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197 - Ordinances ORDINANCE NO. 197 AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AMENDING TITLE 3 OF THE RANCHO CUCAMONGA MUNICIPAL CODE BY ADDING CHAPTER 3.40 THERETO TO IMPOSE A TAX UPON THE PRIVILEGE OF TRANSIENT OCCUPANCY. The City Council of the City of Rancho Cucamonga does ordain as follows: SECTION 1: Title 3 of the Rancho Cucamonga Municipal Code is hereby amended by adding Chapter 3.40 thereto to read as follows: Chapter 3.40 TRANSIENT OCCUPANCY TAX Sections: 3.40.010 Definitions. 3.40.020 Imposition, Generally. 3.40.030 Allowance for Collection Costs. 3.40.040 Collection by Operators. 3.40.050 Registration of Hotel Operators; Issuance and Contents of Registration Certificate. 3.40.060 Filing of Report and Remittance of Tax Collected. 3.40.070 Penalties for Delinquent Payment. 3.40.080 Determination of Tax by Director of Finance Upon Failure of Operator to Collect and Report. 3.40.090 Appeals. 3.40.100 Records to be Kept for Three Years. 3.40.110 Enforcement. 3.40.120 Disbursement. 3.40.130 Violations. 3.40.140 Effective Date. 3.40.010 Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: A. Person. "Person" means any individual, firm, partnership, Tint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. B. Hotel. "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. C. Occupancy. "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" 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 Ordinance No. 197 Page 2 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 considered. E. Rent. "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. "Operator" means a 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 purposes 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. 3.40.020 Impositiont Generally. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of ten (10) percent of the rent charged by the operator. 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 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 Director of Finance may require that such tax shall be paid directly to the Director of Finance. 3.40.030 Allowance for Collection Costs. From the full amount of the tax collected and transmitted to the Director of Finance pursuant to this chapter, each operator may deduct and retain as for his administrative expense in the collection of said tax, an amount equal to four (4) percent of the total tax to be paid. 3.40.040 Collection by Operators. 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. 3.40.050 Registration of Hotel Operators~ Issuance ~nd Contents of Registration Certificate. 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 Director of Finance and obtain from him a "Transient Occupancy Registration Certificate" to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel; C. The day 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 the uniform transient occupancy tax ordinance by registering with the Director of Ordinance No. 197 Page 3 Finance for the purpose of collecting from transients the transient occupancy tax and remitting said tax to the Director of Finance. 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 from any board, commission, department or office of this City. This certificate does not constitute a permit." 3.40.060 Filing of Report and Remittance of Tax Collected. Each operator shall, 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 Director of Finance, make a return to the Director of Finance, on forms provided by him/her, of the total rents charged and received and the amount of tax collected from transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Director of Finance. The Director of Finance may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax and he may require further information on 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 Director of Finance. 3.40.070 Penalties for Delinquent Payment. 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 became delinquent shall pay a second 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 Director of Finance determines that the non- payment 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 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 (1) 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 an such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. 3.40.080. Determination of Tax by Director of Finance Upon Failure of Operator to Collect and Report. 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 portion thereof required by this chapter, the Director of Finance 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 Director of Finance 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 Director of Finance 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 Ordinance No. 197 Page 4 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 Director of Finance 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 Director of Finance shall become final and conclusive and immediately due and payable. If such application is made, the Director of Finance 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 Director of Finance 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 Section 3.40.090. 3.40.090 Appeals. Any operator aggrieved by any decision of the Director of Finance with respect to the amount of such tax, interest and penalties, if any, may appeal to the City Council by filing notice of appeal with the City Clerk within fifteen (15) days of the serving or mailing of the determination of tax 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 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. 3.40.100 Records to be Kept for Three Years. 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 Director of Finance shall have right to inspect at all reasonable times. 3.40.110 Enforcement. 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 Rancho Cucamonga for the recovery of such amount. 3.40.t20 Disbursement. All monies received by the City from the collection of transient occupancy tax shall be paid into the General Fund. 3.40.130 Violations. Any person violating any provisions of this chapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars ($500.00), or by imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment. 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 Director of Finance, 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, submit 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. 3.40.140 Effective Date. This chapter shall take effect in thirty (30) days after adoption, except that the tax imposed by this chapter shall become operative on July 1, 1983. Ordinance No. 197 Page 5 SECTION 2: The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional, then all other provisions thereof shall remain in full force and effect. SECTION 3: The Mayor shall sign this Ordinance and the City Clerk shall attest to the same, and the City Clerk shall cause the same to be published within fifteen (15) days after its passage, at least once in The Daily Report, a newspaper of general circulation, published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. PASSED, APPROVED, and ADOPTED this 6th day of April, 1983. AYES: Dahl, Buquet, Schlosser, Frost, Mikels NOES: None ABSENT: None O~D. Mikels, Mayor ATTEST: