City of Indian Wells, CA TRANSIENT OCCUPANCY TAX

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 provided in this Chapter;

(2)

Any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty;

(3)

Complimentary rooms for which there is no compensation paid to the hotel in connection with the occupancy. A room which is provided in connection with, or for the promotion of, the provision of other goods or services for compensation paid by the room occupant, including, but not limited to, golf vacation packages, is not a complimentary room, notwithstanding that the provider of the room and the goods or services may describe the room as complimentary.

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.

Persons renting single family dwellings, condominiums, apartments or similar units on a monthly term, regardless of the number of days contained in the month, shall be exempted from the provisions of this Chapter.

(Ord. 6 § 4, 1967; Ord. 50 § 2, 1969; Ord. 237 § 1, 1987; Ord. 291 § 2, 1992)

§ 3.12.050 Operator's duties.

Each operator shall collect the tax imposed by this Chapter in the same extent and at the same time as the rent is collected from every transient. The amount of the tax shall be separately stated from the amount of the rent charged. 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.

Each operator shall maintain an office for the purpose of collecting the tax imposed by this Chapter within the perimeter boundaries of the complex within which the "hotel" is located.

(Ord. 6 § 6.5, 1967; Ord. 237 § 2, 1987)

§ 3.12.060 Registration.

Every person desiring to engage in or conduct business as operator of a hotel renting to transients within the City shall file with the Tax Administrator an application for a transient occupancy registration permit for each place of business. Every application for such a permit shall be made upon a form prescribed by the Tax Administrator and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place of business and such other information as the Tax Administrator may require. The application shall be signed by the owner if a natural person, by a member or partner, if an association or partnership, by an executive officer or some person specifically authorized by the corporation to sign the application in the case of a corporation. The transient occupancy registration permit must be in effect at all times while the business is in operation and shall be at all times posted in a conspicuous place on the premises. The permit shall, among other things, State the following:

Name of hotel;

Name of operator;

Hotel address;

The date upon which the permit was issued;

(e)

"This Transient Occupancy Registration Permit signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Chapter 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 Permit does not authorize any person to conduct any unlawful business in an unlawful manner, nor operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This Permit does not apply in lieu of such other permits which are otherwise required."

At the time of making an application for a registration permit, the applicant shall pay a registration fee of $5 for each permit issued.

(Ord. 6 § 6, 1967)

§ 3.12.070 Payment—Cessation of business.

Returns and Payments. The tax imposed under Section 3.12.030 is due and payable to the Tax Administrator on the first day of the month following the close of each calendar month and becomes delinquent on the first day of the second succeeding calendar month following the close of each calendar month.

Reporting and Remitting. Each operator shall, on or before the last day of the month following the close of each calendar month, make a return of the Tax Administrator, on forms provided by him, of the total rents charged or chargeable as provided in Section 3.12.030, whether or not received, including any rentals charged for occupancies exempt under the provisions of Sections 3.12.020(g), 3.12.040 and 3.12.120, shall be fully itemized and explained on the return or supporting schedule. At the time the return is filed, the tax fixed at the currently effective percentage of the amount of rentals charged or chargeable, which are not exempt from tax under Sections 3.12.020(g), 3.12.040 and 3.12.120, shall be remitted to the Tax Administrator. The Tax Administrator may establish other reporting periods and may require a cash deposit or bond for any permit holders if he deems it necessary in order to insure collection of the tax and he may require further information in the return. All taxes collected by operators pursuant to this Chapter shall be held in a separate bank account in trust for the benefit of the City until payment thereof is made to the Tax Administrator, or in lieu of such separate bank account an operator may post a bond guaranteeing payment of such taxes, equal to two months tax as determined by the Tax Administrator.

Cessation of Business. Each operator shall notify the Tax Administrator, 10 days prior to the sale or cessation of business for any reason and returns and payments are due immediately upon the sale or cessation of business.

(Ord. 6 § 7, 1967; Ord. 237 § 3, 1987; Ord. 290 § 1, 1991)

§ 3.12.080 Penalties and interest.

Delinquency. Any operator who fails to pay any tax to the City or any amount of tax required to be collected and paid to the City including amounts based on determinations made by the Tax Administrator under Section 3.12.090, within the time required, shall pay a penalty of 10% of the tax plus interest at the rate of one half percent (1/2%) per month, or fraction thereof, from the date on which the tax or the amount of tax required to be collected becomes due and payable to the City until the date of payment.

Any operator who fails to remit any penalty imposed under this Section within 10 days after receipt of notice thereof shall pay interest thereon at the rate of one half of one percent (.5%) per month, or fraction thereof from the date on which the penalty becomes due and payable to the City until the date of payment.

Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under this Chapter is due to fraud, a penalty of 100% of this amount of the tax shall be added thereto in addition to the penalties Stated in subsection (a) of this Section.

(Ord. 6 § 8, 1967)

§ 3.12.090 Failure to collect and report—Determination.

