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O 202 . - (" "" , ORDINANCE NO. 262"'''''' AN ORDINANCE OF THE CITY OF ARROYO GRANDE IMPOSING A TAX UPON THE PRIVILEGE OF T.RANSIE~ OCCUPANCY AND PROVIDING FOR THE COLLECTION THEREQF The City Council of the City of Arroyo Grande, County .f San Luis Obispo, State of ,California, does ordain as follows: TRANSIENT OCCUPANCY TlIX Section I. Title: This Ordinance shall be known as the Un1fo~ Transient Occupancy Tax Ordinance of the City of Arroyo Gr.n,de. Section 2. Definitions: Except where the context ot~r~ wis. requires, the definitions given in this section govern the construction of this ordinance: (a) Person. "Person" means any individual, firm, ~rtftllr- ship, joint venture, association, social club, fra- ternal organization, joint stock company, corpor,tion, estate, trust, business trust, receiver, trustee, syndicat" or any other group or combination acting as a unit. (p) Hotel. "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy ~ transients for dwellinq, 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, mobilehQme ! or house trailer at a fixed location, or other similar structure or portion thereof. (c) Occupancv. "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. (d) Transient. "Transient" meims any person who exercises occupancy or is entitled to occupancy ~ reason of con- cession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying spece 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 this ordinance may be considered. (e) Rent. "Rent" means the consideration charged, whetber ornot received, for the occupancy of space in a hotel valued in money, whether to be received in money, qoOd', labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. ," - '. (f) Operator. "Operator means the person who is }iroprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possessiori, :j.icensee, or any other capacity. Where the operatdrperforms his function through a managing agent of any type or charac- ter other than an employee, the managing agent sh,ll also be deemed an operator for the purposes of this ordinance and shall have the same duties and liabitities as his principal. Compliance with the provisions 9f , this ordinance by either the principal or the mana~- agent shall, however, be considered to be compliance by both. (g) Tax Administrator. "Tax Administrator" means the "I:"'<<ilil!ll __l~" ';1'"",", . Section 3. Tax Imposed: For the privilege of occupancy in any hotel, each transient is subject to and shall pay a ta~ in the amount of four per cent (4%) of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the City which is extenguished only by payment to the opera tv" 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 pa}d 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 Administrator may require that such tax shall be paid directly to the Tax Administrator. Section 4. Exemptions: No tax shall be imposed on: (a) 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) Any federal or State of California officer or employee when on official business; (c) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. 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 Administrator. Section 5. Operator's Duties: Each operator shall collect the tax imposed by this ordinance 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 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. Section 6. Reaistration: Within thirty (30) days after the effective date of this ordinance, or within thirty (30) day. after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register ,said hotel with the Tax Administrator and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. -2- ~ - . Said 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; (4) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct ~ny lawful 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, commi, Sl;iJ..0!1 department or office of this City. This certificate does not constitute a permit." Section 7. Reportinq and Remittinq: Each operator sh~ll, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, ~ke a return to the Tax Administrator, on forms provided by him, 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 Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he deeI:l\s it necessary in order to insure collection of the tax and he ~y 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 ordinance shall be held in trust for the account of the City until payment thereof is made to the Tax Administrator. Section 8. Penalties and Interest: (a) Oriqinal Delinquencv. Any operator who fails to remit any tax imposed by this ordinance within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax. (b) Continued Delinquencv. 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 became delinquent shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed. (c) Fraud. If the Tax Administrator determines that the non-payment of any remittance due under this ordinance is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penal- ties stated in subparagraphs (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 ordinance shall pay interest at the rate of one-half of l% 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. -4- - ~ -. ~,'... (e) Penalties Meraed With Tax. Every penalty imposed and such interest as accrues under the provisions ,of this section shall bec9me a part of the tax herein required to be paid. Section 9. Failure to Collect and Report Tax. Determination of Tax bv Tax Administrator: If any operator shall fail or refuse to collect said tax and to make, within the time provi~ed in this ordinance, any report and remittance of said tax or any portion thereof required by this ordinance, the Tax Administ~a- tor shall proceed in such manner as he may, deem best to obtatn facts and information on which to base his estimate of the tax due. As soon as the Tax Administrator shall procure such fa~ts and