HomeMy WebLinkAboutORD 061
7
a
9
10
11
12
13
14
15
16
17
I8
I
lg
20
21
22
23
I
24
25
26
27
28
29
80
81
SZ
,•04.
•
ORDINANCE NO. 6.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING
A UNIFORM TRANSIENT OCCUPANCY TAX ALONG WITH
THE PROCEDURES TO BE USED IN CONJUNCTION
THEREWITH, AND SPECIFICALLY SUPERSEDING COUNTY
ORDINANCE NO. 49S.
The City Council of the City of Palm Desert, California,
DOES HEREBY ORDAIN as follows:
SECTION 1. SHORT TITLE.
The short title of this Ordinance shall be the "Uniform Transient
Occupancy Tax Ordinance."
SECTION 2. DEFINITIONS.
Except where the context otherwise requires, the definitions
given in this Section shall govern the construction of this Ordinance:
A. Person. "Person" means any Individual, firm,
partnersT7p-joint venture, association, social club,
fraternal organization, joint stock company, corporation,
estate, trust, business trust, receiver, trustee, syndi-
cate, or any other group or combination acting as a unit.
B . Hotel. "Hotel" means any structure, or any
portion of structure, which is occupies 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, 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 subject to the business license
provided by this Code.
C. Occccu_pan�. "Occupancy" means the use or possession,
or the rtg t�h itie use or possession, or any room, rooms or any
portion thereof offered for rent for dwelling, lodging or
sleeping purposes regardless of the purpose for which such
rooms are rented.
D. Transient. "Transient" means any person who
exercises occupancy or is entltled to occupancy by reason of
concession, permit, right of access, license or other agree-
ment 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.
In determining whether a person is a transient, uninterrupted
periods of time extending both prior and subsequent to the
effective date of this chapter may be considered.
-1-
1
1
10
11
12
is
14
is
16
17
is
12
20
21
22
23
2<
2S
26
27
29
29
s0
fl
S2
i �►
E. Rent. "Rent" means the consideration charged or
ehargeaMi7br the occupancy of space valued in money whether
received in money. goods. labor or otherwise, including the
full value of receipts, cash. credits, property or service
of any nature whatsoevee . It Is not the Intent of this section
to make the operator liable for the tax uncollected rent.
However, uncollected rent must be reported.
FOperator. 'Operator" mears the person who Is
proprietor o 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, the
managing agent shall also be deemed an operator for the purpose
of this Ordinance, and shall have jointly and severally the same
duties and liabilities as his principal. Compliance with the
provisions of this Ordinance by either the principal or the
m-inaging agent shall, however, be considered to be
compliance by both.
C. Tax Administrator. "Tax Administrator" means the
City Clerk or anyone es gnated by the City Council.
SECTION 3. TAX IMPOSED.
For the privilege of occupancy in any hotel, each transient is
subject to, and shall pay a tax in yie amount of six percent (6%) of the rent
charged by the operator. Said tax constitutes a debt owed by the transient to
the City which is 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 -ent is paid. If the rent Is paid in installments, a proportionate share
,f tne tax shall be paid with each installment. The unpaid tax shall be due when
t�-- ansiert ceases to occupy space in the hotel. if for any reason the tax
d-e :s not paid to the operator of the hotel, the Tax Administrator may require
a: such tax shall be paid directly to the Tax Administrator. Tax on occupancies
in =x:harge for services of any kind is due and payable to the City by the
^at-ator, the amount of tax being determined on the basis of six percent
:)` the current rental value of the accomodations furnished.
SECTION 4. EXEMPTIONS.
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
herein provided;
S. Any Federal or State of California officer or employee
when on official business;
C. Any officer or employee of a foreign government
who 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 rent Is collected and under penalty of perjury upon a form
prescribed by the Tax Administrator.
OR D. 6
SECTIONS. OPERATOR'S DUTIES.
Each operator shall collect the tax Imposed by this Ordinance to
1
1
! 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 wl I be assumed
6 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.
4
6 SECTION 6. REGISTRATION.
4 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
7 Administrator an application for a Transient Occupancy Registration Permit
for each place of business. Every application for such a permit shall be made
i 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
9 of his place of business and such other Information as the Tax Administrator
may require. The application shalt be signed by the owner if a natural person,
10 by a member or partner. If an association or partnership, by an executive officer
or some person specifically atuhorized by the corporation to sign the application
11 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
12 all times posted In a conspicuous place on the premises. Said Permit shalt,
among other things. state the following:
is
14 (1) Name of hotel.
is (2) Name of operator.
