Chapter 3.16
RENTAL BUSINESS TAX
Sections:
3.16.031 Imposition and rate of tax.
3.16.041 Revenues subject to collection of accommodations tax.
3.16.051 Exemption of certain mixed type lodgings.
3.16.061 Refund of tax collected from permanent rental.
3.16.071 License required, duty of business license department.
3.16.081 Collection from lessee.
3.16.101 Alternative method of collection of tax—Notice.
3.16.121 Penalties and interest.
3.16.141 Failure to file tax report or return penalty.
3.16.151 Assignment of taxes—Duties of Board.
3.16.161 Authority to collect tax.
3.16.181 Examination of books and records.
3.16.191 Records confidential.
3.16.201 Collection reports, financial statements, audits and records.
3.16.211 Rules and regulations.
Code reviser’s note: The sections of this chapter have been renumbered with the amendments of Ord. 8-19-96A. “Formerly” has been added to the history notes to reflect the renumbering.
3.16.011 Definitions.
Whenever used in this chapter or in any ordinance amending, extending or otherwise pertaining to this chapter, unless otherwise specifically defined, or unless the context requires otherwise, the words and terms defined in this chapter have the meanings ascribed to them herein and govern the construction of this chapter.
“Accommodations tax,” “license tax,” “lodgers tax,” “transient lodging tax” and “room tax” are used interchangeably and mean all license taxes pursuant to the county tax act or city tax act and heretofore, hereby or hereinafter appropriated or assigned by the county or city levying, fixing or imposing the same for administration by the board of the Winnemucca Convention and Visitors Authority.
“Authority,” “Winnemucca Convention and Visitors Authority” and “fair and recreation board” mean the Humboldt County fair and recreation board which was created by resolution of the board of county commissioners of Humboldt County on March 5, 1965, and which exists pursuant to NRS 244A.597 through 244A.655, inclusive, and which was designated by resolution of the fair and recreation board on April 17, 1996, pursuant to NRS 244A.607, as the Winnemucca Convention and Visitors Authority. Any prior reference in any document of any kind to Humboldt County fair and recreation board shall be deemed to refer to the Winnemucca Convention and Visitors Authority.
“Board” means the governing body of the Authority as appointed pursuant to NRS 244A.599.
“Board administrator” means the chief finance officer of the Authority.
“City” means the city of Winnemucca, the only incorporated city or town situated in the county on the effective date of the ordinance codified in this chapter.
“City council” means the city council of the city of Winnemucca, Nevada.
“City tax act” means NRS 268.095 and 268.096 through 268.0968, inclusive.
“Complimentary transient lodging” means transient lodging which is provided at no cost to the occupant on an individual basis and not as part of any established package, advertised or otherwise, which includes other products or services.
“County” means Humboldt County, Nevada.
“County board” means the board of county commissioners of Humboldt County.
“County tax act” means NRS 244.335 through 244.3359, inclusive.
“Director” means the Winnemucca visitors and events bureau director, appointed by the board of county commissioners on recommendation of the Winnemucca Convention and Visitors Authority board and the agricultural District No. 3 board, which person is the chief executive officer of the Authority.
“Gross receipts” means the total of all monies received by an operator of transient lodging for the rental of sleeping rooms or spaces, including forfeited deposits, the value associated with the rental of the sleeping room or space when included as part of a package, resort fees, amenity fees, energy fees or surcharges, charges for furnishings or appliances, charges for pets, charges associated with cancellation fees, late arrival fees, no-show fees, amounts received as reimbursement for use of a sleeping room or space under an incentive program, and any amount received from room brokers, consolidators, discounters, travel agencies, or online travel operators or reservation companies, recoveries of rent previously written off as bad debt, or any other fees, charges, or surcharges attributable to the rental of the room or space. Total rental revenue does not include the taxes imposed by this chapter, refunds, discounts, complimentary transient lodging, or uncollected rent that is written off as bad debt. Total rental revenue shall include recoveries of rent previously written off as bad debt.
