A. 
Revenue and Taxation Code Section 7280 et seq. authorizes local government to levy a tax on the privilege of occupying rooms in hotels, inns, tourist homes, or other forms of lodging for periods of less than 30 days, subject to the provisions of the California Constitution.
B. 
The City Council has established such an occupancy tax as provided for in this chapter and said tax shall be known as the "Hotel Visitors Tax." Wherever this chapter refers to this tax levy as a transient occupancy tax, or by any other name, the tax shall be and is hereby designated as the City's "Hotel Visitors Tax."
(Prior code § 6400; 753, 1964; 2533 § 1(2), 2000; 2805 § 1, 2012)
Except where the context otherwise requires, the following definitions govern the interpretation and construction of this chapter:
"Block reservation"
means an arrangement whereby a person reserves, whether on an exclusive or non-exclusive basis, a room or block/group of rooms for a defined period of time under a written or oral agreement with an operator, intending for such room(s) to be occupied by that person's employees or agents on an intermittent, periodic or "as needed" basis during that defined period of time. A block reservation arrangement shall not constitute a qualifying rental agreement.
"Hotel"
means any structure, or any portion of any structure, that 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, hostel, bed and breakfast, apartment house, dormitory, time-share project, public or private club, mobile home, or house trailer at a fixed location, or other similar structure or portion thereof.
"Operator"
means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, time-share project owners association, licensee, or any other capacity. Where the operator performs his or her 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 or her 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.
"Person"
means any individual, firm, partnership, joint 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.
"Qualifying rental agreement"
means a written leasehold agreement signed by both the operator and transient obligating the transient to pay rent for the use and possession of a room or space in a hotel for a period of not less than 31 consecutive days. The qualifying rental agreement shall be legally enforceable by both the operator and the transient and it shall include in the terms both the right to occupy and the obligation to pay for a room or rooms for 31 days or more. The qualifying rental agreement expressly excludes (1) any agreement, regardless of the rental term, which is terminated for any reason, by either party, or by mutual consent, prior to the 31st consecutive day of the occupancy; or (2) any agreement that would be unlawful or constitute a violation of law.
"Recreational vehicle space"
means any space set aside in a recreational vehicle park that is intended or designed for the occupancy of a recreational vehicle, including, but not limited to, a camper, van, trailer, motor home, or similar vehicle, that is used for dwelling, lodging or sleeping purposes by transients.
"Rent"
means the total consideration charged, whether or not received, for the occupancy of space in a hotel or of a recreational vehicle space, 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. Rent shall include the total consideration charged by the operator for accommodations, including, but not limited to, any separate charges levied for non-optional items or services that are incidental to occupancy, including, but not limited to, furniture, fixtures, appliances, linens, towels, non-coin-operated safes, utilities (such as energy surcharges), maid service, Internet connection charges, and parking fees.
"Time-share project"
means a structure or real property (including airspace) in which either a timeshare estate or a time-share use (as those terms are defined in Section 11212 of the Business and Professions Code) and any similar form of ownership involving a right in perpetuity, for life, or for a term of years, to occupy any room, place or area has been sold.
"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 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying or entitled to occupy space in a hotel shall be deemed to be a transient until the period of 30 consecutive and uninterrupted days of occupancy has expired, unless there is a qualifying rental agreement in writing between the operator and the occupant providing for a longer period of occupancy. Any break or interruption in occupancy shall start a new 30-day period subject to the tax. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified herein may be considered.
In the case of a block reservation, a person's employee or agent shall be deemed a transient if that employee or agent exercises or is entitled to occupancy of a room for a period of 30 consecutive calendar days or less, regardless of the duration of any block reservation agreement. By way of example, if a corporation enters into a one-year block reservation agreement with an operator and one of the corporation's employees occupies a room for 30 calendar days, the employee shall be deemed a transient whose occupancy is subject to the tax, notwithstanding the fact that the block reservation agreement has a duration longer than 30 calendar days.
