For purposes of this chapter the following words shall have the meanings set forth below.
"Accrual accounting"
means a system of accounting in which the local tax trustee enters the rent due from a transient into the record when the rent is earned, whether or not it is paid.
"Booking service"
means any reservation and/or payment service provided by a person that facilitates a transaction between a host and a prospective transient, and for which the person collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment services provided for the transaction. Booking services include directly or indirectly accepting, receiving or facilitating payment, whether or not the person or entity is the ultimate recipient of the payment, including through application programming interfaces (APIs) or other computerized devices where third party providers receive information about a transaction and collect funds for the transient lodging occupancy from an occupant.
"Cash accounting"
means a system of accounting in which the local tax trustee does not enter the rent due from a transient into the record until the rent is paid.
"Hotel"
means a structure or part of a structure that is occupied or designed for occupancy by transients for lodging or sleeping, including a hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, dwellings including: single-family residence, duplex, multiple-family dwelling, manufactured dwelling, bed and breakfast, dormitory, public or private club, camping spaces and RV sites at a fixed location, or other similar structure.
"Host"
means the owner, person in control of the property, person who resides at single-family residence, duplex, multiple-family dwelling, manufactured dwelling, bed and breakfast, dormitory or similar dwelling or designee who rents out the dwelling in whole or in part for occupancy either directly or through the use of a hosting platform.
"Hosting platform"
means a person that participates in the transient lodging business by providing booking services through which Host may offer transient lodging. Hosting platforms usually, though not necessarily, provide booking services through an online platform.
"Local tax trustee"
means an operator or hosting platform or designee thereof that accepts, receives or facilitates the payment directly from the transient, whether or not the operator or hosting platform is the ultimate recipient of the payment.
"Occupancy"
means use or possession of, or the right to use or possess, a room or rooms in a hotel for lodging or sleeping.
"Operator"
means: a person including:
1. 
Any person who provides a hotel for occupancy to the general public for compensation. Furnishing accommodations can be done via employees, contractors, agents or any other person allowed to process reservations and accept payment for the hotel on behalf of the transient lodging provider; or
2. 
Any transient lodging provider, transient lodging intermediary or transient lodging tax collector as defined in ORS 320.300.
For purposes of this chapter, compliance by any of the above shall be considered compliance by all.
"Person"
means an individual, firm, partnership, joint venture, association, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or another group or combination acting as a unit.
"Rent"
means the gross rent, exclusive of other services paid by the transient. "Gross rent" includes fees charged for a service when the service is not optional, or if the value of a service is included in the normal lodging rate, the amount allocated to the service is subject to the transient room tax. Examples of non-optional services include, but are not limited to, cleaning service, breakfast, pet charges, transportation to the airport, additional person charge, booking service fees, and providing an extra bed. In all cases, rent that is paid or charged for occupancy shall exclude the sale of goods, services or commodities.
"Tax"
means the tax payable by the transient pursuant to Section 3.12.020.
"Tax administrator"
means the city manager or designee.
"Transient"
means an individual who occupies or is entitled to occupy space in a hotel for a period of thirty consecutive days or less, counting portions of days as full days. The day a transient checks out of a hotel shall not be included in determining the thirty-day period if the transient is not charged rent for that day. A person occupying space in a hotel shall be considered a transient until a period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy if the tenant actually extends occupancy more than thirty consecutive days. A person who pays for lodging on a monthly basis, regardless of the number of days in the month, shall not be considered a transient.
(Ord. 83-21 § 1; Ord. 89-17 § 1; Ord. 92-3 §§ 1, 2; Ord. 04-9A § 8; Ord. 17-2 § 1; Ord. 18-5 § 1)
A. 
As of January 1, 2024, a transient shall pay a tax in the amount of nine and one-half percent for the privilege of occupancy in a hotel in the city. The tax constitutes a debt owed by the transient to the city and the debt is extinguished only when the tax is remitted by the local tax trustee to the city. The transient shall pay the tax to the local tax trustee at the time rent is paid. The local tax trustee shall enter the tax into the record when rent is collected if the local tax trustee keeps records on the accrual accounting basis. If the rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the local tax trustee with each installment.
B. 
Such tax increase shall not apply to reservations for lodging in the city of Cannon Beach made prior to the adoption of the ordinance codified in this section. Reservations made prior to the adoption of the ordinance codified in this section by the city council are exempt from the one and one-half percentage point lodging tax increase; however, such tax increase shall apply to all reservations made after the date of adoption of the ordinance codified in this section.
C. 
Pursuant to ORS 320.350, seventy percent of the net proceeds from the one and one-half percentage point lodging tax increase shall be used for the purposes described in ORS 320.350(5)(a) or (c) which states that such funds shall be used for tourism promotion or tourism related facilities. Pursuant to ORS 320.350(5)(a)(6), thirty percent of the net proceeds from the increased lodging tax may be used by the city for funding city services.
(Ord. 83-21 § 2; Ord. 86-5 § 1; Ord. 91-8 § 1; Ord. 10-6 § 1; Ord. 15-2 § 1; Ord. 18-5 § 1; Ord. 23-06 § 1)
A. 
Every local tax trustee shall collect a tax from the occupant. The tax collected or accrued constitutes a debt owed by the local tax trustee to the city. A local tax trustee must collect tax on gross rents from the transient or a person paying on behalf of the transient, then the local tax trustee must remit the tax to the city and provide a listing of gross receipts, with the total amount identified by location. This must be attached to each return filed.
B. 
In cases of credit or deferred payment of rent, the payment of tax to the local tax trustee may be deferred until the rent is paid, and the local tax trustee shall not be liable for the tax until credits are paid or deferred payments are made. Adjustments may be made for uncollectible accounts.
C. 
The tax administrator shall enforce this chapter and may adopt rules and regulations necessary for enforcement.
D. 
For rent collected on portions of a dollar, fractions of a penny of tax shall not be remitted.
E. 
Upon request of the city, local tax trustees must provide all physical addresses of hotels within the city limits and the related contact information, including the name and mailing address of the general manager, agent, owner, host or other responsible person for the location.
(Ord. 83-21 § 3; Ord. 89-17 § 2; Ord. 18-5 § 1)
Operators who receive any portion of the rent and hosting platforms are jointly and severally liable for collecting and remitting the tax.
(Ord. 18-5 § 1)
A local tax trustee shall collect the tax when the rent is collected from the transient. Local tax trustee's records shall be maintained in a manner so all parties are protected. A local tax trustee shall not advertise that the tax will not be added to the rent, that a portion of it will be assumed or absorbed by the local tax trustee or that a portion will be refunded, except in the manner provided by this chapter.
(Ord. 83-21 § 4; Ord. 18-5 § 1)
A. 
A local tax trustee, or operator if the operator is not acting as the local tax trustee, of a hotel shall register with the tax administrator, on a form provided by the administrator, within fifteen days after beginning business or within thirty calendar days after passage of the ordinance codified in this chapter.
B. 
The registration shall include:
1. 
The name under which the local tax trustee transacts or intends to transact business if different than the name of the local tax trustee;
2. 
The location of the hotel;
3. 
The signature of the local tax trustee;
4. 
The number of units; and
5. 
The name and mailing address of the operator, agent, owner, host or other responsible person for the location if that person is not the local tax trustee.
C. 
Failure to register does not relieve the local tax trustee from collecting the tax or a person from paying the tax.
(Ord. 83-21 § 6; Ord. 89-17 § 3; Ord. 18-5 § 1)
A. 
The tax administrator shall issue a certificate of authority to the registrant within ten days after registration.
B. 
Certificates are nonassignable and nontransferable.
C. 
Each certificate shall state the place of business to which it applies and shall be prominently displayed in the office area, or other location in view of the general public.
D. 
The certificate shall state:
1. 
The name of the local tax trustee or operator if different from the local tax trustee;
2. 
The address of the hotel, or name of the hotel, if applicable;
3. 
