The following words, terms and phrases are, for the purpose of this division, except where the context clearly indicates a different meaning, defined as follows:
Consideration.
The cost of the room, sleeping space, bed or other facility in such hotel ordinarily used for sleeping, and shall not include the cost of any food served or personal services rendered to the occupants of such room, sleeping space, bed or other facility for occupancy, except for those services related to cleaning and readying the room for use or for possession.
Hotel.
Any building or buildings, trailer or other facility in which the public may, for a consideration, obtain sleeping accommodations. The term shall include hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, or other buildings where rooms are furnished for a consideration, but “hotel” shall not be defined so as to include hospitals, sanitariums or nursing homes.
Occupancy.
The use or possession, or right to the use or possession, of any room or rooms, sleeping space or bed or other facility ordinarily used for sleeping in a hotel for any purpose.
Occupant.
Anyone who for a consideration uses, possesses, or has a right to use or possess any room or rooms, sleeping space, bed or other facility ordinarily used for sleeping in a hotel under any lease, concession, permit, right of access, license, contract or agreement.
Permanent resident.
Any occupant who has or shall have the right to occupancy of any room or rooms or sleeping space or other facility in a hotel for at least thirty (30) consecutive days during the current calendar year or preceding year.
Person.
Any individual, company, corporation or association owning, operating, managing or controlling any hotel.
Quarterly period.
The regular calendar quarters of the year, the first quarter being composed of the year [sic], first quarter being composed of the months of January, February and March; the second quarter being the months of April, May and June; the third quarter being the months of July, August and September; and the fourth quarter being the months of October, November and December.
Tax collector.
The tax assessor-collector of the town.
(1999 Code, sec. 1.401)
(a) 
Levy; rate.
There is hereby levied a tax upon the cost of occupancy of any room or space furnished by any hotel where such cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room to such hotel.
(b) 
Exception for permanent residents.
No tax shall be imposed hereunder upon a permanent resident.
(c) 
Exception for certain organizations.
No tax shall be imposed hereunder upon a corporation or association organized and operated exclusively for religious, charitable or educational purposes no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(d) 
Use of revenue.
Any revenues from a tax in excess of four (4) percent of the consideration paid by an occupant of the sleeping room to the hotel may only be used for the purposes established by state law.
(e) 
Applicability in extraterritorial jurisdiction.
The tax imposed herein will be applicable to any hotel within the corporate town limits or the extraterritorial jurisdiction of the town, as provided by state law. Such tax on hotels in the extraterritorial jurisdiction will not exceed a total of 15 percent of the price paid for a room in a hotel if all state, county and municipal tax rates are combined. If such should occur, the rate imposed under this division will be reduced sufficiently to prevent the combined rate from exceeding 15 percent.
(1999 Code, sec. 1.402; Ordinance adopting Code)
Every person owning, operating, managing or controlling any hotel shall collect the tax imposed herein for the town on a monthly basis.
(1999 Code, sec. 1.403)
On the last business day of each calendar month, every person required hereby to collect the tax imposed by this division shall file a report with the town secretary showing the consideration paid for all room occupancies in the preceding month, the amount of tax collected on the town’s behalf for such occupancies and any other information as the town secretary may reasonably require. Said report shall be made in the same form as the form required by the state in connection with the collection of the state hotel occupancy tax. Such persons shall pay over the tax due on such occupancies at the time of filing such report. There shall also be forwarded to the town secretary, at the time of payment of such tax, a copy of the monthly tax report filed with the state comptroller in connection with the state hotel occupancy tax.
(1999 Code, sec. 1.404)
The town secretary or town council shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied herein, and shall upon reasonable notice have access to books and records necessary to enable the town to determine the correctness of any report filed as required by this division and the amount of taxes due under the provisions of this division.
(1999 Code, sec. 1.405)
If any person required by the provisions of this division to collect the tax imposed herein, make reports as required herein, and pay to the town treasurer the tax imposed herein shall fail to collect such tax, shall fail to file such report or shall fail to pay such tax, or if such person shall file a false report, such person shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine in accordance with the general penalty provision found in section 1.01.009 of this code.
(1999 Code, sec. 1.406)
The town attorney, or other attorney acting for the town, may bring suit against a person who is required to collect the tax imposed by this division and pay the collections over to the town and who has failed to file a tax report or pay the tax when due, to collect the tax not paid or to enjoin the person from operating the hotel in the town or its extraterritorial jurisdiction until the tax is paid or the report filed, as applicable, as provided by the court’s order. In addition to the amount of any tax owed under this division, the person is liable to the town for the town’s reasonable attorneys’ fees and a penalty equal to fifteen percent (15%) of the total amount of the tax owed.
(1999 Code, sec. 1.407)
If a person who is liable for the payment of a tax under this division is the owner of a hotel and sells the hotel, the successor to the seller or the seller’s assignee shall withhold an amount of the purchase price sufficient to pay the amount due until a seller provides a receipt from the town secretary showing that the amount has been paid or a certificate showing that no tax is due. The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price. The purchaser of a hotel may request that the town secretary provide a receipt as described above or a certificate stating that no tax is due or issue a statement of the amount required to be paid before a certificate may be issued. Upon such request, the town secretary shall issue the certificate or statement no later than the 60th day after the date on which the town secretary receives the request. If the town secretary fails to issue the certificate or statement within the time period described herein, the purchaser is released from the obligation to withhold the purchase price or pay the amount due.
(1999 Code, sec. 1.408)