(Prior code § 6401; 753, 1964; 821 § 1, 1965; 1299 § 1, 1972; 1896 § 1, 1985; 2805 § 1, 2012; ordinance approved by voters November 2012)
A. 
For the privilege of occupancy in any hotel or other transient lodgings as defined in this chapter, each transient is subject to and shall pay a tax in the amount of 14.5% of the rent charged by the operator. The tax constitutes a debt owed by the transient and/or owner to the City that is extinguished only by payment to the operator or to the City. The tax shall be paid 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 occupancy. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax be paid directly to the City.
B. 
Except as otherwise provided in this chapter, all provisions relating to hotels shall be applicable to recreational vehicle spaces, and all references to "hotel" or "a room," "rooms," or "space" in a hotel shall be deemed to include recreational vehicle spaces.
(Prior code § 6402; 753, 1964; 1064 § 3, 1969; 1451 § 1, 1975; 1895 § 1, 1985; 1896 § 2, 1985; 2183 § 1, 1991; 2230 § 1, 1992; ordinance approved by voters November 2002; 2805 § 1, 2012; ordinance approved by voters November 2012)
[1]
Tax increased by General Election of November 2012.
A. 
No tax shall be imposed upon:
1. 
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. Employees of the Federal Government and federal credit unions are exempt from hotel visitors tax for dates they are on official business for their employer.
2. 
Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
3. 
A person occupying a hotel pursuant to a qualifying rental agreement entered into prior to the first day of occupancy.
B. 
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. It is the responsibility of the person claiming an exemption to provide necessary proof of exemption. All forms executed by persons claiming an exemption shall be retained by the operator for the period specified in Section 3.12.150.
(Prior code § 6403; 753, 1964; 838 § 1, 1965; 2805 § 1, 2012)
A. 
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.
B. 
Notwithstanding the provisions of subsection A of this section, the operator shall not be required to separately state the amount of rent and the amount of the tax on receipts and books of record when room accommodations constitute a portion of a collective group of services, privileges, entitlement or benefits ("benefits") that include, at a minimum, room accommodations and food and beverage services, or room accommodations and at least one other benefit having an ascertainable fair market value ("special packages") offered for one fixed price ("special package rate") provided the operator complies with subsection C of this section.
C. 
The operator shall file with the Tax Administrator a statement of each special package on a form special package application, provided by the Tax Administrator. The special package application shall detail the benefits of the special package and an itemization of each portion of the special package that is rent and tax. The Tax Administrator shall mark the date of receipt on the special package application and review the submitted information to determine if sufficient information is provided to verify the value of the benefits, rent, and tax. The operator shall designate a specific name or number to the special package application as part of the special package application. The special package application shall not be accepted unless accompanied by a fee for processing that has been established by City Council resolution.
1. 
The name or number designated on the special package application shall appear on all receipts and books of record whenever the special package is sold.
2. 
If the special package application is deemed incomplete, the Tax Administrator will advise the operator of any required changes within 14 business days. The operator must either make the required changes and resubmit the special package application or comply with subsection A.
3. 
The Tax Administrator shall approve, conditionally approve, or disapprove the special package within 14 days of receipt of a complete special package application. In the event of disapproval, the Tax Administrator shall give the operator written notice of the reasons for disapproval. The effective date of the special package rate shall be the date on which the Tax Administrator receives a complete special package application that is approved. A new special package application shall be submitted whenever the operator changes the rent or benefits of any previously approved special package.
D. 
The tax shall apply only to the amount of rent identified in the special package that has been approved by the Tax Administrator.
E. 
If the operator fails to either separately state the amount of the tax and the rent in accordance with subsection A or to obtain approval of a special package rate pursuant to subsection C, the rent to which the tax is deemed to apply (the "imputed rate") shall be the lesser of (1) the amount collected for the total special package, or (2) an amount equal to the median average double occupancy room rate for the accommodations as posted in the room pursuant to the requirements of Section 1863 of the Civil Code or any successor statute.
F. 
