Chapter 3.05 TRANSIENT ROOM TAX

“Accrual accounting” means a system of accounting in which the operator enters the rent due from a transient into the record when the rent is earned, whether or not it is paid.

“Cash accounting” means a system of accounting in which the operator does not enter the rent due from a transient into the record until the rent is paid.

“Hotel/motel” means a part of a structure that is occupied or designed for occupancy by transients for lodging or sleeping, including a 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.

“Occupancy” means use or possession of, or the right to use or possess, a room in a hotel for lodging or sleeping.

“Operator” means a person who is the proprietor of a hotel in any capacity. When an operator’s functions are performed through a managing agent of a type other than an employee, the managing agent shall also be considered an operator. For purposes of this chapter, compliance by either the operator or the managing agent shall be considered compliance by both.

“Person” means an individual, firm, partnership, joint venture, association, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or another group or combination acting as a unit.

“Rent” means the gross rent, exclusive of other services.

“Tax” means either the tax payable by the transient or the aggregate amount of taxes due from an operator during the period for which the operator is required to report collections.

“Tax administrator” means the city recorder.

“Transient” means an individual who occupies or is entitled to occupy space in a hotel for a period of 30 consecutive days or less, counting portions of days as full days. A person occupying space in a hotel shall be considered a transient until a period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy or the tenant actually extends occupancy more than 30 consecutive days. A person who pays for lodging on a monthly basis, regardless of the number of days in the month, shall not be considered a transient. [Ord. 23-418-O § 7; Ord. 86-139-O § 1].

3.05.020 Tax imposed.

A transient shall pay a tax in the amount in person to be set by resolution of the rent charged for the privilege of occupancy in a hotel in the city. The tax constitutes a debt owed by the transient to the city, and the debt is extinguished only when the tax is remitted by the operator to the city. The transient shall pay the tax to the operator at the time rent is paid. The operator shall enter the tax into the record when rent is collected if the operator keeps records on the cash accounting basis and when earned if the operator keeps records on the accrual accounting basis. If the rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the operator with each installment. In all cases, rent paid or charged for occupancy shall exclude the sale of goods, services or commodities. [Ord. 23-418-O § 8; Ord. 86-139-O § 2].

3.05.030 Rules for collection of tax by operator.

A. Every operator renting space for lodging or sleeping shall collect a tax from the occupant. The tax collected or accrued constitutes a debt owed by the operator to the city.

B. In cases of credit or deferred payment of rent, the payment of tax to the operator may be deferred until the rent is paid, and the operator shall not be liable for the tax until credits are paid or deferred payments are made. Adjustments may be made for uncollectible accounts.

C. The tax administrator shall enforce this chapter and may adopt rules and regulations necessary for enforcement.

D. For rent collected on portions of a dollar, fractions of a penny of tax shall not be remitted. [Ord. 86-139-O § 3].

3.05.040 Operator’s duties.

An operator shall collect the tax when the rent is collected from the transient. The amount of tax shall be stated separately in the operator’s records and on the receipt given by the operator. An operator shall not advertise that the tax will not be added to the rent, that a portion of it will be assumed or absorbed by the operator, or that a portion of it will be refunded, except in the manner provided by this chapter. [Ord. 86-139-O § 4].

3.05.050 Exemptions.

The tax shall not be imposed on:

A. An occupant staying for more than 30 consecutive days.

B. An occupant whose rent is less than $10.00 per day.

C. A person who rents a private home, vacation cabin or similar facility from an owner who personally rents the facility incidentally to the owner’s personal use.

D. A government employee traveling on government business. [Ord. 86-139-O § 5].

3.05.060 Operator’s registration form.

A. An operator of a hotel shall register with the tax administrator, on a form provided by the administrator, within 15 days after beginning business or within 30 calendar days after passage of the ordinance codified in this chapter.

B. The registration shall include:

1. The name under which the operator transacts or intends to transact business.

2. The location of the hotel.

3. Any other information the tax administrator may require to facilitate collection of the tax.

4. The signature of the operator.

C. Failure to register does not relieve the operator from collecting the tax or a person from paying the tax. [Ord. 86-139-O § 6].

3.05.070 Certificate of authority.

A. The tax administrator shall issue a certificate of authority to the registrant within 10 days after registration.

B. Certificates are nonassignable and nontransferable and shall be surrendered immediately to the tax administrator on cessation of business at the location named or when the business is sold or transferred.

