Chapter 3.08
UNIFORM TRANSIENT OCCUPANCY TAX

Sections:

3.08.010    Short title.

3.08.020    Definitions.

3.08.030    Imposed.

3.08.040    Exemptions.

3.08.050    Operator’s duties.

3.08.060    Registration.

3.08.070    Reporting and remitting.

3.08.080    Uncollectible accounts.

3.08.090    Penalties – Interest.

3.08.100    Determination of tax – Failure to collect and report.

3.08.110    Appeal.

3.08.120    Records.

3.08.130    Refunds.

3.08.140    Actions to collect.

3.08.150    Penalty for violations.

3.08.010 Short title.

This chapter shall be known as the “uniform transient occupancy tax ordinance of the City of Elk Grove.” [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(1), eff. 7-1-2000]

3.08.020 Definitions.

Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter:

A. “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for 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.

B. “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.

C. “Operator” means the person who is proprietor of the 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 other than an employee, the managing agent shall also be deemed an operator for the purpose of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

D. “Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

E. “Tax and License Collector” means the City Manager or the City Manager’s designee.

F. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) days or less, counting portions of 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 unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(2), eff. 7-1-2000]

3.08.030 Imposed.

A. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of twelve (12%) percent of the rent charged by the operator.

B. The 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 rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax and License Collector may require that such tax shall be paid directly to the Tax and License Collector. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(3), eff. 7-1-2000]

3.08.040 Exemptions.

A. No tax shall be imposed upon 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.

B. Charges incurred by a person in the performance of official duties as an employee of City, County, State and Federal governmental entities shall be exempt from the tax herein provided if an exemption certificate is submitted and payment is made either:

1. Directly to the hotel for rentals; or

2. By government-sponsored corporate charge card.

C. 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 and License Collector. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(4), eff. 7-1-2000]

3.08.050 Operator’s duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed 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. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(5), eff. 7-1-2000]

3.08.060 Registration.

Within sixty (60) days after the effective date of the ordinance codified in this chapter, or within thirty (30) days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the Tax and License Collector and obtain from him a transient occupancy registration certificate which shall be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, include the following:

A. The name of the operator;

B. The address of the hotel;

C. The date upon which the certificate was issued;

D. The following statement:

This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform transient occupancy tax by registering with the Tax and License Collector for the purpose of collecting from transients the transient occupancy tax and remitting the tax to the Tax and License Collector. This certificate does not authorize any person to conduct any unlawful business or to conduct any unlawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit.

[Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(6), eff. 7-1-2000]

3.08.070 Reporting and remitting.

Each operator shall, on or before the last day of the month following the close of each calendar month, or at the close of any shorter reporting period which may be established by the Tax and License Collector, make a return to the Tax and License Collector, on forms provided by him or her, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax and License Collector. The Tax and License Collector may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to ensure collection of the tax and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment thereof is made to the Tax and License Collector. [Ord. 4-2015 §2, eff. 4-1-2015; Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(7), eff. 7-1-2000]

3.08.080 Uncollectible accounts.

Any operator is relieved from liability for the remission to the City of the tax imposed under this chapter insofar as the measure of the tax is represented by accounts which have been found to be worthless and charged off for income tax purposes. If the operator has previously remitted the tax, he or she may, pursuant to procedures prescribed by the Tax and License Collector, take as a deduction the amount of tax previously remitted for the worthless and charged-off account. If any such accounts are thereafter in whole or in part collected by the operator, the amount so collected shall be included in the first (1st) return filed after such collection and the tax on such amount paid with the return. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(8), eff. 7-1-2000]

3.08.090 Penalties – Interest.

A. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten (10%) percent of the amount of the tax in addition to the amount of the tax.

B. Continued Delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first (1st) became delinquent shall pay a second (2nd) delinquency penalty of ten (10%) percent of the amount of the tax in addition to the amount of the tax and the ten (10%) percent penalty first imposed.

C. Fraud. If the Tax and License Collector determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five (25%) percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (A) and (B) of this section.

D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one (0.5%) percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

E. Penalties Merged with Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(9), eff. 7-1-2000]

3.08.100 Determination of tax – Failure to collect and report.

If any operator shall fail or refuse to collect the tax and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the Tax and License Collector shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Tax and License Collector shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Tax and License Collector shall give notice of the amount so assessed by serving it personally or by first class certified mail, return receipt requested, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten (10) days after the serving or mailing of such notice make application in writing to the Tax and License Collector for a hearing 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 and License Collector shall become final and conclusive and immediately due and payable. If such application is made, the Tax and License Collector 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 the 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 and License Collector shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in EGMC Section 3.08.110. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(10), eff. 7-1-2000]

3.08.110 Appeal.

Any operator aggrieved by any decision of the City with respect to the amount of such tax, fee, interest and penalties owed the City, if any, may appeal to the City by filing a notice of appeal pursuant to EGMC Chapter 1.18. [Ord. 5-2011 §6, eff. 3-11-2011; Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(11), eff. 7-1-2000]

3.08.120 Records.

It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, which records the Tax and License Collector shall have the right to inspect at all reasonable times. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(12), eff. 7-1-2000]

3.08.130 Refunds.

A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once (1) or has been erroneously or illegally collected or received by the City under this chapter, it may be refunded as provided in subsections (B) and (C) of this section; provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Tax and License Collector within three (3) years of the date of payment. The claim shall be on forms furnished by the Tax and License Collector.

B. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once (1) or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax and License Collector 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 has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

C. A transient may obtain a refund of taxes overpaid or paid more than once (1) or erroneously or illegally collected or received by the City for filing a claim in the manner provided in subsection (A) of this section, but only when the tax was paid by the transient directly to the Tax and License Collector, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Tax and License Collector that the transient has been unable to obtain a refund from the operator who collected the tax.

D. No refund shall be paid under provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(13), eff. 7-1-2000]

3.08.140 Actions to collect.

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the City. Any such tax collected by an 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 chapter shall be liable to an action brought in the name of the City for the recovery of such amount. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(14), eff. 7-1-2000]

3.08.150 Penalty for violations.

A. Any person violating any of the provisions of this chapter shall be subject to the punishments set forth in EGMC Chapter 1.04.

B. Any operator or other person who fails or refuses to register as required herein or to furnish any return required to be made or who fails or refuses to furnish a supplemental return or other data required by the Tax and License Collector, 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 makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 2000-3 §2(15), eff. 7-1-2000]