Chapter 3.12
TRANSIENT OCCUPANCY TAX
Sections:
3.12.030 Collection of tax by lodging provider.
3.12.050 Registration of lodging provider--Form and contents--Execution--Certificate of authority.
3.12.060 Determination generally--Returns--Payments.
3.12.070 Deficiency determinations.
3.12.080 Determination if no return made.
3.12.090 Collection of tax by city.
3.12.100 Administration of chapter--Record keeping.
3.12.010 Definitions.
The following words, terms and phrases shall, for the purposes of this chapter and except where the context clearly indicates a different meaning, be defined as follows:
"City" means the city of Angels wherein the legislative body is empowered to impose a transient occupancy tax by California Revenue and Taxation Code Section 7280, et seq.
"Due date" means the last day of the month after the close of the quarter period for which the tax is to be computed.
"Estimated tax liability" means the lodging provider’s prospective tax liability based upon the average monthly tax remittance in the prior fiscal year, as adjusted for change in tax rate or substantial change in circumstances due to damage to the hotel.
"Finance officer" means the duly appointed finance officer of the city or his/her designee.
"Folio" means primary documentation produced by a hotel and/or vacation rental that demonstrates interaction between the lodging provider and the occupant, and which, at a minimum, reflects the name and address given by the occupant, the date(s) of occupancy, the amount of rent charged for each date together with the amounts of applicable excise tax(es), and the method(s) of payment.
"Guest room" means accommodations occupied, or intended, arranged, or designed for transient occupancy, by one or more occupants for the purpose of living quarters or residential use.
"Hotel" means any facility or any portion of a facility, including any lodging house, rooming house, dormitory, Turkish bath, bachelor hotel, studio hotel, motel, motor hotel, auto or trailer court, truckstop, tourist cabin, campground, lodge, inn, time-share except as defined by Business and Professions Code Section 11212(1)(X) or other condominium, apartment community, public club, or private club, containing guest rooms and which is occupied, or is intended or designed for occupancy, by paying guests, whether rent is paid in money, goods, labor, or otherwise. It does not include any hospital, asylum, sanitarium, orphanage, jail, prison, or other facility in which human beings are housed and detained under legal restraint.
"Lodging provider" means any person operating a hotel or vacation rental in the city including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, lender in possession, licensee or any other person operating such hotel; and who is subject to the taxation imposed for furnishing for value to the public any rooms, lodgings, or accommodations.
"Occupancy" means the use or possession, or the right to the use or possession, of any guest room in a hotel or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the guest room.
"Occupant" means any person who, for a consideration, uses, possesses, or has the right to use or possess any guest room in a hotel under any lease, concession, permit, right of access, license to use or other agreement, or otherwise.
"Permanent resident" means any occupant who, as of a given date, has or shall have occupied or has or shall have the right of occupancy of any guest room in a hotel for not less than thirty continuous days next preceding such date. Such right may be established prior to the inception of stay or at any time during said thirty-day period by written agreement to rent the guest room for longer than said period or by payment of the first thirty days’ rent in advance without refund. However, in instances of agreement, the guest room must be rented de facto for the thirty-day period for the occupant to qualify as a permanent resident.
"Person" means any individual, firm, partnership, joint adventure, association, social club, fraternal organization, joint stock company, corporation, cooperative, estate, trust, receiver, trustee, syndicate, or any other group or combination acting as a unit, the plural as well as the singular number; excepting any foreign diplomat enjoying tax exemption by United States treaty or consular convention, insurance company subject to the gross premiums tax, and the United States, the state of California and any instrumentality of either thereof, upon which the city is without power to impose the tax.
"Rent" means the consideration received for occupancy 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 the amount for which credit is allowed by the lodging provider to the occupant, without any deduction therefrom whatsoever.
"Tax" means the tax on occupants imposed by this chapter, as provided for by California Revenue and Taxation Code Section 7280, et seq.
