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HomeMy WebLinkAboutOrdinance #2015 ORDINANCE NO. 2015 AN ORDINANCE OF CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING THERETO CHAPTER 3 . 28 PERTAINING TO' THE UNIFORM TRANSIENT OCCUPANCY TAX The City Council of the City of Huntington Beach does ordain as follows : SECTION 1. WHEREAS, the City Council of the City of Huntington Beach, by Ordinance No . 1990 , has adopted, effective July 16, 1975 , the Huntington Beach Municipal Code as a reco- dification of the Huntington Beach Ordinance Code; and WHEREAS, Book Publishing Company erroneously failed to include the text of Chapter 3 . 28, Uniform Transient Occupancy Tax contrary to both the intent of the City Council p y � y y and the instruction of the city to Book Publishing Company, this ordinance is being enacted to correct such clerical error of omission on the part of Book Publishing Company. SECTION 2 . The Huntington Beach Municipal Code is hereby amended by adding Chapter 3.28 thereto to read as follows : Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX 3. 28 .010 Purpose . The City Council of the City of Huntington Beach hereby declares that this chapter, which shall be known as the Uniform Transient Occupancy Tax is adopted to provide a tax on the rent charged in a hotel by the operator of said hotel . 3. 28. 020 Definitions . Except where the context otherwise requires , the definitions given in this section govern the con- struction of this chapter: (a) "Person" means any individual, firm, partnership, joint venture, association, social club , fraternal organization, MT: er 1. joint stock company, corporation, estate, trust, business trust , receiver, trustee, syndicate, or any other group or combination acting as a unit . (b) "Hotel" means any structure, or any portion of any structure , which is occupied or intended or designed .for occu- pancy 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, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof. (c) "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" 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 ) consecutive calendar days or less , counting portions of calendar 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 this chapter may be con- sidered. (e) "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. (f) "Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, .mort- gagee in possession, licensee, or any other capacity . Where the operator performs his functions through managing agent of .any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Com- pliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be com- pliance by both. 3. 28. 030 Tax Imposed. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax on the rent charged by the operator at a rate equal to the current, combined state and local use tax rate. Said rate shall be declared 2 . by the City Council by resolution from time to time . Said 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 city treasurer may require that such tax be paid directly to the city treasurer. 3. 28. 040 Exemptions . No tax shall be imposed upon: (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 pro- vided; (b ) Any Federal or State of California officer or employee when on official business; (Rest of Page Not Used) 3. (c) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or inter- national treaty. No exempt shall be granted except upon a claim there- for made at the time rent is collected and under penalty of per- jury upon a form prescribed. by the city treasurer. 3. 28. 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. opera tor, or that it will not be added to the rent , or that , if added, any part will be refunded except in the manner hereinafter pro- vided. 3.28. 060 Register. Every owner, keeper or proprietor of any lodging house , rooming house, motel or hotel shall keep a register wherein he shall require all guests , roomers or lodgers to inscribe their names upon their procuring lodging of a room or accommoda- tions . Said register shall also show the day of the month and year when said name was inscribed, and the room occupied, or to be occupied by said lodger, or roomer or guest in such lodging house, rooming house, motel or hotel. Said register shall be kept in a conspicuous place in said lodging house, rooming house, motel or hotel, and shall at all times be open to inspection by any peace officer of the State of California. 3. 28. 070 Guests must register. Before any lodging for hire to any person(s ) in any lodging house, or before renting any room to any person(s ) in any rooming house, or before furnishing any accommodations to any guest(s ) at any motel or hotel, the pro- prietor, manager or owner thereof shall require the person(s ) to whom such lodgings are furnished, or room is rented, or accommo- dations furnished, to inscribe his/their name(s ) in such register kept for that purpose as hereinabove provided, and shall _set oppo- site said name (s ) the time when said name(s ) was/were so inscribed, the room occupied by such lodger(s ) , roomer(s ) , or guest (s ) , and the license number and description of the vehicle said lodger(s ) , roomer(s ) or guest(s ) drove . 3. 28. 080 Registration. Within thirty ( 30) days after the effective date of this chapter, or within thirty ( 30) days after commencing business , whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the city treasurer and obtain from him a "Transient Occu- pancy Registration Certificate" to be at all times posted in a conspicuous place on the premises . Said certificate shall, among other things , state the following: 4. (a) The name of the operator; (b ) The address of the hotel; (c) The date upon which the certificate was issued. (d) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of Chapter 3.28 by registering with the city treasurer for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the city treasurer. This certificate does not authorize any person to conduct any unlawful business or to conduct any 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 fromany board, commission, department or office of this city. This certificate does not constitute a permit. " 3.28. 090 Reporting and remitting. Each operator shall file a report 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 city treasurer, 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 city treasurer. The city treasurer may establish shorter reporting periods for any certificate holder if he deems it neces- sary in order to insure collection of the tax and he 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 is made to the city treasurer. 3. 28. 100 Penalties and Interest . The following shall give rise to penalties and 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 percent (10% ) 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 became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax and the ten percent (10%) penalty first imposed. (c) Fraud. If the city treasurer determines that the non- payment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent ( 25% ) of the amount of the tax 5 . shall be added thereto in addition to the penalties 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 chapter shall pay interest at the rate of one half (1/2) of one percent (1% ). 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. 3. 28. 110 Failure to collect and report tax--Determination of tax by city treasurer. If any operator shall fail or refuse to collect said 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 city treasurer shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due . As soon as the city treasurer shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed 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 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 treasurer shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his 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 city treasurer 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 city treasurer shall become final and conclusive and immediately due and payable . If such application is made, the city treasurer 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 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 city treasurer shall determine the proper tax to be remitted and shall thereafter give written notice to the person and 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 Section 3. 28. 120 . 3 . 28. 120 Appeal. Any operator aggrieved by any decision of the city treasurer with respect to the amount of such tax, interest 6 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 oftax due . The 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 council shall be final and conclusive and shall be served upon the appel- lant in the manner prescribed above for service of notice of hear- ing. Any amount found to be due shall be immediately due and payable upon the service of notice . 3. 28. 130 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 city treasurer shall have the right to inspect at all reasonable times . 3. 28. 140 Refunds . The following shall warrant a refund: (a) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter it may be refunded as provided in subparagraphs (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 city treasurer within three ( 3) years of the date of payment. The claim shall be on forms furnished by the city treasurer. (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 city treasurer 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 or erroneously or illegally collected or received by the city by 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 city treasurer, or when the transient having paid the tax to the operator, establishes to the satisfaction of the city treasurer that the transient has been unable to obtain a refund from the operator who col- lected the tax. (d) No refund shall be paid under the provisions of this section unless the claimant established his right thereto by written records showing entitlement thereto. 7• , 3. 28. 150� 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 of Huntington Beach for the recovery of such amount . 3. 28. 160 Failure to register. Any operator or other per- son 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 city treasurer, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor. Any person required to make, render, sign or verify any report or claim or 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. SECTION 3. This ordinance shall take effect thirty days after its passage . The City Clerk shall certify to the passage of this ordinance and cause same to be published within fifteen days after adoption in the Huntington Beach News , a weekly newspaper of general circulation, printed and published in Huntington Beach, California. PASSED AND ADOPTED by the City Council of the City of an adjourned Huntington Beach at /- =regular meeting thereof held on the 14th day of October, 1975 . ATTEST: Mayor PRO TEM �j City Clerk APPROVED AS TO CONTENT: APPROVED AS TO FORM: City Administrator City r y T. 8. Ord. No. 2015 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 15th day of September 19 75 and was again read to said City Council at a regular meeting thereof held on the 14th day of October 19 75 , and was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council. AYES: Councilmen: Bartlett, Wieder,_ Coen, Shipley, Duke NOES: Councilmen: Matney ABSENT: Councilmen; Gibbs City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California i, Ailcle M. Wentworth CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City ;Council, d hereby certify th.-t this ordinance has been p �,h�d in the iuntingto Beach News on _. ...._ ._ 19 In accordance with the Caty A .Charter oaid City. 11 AUCIA M. WE -•_-OR?k! ....................... ............_ City Clerk Deput ity Clerk r