Chapter 3-6
HOTEL/MOTEL TAXES
Sections:
3-6-03 Exemptions from provisions.
3-6-06 Reporting and remitting.
3-6-07 Penalties and interest.
3-6-08 Failure to collect and report tax: Determination by Finance Director.
3-6-10 Payment of tax in the event of sale.
3-6-14 Violations of provisions.
3-6-01 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) “Person” shall mean 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.
(b) “Hotel” shall mean any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes and shall include any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure, or portion thereof.
(c) “Occupancy” shall mean 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.
(d) “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. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the provisions of this chapter may be considered.
(e) “Rent” shall mean the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, property, and services of any kind or nature, without any deduction therefrom whatsoever.
(f) “Operator” shall mean the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. 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 chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.
3-6-02 Tax imposed.
For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of nine (9%) percent of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be 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 tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Finance Director may require that such tax shall be paid directly to the Finance Office.
(1126-CS, Amended, 10/08/09; 756-CS, Amended, 12/26/91)
3-6-03 Exemptions from provisions.
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 provided for in this chapter;
(b) Any Federal or State officer or employee when on official business; or
(c) Any officer or employee of a foreign government, which officer or employee is exempt by reason of express provision of Federal law or international treaty.
No exemption shall be granted except upon a claim therefor made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Finance Director.
(1126-CS, Amended, 10/08/09)
3-6-04 Operator’s duties.
Each operator shall collect the tax imposed by the provisions of 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 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 provided in this chapter.
3-6-05 Registration.
Each operator of any hotel renting an occupancy to transients shall register such hotel with the Finance Director and obtain a City of Turlock “Business License Certificate” which shall at all times be posted in a conspicuous place on the premises. Such certificate shall, among other things, set forth the following information:
(a) The name of the operator;
(b) The address of the hotel;
(c) The period for which the certificate was issued; and
(d) A statement as follows: “This Business License Tax Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Hotel/Motel Tax Law by registering with the Finance Office for the purpose of collecting from transients the transient occupancy tax and remitting such tax to the Finance Office. Where approval, clearance, or a permit to conduct a business is otherwise required by the provisions of this Code, issuance of a Business License Tax Certificate does not constitute such approval or clearance.
(1126-CS, Amended, 10/08/09)
3-6-06 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 which may be established by the Finance Director, make a return to the Finance Office, on forms provided by the Finance Office, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Finance Office. The Finance Director may establish shorter reporting periods for any certificate holder if he deems it necessary in order to ensure collection of the tax, and he may require further information in the return. Returns and payments shall be due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to the provisions of this chapter shall be held in trust for the account of the City until payment thereof is made to the Finance Office.
(1126-CS, Amended, 10/08/09)
3-6-07 Penalties and interest.
(a) Original delinquency. Any operator who shall fail to 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 operator who shall fail to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency 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) Fraud. If the Finance Director shall determine that the nonpayment of any remittance due pursuant to the provisions of this chapter is due to fraud, a penalty in the amount of twenty-five (25%) percent of the amount of the tax shall be added thereto in addition to the penalties set forth in subsections (a) and (b) of this section.
(d) Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this chapter shall pay interest at the rate of one-half of one (0.5%) 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.
(e) 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.
(1126-CS, Amended, 10/08/09)
3-6-08 Failure to collect and report tax: Determination by Finance Director.
If any operator shall fail or refuse to collect such tax and 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 Finance Director shall proceed in such manner as he may deem best to obtain the facts and information on which to base his estimate of the tax due. As soon as the Finance Director shall procure such fact and information as he 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 operator who has failed or refused to collect the same and to make such report and remittance, the Finance Director shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the provisions of this chapter. In the event such determination is made, the Finance Director shall give 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 service or mailing of such notice, make an application in writing to the Finance Director for a hearing on the amount assessed. If an application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Finance Director shall become final and conclusive and immediately due and payable. If such an application is made, the Finance Director shall give not less than five (5) days’ written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in such notice why the amount specified therein should not be fixed for such tax, interest, and penalties. At such hearing the operator may appear and offer evidence why such specified tax, interest, and penalties should not be so fixed. After such hearing the Finance Director, or authorized agent, shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this section of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is filed as provided in TMC 3-6-09.
(1126-CS, Amended, 10/08/09)
3-6-09 Appeals.
Any operator aggrieved by any decision of the Finance Director with respect to the amount of such tax, interest, and penalties may appeal such decision as provided by Chapter 1-4 TMC.
(1126-CS, Amended, 10/08/09)
3-6-10 Payment of tax in the event of sale.
(a) Withholding purchase price. In the event any hotel owner sells or otherwise transfers his ownership in a hotel, his successor or assigns shall withhold sufficient of the purchase price to cover any transient occupancy tax owed to the City and shall continue to withhold such moneys until the former owner produces a written notice from the Finance Director that the amount owed has been paid or that there is no amount due.
(b) Liability. In the event the purchaser or transferee of a hotel fails to withhold from the purchase price an amount sufficient to defray any transient occupancy tax then owed to the City, he shall be personally liable for any transient occupancy tax owed to the City to the extent of the purchase price, valued in money.
(c) Notice of sale: Audit. When ownership of any hotel is transferred, the Finance Director shall be notified in writing by the seller of the transfer of ownership, and the Finance Director shall thereupon cause the books and records of the hotel to be audited within thirty (30) days to determine the amount of transient occupancy tax owed to the City, as of the date of transfer of title.
(1126-CS, Amended, 10/08/09)
3-6-11 Records.
It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions of this chapter to 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 and payment to the City, which records the Finance Director shall have the right to inspect at all reasonable times.
(1126-CS, Amended, 10/08/09)
3-6-12 Refunds.
(a) Whenever the amount of any tax, interest, or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received by the City pursuant to the provisions of this chapter, such amount may be refunded as provided in subsections (b) and (c) 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 Finance Office within three (3) years after the date of payment. The claim shall be on forms furnished by the Finance Office.
(b) Any 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 Finance Director that the person from whom the tax has been collected was not a transient; provided, however, 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.
(c) 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 subsection (a) of this section but only when the tax was paid by the transient directly to the Finance Office, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Finance Director that the transient has been unable to obtain a refund from the operator who collected the tax.
(d) No refund shall be paid pursuant to the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.
(1126-CS, Amended, 10/08/09)
3-6-13 Actions to collect.
Any tax required to be paid by any transient pursuant to the provisions of this chapter 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 pursuant to the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount.
3-6-14 Violations of provisions.
Any operator or other person who fails or refuses to register as 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 Finance Director, or who renders a false or fraudulent return or claim shall be guilty of a misdemeanor and punishable as set forth in Chapter 1-2 TMC. Any person required to make, render, sign, or verify any report or claim and who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by the provisions of this chapter to be made shall be guilty of a misdemeanor and punishable as provided in this section.
(1126-CS, Amended, 10/08/09)