information as he is able to obtain upon which to pase the assessment of arty tax imposed by this ordinance and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to deter- mine and assess against such operator the tax, interest and penalties prdvided ror by this ordinance. In case such deter- mination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing .t in the United States Mail, postage prepaid, addressed to the operator so assessed at his last ~nown place of address. Su~h operator may within ten (10) days after the serving or mailing of such notice make application in writing to the Tax Adminis- trator for a hearing on the amount assessed. If application by the operator for the hearing is not made within the time pres- cribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and ~' immediately due and payable. If such application is made, the Tax Administrator shall ~ive 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 said 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 Administra- tor 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 (IS) days unless an appeal is taken as provided in Section 10. Section 10. Appeal: Any operator aggrieved by any de- cision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days of the serving or mailing of the determination of tax due. The City Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his last known place of address. The findings of the City Council shall be final and conslusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. Section 11. Records: It shall be the duty of every operator liable for the collection and payment to the county of any tax imposed by this ordinance to keep and preserve, for a period of three 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 Administrator shall have the right to inspect at all reasonable times. -4- - ~ ; '. . Section 12. Refunds: (a) Whenever the amount of any tax, interest or penalty has been overpaid of paid more than once or has been erroneously or illegally collected or received by the City under this ordinance, it may be refunded as provided in subparagraphs (b) and (c) of this section provided a claim in writing therefor, stating un<iier penalty of perjury the specific grounds upon which the claim is founded, is filed with the Tax Adm}nis- trator within three years of the date of payment. The claim sh~ll be on forms furnished by the Tax Administrator. (b) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected 'JZS not a transient; provided, however, that neither , refund ror a credi t shall be allowed unless the amoun\:. 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 obt~in a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the City by filing a claim in the manner provided in subparagraph (a) of this section, but only when the tax was paid by the tran- sient directly to the Tax Administrator, or when the transient having paid the t~x to the operator, es- tablishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax. (d) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. Section 13. Actions to Collect: Any tax required to be paid by any transient under the provisions of this ordinance 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 ordinance shall be liable to an action brought in the name ,of the City of Arroyo Grande for the recovery of such amount. Section 14. Violations: Misdemeanor: Any person violating any of the provisions of this ordinance shall be guilty of a mis- demeanor and shall b~ punishable therefor by a fine of not more than five hundred dollars \$500.00) or by imprisonment for a period of not more than six months or by both such fine and im- prisonment. 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 dat~required by the Tax Administrator, or who renders a false or fraudulent return or claim, is qui! ty of a mi sdemeanor, 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 ordinance to be made, is guilty of a misdemeanor and is punishable as aforesaid. -5- . . ~ -. . . . ~ect+on IS. Severabilitv: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ord~- nance or ~ny part thereof is for any reason held to be unconsti- t~tional, such decision shall not affect the ,validity of the remaining portions of this ordinance or any part thereof. The City Council here~ declares that it would have passed each sectipn, subsection, subdivision, paragr~ph, sentence, clause or p~ase thereof, irrespective of the fact that anyone or more /Sections, subsections, subdivisions, paragfsphs, sentences, claus!!!s, or phrases be declared unconstitutional. ~ection 16. Effective Date: This Ordinance shall be effective thirty (30) days from and after the date of its passage except that the tax imposed bv this ordinance shall beCOnli!! operative and be imposed on :A~,iJ,,,,,l ,__"""".,, , 19~, and shall not apply prior to said date. Within fifteen (15) days after its passage it shall be published once, together with the names of the Councilmen voting thereon, in the Arroyo Grande Herald-Recorder. . . On motion of e..,.4.~!!L~II_', U" . '.w.._.,,_, , , seconded ~ .\oi:..4.1..~...J.~.-...-~-~,~,..-U- JI-'.;.r~Lt'- ';,'. , and on the following roll call vote, to-wit: -' '." AYES: Councilwoman Thompson, Councilmen McNeil, Burt, Wood and Mayor Jacobs NOES: None ABSENT: N9~~,""," , the foregoing Ordinance was adopted thi s 22nd day of;,;:> , IT . '_'I 19- 6"4. ATTEST:C;;::;~ Y. ~"'~,h.A J C CLERK I, POLLY S. MILLER, City Clerk of the City of Arroyo Grande, County of San Luis Obispo; State of California, do here~ certify that the foregoing Ordinance No. 202 is a true, full and cor~ect copy of Baid Ordinance passed and adopted by the City Council of the City of Arroyo Grande at a regular meeting of said Council on the 2?n" day of December , 19 64 . WITNESS my hand and the seal of the City of Arroyo Grande affi~ed this 23rd day of December , 19 64 . Q~ ..,{ m'~~LA.I City erk'of the City of Arroyo Grande ( seal) -q- .