[Ord. 1263-2018, 8-28-2018]
This chapter shall be known and cited as the "City of Tahlequah
Substantial Hotel Tax."
[Ord. 1263-2018, 8-28-2018]
As used in this chapter, the following words and phrases shall
have the meanings hereinafter set forth:
The Director of Finance of the City.
The use or possession, or the right to the use or possession
of any room or rooms in a substantial hotel, or the right to the use
or possession of the furnishings or to the services and accommodations
accompanying the use and possession of the room or rooms.
A person, who for a consideration, uses, possesses, or has
the right to the use or possession of any room or rooms in a substantial
hotel under any lease, concession, permit, right of access, license
to use, or other agreement.
Any occupant who has or snail have the right of occupancy
of any room or rooms in a substantial hotel for at least 30 consecutive
days during the current calendar year or preceding year.
The consideration received for occupancy valued in money,
whether received in money or otherwise, including all receipts, cash,
credits, and property or services of any kind or nature, and also
any amount for which credit is allowed by the substantial hotel operator
to the occupant, without any deductions therefrom whatsoever.
Any return filed or required to be filed as herein provided.
Any room or rooms of any kind in any part or portion of a
substantial hotel which is available for or let out for use or possessed
for any purpose other than a place of assembly. As used herein, place
of assembly means a room or space which is used for educational, recreational
or amusement purposes and shall include:
Dance halls;
Cabarets;
Nightclubs;
Restaurants;
Any room or space for public or private banquets, feasts, socials,
card parties or weddings;
Lodge and meeting halls or rooms;
Skating rinks;
Gymnasiums;
Swimming pools;
Billiards, bowling and table tennis rooms;
Hails or rooms used for public or private catering purposes;
Funeral parlors;
Markets;
Recreational rooms;
Concert halls;
Broadcasting studios; and
All other places of similar type of occupancy.
Any newly-constructed building or buildings, structures or
other facility in which the public may, for consideration, obtain
sleeping accommodations in which 81 or more rooms are in one or several
structures. The term shall include hotels and all other facilities
where rooms or sleeping accommodation or space is furnished for a
consideration. The term shall not include hospitals, sanitariums or
nursing homes or dormitories at Northeastern State University or other
educational or charitable institutions, unless used for purposes described
herein.
Any person operating a substantial hotel in this City, including,
but not limited to, the owner, proprietor, lessee, sublessee, mortgagee
in possession, licensee or any other person otherwise operating such
substantial hotel.
The tax levied pursuant to this chapter.
[Ord. 1263-2018, 8-28-2018]
There is hereby levied an excise tax of 6% of the gross rental
receipts due from or paid by any transient guests of substantial hotels
located within the City, except that the tax shall not be assessed
where the rent is less than $5 per day.
[Ord. 1263-2018, 8-28-2018]
A.
All taxes collected pursuant to the provisions of this chapter shall
be set aside and used for the purpose of encouraging, incentivizing,
and promoting development of the hotel industry in the City, and the
sums shall be applied as follows:
1.
96% of the net proceeds collected pursuant to the provisions of this
chapter shall be used for the purpose stated in 7-804(A) in the manner
stated herein. 4% of the funds to be retained by the City to meet
necessary administrative expenses of enforcement of this chapter;
2.
As an incentive to encourage substantial hotel operators to make
the significant investment in the construction and operation of a
substantial hotel within the City of Tahlequah, which is anticipated
to provide many benefits to the City, any substantial hotel operator
who places one or more substantial hotels into operation within the
City while this chapter is in effect shall be entitled to a rebate
of 96% of the substantial hotel tax collected and remitted to the
City by such substantial hotel operator with respect to that particular
substantial hotel during the period of time specified herein.
3.
The incentive rebate described above will be paid to the particular
substantial hotel operator by the City on a monthly basis in the month
following receipt of the funds by the City.
4.
The period of time during which such substantial hotel operator shall be entitled to the rebate specified above will be 20 years or the portion remaining of the 25 year term of this chapter, whichever is shorter. Such incentive rebate period for a particular substantial hotel will be determined by the City Clerk at the time the substantial hotel operator files its certificate of registration for a particular hotel pursuant to Section 7-818.
5.
If a substantial hotel operator sells, transfers, or otherwise assigns
to a different substantial hotel operator substantially all of the
assets constituting a particular substantial hotel, then the right
to the rebate described above for the unexpired incentive rebate period
shall also be assigned to the assignee.
6.
After the expiration of the incentive rebate period specified above
for a particular substantial hotel, and during the remaining life
of this chapter, if any, the substantial hotel operator shall remit
to the City 100% of the substantial hotel tax collected for that particular
substantial hotel, except as otherwise provided in this chapter.
7.
Any portion of the substantial hotel tax received by the City hereunder
other than the 4% retained for administrative purposes may only be
used for the purpose stated in 7-804(A), except as otherwise provided
herein.
[Ord. 1263-2018, 8-28-2018]
A.
The following shall be exempt from the tax levied by this chapter:
1.
Permanent residents;
2.
Officers, agents, representatives, or employees of the United States
Government or any agency or division thereof whose occupancy of the
room is required in connection with the official business or affairs
of the government or agency or division thereof;
3.
Officers, agents, representatives or employees of the State or any
political subdivision thereof whose occupancy of the room is required
in connection with the official business or affairs of the State or
any political subdivision thereof; and
4.
Officers, agents, representatives, or employees of any organization,
corporation, or association organized and operated exclusively for
religious, charitable, philanthropic or educational purposes, provided
that its primary purpose is not the carrying on of a trade or business
for profit or savings.
[Ord. 1263-2018, 8-28-2018]
Any person claiming to be exempt from the tax pursuant to Subsection
7-805(A)(4) of this chapter shall obtain a certificate from the City
agent certifying that the organization, association, or corporation
with which he is affiliated is exempt from the tax. Prior to issuing
such a certificate, the organization, association or corporation shall
certify to the City Clerk in writing that the occupant is its officer,
agent, representative, or employee and that his occupancy of the room
is required in connection with the business or affairs of the organization,
association, or corporation.
[Ord. 1263-2018, 8-28-2018]
The substantial hotel operator shall be responsible for the
collection of the tax from the occupant and shall be liable to the
City for the tax.
[Ord. 1263-2018, 8-28-2018]
It shall be the duty of every substantial hotel operator required
to make a return and pay any tax under this chapter to keep and preserve
suitable records of the gross daily rentals together with other pertinent
records and documents which may be necessary to determine the amount
of tax due hereunder and such other records as will substantiate and
prove the accuracy of such returns. All such records shall remain
in the City and be preserved for a period of three years, unless the
City agent, in writing, has authorized their destruction or disposal
at an earlier date, and shall be open to examination at any time by
the City Clerk or by any of his duly authorized agents. The burden
of proving that a sale was not taxable sale shall be upon the substantial
hotel operator who made the sale.
[Ord. 1263-2018, 8-28-2018]
A.
The tax levied hereunder shall be due and payable to the City Clerk
on the first day of each month, except as herein provided, by any
person liable for the payment of any tax due under this chapter. For
the purpose of ascertaining the amount of the tax payable under this
chapter, it shall be the duty of ail substantial hotel operators,
on or before the fifteenth-day of each month, to deliver to the City
Clerk, upon forms prescribed and furnished by him, returns, under
oath, showing the gross receipts or gross proceeds arising from rents
received from occupancy of substantial hotel rooms during the preceding
calendar month. Such returns shall show such further information as
the City Clerk may require to correctly compute and collect the tax
herein levied. In addition to the information required on returns,
the City Clerk may request and the substantial hotel operator shall
furnish any information deemed necessary for a correct computation
of the tax levied herein. Such substantial hotel operator shall compute
and remit to the City Clerk the required tax due for the preceding
calendar month. The remittance or remittances of the tax shall accompany
the returns herein required. If not paid on or before the 15th of
such month, the tax shall be delinquent after such date; provided,
that no interest or penalty shall be charged on such return if filed
on or before the 20th of such month.
B.
The City Clerk may permit or require returns to be made by shorter
or longer periods and upon such dates as he may specify. The form
of return shall be prescribed by the City Clerk and shall contain
such information as he may deem necessary for the proper administration
of this chapter. The City agent may require amended returns to be
filed within 20 days after notice, which amended return shall contain
the information specified in the notice.
[Ord. 1263-2018, 8-28-2018]
At the time of filing a return of occupancy and of rents, each
substantial hotel operator shall pay to the City Clerk the taxes imposed
by this chapter upon the rents included in such return, as well as
all other monies collected by the substantial hotel operator acting
or purporting to act under the provisions of this chapter.