The date when the certificate was issued;
4. 
"This Transient Occupancy Registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Transient Room Tax Ordinance of the City of Cannon Beach by registering with the Tax Administrator for the purpose of collecting the room tax imposed by the City and remitting the tax to the City of Cannon Beach."; and
5. 
The number of units. For dwellings, the occupancy as established by the building official.
(Ord. 83-21 § 7; Ord. 89-17 § 4; Ord. 92-3 §§ 3, 4; Ord. 18-5 § 1)
A. 
The taxes collected by the local tax trustee are payable to the city on a quarterly basis on the fifteenth day of the following month for the preceding three months and are delinquent on the last day of the month in which they are due. The initial return may be for less than the three months preceding the due date. The quarters are:
1. 
First Quarter: January, February, March;
2. 
Second Quarter: April, May, June;
3. 
Third Quarter: July, August, September;
4. 
Fourth Quarter: October, November, December.
B. 
A return showing tax collections for the preceding quarter shall be filed with the city in a form prescribed by the city before the sixteenth day of the month following each collection quarter.
C. 
The local tax trustee may withhold five percent of any tax collected and listed on a return filed pursuant to this section to cover the expense of collecting and remitting the tax.
D. 
Returns shall show the amount of tax collected or due for the related period. Returns shall also show the exempt and excluded rents and the basis for exemptions and exclusions and a detailed explanation for each.
E. 
The local tax trustee shall deliver the return and the tax due to the collection account. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies.
F. 
For good cause, the tax administrator may extend the time for filing a return or paying the tax for not more than one month. Further extension may be granted only by the city council. A local tax trustee to whom an extension is granted shall pay interest at the rate of one and one-half percent per month on the amount of tax due, without proration for a fraction of a month. If a return is not filed and if the tax and interest due are not paid by the end of the extension granted, the interest shall become a part of the tax for computation of penalties prescribed in Section 3.12.090.
G. 
The city may require returns and payment of the taxes for other than quarterly periods in individual cases to ensure payment or to facilitate collection.
H. 
Failure to File a Return. The local tax trustee shall deliver the return by the due date. The filing of a return is required even if there is no taxable activity during the quarter. If the return is not delivered by the last day of the month following the quarter end, a penalty of one hundred dollars plus ten percent of the tax owed will be assessed for each return not filed by the due date.
(Ord. 83-21 § 8; Ord. 89-17 § 5; Ord. 05-15 § 2; Ord. 18-5 § 1)
A. 
Exemptions taken must be listed separately for each occurrence on each return filed and include the type of exemption, name, date, and amount.
B. 
No room tax shall be imposed upon the United States or an employee of the federal government while on federal business.
C. 
No room tax shall be imposed upon a transient staying in:
1. 
A dwelling unit in a hospital, health care facility, long-term care facility or any other residential facility that is licensed, registered or certified by the department of human services;
2. 
A dwelling unit in a facility providing treatment for drug or alcohol abuse or providing mental health treatment;
3. 
A dwelling unit, the consideration for which is funded through a contract with a government agency and the purpose of which is to provide emergency or temporary shelter; or
4. 
A dwelling unit that is leased or otherwise occupied by the same person for a consecutive period of thirty days or more. The requirements of this subsection are satisfied even if the physical dwelling unit changes during the consecutive period, if:
a. 
All dwelling units occupied are within the same facility; and
b. 
The person paying consideration for the temporary lodging is the same person throughout the consecutive period.
(Ord. 18-5 § 1)
A. 
A local tax trustee who has not been granted an extension of time for remittance of tax due and who fails to remit the tax prior to delinquency shall pay a penalty of ten percent of the tax due in addition to the tax.
B. 
A local tax trustee who has not been granted an extension of time for remittance of tax due and who fails to pay a delinquent remittance before the expiration of thirty-one days following the date on which the remittance became delinquent shall pay a second delinquency penalty of fifteen percent of the tax due, the amount of the tax, and the ten percent penalty first imposed.
C. 