“Lessee,” “occupant” and “transient guest” are used interchangeably and means any person who, for rent or consideration, rents accommodations from a licensee or has the right of occupancy and uses, possesses or has the right to use or possess any room in a transient lodging facility under any lease, concession, permit, right of access, license, contract or agreement.
“Licensee” means the person, proprietor or body corporate operating a transient lodging or rental business, whether in the capacity of owner, lessee, sublessee, mortgagee, licensee, realtor, real estate agency renting transient lodging, online discount booking agency, exchange company or any other capacity.
“Person” means corporations, firms, partnership, associations and natural persons, and also includes executors, administrators, trustees, receivers or other representatives appointed according to law.
“Short-term rental” means the rental to an occupant, for consideration, of a room or space within a single-family residence or an individual residential unit within a larger building, including, without limitation, an apartment, condominium, townhouse or duplex. The term includes any detached building or structure on the same parcel of real property as a single-family residence that is used as a dwelling unit. The term does not include the rental of a room or space within a single-family residence or an individual residential unit within a larger building if the rental is made by the owner of the residential unit and the residential unit serves as the primary residence of the owner.
“State Recreation Board Act” means NRS 244A.597 through 244A.667.
“Tax administration resolution” means the resolution of the Authority as the same may be amended from time to time.
“Transient lodging” and “rental business” are used interchangeably and means the operation of any facility or premises kept as, used as, maintained as, or held out to the public to be a place where sleeping, rooming, camping, tourist, transient (meaning nonpermanent) lodging accommodations, rooms, spaces or other units for rental accommodations are furnished to the transient public, whether with or without meals, and includes any hotel, resort hotel, resident hotel, motel, auto court, motor court, motor lodge, lodge, lodging house, ranch resort, resort, dude ranch, guest ranch, bed and breakfast, inn, rooming house, guest house, tourist camp, recreational vehicle park, campground, camper court, camper park, cabin, tent, condominium, timeshare property, vacation home, apartment house, short-term rental, or other similar structure or facility, or portion thereof. The term “transient lodging” does not include any of the following: any hospital, sanitarium, medical clinic, convalescent home, nursing home, group home, home for aged people, foster home, or other similar facility operated for the care or treatment of human beings; any asylum, jail, prison, orphanage or other facility in which human beings are being detained and housed under legal restraint; any housing owned or controlled by an educational institution and used exclusively to house students, faculty or other employees; any housing operated or used exclusively for religious, charitable or educational purposes by any organization having qualifications for exemption from property taxes under the laws of the state; any housing owned by a governmental agency and used to house its employees for governmental purposes; any room within a private dwelling house or other single-family dwelling unit if the permanent or principal owner also resides in and occupies the dwelling; any unit within a time-share project occupied by an owner, or the nonpaying guests of an owner, of a time-share in the time-share project, or in the time-share plan of which the time-share project is a part, who has the right to use or occupy a unit, pursuant to (1) a time-share instrument or (2) a time-share exchange program. The burden of establishing that the housing or facility is not transient lodging as defined herein shall be on the owner thereof, who shall file with the director such information as the director may require to establish and maintain such status. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 5-9-88 §1; Ord. 12-16-85A § 5(5.1). Formerly 3.16.010.)
3.16.021 Name.
The name by which the Humboldt County fair and recreation board shall be known is the Winnemucca Convention and Visitors Authority.
It shall be lawful for the Authority and its board to use such designated name for all purposes, including the right to contract, to sue and be sued, and to perform all of its functions and exercise all of its powers as provided by NRS 244A.607. (Ord. 8-19-96A § 2)
3.16.031 Imposition and rate of tax.
There are imposed license taxes for revenue on every licensee operating a rental business within Humboldt County and outside the corporate limits of the city of Winnemucca, in addition to any other business and other license taxes imposed presently or in the future by county ordinance, equal to the respective amounts of the amount of gross receipts derived by each licensee from room and other accommodations rentals, as follows:
A. Basic accommodations tax: eleven percent;
B. State tourism promotion transient lodgers tax: three-eighths (0.375) of one percent;
C. Local tourism promotion transient lodgers tax: five-eighths (0.625) of one percent. (Ord. 05-04-26 § 1; Ord. 05-18-09 § 2; Ord. 8-19-96A § 2. Formerly 3.16.020.)
