Chapter 3.34
MARINE CHARTER PASSENGER TAX
Sections:
3.34.050 Collection of Tax by Operator—Receipt to Passenger—Rules for Collection.
3.34.060 Reporting and Remitting.
3.34.070 Failure to Collect and Report—Determination by Revenue Manager.
3.34.080 Penalties and Interest.
3.34.120 Violation by Operator a Misdemeanor.
3.34.010 Definitions.
For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:
A. “Charter” or “chartered” shall mean any contract arrangement, agreement or lease pursuant to which consideration is paid to the owner or operator of a vessel for the right to use, or the right of carriage on, any vessel which will operate, at least in part, on the waters of Newport Harbor, provided, however, the term “charter” shall not include those activities which are exempt from the permit requirements of Chapter 17.10.
B. “Charter fee” shall mean, with respect to charter vessels serving the public on a ticketed passenger basis, the total cost, without deductions, required for passage on the vessel. With respect to all other charters, “charter fee” shall be the total consideration paid to the owner, operator, and all persons providing any supplies, entertainment, dock fees or onboard service in connection with the charter.
C. “Chartered vessel” shall mean any passenger vessel or small vessel as defined by 46 U.S.C. Section 2101.
D. “Marine activities permittee” shall mean any charter business authorized to conduct marine charters pursuant to Chapter 17.10.
E. “Operator” shall mean any person who, on behalf of, or pursuant to agreement with, the owner, arranges for the charter of any vessel or the issuance of any marine activities permit.
F. “Owner” shall mean any person who owns any chartered vessel.
G. “Passenger” shall mean every natural person carried on any chartered vessel that has been chartered other than the owner, and any employee, agent, representative, or subcontractor of the owner or operator who has not paid consideration for carriage and who is paid consideration for onboard services.
H. “Out of town vessel” shall mean any vessel which, for property tax purposes, has a situs outside Newport Beach.
I. “Sport fishing vessel” shall mean a documented vessel carrying or transporting people for hire for commercial passenger fishing purposes which holds a certificate of inspection from the United States Coast Guard and a commercial fishing boat license from the California Department of Fish and Game.
J. “Ticket price” shall mean either the product of the charter fee divided by the number of passengers, or the actual ticket price imposed per passenger, whichever is greater.
K. “Vessel” shall mean a passenger vessel or small passenger vessel as defined by 46 U.S.C. Section 2101. (Ord. 2023-22 § 173, 2023; Ord. 2020-5 §§ 2, 3, 2020; Ord. 94-42 § 2 (part), 1994)
3.34.020 Tax Imposed.
A. There is hereby imposed a tax upon every passenger of each chartered vessel. The tax shall be the obligation of, and paid by, the passenger to the owner or operator, and shall be stated as a separate charge on agreements for charters. The amount of the tax shall be:
1. Fifty cents ($0.50) for ticket prices between twenty-six dollars ($26.00) and fifty dollars ($50.00);
2. One dollar ($1.00) for ticket prices greater than fifty dollars ($50.00); and
B. Starting July 1, 1996, the ticket price on which the tax is imposed along with the tax and surcharge shall be automatically adjusted each July 1st, to reflect the percentage, rounded to the nearest quarter, in the cost of doing business, as measured by the CPI. (Ord. 2023-22 § 174, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.025 Exemptions.
Passengers on sport fishing and whale watching vessels, while engaged in sport fishing or whale watching activities outside the harbor of Newport Beach, shall be exempt from the tax imposed by Section 3.34.020. (Ord. 94-42 § 2 (part), 1994)
3.34.030 Liability for Tax.
In addition to the passenger of a vessel chartered for consideration, the operator or owner shall be liable for the tax imposed pursuant to this chapter in the event of any failure to collect the tax from the passenger and to remit the tax to the City as provided in this chapter. Liability of the passenger shall not be extinguished until the tax has been paid to the City or the passenger presents the City a receipt from the operator or owner which evidences payment of the tax. (Ord. 2023-22 § 175, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.040 Registration.
A. No person shall conduct any charter for which a marine activities permit is required pursuant to the provisions of Chapter 17.10 without first applying for, and receiving, a certificate of registration pursuant to the provisions of this chapter.
B. Every owner or operator who applies for a marine activities permit pursuant to Chapter 17.10 shall apply for, and obtain, a certificate of registration from the Revenue Manager. The owner or operator shall apply for the certificate of registration on forms provided by the City. The Revenue Manager shall issue a certificate of registration upon completion, execution and submittal of the form. The owner or operator shall comply with all standard conditions specified on the registration form or certificate of registration.
C. Every commercial marine activities permittee shall register with the Revenue Manager within fifteen (15) days of commencing operations in the City. The certificate of registration shall be issued upon completion, execution and submittal of the form provided by the City. The marine activities permittee shall comply with all standard conditions on the certificate of registration.
D. Certificate of registration shall be issued by the Revenue Manager without charge to the owner or operator. (Ord. 2023-22 § 175, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.050 Collection of Tax by Operator—Receipt to Passenger—Rules for Collection.
