The short title of this chapter is the "uniform transient occupancy
tax ordinance."
(Ord. 6 § 1, 1973)
Except where the context otherwise requires, the definitions
given in this section shall govern the construction of this chapter:
means any structure, or any portion of any structure, which is occupied or intended or designed for use or occupancy by transients, including, but not limited to dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, time-share project or facility, dormitory, public or private club, mobile home or house trailer at a fixed location, recreational vehicle or other similar structure or portion thereof, including a "short-term rental unit" as defined in Chapter 5.10.
means the use or possession of any hotel room, rooms or any
portion thereof offered for rent for dwelling, lodging or sleeping
purposes regardless of the actual purpose for which such rooms are
rented or provided.
means the person who is proprietor of the hotel whether in
the capacity of owner, lessee, sublessee, mortgagee in possession,
licensee, time-share project or facility manager or operator, or any
other capacity. Where the operator performs his, her or its functions
through a managing agent of any type or character, the managing agent
shall also be deemed an operator for the purpose of this chapter,
and shall have jointly and severally the same duties and liabilities
as his or her 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.
means the consideration charged or chargeable to a transient
for the occupancy of space, including, without any limitation: (1)
any unrefundable rental deposits; or (2) separate charges whether
received in money, goods, labor or otherwise, including charges for
rollaway beds, cribs and any other equipment necessary and required
for ordinary lodging or sleeping purposes. Rent taxable and reportable
pursuant to this chapter shall not be reduced by the actual or perceived
value of any hotel amenities provided to transients without additional
charge, such as complimentary continental breakfasts, cocktails and
newspapers. Rent may have been payable, in whole or in part, prior
to or following the occupancy to which it is attributable, and may
have been paid in advance on a long-term basis. It is not the intent
of this section to make the operator liable for the tax on uncollected
rent. However, uncollected rent must be reported.
means the director of finance, or such other individual as
may be designated by the city council.
means occupancy of a time-share estate, as that term is defined
in Business and Professions Code Section 11212, by someone other than
the owner of the time-share estate or his or her nonpaying guests.
means any person who exercises occupancy of the hotel by
reason of concession, permit, right of access, license or by reason
of the timeshare estate under a rental agreement with its owner or
due to "bonus use" for a period of thirty consecutive calendar nights
or less. Any such person so occupying space in a hotel shall be deemed
to be a transient until the period of thirty nights has expired. Unless
nights of occupancy by one person are consecutive without any break,
then prior or subsequent periods of such occupancy shall not be counted
when determining whether a period exceeds the thirty consecutive nights.
means an owner of a time period in another time-sharing program
who changes occupancy periods in his or her own property for time
periods in projects in other locations.
means occupation of a time-share estate by one of its owners
beyond that owner's actual ownership share of time, accomplished through
rental of another owner's share of time in the same time-share unit.
(Ord. 6 § 2, 1973; Ord. 134 §§ 1, 2, 1976; Ord. 280 § 1, 1981; Ord. 649 §§ 1, 2, 1991; Ord. 725 § 1, 1993; Ord. 753 § 1, 1994; Ord.
1127 § 1, 2006; Ord. 1236 § 1, 2012; Ord. 1261 § 1, 2013)
For the privilege of occupancy in any hotel, each transient
is subject to and shall pay a tax in the amount of eleven percent
of the rent charged by the operator or otherwise payable by the transient.
The tax constitutes a debt owed by the transient to the city, which
is extinguished only by payment to the operator or to the city.
For purposes of this section, the rent deemed payable on account
of occupancy of a time-share estate shall be the rent charged or otherwise
payable to the time-share estate owner by a lessee of the time-share
estate. 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 when the transient ceases to occupy space
in the hotel or time-share. If for any reason the tax due is not paid
to the operator of the hotel or time-share, the tax administrator
may require that such tax shall be paid directly to the tax administrator.
Tax on occupancies in exchange for services of any kind is due and
payable to the city by the operator, the amount of tax being determined
on the basis of eleven percent of the current rental value of the
accommodations furnished.