3.16.041 Revenues subject to collection of accommodations tax.
All revenues for the rental of transient lodging facilities, whether indoor or outdoor, by any person who conducts a business which provides tourist, short-term or other transient lodging, as contrasted from permanent lodging, whether or not the business holds itself out to provide such transient lodging through advertising of any kind and in any place, are presumed to be gross receipts from transient lodging subject to the collection of accommodations taxes as provided in this chapter. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2)
3.16.051 Exemption of certain mixed type lodgings.
If a premises is comprised of (1) a permanent lodging area or section and (2) a tourist, transient, short-term or other nonpermanent area or section, the licensee may apply to the Authority for recognition of the permanent section. If such application is approved, the revenues from the permanent section will be exempt from the requirement to collect accommodations tax; provided however, that if any nonpermanent rentals are thereafter made of units within the permanent section, the exemption terminates immediately and the licensee is obligated to resume collection accommodations taxes for all units in the formerly permanent section.
In order to obtain approval of such division, the licensee must make application to the Authority for recognition of the division. Such division may not be merely the assignment of certain noncontiguous rooms, spaces or units as permanent, and others assigned as nonpermanent, with the two being interspersed. The division must result in actual recognizable and easily determined areas or groups of contiguous units, such as wings or floors of a building. (Ord. 8-19-96A § 2)
3.16.061 Refund of tax collected from permanent rental.
The presumption that the revenue from all accommodations subject to the duty to collect accommodations taxes is gross receipts from transient lodging may be rebutted as to certain or all of such revenue, by proof that such lodging has in fact been permanent for a period of nine months. In such case, the lessee may apply for a refund, as provided in this chapter.
Claim for such refund shall be made to the Authority by the lessee on the form prescribed by the Authority and shall set out the date the rental began and date it ended and the amount of rent paid including taxes during the period for which the refund is sought.
The Authority shall then submit the application to the licensee to verify the period of the tenancy and the amount of rent paid, including tax. The verified refund claim application shall be submitted to the board for authorization of a refund check at the next regular meeting of the board.
The receipt by a lessee of a refund, or the eligibility of a lessee to receive a refund, does not exempt the lodging unit from further collection of the accommodations tax. The licensee shall at all times be required to continue to collect the taxes as required herein.
The right to a refund is not assignable by a lessee to a licensee. In the event that the lessee continues to occupy accommodations subject to the collection of the accommodations tax, the lessee shall become eligible for a refund at the end of each additional nine-month period. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2)
3.16.071 License required—Duty of business license department.
A. It is unlawful for any person, either for himself or for any other person, to commence or to carry on any rental business as specified in this chapter within Humboldt County and outside the corporate limits of the city of Winnemucca without first having procured a transient lodging license from the Authority. The carrying on of any such rental business without first having procured a transient lodging license from the Authority to do so constitutes a separate violation of this chapter for each day that such business is so carried on.
B. The Authority shall issue written transient lodging licenses as provided for in this chapter, in such form as it may prescribe, upon application therefor, at no charge.
C. The business license department shall not issue a business license for the purpose of commencing or continuing a rental business as defined herein unless the applicant shall provide proof of issuance of a transient lodging license by the Authority. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.3). Formerly 3.16.030.)
3.16.081 Collection from lessee.
Except as provided in HCC 3.16.101, each licensee shall add the amount of the accommodations tax to the amount of the rentals due, and collect the tax and rental from each lessee. The amount of the tax shall be displayed separately from the price of the accommodations, room, or space on the guest registration card or other of guest registration. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.5). Formerly 3.16.050.)
