Chapter 4.06
TRANSIENT OCCUPANCY TAX
Sections:
4.06.010 Short title – Adoption authority.
4.06.040 Collection and reporting.
4.06.050 Security for collection of tax.
4.06.060 Penalties and interest.
4.06.070 Shortening of pay period.
4.06.090 Violation an infraction.
4.06.100 Willful violation a misdemeanor.
4.06.010 Short title – Adoption authority.
This chapter shall be known as the transient occupancy tax ordinance of the City of Dixon. It is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code § 7280. [Ord. 12-004.]
4.06.020 Definitions.
For the purpose of this chapter the following words and phrases shall have the meanings respectively ascribed to them by this section:
“Hotel” shall mean any structure or any portion of any structure which is occupied or intended or designated for occupancy by transients for dwelling, lodging, or sleeping purposes, including any hotel, inn, tourist home or house, motel, studio hotel, dormitory, public or private club, mobile home or house trailer at a fixed site or other similar structure or portion thereof.
“Occupancy” shall mean the use or possession or the right to the use or possession of any room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes. Occupancy shall also include the use of parking facilities, including valet services, for hotel guests including: (1) charges to hotel guests for parking located on the hotel premises regardless of how charged, and (2) charges to hotel guests for parking located off the hotel premises where such charge is added to the room bill and paid to the hotel operator.
“Operator” shall mean the proprietor of the hotel whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity.
“Transient” shall mean 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. [Ord. 12-004; Ord. 13-015 § 1.]
4.06.030 Imposition of tax.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of nine percent (9%) of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the City. The transient shall pay the tax to the operator of the hotel at the same time the rent is paid. The tax, when collected by the operator, shall immediately be deemed City funds held in trust by the operator for the sole benefit of the City, to be transferred to the City as provided in this chapter. [Ord. 12-004; Ord. 13-015 § 1.]
4.06.040 Collection and reporting.
The transient occupancy tax shall be collected and remitted to the City as follows:
A. Each operator shall collect the tax at the same time the rent is collected from every transient. It shall be permissible to display such tax as a separate item in connection with the rental of hotel accommodations and to collect such tax as a separate item in the billing and collection for accommodations.
B. Each operator shall, on or before the last day of the month following the close of each quarter, make a return to the Finance Director, on forms provided by the Finance Director, reporting the total rents charged and received and the amount of the tax collected for transient occupancies. The forms shall include a warning that the failure of the operator to remit all taxes collected by the operator may constitute a violation of Cal. Penal Code § 424. At the time the return is filed with the Finance Director, the full amount of the tax collected shall be remitted to the Finance Director.
C. Each operator shall keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of, which records the Finance Director shall have the right to inspect at all reasonable times. At the request of the Finance Director, the City may issue a subpoena for those records pursuant to Cal. Gov’t Code § 37104.
D. If any operator shall fail to make a timely and full remittance of the tax collected as provided in subsection B of this section for two (2) or more consecutive quarters or for two (2) or more quarters in any calendar year, the Finance Director may give written notice to the operator that the tax is thereafter, for a period not to exceed twelve (12) full months following the date of said notice, to be remitted by the operator to the Finance Director not later than fifteen (15) days following the end of each calendar month instead of quarterly as provided in subsection B of this section and the operator shall comply with said directions. If after receiving such a notice any operator shall fail to make a timely and full monthly remittance of the tax collected to the Finance Director as provided for two (2) or more consecutive months or for two (2) or more months in any calendar year, the Finance Director may give written notice to the operator that the tax is thereafter, for a period not to exceed twelve (12) full calendar months, to be remitted by the operator to the Finance Director not later than seven (7) days following the end of each calendar week (commencing with Sunday) instead of monthly as provided above and the operator shall fully comply with said directions. Notices to the operator shall be given by mail addressed to the last address of the operator as shown on the most recent return filed by the operator with the Finance Director, or at such other address within the State of California as the operator may by writing request said notices to be mailed to by the Finance Director.
E. In the event that any operator shall fail to make timely and full remittance of the tax collected as provided in subsections B and D of this section for any period in excess of fifteen (15) calendar days following the last date upon which said tax remittance is to be paid to the Finance Director, the Finance Director shall notify the Police Chief and the City Attorney of said delinquency or delinquencies and request that they individually or jointly take appropriate action in reference to said matters. [Ord. 12-004; Ord. 13-015 § 1.]