"Vacation rental" means one or more dwelling units, including either a single-family, detached or multiple-family attached unit, mobile homes, factory-built units or mobile units, rented for the purpose of overnight lodging for a period of not less than one night and not more than thirty days other than ongoing month-to-month tenancy granted to the same renter for the same unit. (Ord. 450 (part), 2011: Ord. 435 §2, 2009)
3.12.020 Tax rate.
There shall be paid for every occupancy of a guest room in a hotel and/or vacation rental in the city a tax at the rate of twelve percent of the amount of rent unless an exception is provided under Section 3.12.040. (Ord. 488 §1, 2019: Ord. 450 (part), 2011: Ord. 435 §3, 2009)
3.12.030 Collection of tax by lodging provider.
Every lodging provider furnishing guest rooms in a hotel and/or vacation rental in the city shall collect a tax of ten percent on the amount of rent from the occupant unless an exception is provided in Section 3.12.040. The lodging provider shall provide a receipt to each occupant, which receipt shall reflect both the amount of rent and the amount of the tax applicable. This tax shall be due from the occupant, and shall be collected by the lodging provider at the same time that the rent is collected. The lodging provider shall be liable for any amount of tax that he/she fails to collect appropriately; and must remit to the city any amount of tax that he should collect inappropriately. (Ord. 450 (part), 2011: Ord. 435 §4, 2009)
3.12.040 Exceptions.
A. Exclusions. No tax shall be collected from an occupant after becoming a permanent resident; or from an insurance company subject to the gross premiums tax; or from the United States and the state of California or any instrumentality of either thereof; or from a foreign diplomat enjoying tax exemption by United States treaty or consular convention, when presenting substantiation issued by the United States Department of State. Occupancy provided without charge in money or otherwise and denominated food costs are not subject to this tax. (Ord. 435 §5, 2009)
3.12.050 Registration of lodging provider--Form and contents--Execution--Certificate of authority.
Every person engaging or about to engage in business as a lodging provider in the city shall immediately register with the finance officer on a form provided by said official. Persons engaged in such business must so register not later than thirty days after the date that the ordinance codified in this chapter becomes effective. Such registration shall set forth the name under which such person transacts business or intends to transact business, the location of this place(s) of business and such other information which would facilitate the administration of the tax as prescribed by the finance officer. The registration shall be signed by the owner if a natural person; in case of ownership by an association or partnership, by a member or partner; in case of ownership by a corporation, by an officer. The finance officer shall, after such registration, issue without charge a certificate of authority to each lodging provider to collect the tax from the occupant. A separate registration shall be required for each place of business of a lodging provider. Each certificate shall state the name and location of the business to which it is applicable. (Ord. 435 §6, 2009)
3.12.060 Determination generally--Returns--Payments.
A. Due Date of Taxes. All amounts of such tax shall be due and payable to the finance officer quarterly on or before the last day of the next succeeding month. The tax shall become delinquent for any monthly period after the last day of each succeeding month during which it remains unpaid.
B. Penalty and Interest for Failure to Pay Tax by Due Date. A lodging provider who fails to make any return or to pay the amount of tax as prescribed shall be assessed a specific penalty to be added to the tax in the amount of ten percent. Delinquent amounts shall bear interest at the rate of one-half of one percent per month, or fraction thereof, until paid.
C. Acceptance of Delinquent Return and Remittance Without Imposing Penalty and Interest--Authority--Requirements. If the failure to make any return or to pay the amount of tax by the due date results from good cause shown to the satisfaction of the governing authority of the city by declaration under penalty of perjury attached to the return, and remittance is made within ten days of the due date, such return may be accepted exclusive of penalty and interest.
D. Waiving of Penalty and Interest--Authority. The governing authority of the city reserves to itself all authority to waive any penalty and interest.
E. Penalty for Fraud. In the case of a false or fraudulent return, or of failure to file a return where willful intent exists to defraud the city of any tax due, a penalty of fifty percent shall be assessed.
F. Return--Remittance--Time of Filing--Lodging Providers Required to File--Contents. On or before the last day of the month succeeding each reporting quarter, a return for the preceding quarter together with appropriate remittance shall be filed with the finance officer. The return shall report the gross rent, taxable rent, exempt rent, amount of tax collected or otherwise due for the period, and such other information as may be required by the finance officer. However, if the estimated tax liability for any monthly period shall exceed two thousand five hundred dollars for a lodging provider who in the prior fiscal year remitted tax greater than two thousand five hundred dollars in any three consecutive quarters, such lodging provider shall file an estimated return and remit not less than fifty percent of the estimated tax liability for the quarter by the last day of that same monthly period. The amount of tax so remitted shall be credited against the amount to be due with the regular return for the quarter to be filed on the last day of the succeeding month.