Notwithstanding subsections C and D of this section, if any audit reveals that the gross income to the operator attributable to the rent portion of a special package (the "audited rate") is more than 10% greater than the rent specified in the special package, then the rent for purposes of calculating the tax shall be the audited rate. In the event subsection 3.12.050(E) applies and the audited rate is greater than the imputed rate, the rent for tax purposes shall be the audited rate. The audited rate shall be determined by an audit of a sample of the special packages sold by the operator within each special package category. The audited rate shall be the amount of the special package rate remaining after deducting the fair market value of each of the benefits included in the special package rate other than room accommodations and tax. Where more than one type of special package is offered within the audit period, each special package shall be audited separately for purposes of determining the applicable audited rate, credits, or offsets shall not be allowed between different special packages.
(Prior code § 6404; 753, 1964; 2805 § 1, 2012; ordinance approved by voters November 2012)
Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days 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 or her 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 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 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 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."
(Prior code § 6405; 753, 1964; 2805 § 1, 2012)
A. 
Each operator shall, on or before the 15th day of the month, make a return to the Tax Administrator, on forms provided by the Tax Administrator, of the total rents charged and received and the amount of tax collected for transient occupancies for the prior calendar month, except as herein provided. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. 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 Tax Administrator. Any operator who has not collected a tax for transient occupancies for the prior 90 days shall be excused from reporting and remitting until the operator has had transient occupancies, and then the operator shall report as required herein.
B. 
The filing of a return shall not preclude the City from collecting by appropriate action any tax actually due and payable pursuant to this chapter or taking any other action to enforce the provisions of this chapter. Each return shall be subject to audit and verification by the Finance Director or authorized agents of the City, who are authorized to examine, audit, and inspect such books and records of any operator as may be necessary in their judgment to verify or ascertain the amount of tax due.
(Prior code § 6406; 753, 1964; 826 § 1, 1965; 2805 § 1, 2012)
Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.
(Prior code § 6407(a); 753, 1964; 2805 § 1, 2012)
Any operator who fails to remit any delinquent remittance on or before a period of 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.
(Prior code § 6407(b); 753, 1964; 2805 § 1, 2012)
If the Tax Administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in Sections 3.12.080 and 3.12.090.
(Prior code § 6407(c); 753, 1964; 2805 § 1, 2012)
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 of one 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.
(Prior code § 6407(d); 753, 1964; 2805 § 1, 2012)
If any operator fails or refuses 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 Tax Administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the Tax Administrator procures such facts and information as he or she 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 or she 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 Tax Administrator 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 or her last known place of address. Such operator may within 10 days after the serving or mailing of such notice make application in writing to the Tax Administrator 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 Tax Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five 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 Administrator 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 15 days unless an appeal is taken as provided in Section 3.12.140.
(Prior code § 6408; 753, 1964; 2805 § 1, 2012)
Any operator aggrieved by any decision 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 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 or her last known place of address. The findings of the City 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.
(Prior code § 6409; 753, 1964; 2805 § 1, 2012)
No injunction, or writ of mandate, or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the City or an officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this chapter, and payment of all tax, interest, and penalties shall be required as a condition precedent to seeking judicial review of any tax liability.
(2756 § 1, 2009; 2805 § 1, 2012)
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 years, all records as may be necessary to determine the amount of such tax as he or she 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.
(Prior code § 6410; 753, 1964; 2805 § 1, 2012)
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 subsections 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 Tax Administrator within three years of the date of payment. The claim shall 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 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 Tax Administrator, or when the transient having paid the tax to the operator establishes 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 or her right thereto by written records showing entitlement thereto.
(Prior code § 6411; 753, 1964; 2805 § 1, 2012)
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 that 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 for the recovery of such amount.
(Prior code § 6412; 753, 1964; 2805 § 1, 2012)
A. 
Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable as provided in Section 1.04.010.
B. 
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 Tax Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as provided in Section 1.04.010.
C. 
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 chapter to be made, is guilty of a misdemeanor and is punishable as provided in Section 1.04.010.
(Prior code § 6413; 753, 1964; 2805 § 1, 2012)