If any operator fails or refuses to collect the tax and to make within the time provided in this Chapter, any report and remittance of the tax on any portion thereof required by this Chapter, the Tax Administrator shall proceed in such manner as he deems best to obtain facts and information on which to base his estimate of the tax due. As soon as the Tax Administrator procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this Chapter 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 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 last known 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 fewer than five days written notice in the manner prescribed in this Chapter to the operator to show cause at a time and place fixed in the notice why the 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 in this Chapter of the determination and the amount of such tax, interest and penalties. The amount determined to be so due shall be payable after 15 days unless an appeal is taken as provided in Section 3.12.100.

(Ord. 6 § 9, 1967)

§ 3.12.100 Appeal.

Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of any 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 of the assessment or determination of tax and penalties, if any, due. The City Council shall fix a time and place for hearing the appeal, and the City Clerk shall give notice in writing to the operator at his last known 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.

(Ord. 6 § 10, 1967)

§ 3.12.110 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 years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of any payment to the City which records the Tax Administrator shall have the right to inspect at all reasonable times. Such records shall be maintained at the operator's premises or shall be available for delivery to the Tax Administrator within one week after request. Such records shall be so maintained for at least six months after a change of operator. The records shall include at least the following:

Daily summaries of room occupancies;

A record of each occupancy charge to which an exemption is claimed, including the name of the individual occupying the room, dates of occupancy, and reasons for exemption;

A list of bad debts claimed for exemption, including names and addresses of debtor and amount of room rent unpaid;

(d)

Bank Statements for the separate account required in Section 3.12.070.

(Ord. 6 § 4, 1967; Ord. 291 § 3, 1992)

§ 3.12.130 Actions to collect.

The remedies set forth in this Section shall be applicable to pre-existing tax debts for in this Chapter.

Revocation of Permit. Whenever any operator fails to comply with any provision of this Chapter relating to occupancy tax or any rule or regulation of the Tax Administrator relating to occupancy tax prescribed and adopted under this Chapter, the Tax Administrator, upon hearing, after giving the operator 10 days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may suspend or revoke any one or more of the permits held by the operator.

The Tax Administrator shall give to the operator written notice of the suspension or revocation of any of his permits. The notices herein required may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.

The Tax Administrator shall not issue a new permit after the revocation of a permit unless he is satisfied that the former holder of the permit will comply with the provisions of this Chapter relating to the occupancy tax and regulations of the Tax Administrator. During the period of time while such a permit is suspended, revoked or otherwise not validly in effect, the Tax Administrator may require that the operation be closed;

Recording Certificate—Lien. If any amount required to be paid to the City under this Chapter is not paid when due, the Tax Administrator may, within three years after the amount is due, file for record in the office of the Riverside County recorder a certificate specifying the amount of tax, penalties and interest due, the name and address as it appears on the records of the Tax Administrator of the operator liable for the same and the fact that the Tax Administrator has complied with all provisions of this Chapter in the determination of the amount required to be paid.

From the time of the filing for record, the amount required to be paid together with penalties and interest constitutes a lien upon all real property in the County owned by the operator or afterwards and before the lien expires acquired by him. The lien has the force, effect and priority of a judgment lien and shall continue for 10 years from the time of filing of the certificate unless sooner released or otherwise discharged;

Priority and Lien of Tax. The amounts required to be paid by any operator under this Chapter with penalties and interest shall be satisfied first in any of the following cases:

(1)

Whenever the person is insolvent;

(2)

Whenever the person makes a voluntary assignment of his assets;

(3)

Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased;

(4)

Whenever the estate and effects of an absconding, concealed or absent person required to pay any amount under this Chapter are levied upon by process law. This Chapter does not give the City a preference over any recorded lien which attached prior to the date when the amounts required to be paid became a lien.

The preference given to the City by this Section shall be subordinate to the preferences given to claims for personal services by Sections 1204 and 1206 of the Code of Civil Procedure;

(d)

Warrant for Collection of Tax. At any time within three years after any operator is delinquent in the payment of any amount required in this Chapter to be paid or within three years after the last recording of a certificate under (a) of this Section, the Tax Administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the City under this Chapter. The warrant shall be directed to any sheriff, marshal or constable and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and a sale pursuant to a writ of execution. The Tax Administrator may pay or advance to the sheriff, marshal or constable, the same fees, commissions and expenses for his services pursuant to a writ of execution. The Tax Administrator, and not the court, shall approve the fees for publication in a newspaper;

(e)

Seizure and Sale. At any time within three years after any operator is delinquent in the payment of any amount, the Tax Administrator may forthwith collect the amount in the following manner: The Tax Administrator shall seize any property, real or personal, of the operator and sell the property, or a sufficient part of it, at public auction to pay the amount due together with any penalties and interest imposed for the delinquency and any costs incurred on account of the seizure and sale. Any seizure made to collect occupancy taxes due shall be only of property of the operator not exempt from execution under the provisions of the Code of Civil Procedure;

(f)

Successor's Liability—Withholding by Purchaser. If any operator liable for any amount under this Chapter sells out his business or quits the business, his successor or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the Tax Administrator showing that it has been paid or a certificate stating that no amount is due;

(g)

Liability of Purchaser—Release. If the purchaser of a hotel fails to withhold purchase price as required, he shall become personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within 60 days after receiving a written request from the purchaser for a certificate, or within 60 days from the date the former owner's records are made available for audit, whichever period expires the later, but in any event not later than 90 days after receiving the request, the Tax Administrator shall either issue the certificate or mail notice to the purchaser at his address as it appears on the records of the Tax Administrator of the amount that must be paid as a condition of issuing the certificate. Failure of the Tax Administrator to mail the notice will release the purchaser from any further obligation to withhold purchase price as above provided. The time within which the obligation of the successor may be enforced shall start to run at the time the operator sells his business or at the time that the determination against the operator becomes final, whichever event occurs later;

(h)

Responsibility for Payment. 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 the 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 for the recovery of such amount.