[Ord. 1263-2018, 8-28-2018]
The substantial hotel operator shall separately designate, charge,
and show all taxes on all bills, statements, receipts, or any other
evidence of charges or payment of rent for occupancy issued or delivered
by the substantial hotel operator.
[Ord. 1263-2018, 8-28-2018]
Where the City Clerk believes that any substantial hotel operator
is about to cease business, leave the State, or remove or dissipate
assets, or for any other similar reason he deems it necessary in order
to protect the revenues under this chapter, he may require such substantial
hotel operator to file with the City a bond issued by a surety company
authorized to transact business in this State in such amount as the
City Clerk may fix to secure the payment of any tax or penalties and
interest due, or which may become due, from such substantial hotel
operator. In the event that the City Clerk determines that a substantial
hotel operator is to file such bond, he shall give notice to such
substantial hotel operator specifying the amount of bond required,
which shall in no event exceed twice the amount of the sum In controversy.
The substantial hotel operator shall file such bond within five days
after receiving such notice unless within five days the substantial
hotel operator shall request in writing a hearing before the City
Council, at which time the necessity and amount of the bond shall
be determined by the City Council Such determination shall be final
and shall be complied within 15 days thereafter. In 'lieu of
such bond, securities approved by the City Clerk, or cash in such
amount as he may prescribe, may be deposited with the City Clerk who
may at any time after five days' notice to the depositor, apply
them to any tax or any penalties due and for that purpose the securities
may be sold at private or public sale.
[Ord. 1263-2018, 8-28-2018]
A.
If a return required by this chapter is not filed, or if a return
when filed is incorrect or insufficient, the amount of tax due shall
be assessed by the City Clerk from such information as may be obtained
and, if necessary, the tax may be estimated on the basis of external
indices, such as:
B.
Written notice of such assessments shall be given to the person liable
for the collection and payment of the tax. Such assessment shall finally
and irrevocably fix and determine the tax, unless the person against
whom it is assessed, within 90 days after the giving of notice of
such assessment, shall apply in writing to the City Council for a
hearing, or unless the City Clerk upon his own initiative shall reassess
the same. After such hearing, the City Council shall give written
notice of its determination to the person against whom the tax is
assessed and such determination shall be final.
[Ord. 1263-2018, 8-28-2018]
A.
The City Clerk shall refund or credit any tax erroneously, illegally
or unconstitutionally collected if written application to the City
Clerk for such refund shall be made within 90 days from the payment
thereof. For like causes, and in the same period, a refund may be
so made upon the initiative and the order of the City Clerk. Whenever
a refund is made, the reasons therefor shall be stated in writing.
Such application may be made by the person upon whom such tax was
imposed and who has actually paid the tax. Such application may also
be made by the person who has collected and paid such tax to the City
Clerk provided that the application is made within 90 days of the
payment by the occupant to the substantial hotel operator, but no
refund of money shall be made to the substantial hotel operator until
he has repaid to the occupant the amount for which the application
for the refund is made. The City Clerk, in lieu of any refund required
to be made, may allow credit therefor on payments due from the applicant,
if the City Clerk determines that a refund is due the applicant, then
any substantial hotel operator who received as a rebate under the
provisions of this chapter any portion of the substantial hotel tax
collected from the applicant shall refund the same to the applicant
as determined by the City Clerk.
B.
Upon application for a refund the City Clerk may receive evidence
with respect thereof and make such investigation as he deems necessary.
After making a determination as to the refund, the City Clerk shall
give notice thereof to the applicant Such determination shall be final
unless the applicant within 90 days after such notice shall apply
in writing to the City Council for a hearing. After such hearing the
City Council shall give written notice of its decision to the applicant.
[Ord. 1263-2018, 8-28-2018]
Notices provided for under this chapter shall be deemed to have
been given when such notice has been delivered personally to the substantial
hotel operator or deposited in the United States mail addressed to
the last known address of the substantial hotel operator.
[Ord. 1263-2018, 8-28-2018]
The remedies provided in this chapter shall be exclusive remedies
available to any person for the review of tax liability imposed by
this chapter.
[Ord. 1263-2018, 8-28-2018]
A.
The City Clerk is hereby authorized:
1.
To make, adopt and amend rules and regulations appropriate to the
collection of taxes pursuant to this chapter;
2.
To extend for cause shown the time for filing any return for a period
not exceeding 60 days; and, for cause shown, to waive, remit or reduce
penalties or interest;
3.
To delegate his functions hereunder to an assistant or other employee
or employees of the City;
4.