16 (3) Hotel address.
17 (4) The date upon which the permit was issued.
16 (5) 'This Transient Occupancy Registration Permit
signifies that the person named on the face hereof
19 has fulfilled the requirements of the Uniform Transient
Occupancy Tax Chapter by registering with the Tax
20 Administrator for the purpose of collecting from
transients the Transient Occupancy Tax and remitting
n said tax to the Tax Administrator. This Permit does
not authorize any person to conduct any unlawful
22 business in an unlawful manner. nor operate a hotel
without strictly complying with all applicable laws.
23 Including but not limited to those requiring a permit
from any board, commission, department or office
24 of this City. This Permit does not apply in lieu
of such other permits which are otherwise required.'
25 At the time of making an application for a Registration Permit,
the applicant shall pay a registration fee of Five Dollars ($5.00) for each
V permit Issued.
n SECTION 7. A. RETURNS AND PAYMENT.
19 The tax Imposed under Section 3 is due and payable to the
Tax Administrator quarterly and becomes delinquent on the first day of the second
30 succeeding calendar month following the close of each quarter.
n r�Rt
-3_
OR D. 6
1
1
1
B. REPORTING AND REMITTING.
= Each operator shell, on or before the last day of the month
following the close of each quarter, mbke a return to the Tax Administrator,
S on fortes provided by him, of the total rents charged or chargeable as provided
In Section 3, whether or not received. Including any rentals charged for
4 occupancies exempt under the provisions of Sections 2-D and 4 and the amount
of tax collected for transient occupancies. Amounts claimed on the return
S as exempt be fully Itemized and explained on the return or supporting schedule.
At the time the return Is filed, the tax fixed at the rate of six percent (6%)
of the amount of rentals charged or chargeable, which are not exempt from
tax under Sections 2-D. 4, and 12. shall be remitted to the Tax Administrator.
T The Tax Administrator may establish other reporting periods and may require
a cash deposit or bond for any permit holders if he deems it necessary in
S order to Insure collection of the tax and he may require further information
in the return. All taxes collected by operators pursuant to this Chapter
9 shall be held in trust for the account of the City untlI payment thereof is
made to the Tax Administrator.
10
it C. CESSATION OF BUSINESS.
12 E ich operator shall notify the Tax Administrator, ten (10)
day prior to tha sJe or cessation of business for any reason and returns and
13 payments a-d due immediately upon the sale or cessation of business.
14 SECTIONS. PENALTIES AND INTEREST.
is A. Delinquency. Any operator who falls to pay any tax to the
City or any amount o tax requ red to be collected and paid to the City Including
16 ' wrouns based on determinations made by the Tax Administrator under Section 9
of :.".is Ordinance, whithin the time required, shall pay a penalty of ten percent
iT (' _;,! of the tax plus Interest at the rate of one-half percent (.5%) per month,
c- `.-action ..hereof, from the date on which the tax or the amount of tax required
18 =e coilected becomes due and payable to the City until the date of payment.
19 B. Fraud. If the Tax Administrator determines that non-payment
a` any remittance due under this Chapter is due to fraud, a penalty of one hundred
20 ! ^srcent (100%) of this amount of the tax shall be added thereto in addition to the
a ^.at.ies stated in sub -paragraph A of this Section.
21
22 SECTION 9. FAILURE TO COLLECT AND REPORT TAX.
23DETERMINXTION OF TAX BY TAX ADMINISTRATOR.
24 If any operator shall fall or refuse to collect said tax and to make
within the time provided In this Ordinance, any report and remittance of said
25 tax or any portion thereof required by this Ordinance, the Tax Administrator
shall proceed in such manner as he may deem best to obtain facts and
26 Information on which to base his estimate of the tax due. As soon as the Tax
Administrator shall procure such facts and Information as he is able to obtain
27 upon which to base the assessment of any tax imposed by this Ordinance payable
by any operator who has failed or refused to collect the same and to make such
28 report and remittance, he shall proceed to determine and assess against such
operator the tax, Interest and penalties provided for by this Ordinance. 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 mall, postage prepaid, addressed to the operator so assessed at his last
known address.