(Ord. 6 § 3, 1973; Ord. 280 § 2, 1981; Ord. 547 § 1, 1988; Ord. 649 § 3, 1991; Ord.
679 § 1, 1992; Ord. 1307 § 1, 2016)
A.
No tax
shall be imposed upon:
1.
Any
occupancy of a time-share estate by its owner, his or her nonpaying
guest, or an exchange user;
2.
Any
federal or state officer or employee when on official business, provided
the room is booked and paid for directly by the federal or state government;
3.
Any
person as to whom or any occupancy as to which it is beyond the power
of the city to impose the tax provided in this chapter;
4.
Any
officer or employee of a foreign government who is exempt by reason
of express provision of federal law or international treaty;
5.
Complimentary
rooms provided at no charge and not in exchange for services to employees,
entertainers, nonprofit charitable organizations, or to a transient
for promotional purposes are exempt. This exemption will not apply
if the complimentary rooms are subrented for a fee by a group or person
receiving the complimentary rooms.
B.
Any exemption claimed pursuant to subsection A of this section must be fully itemized and explained on the return or a supporting schedule.
C.
Persons
renting single family dwellings, condominiums, apartments or similar
use units on a monthly term regardless of the nights contained in
the month shall be exempt from the provisions of this chapter.
(Ord. 6 § 4, 1973; Ord. 418 § 1, 1985; Ord. 649 § 4, 1991; Ord. 682 §1, 1992; Ord. 940 § 1, 2000; Ord. 1261 § 2, 2013)
Each operator shall collect the tax imposed by this chapter
to the same extent and at the same time as the rent is collected from
every transient. The amount of the tax shall be separately stated
from the amount of the rent charged. 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.
(Ord. 6 § 5, 1973)
A.
Every
person desiring to engage in or conduct business as operator of a
hotel renting to transients within the city shall file with the tax
administrator an application for a transient occupancy registration
permit for each place of business. Every application for such a permit
shall be made upon a form prescribed by the tax administrator and
shall set forth the name under which the applicant transacts or intends
to transact business, the location of his or her place of business
and such other information as the tax administrator may require. The
application shall be signed by the owner if a natural person, by a
member or partner, if an association or partnership, by an executive
officer or some person specifically authorized by the corporation
to sign the application in the case of a corporation. The transient
occupancy registration permit must be in effect at all times while
the business is in operation and shall be at all times posted in a
conspicuous place on the premises. The permit shall, among other things,
state the following:
1.
Name
of hotel;
2.
Name
of operator;
3.
Hotel
address;
4.
The
date upon which the permit was issued;
5.
"This
Transient Occupancy Registration Permit signifies that the person
named on the face hereof has fulfilled the requirements of the Uniform
Transient Occupancy Tax Chapter by registering with the Tax Administrator
for the purpose of collecting from transients the Transient Occupancy
Tax and remitting said tax to the Tax Administrator. This permit does
not authorize any person to conduct any unlawful business in an unlawful
manner, nor operate a hotel without strictly complying with all applicable
laws, including but not limited to those requiring a permit from any
board, commission, department or office of this city. This permit
does not apply in lieu of such other permits which are otherwise required."
B.
At the
time of making an application for a registration permit, the applicant
shall pay registration fee of five dollars for each permit issued.
(Ord. 6 § 6, 1973)
A.
The tax imposed under Section 3.28.030 is due and payable to the tax administrator, on the first day of the month following the close of each calendar month and becomes delinquent on the first day of the second succeeding calendar month following the close of each calendar month.
B.
Each operator shall, on or before the last day of the month following the close of each calendar month, or shorter reporting period which may be established by the tax administrator, complete a monthly transient occupancy tax form provided by the tax administrator of the total rents charged or chargeable as provided in Section 3.28.030, whether or not received, including any rentals charged for occupancies exempt under the provisions of Sections 3.28.020 through 3.28.040, and the amount of tax collected for transient occupancies. At the time the return is filed, the tax—fixed at the rate of eleven percent of the amounts of rentals charged or chargeable which are not exempt from tax under Sections 3.28.020, 3.28.040 and 3.28.120—shall be remitted to the tax administrator. The tax administrator may establish shorter reporting periods and may require a cash deposit or bond for any permit holder, if he deems it necessary, to insure collection of the tax, and he may require further information in the return. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the tax administrator.