To assess, reassess, determine, revise and readjust the taxes imposed
by this chapter; and
5.
To prescribe methods for determining the taxable and nontaxable rents.
[Ord. 1263-2018, 8-28-2018]
Every substantial hotel operator opening a new substantial hotel after such effective date and during the term of this chapter, within three days after such opening, shall file with the City Clerk a certificate of registration in a form prescribed by the City Clerk. The City agent shall, within five days after the filing of such certificate issue, without charge, to each substantial hotel operator, a certificate of authority empowering such substantial hotel operator to collect the tax from the occupant for each substantial hotel. Each certificate shall state the substantial hotel to which it is applicable, the expiration date of this chapter, and the expiration date of the incentive rebate period calculated pursuant to Section 7-804 of this chapter. Such certificate of authority shall be permanently displayed by the substantial hotel operator in such manner that it may be seen and come to the notice of ail occupants and persons seeking occupancy. Such certificates shall be nonassignable and nontransferable and shall be surrendered immediately to the City Clerk upon the cessation of business at the substantial hotel or upon its sale, transfer, or assignment, subject, however, to the provisions regarding transfer of any unexpired incentive rebate period pursuant to Section 7-804 of this chapter.
[Ord. 1263-2018, 8-28-2018]
In order to remunerate a substantial hotel operator for keeping
tax records, filing reports, and remitting the tax when due, a discount
equal to that allowed by the Oklahoma Tax Commission for the collection
of sales tax shall be allowed upon all taxes paid prior to the time
they become delinquent.
[Ord. 1263-2018, 8-28-2018]
The confidential and privileged nature of the records and files
concerning the administration of tax is legislatively recognized and
declared, and to protect the same the provisions of Section 205 of
Title 68 of the Oklahoma Statutes of the State Sales Tax Code, and
subsections thereof are hereby adopted by o reference and made fully
effective and applicable to administration of this chapter as if herein
set forth.
[Ord. 1263-2018, 8-28-2018]
The willful failure or refusal of any substantial hotel operator
to make reports and remittances herein required, or the making of
any false or fraudulent reports for the purpose of avoiding or escaping
payment of any tax or portion thereof rightfully due under this chapter
shall be an offense, and upon conviction is punishable as follows:
The offending taxpayer shall be subject to discontinuance of
City services, revoking of business license permit by the City and
any court costs incurred for enforcement of this chapter.
[Ord. 1263-2018, 8-28-2018]
The people of Tahlequah by their approval of this chapter at
the election herein provided, hereby authorize the City Council, by
ordinance duly enacted, to make such administrative and technical
changes or additions in the method and manner of administration and
enforcing this chapter as may be necessary or proper for efficiency
and fairness except that the rate of the tax herein provided nor the
application and use of tax proceeds, shall not be changed without
approval of the qualified voters of the City as provided by law.
[Ord. 1263-2018, 8-28-2018]
4% of the gross receipts derived from taxes collected pursuant
to this chapter shall be retained by the City for the purpose of administering
and collecting the tax.
[Ord. 1263-2018, 8-28-2018]
If any tax levied by this chapter becomes delinquent, the person
responsible and liable for such tax shall pay interest on such unpaid
tax at the rate of 1 1/2% per month on the unpaid balance from
the date of delinquency until the unpaid balance is paid in full.
[Ord. 1263-2018, 8-28-2018]
In the event a suit in a court of competent jurisdiction is
caused to be filed, either on behalf of or against the City, and the
cause is the direct result of the conditions, stipulations, or requirements
hereinbefore set forth, an amount necessary to pay all legal fees
incurred by the City, as well as fines or penalties imposed against
it, shall be set aside from the monies authorized to be collected
hereby in payment thereof, regardless of whether the cause was for
the purpose of enforcing or defending the provisions of this chapter.
[Ord. 1263-2018, 8-28-2018]
The provisions hereof shall be cumulative and in addition to
any and all other taxing provisions of City ordinances.
[Ord. 1263-2018, 8-28-2018]
This chapter shall become and be effective on and after the 1st day of October, 2018, subject to the approval of a majority of the qualified voters of the City of Tahlequah voting on the same in a manner prescribed by Oklahoma Statutes Title 11, Sections 16-101 through 16-114, inclusive, and the Charter of the City of Tahlequah at a special election on August 28, 2018, called for that purpose. This chapter shall continue in effect for a term of 25 years from such effective date.