!1
n *•*♦
ORD. 6
I
1
1
2
3
4
S
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
26
29
30
31
32
Such operator may within ten 00) days after the serving or
mailing of such notice make application In writing to the Tax Administrator
For a heraring 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 shalt become final and conclusive
and Immediately due and payable. If such application is made, the Tax
Administrator shall give not less than five (5) days written notice in the manner
prescribed herein to the operator to show cause at a time and place fixed in
said notice why said 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 herein of the determination and the amount of such tax, interest
and penalties. The amount determined to be so due shall be payable after
fifteen (1S) days unless an appeal is taken as provided In Section 10.
SECTION 10. APPEAL.
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 (1S) days of the serving of the assessment or determination 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 iinal and conclusive and shall be served upon the appellant in the manner
prescribed above for service of notice of hearing. Any amount found to be
due shall be immediately due and payable upon the service of notice.
SECTION 11. RECORDS.
It shall be the duty of every operator liable for the collection and
payment to the City of any tax imposed by this Ordinance to keep and preserve,
In the City of Palm Desert, for a period of three (3) years, records in such
from as the Tax Administrator may require to determine the amount of
such tax. The Tax Administrator shall have the right to inspect such records
at all reasonable times and may subpoena the records of any operator who
refused to make them available for examination.
SECTION 12. 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 Ordinance. it may be refunded
as provided in sub -paragraphs 8 and C of this Section provided a claim in
writing thereis
stating under penalty of perjury the specific grounds upon
which the elalm s founded, is filed with the Tax Administrator within three
(3) years of the date of payment. The claims shall be on forms furnished by
the Tax Administrator.
0. 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
tws either been refunded to the transient or credited to rent, subsequently
payable by the transient to the operator.
ORD. 6
C. A transient may obtain a refund of taxes overpaid or paid
-S-
1 were then once erroneously or illegally collected or received by the City by
filing a claim to the manner provided in sub-pbrograph 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
a satisfaction of the Tax Administrator that the transient has been unable to
obtain a refund from the operator who collected the tax.
4
O. No refund shall be paid under the provisions of this Section
S unless the claimant establishes his right thereto by written records.
6 SECTION 13. ACTIONS TO COLLECT.
7 The remedies set forth in this section shall be applicable to
pre-existing tax debts provided for in this Ordinance.
8
A. Revocation of Permit. Whenever any operator fails to
9 comply with any provision of t s ri7inance relating to occupancy tax or
any rule or regulation of the Tax Administrator relating to occupancy tax
10 prescribed and adopted under this Ordinance. the Tax Administrator relating to
occupancy tax prescribed and adopted under this Ordinance, the Tax
11 Administrator, upon hearing, after giving the operator ten (10) days
notice In writing specifying the time and. -place of hearing and requiring
12 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.
13
The Tax Administrator shall give to the operator written
14 notice of the suspension or revocation of any of his permits. The notices
herein required may be served personally or by mail in live manner pre-
15 scr;ted °.�r service of notice of a deficiency determination.
16 , The Tax Administrator shall not issue a new permit after the
r=. -_-,:on of a permit unless he is satisfied that the former holder of the
17 ccrnply with the provisions of this Ordinance relating to the
-�ncy tax and regulations of the Tax Administrator. During the period
I - • hire such a permit is suspended, revoked or otherwise not validly
="_rt, the Tax Administrator may require that the operation be closed.
19
B. Recordino Certificate: Lien. If any amount required to
20 ; !:e za:cf to the City un er this Ordinance Is not paid when due, the Tax
A.trrmisira:or may, within three years after the amount is due, file for record
21 in the office of the Riverside County Recorder a certificate specifying the
a-o%;nt of tax, penalties and interest due, the name and address as it appears
22 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
23 this Ordinance In the determination of the amount required to be paid.
24 From the time of the filing for record, the amount required
to be paid together with penalties and interest constitutes a lien upon all
25 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
26 of a judgment lien and shall continue for ten (10) years from the time of
27 filing of the certificate unless sooner released or otherwise discharged.
C. Priority and Lien of Tax. The amounts required to be
28 paid by any operator under this Ordinance with penalties and interest shall be
29 satisfied first in any of the following cases:
so (1) Whenever the person is insolvent.
(2) Whenever the person makes a voluntary assignment
31 of his assets.