C.
Each
operator shall notify the tax administrator, ten days prior to the
sale or cessation of business for any reason and returns and payments
are due immediately upon the sale or cessation of business.
(Ord. 6 § 7, 1973; Ord. 134 § 4, 1976; Ord. 649 § 5, 1991; Ord. 679 § 2, 1992; Ord.
1701 § 3, 2004; Ord. 1307 § 2, 2016)
A.
Any operator who fails to pay any tax to the city or any amount of tax required to be collected and paid to the city including amounts based on determinations made by the tax administrator under Section 3.28.090, within the time required, shall pay a penalty of ten percent of tax plus interest at the rate of one percent per month, or fraction thereof, from the date on which the tax or the amount of tax required to be collected becomes due and payable to the city until the date of payments.
B.
An 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 accumulative penalties and interest compounded
on a monthly basis, until the delinquent remittance or payment is
paid in full, provided the amount of such penalties shall in no event
exceed fifty percent of the amount of tax due, and interest shall
not exceed twelve percent of the tax due.
C.
If the tax administrator determines that nonpayment of any remittance due under this chapter is due to fraud, a penalty of one hundred percent of this amount of the tax shall be added thereto in addition to the penalties stated in subsection A of this section.
D.
In the
event the tax administrator or the city has expended funds by the
use of auditor or any other individual necessary in the review and
collection, all of such costs and expenses of the city shall be added
to the tax when due in addition to the interest and penalties thereon.
(Ord. 6 § 8, 1973; Ord. 340 § 1, 1983; Ord. 375 § 2, 1984)
A.
If any
operator fails or refuses to collect the tax and to make within the
time provided in this chapter any report and remittance of the tax
or any portion thereof required by this chapter, the tax administrator
shall proceed in such manner as he deems best to obtain facts and
information on which to base his estimate of the tax due. As soon
as the tax administrator procures such facts and information as he
is able to obtain upon which to base the assessment of any tax imposed
by this chapter payable by any operator who has failed or refused
to collect the same and to make such report and remittance, he shall
proceed to determine and assess against such operator the tax, interest
and penalties provided for by this chapter. In case such determination
is made, the tax administrator shall give a 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 or her last known address.
B.
The operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days written notice in the manner prescribed in this chapter to the operator to show cause at a time and place fixed in the 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 tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this chapter of the determination and the amount of such tax, interest and penalties. The amount determined to be so due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.28.100.
(Ord. 6 § 9, 1973)
Any operator aggrieved by any decision of the tax administrator with respect to the amount of any tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within fifteen days of the serving of the assessment or termination of tax and penalties, if any, due. The city council shall fix a time and place for hearing the appeal, and the city clerk shall give notice in writing to the operator at his last known address. The findings of the city council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.28.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.
(Ord. 6 § 10, 1973)
It shall be the duty of every 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, all records necessary to
determine the amount of any such tax. The tax administrator or city
auditors shall have the right to inspect these records at all reasonable
times and may subpoena the records of any operator who refuses to
make them available for examination. Such records shall be maintained
at the operator's premises or shall be available for delivery to the
tax administrator within one week after request. The records shall
include at least the following information:
A.
Daily
summaries of room occupancies; and
B.
A record
of each occupancy charge for which an exemption is claimed, including
the name of the individual occupying the room, dates of occupancy,
and reasons for exemption; and
C.
Lists
of bad debts claimed for exemptions including names and addresses
of debtor and amount of room rent unpaid.
(Ord. 6 § 11, 1973; Ord. 649 § 6, 1991)
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 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 tax administrator within three years of the date of payment. The claims shall be on forms furnished by the tax administrator.
