HomeMy WebLinkAboutThe Inn - TOT ReimbrsmntREQUEST:
CITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
CONSIDERATION OF A REQUEST FROM THE INN AT DEEP CANYON
FOR REIMBURSEMENT OF PENALTY AND INTEREST PAID FOR
UNDER -PAYMENT OF 2005 TRANSIT OCCUPANCY TAX
DATE: March 8, 2007
CONTENTS: The Inn At Deep Canyon Correspondence
SUBMITTED BY: Carlos L. Ortega, City Manager
RECOMMENDATION
By Minute Motion:
(1) Approve reimbursement to The Inn At Deep Canyon for penalty and interest paid in the
amount of $654.77, in connection with under -payment of 2005 Transient Occupancy
Taxes.
BACKGROUND
During the City's audit of the 2005 Transit Occupancy Tax, it was determined the Inn at Deep
Canyon was short $1037.38 in taxes, resulting in a penalty of $518.69 along with $136.08 in
interest for a total of $654.77. Linda Carter, General Manager of The Inn, indicated that this
under payment was an accidental oversight and not intentional. The Inn is, therefore,
requesting reimbursement of the $654.77 paid for penalty and interest. The Git"'Q in1 F
Department is in receipt of the amount due, as The Inn did not want to accra€ Jit o a
interest. As this under -payment was an oversight and The Inn did not delay pema ty p :y n n
to the City, Staff is recommending that the City Council grant this reimbursemen .
Submitted By:
CARLOS L. TEGA
City Manager
G:IGtyMpr'Karen RussoWpenda Reports 2007Vnn at Deep Canyon.wpd
1
Reviewed By:
PAUL GIBSON
Finance Director
o:
c
0
CC1°
0
1ER •!z
1 pp�� Ht!!U)WE-+ra tS
TTHE 74-470 tl hr nja Trail • Palm 1)c .0 r7. C l 922b(J • (760) .346-8061 • F'cc.t (7611) 341-0120
e-mail: re.cert'atians(a`irur-acl<.<'vrrt • Rebvire: tvtilt.iuu-rulr.rnttt
AT DEEP CANYON
February 19, 2007
Honorable Richard Kelly
73510 Fred Waring Dr
Palm Desert, CA 92260
Dear Dick,
During the audit for the 2005 TOT, The Inn was found to have been short by
$1037.38 in taxes. This was an honest mistake and not an attempt to defraud
the city.
Because of the timing of the audit, if a mistake is made, it is not caught for a year
and a half. There is no opportunity to catch the mistake and pay the tax. In the
meantime, penalties and interest are accumulating.
The amount of penalty is $518.69 and the interest is $136.08, for a total of
$654.77. We respectfully request that the city waive the penalty and interest
portion of the bill.
Please advise if this is acceptable.
in Carter
General Manager
G7�ov�' 7