32 (3) Whenever the estate of the person in the hands
-6-
ORD •6
1
1
1
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
29
30
31
32
ow
of executors, administrators, or heirs is in-
sufficient 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 Ordinance are levied upon
process law. This Ordinance does not give the
City a preference over any recorded lien which
attached prior to the date when the amoutits
required to be paid became a lien.
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.
0. Warrant for collection of tax. At any time within three
(3) years after any operators delinquent in payment of any amount
herein required to be paid or within three (3) years after the last recording
of a certificate under Section 13-A, 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 Ordinance. 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.
E. Seizure and Sale. At any time within three (3) years
after any operators delinquent M-1the 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.
F. Successor's Liability -Withholding by Purchaser.
If any operator liable for any amount under this Ordinance
sells out his business or quits the business, his successor or assigns
shall withhold sufficient of the purchase price to cover such amount untlI
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.
G. Liability of Purchaser: Release.
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 (60) days after receiving a written request from the
purchaser for a certificate, or within sixty (60) 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 (90) 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
-7-
OR D. 6
1
1
1
2
3
4
6
6
a
9
10
11
12
13
14
is
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
i
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. which-
ever event occurs later.
H. Res onsib(ltt for�pa=nt. Any tax required to be paid
by any transient under the provisions this Ordinance 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 Ordinance shall be liable to an action brought In the name of the City of
Palm Desert for Va discovery of such amount.
SECTION 14. VIOLATIONS: MISDEMEANOR.
Any person knowingly violating any of the provisions of this
Ordinance shall be guilty of a misdemeanor and shall be punishable therefor
by a fine of not more than five hundred dollars ($SOO.00) or by imprisonment
In the City jail for a period of not more than six (6) months or by both such fine
and imprisonment.
Any operator or other person who wilfully fails or refuses to
register as required herein, or to furnish any return required to be made,
or who falls 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 aforesaid.
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 Ordinance to
be made, is guilty of a misdemeanor and is punishable as aforesaid.
SECTION 15. EXTENSION OF TIME.
The Tax Administrator, for good cause, may extend for not
:: e..:aed one (1) month the time for making any return or paying any amount.
-ad to be paid under this Ordinance. The extension may be granted at
a-. :'- e. 2rovided a request therefor is filed with the Tax Administrator
A n or prior to the period for which the extension may be granted. Any
=e-s:n to whom an extension Is granted one percent (IS) per month or fraction
-tof from the date on which the tax would have been due without the extension
::1 :he date of payment.
SECTION 16. DIVULGING OF INFORMATION FORBIDDEN.
It is unlawful for any person having an administrative duly under
this Ordinance to make known in any manner whatever the business affairs.
operations, or information obtained by an investigation or the records or any
operator or arty 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.
SECTION 17. SEVERABILiTY.
If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this Ordinance or any part thereof Is fL.r any reason held
•o be unconstitutional, such decision shall not affect the validity of the remaining
portions of this Ordinance or any part thereof. The City Council hereby
declares that It would have passed each section. subsection, subdivision,
paragraph, sentence, clause or phrase thereof, Irrespective of the fact that
OR D. %
-!-
LJ
1
i
•
4
i
i
t
i
1Q '�
tt
12
is
14
is
is
17
is
19
2i
21
22
m
26
25
!6
V
21
s
me
st
ss
•
any one or more sections, subsections, subdivisions. paragraphs, sentences,
clauses or phrases be declared unconstitutional.
SECTION 18. .JOINT AGREEMENT.
The City is empowered to enter Into a Joint powers agreement
with other cities and the County of Riverside, and if such agreement or
agreements can be made wherein central collection for the County of Riverside
Is provided. then It shall be done upon approval by the City Council.
SECTION 19. EFFECTIVE DATE.
This ordinance relates to taxes for the usual and current expenses
of the city and shall take effect immediately. Prior to the expiration of fifteen
(15) days from the passage thereof copies shall be posted In three public places
within the City limits of the City of Palm Desert, as prescribed by Resolution
No. A and in accordance with the provisions of Section 36933 of the Government
Code of State of California.
PASSED, APPROVED and ADOPTED this �c*,, day of
Novemher , 1973, by the following vote:
AYES: Mayor Clark, Councilwoman Benson,
Councilmen Aston, Brush, !McPherson
NOES: None
ASSENT: None
A'TEST:
er
City of Palm Desert, California
ORD. 6
-9-