B.
An 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 tax administrator that the person from whom the tax has been
collected was not a transient; provided, however, that 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 or paid more than once 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 tax administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the tax administrator that the transient has been unable to obtain a refund from the operator who collected the tax.
D.
No refund
shall be paid under the provisions of this section unless the claimant
establishes his right thereto by written records.
(Ord. 6 § 12, 1973)
The remedies set forth in Sections 3.28.140 through 3.28.210 shall be applicable to preexisting tax debts provided for in this chapter.
(Ord. 6 § 13, 1973)
A.
Whenever
any operator fails to comply with any provision of this chapter relating
to occupancy tax or any rule or regulation of the tax administrator
relating to occupancy tax prescribed and adopted under this chapter,
the tax administrator, upon hearing, after giving the operator ten
days notice in writing specifying the time and place of hearing and
requiring him to show cause why his permit or permits should not be
revoked, may suspend or revoke any one or more of the permits held
by the operator.
B.
The
tax administrator shall give to the operator written notice of the
suspension or revocation of any of his permits. The notices required
in this section may be served personally or by mail in the manner
prescribed for service of notice of a deficiency determination.
C.
The
tax administrator shall not issue a new permit after the revocation
of a permit unless he is satisfied that the former holder of the permit
will comply with the provisions of this chapter relating to the occupancy
tax and regulation of the tax administrator. During the period of
time while such a permit is suspended, revoked or otherwise not validly
in effect, the tax administrator may require that the operation be
closed.
(Ord. 6 § 13 (A), 1973)
A.
If any
amount required to be paid to the city under this chapter is not paid
when due, the tax administrator may, within three years after the
amount is due, file for record in the office of the Riverside County
recorder a certificate specifying the amount of tax, penalties and
interest due, the name and address as it appears on the records of
the tax administrator of the operator liable for the same and the
fact that the tax administrator has complied with all provisions of
this chapter in the determination of the amount required to be paid.
B.
From
the time of the filing for record, the amount required to be paid
together with penalties and interest constitutes a lien upon all real
property in the county owned by the operator or afterwards and before
the lien expires acquired by him. The lien has the force, effect and
priority of a judgment lien and shall continue for ten years from
the time of filing of the certificate unless sooner released or otherwise
discharged.
(Ord. 6 § 13 (B), 1973)
A.
The
amounts required to be paid by any operator under this chapter with
penalties and interest shall be satisfied first in any of the following
cases:
1.
Whenever
the person is insolvent;
2.
Whenever
the person makes a voluntary assignment of his assets;
3.
Whenever
the estate of the person in the hands of executors, administrators,
or heirs is insufficient to pay all the debts due from the deceased;
4.
Whenever
the estate and effects of an absconding, concealed or absent person
required to pay any amount under this chapter are levied upon process
law. This chapter does not give the city a preference over any recorded
lien which attached prior to the date when the amounts required to
be paid became a lien.
B.
The
preference given to the city by this section shall be subordinate
to the preferences given to claims for personal services by Sections
1204 and 1206 of the Code of Civil Procedure.
(Ord. 6 § 13 (C), 1973)
At any time within three years after any operator is delinquent in the payment of any amount required in this chapter to be paid or within three years after the last recording of a certificate under Section 3.28.140, the tax administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter. The warrant shall be directed to any sheriff, marshal or constable and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The tax administrator may pay or advance to the sheriff, marshal or constable, the same fees, commissions and expenses for his services pursuant to a writ of execution. The tax administrator, and not the court, shall approve the fees for publication in a newspaper.
(Ord. 6 § 13 (D), 1973)
At any time within three years after any operator is delinquent
in the payment of any amount, the tax administrator may forthwith
collect the amount in the following manner: The tax administrator
shall seize any property, real or personal, of the operator and sell
the property, or a sufficient part of it, at public auction to pay
the amount due together with any penalties and interest imposed for
the delinquency and any costs incurred on account of the seizure and
sale. Any seizure made to collect occupancy taxes due shall be only
of property of the operator not exempt from execution under the provisions
of the Code of Civil Procedure.
