Chapter 17.30
HOTEL/MOTEL ROOM TAX
Sections:
17.30.020 Tax to be added to rental price.
17.30.030 Licensing, records, returns and remittance of tax.
17.30.040 Hotel/motel tax return.
17.30.060 Termination, sale or transfer of hotel/motel business.
17.30.070 Penalties and interest.
17.30.120 Enforcement remedies.
17.30.010 Tax levy.
There shall be levied and imposed upon the use and privilege of renting a hotel or motel room located within the city a tax on the daily rate charged for each such hotel and motel room rented for each twenty-four-hour period or any portion thereof. The tax shall be equal to six percent of such daily rate; provided, however, that the tax shall not be levied and imposed upon the rental or lease of a hotel or motel room for a period in excess of twenty-seven days. The tax levied by this section is in addition to the tax levied by Chapter 17.10 NCO. (Ord. O-08-07-04 § 2, 2008: Ord. O-93-6-6 § 1 (part), 1994)
17.30.015 Exemptions.
(a) Gross receipts from the rental of a hotel or motel room deriving from transactions if the following categories shall be exempt from the hotel/motel room tax upon presentation by the buyer of a valid exemption certificate and reasonable identification.
(1) Rentals directly to a municipality, a state or the United States government. (Ord. O-00-6-2 § 2, 2000)
17.30.020 Tax to be added to rental price.
(a) The operator of a hotel or motel shall add the tax to the rental price of the hotel or motel room. The amount of tax due shall be stated separately from the price of rental on the invoice, receipt or other statement or memorandum of rent given to the guest. Such tax is a debt from the guest to the operator of the hotel or motel until paid, and is recoverable at law in the same manner as other debts.
(b) In cases of payment by installment, the operator shall credit payments received first to payment of the tax due on the rental transaction.
(c) Upon collection by the operator of the taxes imposed herein, title thereto shall immediately vest in the city, and pending remittance to the city, the operator shall hold the tax funds in trust for the benefit of the city. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.030 Licensing, records, returns and remittance of tax.
(a) No person may operate a hotel or motel within the city without first procuring a license to do so from the office of the city clerk. There shall be a one-time, nonrefundable fee of fifteen dollars with the original application for the license, which shall thereafter be renewed annually without further payment at the same time and in the same manner as for the renewal of a sales tax license in accordance with Section 17.10.060. The hotel/motel operator’s license shall be nontransferrable. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.040 Hotel/motel tax return.
For each separate business entity, an operator shall complete a Nome hotel/motel tax return reporting in a manner established by the form, all daily/weekly rentals during the preceding calendar month. Each hotel/motel tax return shall set forth the gross rental receipts of the hotel/motel business for the calendar month, including all taxable and nontaxable transactions; the dollar amount and exemption certificate identification number for each exempted transaction; and such other information as the city clerk may require. Each hotel/motel tax return for a calendar month shall be signed and sworn or affirmed under oath by the operator, and shall be received at the office of the city clerk or postmarked with sufficient postage on or before the twentieth day of the month succeeding the end of that calendar month. In the event that the due date is a Saturday, Sunday or legal holiday, the hotel/motel tax return shall be received or postmarked with sufficient postage on or before the next following business day. All taxes, penalties and interest due shall be remitted with the hotel/motel tax return. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.050 Remittance of tax.
A full remittance of all hotel/motel tax levied shall be due and owing from the hotel/motel operator to the city on the twentieth day of the month succeeding the end of the calendar month of the taxable transaction, whether or not the same tax has been collected from the guests. Upon receipt of sufficient proof that the operator has made a diligent effort to collect delinquent hotel/motel tax due and owing from a guest, the city clerk may deduct from the hotel/motel tax due to the city for the first or fourth calendar quarter that amount of hotel/motel tax paid to the city on uncollectible accounts during the preceding calendar year. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.060 Termination, sale or transfer of hotel/motel business.
(a) An operator who sells, transfers or assigns a substantial portion of his or her hotel/motel business interest to another person shall make a final hotel/motel tax return within twenty days after the date of said conveyance. The purchaser of the business shall withhold a portion of the purchase money sufficient to pay any hotel/motel tax, penalties and interest which may be due, unless the seller displays a receipt from the city clerk showing that all tax obligations imposed by this Chapter have been paid in full. Any purchaser of a hotel/motel business who fails to withhold said moneys due and owing to the city, shall be personally liable for said taxes, penalties and interest owed by the seller to the city.
(b) An operator who terminates his business without the benefit of a purchaser, successor or assign, shall make a final tax return and settlement of tax obligations within fifteen days of said termination.
(c) Any person who has filed a hotel/motel tax return shall be presumed to be making rentals to guests in succeeding months unless he or she filed a subsequent return declaring the termination or sales of the hotel/motel business. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.070 Penalties and interest.