C. Each certificate shall state the place of business to which it applies and shall be prominently displayed.

D. The certificate shall state:

1. The name of the operator.

2. The address of the hotel.

3. The date when the certificate was issued.

4. The following statement:

This Transient Occupancy Registration Certificate signifies that the person named on the certificate has fulfilled the requirements of the Transient Room Tax Ordinance of the city of Rogue River by registering with the tax administrator for the purpose of collecting the room tax imposed by the city and remitting the tax to the tax administrator.

[Ord. 23-418-O § 9; Ord. 86-139-O § 7].

3.05.080 Collections, returns and payments.

A. The taxes collected by an operator are payable to the tax administrator on a monthly basis on the fifteenth day of the following month for the preceding month and are delinquent on the last day of the month in which they are due. The initial return may be for less than the one month preceding the due date.

B. A return showing tax collections for the preceding quarter shall be filed with the tax administrator, in a form prescribed by the tax administrator, before the sixteenth day of the month following each collection period.

C. The operator may withhold one-half of one percent of the tax to cover the expense of collecting and remitting the tax.

D. Returns shall show the amount of tax collected or due for the related period. The tax administrator may require returns to show the total rentals on which the tax was collected or is due, gross receipts of the operator for the period, a detailed explanation of any discrepancy between the amounts, and the amount of rentals exempt.

E. The operator shall deliver the return and the tax due to the tax administrator’s office. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies.

F. For good cause, the tax administrator may extend the time for filing a return or paying the tax for not more than one month. An operator to whom an extension is granted shall pay interest at the rate of one-half of one percent per month on the amount of tax due, without proration for a fraction of a month. If a return is not filed and if the tax and interest due are not paid by the end of the extension granted, the interest shall become a part of the tax for computation of penalties prescribed in RRMC 3.05.090.

G. The tax administrator may require returns and payment of the taxes for other than monthly periods in individual cases to ensure payment or to facilitate collection by the city. [Ord. 23-418-O § 10; Ord. 86-139-O § 8].

3.05.090 Delinquency penalties.

A. An operator who has not been granted an extension of time for remittance of tax due and who fails to remit the tax prior to delinquency shall pay a penalty of 10 percent of the tax due in addition to the tax.

B. An operator who has not been granted an extension of time for remittance of tax due and who fails to pay a delinquent remittance before the expiration of 31 days following the date on which the remittance became delinquent shall pay an additional second delinquency penalty of 15 percent of the total amount of tax due, including the amount of the original tax as well as the 10 percent first imposed.

C. If the tax administrator determines that nonpayment of a remittance is due to fraud or intent to evade the tax, a penalty of 25 percent of the tax shall be added to the penalties stated in subsections (A) and (B) of this section.

D. In addition to the penalties imposed by this section, an operator who fails to remit the required tax shall pay interest at the rate of one-half of one percent per month, without proration for portions of a month, on the tax due, exclusive of penalties, from the date on which the tax first became delinquent until paid.

E. Each penalty imposed and the interest accrued under provisions of this section shall be merged with and become part of the tax required to be paid.

F. An operator who fails to remit the tax within the required time may petition the city council for waiver and refund of the penalty or a portion of it. The city council may, if good cause is shown, direct a refund of the penalty or a portion of it. [Ord. 23-418-O § 11; Ord. 86-139-O § 9].

3.05.100 Deficiency determinations.

A. In making a determination that the returns are incorrect, the tax administrator may determine the amount required to be paid on the basis of the facts contained in the return or on the basis of any other information.

B. Deficiency determination may be made on the amount due for one or more than one period. The determined amount shall be payable immediately on service of notice, after which the determined amount is delinquent. Penalties on deficiencies shall be applied as provided in RRMC 3.05.090.

C. In making a determination, the tax administrator may offset overpayments that have been made against a deficiency for a subsequent period or against penalties and interest on the deficiency. The interest on the deficiency shall be computed as provided in RRMC 3.05.090. [Ord. 86-139-O § 10].

3.05.110 Redemption petition.

A determination becomes payable immediately on receipt of notice and becomes final within 30 days after the tax administrator has given notice. However, the operator may petition for redemption and refund by filing a petition before the determination becomes final. [Ord. 86-139-O § 11].

3.05.120 Fraud – Refusal to collect – Evasion.

A. If an operator fails or refuses to collect the tax, make the report, or remit the tax, or makes a fraudulent return or otherwise willfully attempts to evade the tax payment, the tax administrator shall obtain facts and information on which to base an estimate of the tax due. After determining the tax due and the interest and penalties, the tax administrator shall give notice of the total amount due.

