Chapter 3.08 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.

“City” means the city of Sutherlin, Oregon.

“Hotel” means a facility 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, lodginghouse, roominghouse, mobilehome park, R.V. park, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar facility.

“Occupancy” means the 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.

“Rent package plan” means the consideration charged for both food and rent where a single rate is made for the total of both. The amount applicable to rent, for determination of transient room tax under this chapter, shall be the same charge made for rent when consideration is not a part of package plan.

“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.

“Transient” means an individual who occupies or is entitled to occupy space in a hotel for a period of thirty (30) consecutive days or less, counting portions of days as full days. The day a transient checks out of a hotel shall not be included in determining the thirty (30) day period if the transient is not charged rent for that day. A person occupying space in a hotel shall be considered a transient until a 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, or the tenant actually extends occupancy more than thirty (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. 719 § 1, 1985)

3.08.020 Tax imposed—Amount.

A transient shall pay a tax in the amount of eight percent 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 other than the furnishing of rooms, accommodations, and parking spaces in mobile home parks or trailer parks. (Ord. 1037 § 1, 2014: Ord. 719 § 2, 1985)

3.08.030 Rules for collection of tax by operator.

A. Every operator renting space for lodging or sleeping shall collect a tax from the transient. 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 city recorder will be the city’s tax administrator and is responsible for the collection and transfer of funds to the tourism fund.

D. For rent collected on portions of a dollar, fractions of a penny of tax shall not be remitted. (Ord. 719 § 3, 1985)

3.08.040 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 will be refunded, except in the manner provided by this chapter. (Ord. 719 § 4, 1985)

3.08.050 Exemptions.

The tax shall not be imposed on:

A. An occupant staying for more than thirty (30) consecutive days;

B. An occupant whose rent is less than five dollars ($5.00) 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. Any occupant whose rent is paid for hospital room or to a medical clinic, convalescent home or home for aged people. (Ord. 719 § 5, 1985)

3.08.060 Operator’s registration form.

A. Every person engaging in or about to engage in business as an operator of a hotel in this city shall register with the tax administrator on a form provided by the city recorder. Operators engaged in business at the time the ordinance codified in this chapter is adopted must register not later than thirty (30) calendar days after passage of said ordinance. Operators starting business after said ordinance is adopted must register within fifteen (15) calendar days after commencing business. The privilege of registration after the date of imposition of such tax shall not relieve any person from the obligation of payment or collection of tax regardless of registration. Registration shall set forth the name under which an operator transacts or intends to transact business, the location of his place or places of business and such other information to facilitate the collection of the tax as the city recorder may require. The registration shall be signed by the operator. The city recorder shall, within ten days after registration, issue without charge a certificate of authority to each registrant to collect the tax from the occupant, together with a duplicate thereof for each additional place of business for each registrant. Certificates shall be nonassignable and nontransferable and shall be surrendered immediately to the city recorder upon the cessation of business at the location named or upon its sale or transfer. Each certificate and duplicate shall state the place of business to which it is applicable and shall be prominently displayed therein so as to be seen and come to the notice readily of all occupants and persons seeking occupancy. Registration fees will not be charged by the city.

B. The certificate shall, among other things, state the following:

1. The name of the operator;

2. The address of the hotel;

3. The date upon which the certificate was issued; and

4. “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Transient Room Tax Ordinance of the City of Sutherlin by registration with the City Recorder for the purpose of collecting from transients the room tax imposed by said City and remitting said tax to the City Recorder. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, or 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 the City of Sutherlin. This certificate does not constitute a permit.” (Ord. 719 § 6, 1985)

3.08.070 Collections—Returns—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.

B. A return showing tax collections for the preceding month shall be filed with the city recorder, in a form prescribed by the city recorder, before the last day of the month following each month.

C. The operator shall withhold ten 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 month. The city recorder may require returns to show the total rentals on which the tax was collected or is due, gross rental 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 city recorder’s office. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies. (Ord. 719 § 7, 1985)

3.08.080 Penalties and interest.

A. Original Delinquency. An operator who fails to remit the tax prior to delinquency shall pay a penalty of ten percent of the tax due in addition to the tax.

B. Continued Delinquency. An operator who fails to pay a delinquent remittance before the expiration of thirty (30) days following the date on which the remittance became delinquent shall pay a second delinquency penalty of fifteen (15) percent of the tax due, the amount of the tax, and the ten-percent penalty first imposed.