(Ord. 6 § 13 (E), 1973)
If any operator liable for any amount under this chapter sells
out his business or quits the business, his successor or assigns shall
withhold sufficient of the purchase price to cover such amount until
the former owner produces a receipt from the tax administrator showing
that it has been paid or a certificate stating that no amount is due.
(Ord. 6 § 13 (F), 1973)
If the purchaser of a hotel fails to withhold purchase price
as required, he shall become personally liable for the payment of
the amount required to be withheld by him to the extent of the purchase
price, valued in money. Within sixty days after receiving a written
request from the purchaser for a certificate, or within sixty days
from the date the former owner's records are made available for audit,
whichever period expires the later, but in any event not later than
ninety days after receiving the request, the tax administrator shall
either issue the certificate or mail notice to the purchaser at his
address as it appears on the records of the tax administrator of the
amount that must be paid as a condition of issuing the certificate.
Failure of the tax administrator to mail the notice will release the
purchaser from any further obligation to withhold purchase price as
above provided. The time within which the obligation of the successor
may be enforced shall start to run at the time the operator sells
his business or at the time that the determination against the operator
becomes final, whichever event occurs later.
(Ord. 6 § 13 (G), 1973)
Any tax required to be paid by any transient under the provisions
of this chapter shall be deemed a debt owed by the transient to the
city. Any such tax collected by the 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 to an action brought in the name of the city for the
discovery of such amount.
(Ord. 6 § 13 (H), 1973)
The tax administrator, for good cause, may extend for not to
exceed one month the time for making any return or paying any amount,
required to be paid under this chapter. The extension may be granted
at any time, provided a request therefor is filed with the tax administrator
within or prior to the period for which the extension may be granted.
Any person to whom an extension is granted shall pay one percent per
month or fraction thereof from the date on which the tax would have
been due without the extension until the date of payment.
(Ord. 6 § 15, 1973)
It is unlawful for any person having an administrative duty
under this chapter to make known in any manner whatever the business
affairs, operation, or information obtained by an investigation or
the records of any operator or any other person visited or examined
in the discharge of official duty, or the amount or source of income,
profits, losses, expenditures, or any particular thereof set forth
or disclosed in any return, or to knowingly permit any return or copy
thereof to be seen or examined by any person. Successors, receivers,
trustees, executors, administrators, assignees and guarantors, if
directly interested, may be given information as to the items included
in the amounts of any unpaid tax or amounts of tax, penalties and
interest required to be collected.
(Ord. 6 § 16, 1973)
The city is empowered to enter into a joint powers agreement
with other cities and the county, and if such agreement or agreements
can be made wherein central collection for the county is provided,
then it shall be done upon approval by the city council.
(Ord. 6 § 18, 1973)
It is unlawful for any person to violate any provision or fail to comply with any of the requirements of this chapter. Any person violating any provision of this chapter or failing to comply with any of the requirements is deemed guilty of a misdemeanor in accordance with Chapter 1.12 of this code.
Any operator or other person who wilfully fails or refuses to register as required in this chapter, 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 tax administrator, or who renders a false or fraudulent return or claim is guilty of a misdemeanor, and is punishable as set out in Chapter 1.12. Any person required to make, render, sign or verify any report or claim who wilfully makes a false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as set out in Chapter 1.12.
(Ord. 6 § 14, 1973; Ord. 134 § 3, 1976)
The city attorney may, on behalf of the city, take all appropriate
legal action in order to collect such debts owing to the city, and
may commence, or defend, in the name of the city in any court of competent
jurisdiction, an action or actions relating to any amount due from
operators collecting transient occupancy taxes, including penalties,
interest and deficit taxes, revealed by audits. In case of recovery
by the plaintiff, court costs, attorneys' fees and auditor's fees
shall be added to the judgment as costs to be collected from the defendant
or defendants.
(Ord. 375 § 3, 1984)