B. Determination and notice shall be made and mailed within three years after discovery of fraud, intent to evade, failure or refusal to collect the taxes, or failure to file a return. The determination becomes payable immediately on receipt of notice and becomes final 30 days after the tax administrator had given notice.

C. The operator may petition for redemption and refund if the petition is filed before the determination becomes final. [Ord. 86-139-O § 12].

3.05.130 Notice of determination.

A. The tax administrator shall give the operator a written notice of the determination. If notice is mailed, it shall be addressed to the operator at the address that appears on the records of the tax administrator, and service is complete when the notice is deposited in the post office.

B. Except in the case of fraud or intent to evade the tax, a deficiency determination shall be made and notice mailed within three years after the last day of the month following the close of the monthly period for which the determination has been made or within three years after the return is filed, whichever is later. [Ord. 86-139-O § 13].

3.05.140 Operator delay.

If the tax administrator believes that collection of the tax will be jeopardized by delay, or if a determination will be jeopardized by delay, the tax administrator shall determine the tax to be collected and note facts concerning the delay on the determination. The determined amount is payable immediately after service of notice. After payment has been made, the operator may petition for redemption and refund of the determination if the petition is filed within 30 days from the date of service of notice by the tax administrator. [Ord. 86-139-O § 14].

3.05.150 Redetermination.

A. An operator against whom a determination is made under RRMC 3.05.100, or a person directly interested, may petition for a redetermination, redemption and refund within the time required in RRMC 3.05.140. If a petition for redetermination and refund is not filed within the time required, the determination is final on expiration of the allowable time.

B. If a petition for redetermination and refund is filed within the allowable period, the tax administrator shall reconsider the determination and, if the operator requested a hearing in the petition, shall grant the hearing and give the operator seven days’ notice of the time and place of the hearing. The tax administrator may continue the hearing if necessary.

C. The tax administrator may change the amount of the determination as a result of the hearing. If an increase is determined, the increase is payable immediately after the hearing.

D. The decision of the tax administrator on a petition for redetermination becomes final seven days after service of notice on the petitioner unless appeal of the decision is filed with the city council within 30 days after notice is served.

E. A petition for redetermination or an appeal is not effective unless the operator has complied with the payment provisions. [Ord. 86-139-O § 15].

3.05.160 Security for collection of tax.

A. The tax administrator may require an operator to deposit security in the form of cash, bond, or other security. The amount of security shall be fixed by the tax administrator and shall be not greater than twice the operator’s estimated average monthly liability for the period for which the operator files returns or $5,000, whichever amount is less.

B. Within three years after the tax becomes payable or within three years after a determination becomes final, the tax administrator may bring an action in the name of the city in the courts of this state, another state, or the United States to collect the amount delinquent and penalties and interest. [Ord. 86-139-O § 16].

3.05.170 Liens.

A. The tax, interest, penalty, and filing fees paid to the tax administrator and any advertising costs incurred when the tax becomes delinquent shall be a lien from the date of its recording with the county clerk until the tax is paid. The lien shall be superior to all subsequently recorded liens on all tangible personal property in the operator’s hotel. The lien may be foreclosed and the necessary property may be sold to discharge the lien.

B. Notice of the lien shall be issued by the tax administrator when the operator has defaulted in payment of the tax, interest and penalty. A copy of the notice shall be sent by certified mail to the operator.

C. Personal property subject to the lien may be sold at public auction after 30 days’ notice published in a newspaper of general circulation in the city.

D. A lien for the tax, interest and penalty shall be released by the tax administrator when the full amount has been paid to the city. The operator or person making the payment shall receive a receipt stating that the full amount of the tax, interest and penalty has been paid, that the lien is released and that the record of the lien is satisfied. [Ord. 86-139-O § 17].

3.05.180 Refunds by city to operator.

When the tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the tax administrator, it may be refunded if a written verified claim stating the specific reason for the claim is filed within three years from the date of payment. The claim shall be submitted on forms provided by the tax administrator. If the claim is approved, the excess amount may be refunded to the operator or it may be credited to an amount payable by the operator and any balance refunded. [Ord. 86-139-O § 18].

3.05.190 Refunds by city to transient.

If the tax has been collected by the operator and deposited with the tax administrator and it is later determined that the tax was erroneously or illegally collected or received by the tax administrator, it may be refunded to the transient if a written verified claim stating the specific reason for the claim is filed with the tax administrator within three years from the date of payment. [Ord. 86-139-O § 19].