G. Extension of Time of Filing--Authority--Requirements--Remittance--Penalty and Interest. The governing authority of the city may, for good cause, extend the time for making returns for not longer than thirty days. No extension shall be valid unless granted in writing upon written application of the lodging provider. Such grant may not be applicable for a longer period than four consecutive quarters. A lodging provider granted an extension shall remit tax equaling not less than one hundred percent of the tax paid for the corresponding period of the prior fiscal year; such remittance to be made on or before the date the tax would otherwise come due without the grant of extension. No penalty or interest shall be charged during the first ten days of the extension period. Thereafter, interest shall be collected on the unpaid balance at the rate of one-half of one percent per month. (Ord. 435 §7, 2009)
3.12.070 Deficiency determinations.
A. Recomputation of Tax--Authority to Make--Basis of Recomputation. If the finance officer is not satisfied with the return or returns of the tax or the amount of the tax required to be paid to the city by any lodging provider, he/she may compute and determine the amount required to be paid upon the basis of any information within his/her possession or that may come into his/her possession. One or more deficiency determinations may be made of the amount due for one or more quarters.
B. Penalty and Interest for Failure to Pay Tax. Penalty and interest shall be assessed upon the amount of any determination, as provided by Section 3.12.060.
C. Notice of Determination--Service of. The finance officer shall give to the lodging provider written notice of this determination. The notice may be served personally or by mail; if by mail, such service shall be addressed to the lodging provider at his/her address as it appears in the records of the city. Service by mail is complete when delivered by certified mail with a receipt signed by the addressee.
D. Time Within Which Notice of Deficiency Determination to Be Mailed. Except in cases of failure to make a return or of fraud, every notice of deficiency determination shall be mailed within four years after the twentieth day of the calendar month following the quarterly period for which the amount is proposed to be determined, or within four years after the return is filed, whichever period should last expire.
E. Appeal or Protest of Deficiency Determination. After paying the deficiency determination, the lodging provider may file a claim for refund with the governing authority addressed to the finance officer. Such person shall have three years from the date of payment to file a claim for refund. Said claim shall be in writing and include a summary statement of the grounds upon which the lodging provider relies in contesting the deficiency determination. Said summary statement shall be supported by such documentation as the lodging provider believes may cause the abatement or reduction of the deficiency determination, thereby resulting in a refund. In the event that the lodging provider desires a conference or hearing before the governing authority in connection with any claim for refund, he/she shall so specify the request in writing in the claim. If the claim conforms to the requirements of this section, the governing authority shall grant a conference or hearing at a time specified by the governing authority. The governing authority shall consider information contained in the lodging provider’s claim for refund and such other information as is available. The governing authority shall approve or disapprove the lodging provider’s claim and shall notify the lodging provider of its action. No refund provided for in this section shall be assignable. (Ord. 435 §8, 2009)
3.12.080 Determination if no return made.
A. Estimate of Gross Receipts. If any lodging provider fails to make a return, the finance officer shall make an estimate of the amount of the gross receipts of the lodging provider or, as the case may be, of the amount of total rentals in the city which are subject to the tax. The estimate shall be made for the period or periods in respect to which the lodging provider failed to make the return and shall be based upon any information which is or may come into the possession of the finance officer. Written notice shall be given in the manner prescribed in Section 3.12.070(C).
B. Penalty and Interest for Failure to Pay Tax. Penalty and interest shall be assessed upon the amount of any determination, as provided by Section 3.12.060. (Ord. 435 §9, 2009)
3.12.090 Collection of tax by city.
A. Action for Delinquent Tax--Time For. At any time within four years after any tax or any amount of tax required to be collected becomes due and payable, and at any time within four years after the delinquency of any tax or any amount of tax required to be collected, the finance officer may bring an action in a court of competent jurisdiction in the name of the city to collect the amount delinquent together with penalty, interest, court fees, filing fees, attorney’s fees and other legal fees incident thereto.