3.16.091 Display of notice.
A. Each licensee shall prominently display in each room or suite of rooms or other accommodation leased as a unit, or at the licensee’s option, in a lobby at or in the immediate vicinity of the registration desk for the business, a sign reading substantially as follows:
Notice
For each rental this business is required by law to collect 12% in accommodations taxes.
The Management
B. If signs are utilized, they must be of sufficient number and size and posted in conspicuous places as to be readily visible to all customers in the licensee’s place of business. When licensee includes the tax in the rental price (HCC 3.16.101), the signs must indicate that accommodations tax is included in the rental price. (Ord. 05-04-26 § 1; Ord. 05-18-09 § 2; Ord. 8-19-96A § 2; Ord. 5-9-88 § 3; Ord. 12-16-85A § 5(5.6). Formerly 3.16.060.)
3.16.101 Alternative method of collection of tax—Notice.
As an alternative procedure, a licensee may include the tax in the rental price but must notify the public in the same manner as in HCC 3.16.091. (Ord. 05-04-26 § 1; Ord. 05-18-09 § 2; Ord. 8-19-96A § 2; Ord. 5-9-88 § 4; Ord. 12-16-85A § 5(5.7). Formerly 3.16.070.)
3.16.111 Payment of tax.
A. The accommodations tax becomes due for the calendar month (or fraction thereof) during which the taxes accrue on the last day of the month. The accommodations tax shall be paid to the Authority on or before the fifteenth day of the month following the month during which it was collected. The accommodations tax becomes delinquent with penalties assessed after that date.
B. The Authority may permit the accommodations tax to be paid by any acceptable means, including but not limited to cash, check, money order, credit card, electronic funds transfer, ACH transfer, and wire transfer. A nonrefundable payment processing fee not to exceed two and one-half percent may be added to the total amount of a credit card transaction as a separate charge.
C. No taxes collected by the licensee pursuant to this chapter are the property of the licensee at any time; they are the property of the county and have been assigned by it to the Authority. The licensee shall hold such taxes after collection as a trustee only. Failure to pay the tax over to the Authority as required herein constitutes use of property for a purpose other than that for which it was entrusted, a crime. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.10). Formerly 3.16.100.)
3.16.121 Penalties and interest.
If the accommodations tax is not paid before it becomes delinquent, the licensee shall pay:
A. A penalty of ten percent of the delinquent accommodations tax, or an administrative fee of one hundred dollars, whichever is greater;
B. Interest at the rate of one and one-half percent per month on such delinquent accommodations tax, from the date of delinquency to the date of payment of such accommodations tax, but the interest shall not exceed thirty percent of such tax; and
C. The cost of collection of the tax, penalty and interest, including the court costs and attorneys’ fees. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.14). Formerly 3.16.140.)
3.16.131 Receipt of payment.
Payments must be received by the Authority on or before the final date allowed for payment in order to avoid penalties being assessed. A payment postmarked by the U.S. Postal Service on or before the final due date shall be considered to be timely payment and no penalty shall be incurred because it is actually received by the Authority after the payment due date. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2)
3.16.141 Failure to file tax report or return penalty.
A. It is unlawful for any licensee to fail, neglect or refuse to file any monthly report or return required by the Authority, whether or not said licensee shall have paid over the taxes due to the Authority and whether or not there shall have been any taxes due the Authority.
B. In the event of any such failure, neglect or refusal which shall continue for one month from the date such report or return is due, the Authority shall give notice to such licensee that he is subject to penalties for failure to file such report or return. If the licensee shall not comply with the requirement to file within ten days of notice, he shall pay a penalty of one hundred dollars for the first month for which no such report or return was filed.
C. In the event of any such failure, neglect or refusal which shall continue for a second month, the licensee shall pay an additional two hundred fifty dollars for the second month and for each month thereafter until such report or return is filed and taxes paid.