(Ord. 6 § 13, 1967)

§ 3.12.140 Violations deemed misdemeanors.

Any person knowingly violating any of the provisions of this Chapter is guilty of a misdemeanor and shall be punishable therefore as provided in Section 1.16.010.

Any operator or other person who willfully fails or refuses to register as required in this Chapter, 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 aforesaid. Any person required to make, render, sign or verify any report or claim who willfully 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.

(Ord. 6 § 14, 1967; Ord. 60 § 3, 1971)

§ 3.12.150 Extension of time.

The Tax Administrator, for good cause, may extend for not to exceed one month the time for making any return or paying any amount, required to be paid under this Chapter. The extension may be granted at any time, provided a request therefore is filed with the Tax Administrator within or prior to the period for which the extension may be granted. Any person to whom an extension is granted shall pay, in addition to the tax, interest at the rate of 1% per month or fraction thereof from the date on which the tax would have been due without the extension until the date of payment.

(Ord. 6 § 15, 1967)

§ 3.12.160 Divulging of information forbidden.

It is unlawful for any person having an administrative duty under this Chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of the records of any operator or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof set forth or disclosed in any return, or to knowingly permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the amounts of any unpaid tax or amounts of tax, penalties and interest required to be collected.

(Ord. 6 § 16, 1967)

§ 3.12.170 Joint agreement.

The City is empowered to enter into a joint powers agreement with other cities and the County of Riverside, and if such agreement or agreements can be made wherein central collection for the County of Riverside is provided, then it shall be done upon approval by the City Council.

(Ord. 6 § 18, 1967)

§ 3.12.180 In-lieu amount.

For the privilege of occupancy of any condominium hotel unit, as defined by one or more terms set forth in Section 21.33.020, for personal use (as that term is defined in Section 21.33.020), the unit owner (as defined in Section 21.33.020) is subject to and shall pay an amount ("in-lieu amount") of a maximum of $25 per day subject to automatic increase as set forth hereinafter, for each and every day of personal use (as defined in Section 21.33.020) of each condominium hotel unit in every calendar year beyond the first 60 days of personal use (as defined in Section 21.33.020). The in-lieu amount shall be paid in-lieu of, and not in addition to, the transient occupancy tax imposed by this Chapter. The maximum twenty-five dollar ($25.00) amount set forth above shall be automatically increased as set forth herein. Notwithstanding any provision contained in this Section or in Section 3.12.030, no unit owner shall be required to pay the in-lieu amount or the tax imposed by Section 3.12.030 for the first 60 days, whether consecutive or non-consecutive, of personal use during any calendar year. On July 1st of each calendar year the maximum in-lieu amount shall be automatically increased (there shall be no decrease in any year) by an amount equal to the increase in the CPI (defined below). The CPI to be used shall be the Consumer Price Index for All Urban Consumers in the Los Angeles-Anaheim-Riverside area (or any successor index or other comparable index selected by the City) for each 12 month period ending April 30th prior to each July 1st adjustment date (provided that any CPI adjustment shall be rounded up to the nearest full dollar). The in-lieu amount constitutes a debt owed by the unit owner to the City, which debt is extinguished only by payment to the operator or to the City. The unit owner shall pay the in-lieu amount to the operator within 10 calendar days following the end of each calendar month during which there is personal use of the condominium hotel unit that causes the in-lieu amount to be due and payable. If for any reason the in-lieu amount due is not paid to the operator of the condominium hotel, the tax administrator may require that such in-lieu amount shall be paid directly to the tax administrator. The in-lieu amount payable upon the sale or transfer of interest in a condominium hotel unit shall be payable to the tax administrator. The operator shall notify the tax administrator of the name and address of all record owners of condominium hotel units within the operator's condominium hotel and shall, within 30 days of any change in such owner(s) of any condominium hotel unit, notify the tax administrator of the name and address of any new owner(s). Notwithstanding the maximum amount of the in-lieu amount, the City Council is authorized to periodically increase or decrease by ordinance (including without limitation an ordinance adopting a development agreement pursuant to Government Code Section 65864, et seq.) or resolution, the in-lieu amount provided that the resulting in-lieu amount does not exceed the maximum in-lieu amount. The City Council may also impose an in-lieu amount, not to exceed the maximum in-lieu amount, from time to time in different amounts for different condominium hotels based upon the following criteria:

The size or number of units in a condominium hotel;

The quantity, quality and type of amenities which are located within or are a part of a complex comprised, at least in part, of a condominium hotel;