B. Lodging Provider Selling or Quitting Business. If any lodging provider liable for any amount under this chapter sells out his/her business or quits his/her business, he/she shall make a final return and remittance within fifteen days after the date of selling or quitting the business.
C. Duty of Successors or Assignees of Lodging Provider to Withhold Tax from Purchase Money. If any lodging provider liable for any amount of tax, interest or penalty under this chapter sells out his/her business or quits the business, his/her successors or assigns shall withhold sufficiently from the purchase price to cover such amount until the former owner produces from the finance officer either a receipt reflecting full payment or a certificate stating that no amount is due.
D. Liability for Failure to Withhold. If the purchaser of a business fails to withhold from the purchase price as required, he/she shall be personally liable for the payment of the amount required to be withheld by him/her to the extent of the purchase price.
E. Credit for Tax, Penalty or Interest Erroneously or Illegally Collected or Erroneously Paid. Whenever the amount of any tax, penalty or interest has been erroneously or illegally collected or received by the city, it may be refunded by the governing authority in accordance with the provisions of Section 3.12.070(E). If the lodging provider deems that he/she has overpaid or paid more than once, which fact has not been determined by the finance officer, he/she shall have three years from the date of payment to file a claim in writing stating the specific ground upon which the claim is founded. The claimant may request a hearing before the governing authority at which the claim and any other information available will be considered. The governing authority shall approve or disapprove the claim, and notify the claimant of its action. (Ord. 435 §10, 2009)
3.12.100 Administration of chapter--Record keeping.
A. Authority of Finance Officer. The finance officer shall administer and enforce the provisions of this chapter for the collection of the tax.
B. Records Required from Lodging Providers, Etc.--Form. Every lodging provider renting guest rooms in the city shall preserve, for a minimum of five years, all folios, receipts, certificates of exemption and such other documents as the finance officer may prescribe, and in such form as he/she may require. Said records shall at all times be available for examination within the city.
C. Examination of Records--Audits. The finance officer or any person authorized in writing by him/her may examine the books, papers, records, financial reports, equipment and other facilities of any lodging provider renting guest rooms and any lodging provider liable for the tax, in order to verify the accuracy of any return made, or if no return is made by the lodging provider, to ascertain and determine the amount required to be paid. Such examination shall be conducted at the applicable hotel in the city, unless the finance officer shall stipulate another place.
D. Authority to Require Reports--Contents. In administration of the provisions of this chapter, the finance officer may require the filing of reports by any person or class of persons having in his/her possession or custody information relating to the rental of guest rooms which are subject to the tax. The reports shall be filed with the finance officer when required by said official, and shall set forth the rental charged for each occupancy, the date(s) of occupancy, the basis for exception, or such other information as the finance officer may prescribe. (Ord. 435 §11, 2009)
3.12.110 Violations.
Any lodging provider who fails, neglects or refuses to collect the tax as provided by Section 3.12.030 shall be deemed guilty of a misdemeanor. Any lodging provider who fails or refuses to make any return as provided by Section 3.12.060, to keep adequate records or to open them for inspection by the city, or to furnish other data reasonably requested by the finance officer shall be deemed guilty of a misdemeanor. Any lodging provider who makes a false or fraudulent return with intent to evade the tax shall be deemed guilty of a misdemeanor. Each and every day during any portion of which any violation is committed, continued or permitted shall constitute a separate offense and shall be punished accordingly. (Ord. 514 §3 (Att. G), 2021; Ord. 435 §12, 2009)
3.12.120 Severability.
If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by decision of a court of competent jurisdiction, such decisions shall not affect the validity of the remaining portions of this chapter. (Ord. 435 §13, 2009)
3.12.130 Effective date.
The ordinance codified in this chapter and the tax levied hereby shall become effective upon its adoption. Said ordinance shall, before the expiration of fifteen days of the passage of the same, be published with the names of the council members voting for and against the same once in a newspaper of general circulation printed and published in the county of Calaveras, state of California. (Ord. 450 (part), 2011: Ord. 435 §14, 2009)