A penalty of five percent of the hotel/motel tax due and owing shall be added to the tax for the first month or fraction thereof of delinquency, and an additional five percent of the hotel/motel tax due and owing shall be added to the tax for the second month or fraction thereof of delinquency. In addition to these penalties, interest shall accrue on the principal amount of the delinquent tax at the rate of eight percent per annum from the date of the delinquency until paid. Penalties and interest shall be assessed and collected in the same manner as the hotel/motel tax is assessed and collected. (Ord. O-14-01-02 § 42, 2014: Ord. O-99-11-3 § 37, 1998: Ord. O-93-6-6 § 1 (part), 1994)
17.30.080 Estimated tax.
(a) On or after the fifth day of delinquency in the filing of the required hotel/motel tax return, the assessor shall assess against the delinquent operator a hotel/motel tax for the period based on a reasonable estimate of the gross taxable revenues computed from prior tax returns submitted by the delinquent operator, plus twenty-five percent of the estimated gross taxable revenue. If the assessor determines that insufficient prior tax returns are available for computing a reasonable estimate of the gross taxable revenues, he or she may calculate the estimate from other sources of information, including but not limited to information derived from comparable businesses. Said assessment shall be due and owing on the first day of delinquency, and shall be subject to the same penalties and interest provided in Section 17.30.080.
(b) The estimated assessment of hotel/motel tax due and owing, as provided in subsection (a) of this section, shall become irrebuttable evidence of the amount due and owing to the city unless the city clerk receives, within ten days of the signing of the certified card, certified mailing of notice of the estimated assessment, an accurate and complete hotel/motel tax return for the delinquent period together with a full payment of all taxes, penalties and interest due, and an additional payment of fifty dollars to defray the expense to the city of estimating the delinquent taxes and providing notice thereof. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.090 Tax evasion.
Any person who fails to file a statement required by this chapter, or who makes a false affidavit of the amount, location, kind or value of property subject to hotel/motel taxation, with intent to evade the taxation, is guilty of an infraction. Upon conviction, he or she is punishable by a fine of not more than five hundred dollars plus any surcharge required to be imposed by AS 12.55.039. (Ord. O-14-01-02 § 43, 2014: Ord. O-99-11-3 § 38, 1998: Ord. O-93-6-6 § 1 (part), 1994)
17.30.100 Tax audits.
(a) The assessor is not bound to accept a hotel/motel return as correct. He or she may make an independent investigation of all hotel/motel sales transactions. In such case, the assessor may make his or her own valuation of the taxable property, which shall be prima facie evidence in a court of law.
(b) For the conduct of an investigation, the assessor or his or her agent may enter any premises during reasonable hours, and may examine all books, records and other documents and property that may reasonably lead to the discovery of evidence of hotel/motel rental transactions. A person shall, upon request, furnish to the assessor or his or her agent every facility and assistance for the purposes of the investigation.
(c) Each operator liable to collect and pay the hotel/motel tax shall maintain for a period of three years all books, records and other documents containing evidence of hotel/motel rental transactions, and shall produce any and all said books, records and other documents for examination and inspection at any reasonable time by the assessor. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.110 Tax liens interest.
(a) The tax, interest, penalties and other costs due and owing under this chapter shall constitute a lien of the city upon the assets or property of the delinquent hotel/motel operator.
(b) A notice of lien for amounts described in subsection (a) of this section may be filed in the office of the district recorder, Cape Nome recording district, second judicial district; however, failure to so record said interest shall not be construed as a waiver or abrogation of any and all priorities, rights and interest of the city as law and in equity. Upon full satisfaction of payment of all taxes, interest, penalties and costs due and owing to the city, the assessor shall file a certificate discharging the lien. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.120 Enforcement remedies.
If the hotel/motel tax is not paid when due, the city may enforce the payment of the tax, penalties and interest, by any method available in law, including but not limited to distraint and sale of personal property, a personal action against the delinquent taxpayer, a lien foreclosure action and violation prosecution. (Ord. O-93-6-6 § 1 (part), 1994)
17.30.130 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them in this section:
“Daily rate” means the consideration received for the use of a hotel or motel room valued in money, whether received in money or otherwise, including all receipts, cash, credits and property or services of any kind or nature, and also any amount for which credit is allowed by the operator to the guest, without any deduction therefrom. If the rent or other consideration is charged for other than on a daily basis, the daily rate equals the total consideration received divided by the number of days the charge is for.
“Guest” means a person who, for a consideration, uses, possesses, or has a right to the use or possession of all or part of any room or rooms in a hotel or motel under lease, rental arrangement, concession, permit, right of access, license, or other agreement.
“Hotel” or “motel” means a structure kept, used or maintained as or advertised or held out to the public to be an inn, motel, hotel, apartment hotel, bed and breakfast, dormitory or other place where sleeping or rooming accommodations are available for lease or rent, whether with or without meals, but does not include hospitals, sanitariums, nursing homes, or incidental and de minimis use of residential housing.
“Operator” means a person who operates a hotel or motel located within the city, including, but not limited to, the owner, proprietor, lessee, sublessee, mortgagee in possession, licensee or any person otherwise operating a hotel or motel.
“Person” includes an individual, partnership, cooperative, association, joint venture, corporation, estate, trust, business, receiver, or any entity, group or combination acting as a unit. (Ord. O-93-6-6 § 1 (part), 1994)