4.06.050 Security for collection of tax.
A. In the event that a hotel fails to make full remittance of the tax for two consecutive quarters, Finance Director, in order to insure compliance with the tax payment requirements, may require any person subject to said requirements to deposit with the City such security in the form of cash, bond or other security in the amount required by the terms hereof. The required security shall be equal to an amount not greater than twice the person’s estimated average liability for the first period for which a return must be filed pursuant to DMC 4.06.040(B) or the sum of ten thousand dollars ($10,000.00), whichever is the lesser.
B. If any operator liable for any amount under this chapter sells out a business or quits the business, the successors or assigns of such person shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the Finance Director showing that returns have been filed and payment has been made as required by DMC 4.06.040(B), or a certificate stating that no amount is due. If the purchaser of a business fails to withhold the tax from the purchase price as required, such person becomes personally liable for the payment of the amount required to be withheld to the extent of the purchase price, valued in money. Within thirty (30) days after receiving a written request from the purchaser for a certificate, the Finance Director shall either issue the certificate or mail notice to the purchaser at the address as it appears on the records of the Finance Director of the amount that must be paid as a condition of issuing the certificate. Failure of the Finance Director to mail the notice will release the purchaser from any further obligation to withhold the purchase price as above provided. The time within which the obligation of a successor may be enforced shall run at the time the operator sells out a business or at the time that the determination against the operator becomes final, whichever event occurs later. [Ord. 13-015 § 1.]
4.06.060 Penalties and interest.
A. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax.
B. Continued Delinquency. Any operator who fails to remit any delinquent tax due pursuant to this chapter on or before a period of thirty (30) days following the date on which the tax first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax and the ten percent (10%) penalty first imposed.
C. Fraud. If the Finance Director determines that the nonpayment of any remittance due under this chapter is due to fraud or intent to evade the provisions thereof, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section.
D. Interest. 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 percent (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 the total amount owed is paid.
E. Penalties Merged with Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall be merged with and become a part of the tax herein required to be paid.
F. Liens and Collection. A real property lien shall attach to the location of the hotel effective immediately when a tax becomes delinquent. If any tax is not paid when due, the Finance Director may record in the office of county recorder of such counties as the Finance Director may determine a certificate which specifies the amount of tax due and the name and address of the owner and/or operator owing the tax. The certificate shall include a statement that the Finance Director has complied with all legal requirements in the determination of the tax owed and a legal description of the real property of the owner. Upon recording of the certificate, the tax, as well as all amounts becoming due thereafter unless paid, constitutes a lien upon all real property owned or thereafter acquired by the owner and/or operator. The lien has the force, effect and priority of a judgment lien.
G. Warrant for Collection of Tax. At any time after the recording of a certificate of lien, the Finance Director may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of such tax. The warrant shall have the same effect as a writ of execution, and be executed in the same manner and with the same effect as a levy and sale pursuant to writ of execution. The Finance Director shall, upon request, pay or advance to the sheriff or marshal such fees, commissions and expenses for services as are provided by law.
H. Seizure and Sale. In lieu of issuing a warrant, after an assessment is issued or a certificate of lien is recorded, the Finance Director may collect the delinquent amount by selling non-cash or nonnegotiable property at public auction to pay the seizing or causing to be seized any property, real or personal, of the owner or operator tax due together with any costs of the seizure and sale. Any seizure made shall only be of property not exempt from execution under the provisions of the Code of Civil Procedure. [Ord. 13-015 § 1.]
4.06.070 Shortening of pay period.
If an operator fails to remit any delinquent tax due pursuant to this chapter on or before a period of thirty (30) days following the date on which the tax first became delinquent, the city, in its discretion, may shorten the time period for remitting taxes to the city to a weekly or daily basis, to prevent an operator from use of transient occupancy taxes collected on behalf of the city to operate the business. If the City decides to shorten the time period for remitting taxes under this chapter, it shall provide an owner or operator of the hotel with thirty (30) days’ written notice of such change. [Ord. 13-015 § 1.]
4.06.080 Advertisements.
No operator of a hotel shall advertise 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 will be refunded except in the manner hereinafter provided. [Ord. 13-015 § 1.]
4.06.090 Violation an infraction.
Any person violating any of the provisions of this chapter shall be guilty of an infraction, subject to the provisions of Cal. Gov’t Code § 36900(b). [Ord. 13-015 § 1.]
4.06.100 Willful violation a misdemeanor.
Any person willfully violating any of the provisions of this chapter shall be guilty of a misdemeanor, punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment in a County jail for a period of not more than six (6) months or by both such fine and imprisonment. [Ord. 13-015 § 1.]