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

D. Interest. 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 1.5 percent per month, on the tax due, exclusive of penalties, from the date on which the tax first became delinquent until paid.

E. Penalties Merged with Tax. 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. A person against whom a determination is made under this section, or a person financially interested in the determination, may petition the city manager for a review of the determination, if the petition is filed before the determination becomes final. If the petition is so filed, the city manager shall reconsider the determination, and if the person has so requested in his petition, shall grant the person an oral hearing and give him ten days’ notice of the time and place of the hearing. The city manager may increase or decrease the amount of the determination as a result of the hearing. If an increase is determined, it shall be paid immediately after the hearing.

G. The decision of the city manager upon a petition for review is final unless an appeal is filed in accordance with Section 3.08.230.

H. No petition for such review may be filed unless the petitioner first pays the amount to which the petition pertains. (Ord. 719 § 8, 1985)

3.08.090 Failure to remit taxes due—Amount determined by city.

A. Deficiency Determination. If the city manager determines that the returns are incorrect, he may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns, or upon the basis of any information within his possession or that may come into his possession. One or more deficiency determinations may be made of the amount due for one, or more than one period, and the amount so determined shall be due and payable immediately upon service of notice as herein provided, after which the amount determined is delinquent. Penalties on deficiencies shall be applied as set forth in Section 3.08.080.

1. In making a determination the city manager shall offset overpayments, if any, which may have been previously made for a month or months, against any underpayment for a subsequent period or periods, or against penalties, and interest, on the underpayments. The interest on underpayments shall be computed in the manner set forth in Section 3.08.080.

2. The city manager shall give to the operator or occupant a written notice of his determination. The notice may be served personally or by mail; if by mail, the notice shall be addressed to the operator at his address as it appears in the records of the city. In case of service by mail or any notice required by this chapter, the service is complete at the time of deposit in the United States post office.

3. Except in the case of fraud, intent to evade this chapter or authorized rules and regulations, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the monthly period for which the amount is proposed to be determined, or within three years after the return is filed, whichever period expires the later.

4. Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the city manager has given notice thereof; provided, however, the operator may petition redemption and refund if the petition is filed before the determination becomes final as herein provided.

B. Fraud, Refusal to Collect, Evasion. If any operator fails or refuses to collect the tax, or to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, or makes a fraudulent return or otherwise wilfully attempts to evade this chapter, the city recorder shall proceed in such manner as he may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the city recorder has determined the tax due that is imposed by this chapter from any operator who has failed or refused to collect the same and to report and remit the tax, he 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 city recorder shall give a notice in the manner aforesaid of the amount so assessed. Such determination and notice shall be made and mailed within three years after discovery by the city recorder of any fraud, intent to evade or failure or refusal to collect the tax, or failure to file return. Any determination shall become final within ten days after the city recorder has given notice thereof; provided, however, the operator may petition redemption and refund if the petition is filed before the determination becomes final as herein provided.

C. Operator Delay. If the city recorder believes that the collection of any tax or any amount of tax required to be collected and paid to the city will be jeopardized by delay, he shall thereupon make a determination of the tax or amount of tax required to be collected, noting the fact upon the determination. The amount so determined as herein provided shall be immediately due and payable, and the operator shall immediately pay same determination to the city recorder after service of notice thereof; provided, however, the operator may petition, after payment has been made, for redemption and refund of such determination, if the petition is filed within ten days from the date of service of notice by the city recorder. (Ord. 719 § 9, 1985)

3.08.100 Petition for redetermination and refund.

A. An operator against whom a determination is made under Section 3.08.090, or a person directly interested, may petition for a redetermination, redemption and refund. 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 city manager shall reconsider the determination and, if the operator requested a hearing in the petition, shall grant the hearing and give the operator ten days’ notice of the time and place of the hearing. The city manager may continue the hearing if necessary.