D. In the event of any such failure, neglect or refusal which shall continue for a third month, the board shall give notice to said licensee to appear at a time and place certain to show cause why the rental business license should not be revoked for such failure, neglect or refusal, the notice thereof to be given by personal service or certified mail to the address listed on the license and posting of the notice at the United States Post Office at least fifteen days prior to the date of the hearing.
E. Payment of the penalty does not relieve the licensee from the duty to collect and pay over the accommodations tax as provided in this chapter. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.15). Formerly 3.16.150.)
3.16.151 Assignment of taxes—Duties of Board.
The proceeds from the accommodations taxes are assigned to the Winnemucca Convention and Visitors Authority for administration in accordance with the tax administration resolution of its board and in accordance with NRS 244A.597 through 244A.667, inclusive. The Authority shall:
A. Receive, invest and control such funds;
B. Use the funds for administrative purposes of the Board in an amount not to exceed ten percent of the gross revenues so collected;
C. Order other lawful expenditures of such funds;
D. Expend those funds collected from the city/county tourism promotion transient lodgers tax in the manner required by law;
E. Forward those funds collected from the state tourism promotion tax in the manner required by law. (Ord. 8-19-96A § 2; Ord. 6-15-92, 1992; Ord. 5-9-8 § 5; Ord. 1-16-85A § 5(5.8). Formerly 3.16.080.)
3.16.161 Authority to collect tax.
The Winnemucca Convention and Visitors Authority is empowered to:
A. Collect the proceeds of the accommodations tax provided for in this chapter;
B. Enforce by all appropriate and lawful means the provisions of this chapter. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.9). Formerly 3.16.090.)
3.16.171 Refund.
The Authority has the authority to refund, without interest, to the licensee any tax improperly collected by the Authority from any licensee. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.16). Formerly 3.16.160.)
3.16.181 Examination of books and records.
The board administrator or his duly authorized agent is empowered to examine and audit the books, papers and records of any licensee or person operating a rental business and to make investigations in connection therewith. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.12). Formerly 3.16.120.)
3.16.191 Records confidential.
A. The Authority shall cause to be kept proper records including, without limiting the generality of the foregoing, records of:
1. All accommodations taxes imposed by this chapter which become due and which are collected.
2. Delinquent taxes.
3. Interest thereon.
4. Penalties therefrom.
B. The records required by this section are confidential and shall not be revealed in whole or in part except in the necessary administration of this chapter or as otherwise provided by law. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.13). Formerly 3.16.130.)
3.16.201 Collection reports, financial statements, audits and records.
A. The Authority shall cause to be prepared:
1. Monthly reports of collections;
2. A financial statement for each calendar quarter within thirty days thereafter; and
3. An annual audit pursuant to NRS 354.624.
B. A copy of each such collection report, financial statement and audit shall be filed forthwith with the city clerk and the county clerk.
C. The Authority is authorized to obtain, designate the form of and have prepared or printed all stationery, supplies, records, notices, receipts, licenses and other forms that the Authority or director deems necessary or advisable in connection with the collection, administration, use and disbursement of the proceeds of the accommodations tax. (Ord. 05-04-26 § 1; Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.17). Formerly 3.16.170.)
3.16.211 Rules and regulations.
The Authority is empowered to prescribe, adopt and enforce rules and regulations relating to the administration and enforcement of this chapter. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.11). Formerly 3.16.110.)
3.16.221 Ratification.
All proceedings and actions taken under law, or under color of law, preliminary to and in the collection of any license taxes levied by any city, town or the county for use in connection with such recreational facilities, and the receipt, control investment and expenditures of any and all moneys and funds pertaining thereto, are validated, ratified, approved and confirmed, notwithstanding any lack of power, authority or otherwise, other than constitutional, of any agency, instrumentality or corporation of the state, of the county and other public body, or other political subdivision, or of any council, or of any board or other governing body, or of any officer thereof, and notwithstanding any defects and irregularities, other than constitutional, in such proceeds and actions. (Ord. 8-19-96A § 2; Ord. 12-16-85A § 5(5.18). Formerly 3.16.180.)