter, the city council may, by the adoption of a resolution, provide for the rebate of all or a portion of revenue which would be collected as a function of the admission tax. This rebate may be applied to any or all of the admission tax so imposed by this chapter.

Following the adoption of the resolution, organizations potentially affected by the admission tax shall be notified of the amount of the rebate to the service user. This amount shall be in the form of a percentage to be subtracted from the admission tax. (Ord. 613 § 1 (part), 1983)

3.36.040 Operator’s duties.

Each operator shall collect the tax imposed by this chapter from any patron when he or she purchases an admission ticket or season ticket or subscription. Every operator shall hold the tax imposed by this chapter in trust until the same is paid to the director as provided in Section 3.32.050. (Ord. 613 § 1 (part), 1983)

3.36.050 Reporting and remitting.

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 that may be established by the director, make a return to the director on forms provided by him or her of the total admissions collected and received and the amount of tax collected from patrons. At the time the return is filed, the full amount of the tax collected shall immediately become delinquent. The director may establish shorter reporting periods for an operator if he or she deems it necessary to assure collection of the tax, and he or she may require further information to be included in the return. Returns and payments are due and payable immediately upon cessation of business for any reason. (Ord. 613 § 1 (part), 1983)

3.36.060 Penalties and interest.

(a) Any operator who fails to remit any delinquent remittance 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 of the amount of the tax and for each thirty-day period or fraction thereof of delinquency thereafter. The total delinquency shall not exceed fifty percent of the tax imposed.

(b) If the director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsection (a).

(c) Every penalty imposed under the provisions of this chapter shall become a part of the tax required to be paid. (Ord. 613 § 1 (part), 1983)

3.36.070 Failure to collect.

If any operator required to collect and remit the tax imposed by this chapter fails to file a return and a remittance, the director shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the director 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, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. (Ord. 613 § 1 (part), 1983)

3.36.080 Deficiency determination.

If the director 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, he or she 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 within his possession or that may come into his possession. One or more deficiency determinations may be made of the amount due for one or more periods. (Ord. 613 § 1 (part), 1983)

3.36.090 Offsetting of overpayment.

In making a determination pursuant to Sections 3.36.060 and 3.36.070, the director may offset any overpayments for a period or periods together with interest on the overpayments, against underpayment for another period or periods, against penalties and against the interest on underpayments. Interest on overpayments and underpayments shall be computed in the manner set forth in Section 3.36.050. (Ord. 613 § 1 (part), 1983)

3.36.100 Notice of determination.

The director shall give to the operator written notice of any determinations made pursuant to Sections 3.36.060 and 3.36.070. This notice may be served personally or by depositing in the United States Postal Service, postage prepaid, and addressed to the operator at his address as it appears in the records of the director. 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. (Ord. 613 § 1 (part), 1983)

3.36.110 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 may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the city. The director may examine the books, papers, records and equipment of any operator liable for the tax imposed by this chapter and may make any other investigations necessary 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. (Ord. 613 § 1 (part), 1983)

3.36.120 Refunds.

(a) Whenever 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 in this section; 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 director within one year of the date of payment. The claim shall be on forms furnished by the director.

(b) An operator may claim a refund or take as credit against taxes collected and remitted any amount 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 admission 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 illegally collected or received by the city by filing a claim in the manner provided in subsection (a), but only when the tax was paid by the patron directly to the director or when the patron, having paid the tax to the operator, establishes to the satisfaction of the director that the patron has been unable to obtain a refund from the operator who collected the tax.

(d) No refund shall be paid unless the claimant establishes his or her right thereto by written records showing entitlement thereto. (Ord. 613 § 1 (part), 1983)

3.36.130 Actions to collect.

Any tax required to be paid by any patron under the provisions of this chapter shall be deemed a debt owned by the patron 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 in an action brought in the name of the city for the recovery of such amount. (Ord. 613 § 1 (part), 1983)

3.36.140 Violations.

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable as set forth in Section 1.08.020 of this code. (Ord. 613 § 1 (part), 1983)