Each owner or operator shall collect the tax imposed by this chapter prior to operation of the charter. The amount of tax shall be separately stated from the amount of the charter fee charged. Upon request by the passenger, the owner or operator shall give the passenger a receipt for the payment of the tax required by this chapter. (Ord. 94-42 § 2 (part), 1994)
3.34.060 Reporting and Remitting.
A. Each marine activities permittee, owner or operator shall, on or before the last day of the month following the close of the reporting period, as established by the Finance Director, file a return with the Revenue Manager on forms provided by the City, listing the total number of passengers carried during the reporting period and the total tax collected by the permittee. The full amount of the tax collected shall be remitted to the Revenue Manager at the time the return is filed. Returns and tax payments shall be due immediately upon cessation of business for any reason. All taxes collected by permittees shall be held in trust for the account of the City until payment thereof is made to the Revenue Manager.
B. Each owner or operator conducting charters pursuant to Chapter 17.10 shall pay the tax upon obtaining the marine activities permit. No marine activities permit required by Chapter 17.10 shall be issued until the required marine charter tax has been paid.
C. The Revenue Manager shall have the power to adopt rules and regulations prescribing methods and schedules for the collection and payment of the tax. (Ord. 2023-22 § 176, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.070 Failure to Collect and Report—Determination by Revenue Manager.
A. If any owner or operator shall fail to collect all or a portion of the tax due pursuant to this chapter or shall fail to make, within the time provided in this chapter, any report and remittance of such tax, or any portion thereof, required by the provisions of this chapter, the Revenue Manager shall proceed in such manner as he/she may deem best to obtain the facts and information on which to base his/her estimate of the tax due. As soon as the Revenue Manager shall procure such facts and information as he/she is able to obtain upon which to base the assessment of any such tax imposed by the provisions of this chapter and payable by any owner or operator who has failed or refused to collect the same and to make such report and remittance, the Revenue Manager shall proceed to determine and assess against such owner or operator the tax, interest, and penalties provided for by the provisions of this chapter. The Revenue Manager shall give notice of the amount so assessed by serving it in the manner provided in Section 1.08.080.
B. Such owner or operator may, within ten (10) days after the service or mailing of such notice, make an application in writing to the Revenue Manager for a hearing on the amount assessed. If an application by the owner or operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Revenue Manager shall become final and conclusive and immediately due and payable. If such a request for hearing is made, the Revenue Manager shall give not less than five days’ written notice in the manner prescribed in this section to the owner or operator to show cause at a time and place fixed in such notice why the amount specified herein should not be fixed for such tax, interest, and penalties. At such hearing the owner or operator may appear and offer evidence why the tax, interest, and penalties should not be so fixed. After the hearing the Revenue Manager shall determine the proper tax, interest and penalty due, and shall thereafter give written notice to the owner or operator in the manner prescribed in this section. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is filed pursuant to Section 3.34.090. (Ord. 2023-22 § 177, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.080 Penalties and Interest.
A. Original Delinquency. Any owner or operator who fails to collect, report and remit any tax imposed by the provisions of this chapter within the time required shall pay a penalty in the amount of ten (10) percent of the tax in addition to the amount of the tax.
B. Continued Delinquency. Any owner or operator who fails to collect and remit any tax and remit any penalty on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty in the amount of ten (10) percent of the tax in addition to the amount of the tax and the ten (10) percent penalty first imposed.
C. Interest. In addition to the penalties imposed, any owner or operator who fails to collect and remit any tax imposed by the provisions of this chapter shall pay interest at the rate of one and one-half percent 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.
D. Penalties and Interest Merged With Tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this chapter except such merger shall not affect the liability of an operator to pay tax it has failed to collect and remit. (Ord. 2023-22 § 178, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.090 Appeals.
Any person aggrieved by any decision of the Revenue Manager with respect to the amount of tax, interest, or penalties assessed against the person, may appeal to the City Manager by filing a notice of appeal within fifteen (15) days after the service or mailing of the determination of the tax, penalties and interest due. The City Manager may preside over the appeal or, in the alternative, the City Manager may appoint a Hearing Officer to conduct the hearing, receive relevant evidence and submit findings and recommendations to the City Manager. The City Manager shall render a decision within fifteen (15) days of receiving the findings and recommendations of the Hearing Officer. The findings of the City Manager shall be final and conclusive as to the City and shall be served upon the appellant in the manner prescribed in this chapter for the service of a notice of hearing. Any amount found to be due shall be immediately due and payable to the City upon the service of notice. The City Manager’s decision is subject to judicial review pursuant to California Code of Civil Procedure Section 1094.5. (Ord. 2023-22 § 179, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.100 Tax Deemed a Debt.
The amount of any tax, penalty, or interest imposed by this chapter shall be deemed a debt due to the City by the persons required hereby to collect or to pay the same. (Ord. 2023-22 § 180, 2023; Ord. 94-42 § 2 (part), 1994)
3.34.110 Records.
It shall be the duty of every owner or operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three years, a daily record of the number of passengers for each charter vessel, and the charter fee imposed. Said records shall be maintained at the operator’s business premises or shall be available for delivery to the City within one week after request. The Revenue Manager shall have the right to inspect records at all reasonable times. The records shall include at least the following:
A. Daily summaries of the number of passengers for each vessel operated.
B. Daily summaries of the total consideration paid to the owner, operator, and all persons providing any supplies, entertainment, dock fees or service in conjunction with each vessel chartered.
C. The ticket price. (Ord. 94-42 § 2 (part), 1994)
3.34.120 Violation by Operator a Misdemeanor.
Any operator or other person who fails or refuses to register as herein required 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 Revenue Manager, or who renders a false or fraudulent return, is guilty of a misdemeanor. Any person required to make, render, sign or verify any report who makes any false or fraudulent report is guilty of a misdemeanor. (Ord. 94-42 § 2 (part), 1994)