3.05.200 Refunds by operator to transient.

If the tax has been collected by the operator and it is later determined that the transient occupied the hotel for a period exceeding 30 days without interruption, the operator shall refund the tax to the transient. The operator shall account for the collection and refund to the tax administrator. If the operator has remitted the tax prior to refund or credit to the transient, the operator shall be entitled to a corresponding refund. [Ord. 86-139-O § 20].

3.05.210 Records required from operators.

Every operator shall keep guest records, accounting books, and records of room rentals for a period of three years and six months. [Ord. 86-139-O § 21].

3.05.220 Examination of records.

During normal business hours and after notifying the operator, the tax administrator may examine books, papers, and accounting records related to room rentals to verify the accuracy of a return or, if no return is made, to determine the amount to be paid. [Ord. 86-139-O § 22].

3.05.230 Confidentiality.

The tax administrator or a person having an administrative or clerical duty under the provisions of this chapter shall not make known in any manner the business affairs, operations, or information obtained by an investigation of records and equipment of a person required to file a return or pay a transient occupancy tax or a person visited or examined in the discharge of official duty; or the amount or source of income, profits, losses or expenditures contained in a statement or application; or permit a statement or application, or a copy of either, or a book containing an abstract or particulars to be seen or examined by any person. However, nothing in this section shall be construed to prevent:

A. Disclosure to or examination of records and equipment by a city official, employee or agent for collecting taxes for the purpose of administering or enforcing the provisions or collecting the taxes imposed by this chapter.

B. Disclosure, after filing a written request, to the taxpayers, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, of information concerning tax paid, unpaid tax, amount of tax required to be collected, or interest and penalties. However, the city attorney shall approve each disclosure referred to in this subsection when, in the tax administrator’s opinion, the public interest would suffer.

C. Disclosure of names and addresses of persons making returns.

D. Disclosure of general statistics regarding taxes collected or business done in the city. [Ord. 86-139-O § 23].

3.05.240 Disposition and use of transient room tax funds.

All revenues received from the tax shall be deposited into a special fund known as the general fund. The tax administrator’s office shall be allocated five percent of the revenue collected for administration of the chapter. The remaining revenue shall be spent in the following manner:

A. Twenty-five percent to parks;

B. Twenty-five percent to public relations;

C. Forty-five percent to police protection. [Ord. 86-139-O § 24].

3.05.250 Transient room tax review committee.

The city council shall serve as the transient room tax review committee. [Ord. 23-418-O § 12; Ord. 86-139-O § 25].

3.05.260 Duties of the tax review committee.

The committee shall:

A. Hear and determine appeals of orders or decisions of the tax administrator and may prescribe the forms, rules and regulations relating to appeals. The committee may affirm, modify or reverse a decision or dismiss an appeal. In reviewing a decision of the tax administrator, the committee may take evidence and make an investigation. It shall give notice of its determination in the manner prescribed for serving notice of a tax administrator’s decision and shall file a certified copy of each determination with the tax administrator. A determination becomes final after 10 days and becomes due, subject to interest and penalties, and enforceable by the tax administrator in the same manner as an order or decision of the tax administrator.

B. Approve, modify or disapprove all forms, rules and regulations prescribed by the tax administrator if the forms, rules and regulations are challenged in the administration and enforcement of this chapter.

C. Hear and determine protests made to a form, rule or regulation approved or prescribed by the tax administrator.

D. Prescribe rules for extensions and, for good cause, grant extensions of time in excess of one month for filing a return of paying the tax.

E. Make investigations regarding imposition and administration of the tax and report its findings to the city council; act in an advisory capacity to the city council on matters pertaining to the tax and enforcement problems; and recommend to the city council the adoption, amendment or repeal of legislation pertaining to the tax. [Ord. 86-139-O § 26].

3.05.270 Appeals to the committee.

A person aggrieved by a decision of the tax administrator may appeal to the committee by filing a notice of appeal with the tax administrator within 10 days of service or mailing of the notice of a decision. The tax administrator shall fix a time and place for hearing the appeal, as prescribed by the committee in its rules and regulations, and shall give the appellant 10 days’ written notice of the time and place of the hearing. [Ord. 86-139-O § 27].

3.05.280 Penalties.

Violation of this chapter is punishable by a fine not to exceed $500.00. [Ord. 86-139-O § 29].