C. The city manager 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 city manager on a petition for redetermination becomes final ten days after service of notice on the petitioner unless appeal of the decision is filed with the city council within ten 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. 719 § 10, 1985)

3.08.110 Court action to collect delinquent tax.

Within three years after the tax becomes payable or within three years after a determination becomes final, the city recorder 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. 719 § 11, 1985)

3.08.120 Liens for unpaid amounts.

A. The tax, interest, penalty and filing fees paid to the city recorder, 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 city recorder 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 thirty (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 city recorder 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. 719 § 12, 1985)

3.08.130 Refunds—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 city recorder, 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 city recorder. 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. The city recorder may refund tax, penalty or interest, if it has been erroneously or illegally collected or received at any time. (Ord. 719 § 13, 1985)

3.08.140 Refunds—City to transient.

If the tax has been collected by the operator and deposited with the city recorder and it is later determined that the tax was erroneously or illegally collected or received by the city recorder, it may be refunded to the transient if a written, verified claim stating the specific reason for the claim is filed with the city recorder within three years from the date of payment. (Ord. 719 § 14, 1985)

3.08.150 Refunds—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 thirty (30) days without interruption, the operator shall refund the tax to the transient. The operator shall account for the collection and refund to the city recorder. If the operator has remitted the tax prior to refund or credit to the transient, the operator shall be entitled to a corresponding refund from the city. (Ord. 719 § 15, 1985)

3.08.160 Records—Required.

Every operator shall keep guest records, accounting books and records of room rentals for a period of three years and six months. (Ord. 719 § 16, 1985)

3.08.170 Records—Examination.

During normal business hours and after notifying the operator, the city recorder 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. 719 § 17, 1985)

3.08.180 Records—Confidentiality.

The city recorder 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 taxpayer, 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;

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. 719 § 18, 1985)

3.08.190 Use of funds limited.

All funds derived from the transient room tax shall be used solely to fund tourism promotion or tourism-related facilities in the Sutherlin area as the council may in the exercise of its discretion deem appropriate, provided that sixty-two and one half percent (62.5%) of the total amount of funds derived from the transient room tax shall be used solely to fund tourism promotion and thirty-seven and one half percent (37.5%) may be used to fund either tourism promotion or tourism-related facilities. (Ord. 1037 § 2, 2014: Ord. 824 (part), 1994: Ord. 719 § 19, 1985)

3.08.200 Tourist information center.

The city may contract with the Sutherlin Chamber of Commerce for the establishment, operation and management of a tourist information center within the city limits; to provide other tourist development activities; and shall provide funds for this purpose only from the transient room tax. The Chamber of Commerce, or its designated committee, would be required to submit annually a budget to the city for review, amendment and adoption in the manner established at the time and followed by the city during the city budget process before funds can be spent. (Ord. 824 (part), 1994: Ord. 719 § 20, 1985)

3.08.210 Tax review committee—Formed.

The city council shall serve as the tax review committee. Four members of the committee shall constitute a quorum. The mayor shall be the chairman. The committee shall keep a record of its transactions and shall meet in the council chambers and keep its files in the city recorder’s office. (Ord. 719 § 21, 1985)

3.08.220 Tax review committee—Duties.

The committee shall hear and determine appeals of orders or decisions of the city manager. The committee may affirm, modify or reverse a decision or dismiss an appeal. In reviewing a decision of the city manager, 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 city manager’s decision, and shall file a certified copy of each determination with the city manager. A determination becomes final after ten days and becomes due, subject to interest and penalties, and enforceable by the city recorder in the same manner as an order or decision of the city recorder. (Ord. 719 § 22, 1985)

3.08.230 Appeals procedure.

A person aggrieved by a decision of the city recorder may appeal with the city manager within ten days of service or mailing of the notice of a decision. The city manager shall fix a time and place for hearing the appeal and shall give the appellant ten days’ written notice of the time and place of the hearing. After receiving evidence and comments about the grievance and reviewing it, the city manager shall make a recommendation about it and report that recommendation to the aggrieved person. He, if not satisfied with the recommendation, within ten days may lay his grievance before the city council, by submitting to the city council a true copy of the city manager’s recommendation, together with a written statement why he finds the recommendation unsatisfactory. He shall at the same time submit to the city manager a true copy of the statement. The city manager shall then submit its recommendation to the city council, together with whatever explanatory supplement the city manager deems advisable. The city council shall then conduct whatever investigation of the grievance he deems advisable and make a determination regarding its merits and whatever action regarding it he deems most appropriate. (Ord. 719 § 23, 1985)

3.08.240 Violation—Penalty.

A violation of a provision of this chapter constitutes a violation. Every day in which a violation is caused or permitted to remain constitutes a separate violation. (Ord. 719 § 25, 1985)