If the tax administrator determines that nonpayment of a remittance is due to fraud or intent to evade the tax, a penalty of twenty-five percent of the tax shall be added to the penalties stated in subsections A and B.
D. 
In addition to the penalties imposed by this section, a local tax trustee who fails to remit the required tax shall pay interest at the rate of one and one-half percent per month, without proration for portions of a month, on the tax due, exclusive of penalties, from the date on which the tax first became delinquent until paid.
E. 
Each penalty imposed and the interest accrued under provisions of this section shall be merged with and become part of the tax required to be paid.
F. 
A local tax trustee who fails to remit the tax within the required time may petition the tax administrator for waiver and refund of the penalty or a portion of it. The tax administrator may, if good cause is shown, direct a refund of the penalty or a portion of it.
(Ord. 83-21 § 9; Ord. 89-17 § 6; Ord. 18-5 § 1)
A. 
In making a determination that the returns are incorrect, the tax administrator may determine the amount required to be paid on the basis of the facts contained in the return or on the basis of any other information.
B. 
Deficiency determination may be made on the amount due for one or more than one period. The determined amount shall be payable immediately on service of notice, after which the determined amount is delinquent. Penalties on deficiencies shall be applied as provided in Section 3.12.090.
C. 
In making a determination, the tax administrator may offset overpayments that have been made against a deficiency for a subsequent period or against penalties and interest on the deficiency. The interest on the deficiency shall be computed as provided in Section 3.12.090.
(Ord. 83-21 § 10; Ord. 89-17 § 7; Ord. 18-5 § 1)
A determination becomes due and payable immediately on receipt of notice and becomes final within twenty days after the city has given notice. However, after payment has been made, the local tax trustee may petition for redemption and refund of the determination if the petition is filed before the petition becomes final.
(Ord. 83-21 § 11; Ord. 18-5 § 1)
A. 
If a local tax trustee fails or refuses to collect the tax, make the report or remit the tax, or makes a fraudulent return or otherwise willfully attempts to evade the tax payment, the tax administrator shall obtain facts and information on which to base an estimate of the tax due. After determining the tax due and the interest and penalties, the tax administrator shall give notice of the total amount due. The city may also proceed to revoke the hotel's business license on the grounds that the licensee has violated this section.
B. 
Determination and notice shall be made and mailed within three years after discovery of fraud, intent to evade, failure or refusal to collect the taxes, or failure to file a return. The determination becomes payable immediately on receipt of notice and becomes final twenty days after the tax administrator has given notice.
C. 
The local tax trustee may petition for redemption and refund if the petition is filed before the determination becomes final.
(Ord. 83-21 § 12; Ord. 89-17 § 8; Ord. 92-3 § 5; Ord. 18-5 § 1)
A. 
The tax administrator shall give the local tax trustee a written notice of the determination. If notice is mailed, it shall be addressed to the local tax trustee at the address that appears on the records of the tax administrator, and service is complete when the notice is deposited in the post office.
B. 
Except in the case of fraud or intent to evade the tax, a deficiency determination shall be made and notice mailed within three years after the last day of the month following the close of the quarterly period for which the determination has been made or within three years after the return is filed, whichever is later.
(Ord. 83-21 § 13; Ord. 89-17 § 9; Ord. 18-5 § 1)
If the tax administrator believes that collection of the tax will be jeopardized by delay, or if a determination will be jeopardized by delay, the tax administrator shall determine the tax to be collected and note facts concerning the delay on the determination. The determined amount is payable immediately after service of notice. After payment has been made, the local tax trustee may petition for redemption and refund of the determination if the petition is filed within ten days from the date of service of notice by the tax administrator.
(Ord. 83-21 § 14; Ord. 89-17 § 10; Ord. 18-5 § 1)
A. 
A local tax trustee against whom a determination is made under Sections 3.12.100 through 3.12.140, or a person directly interested, may appeal for a redetermination, redemption and refund and reinstatement of the business license within the time required in Section 3.12.140.
B. 
If a petition for redetermination and refund is filed within the allowable period, the city council shall reconsider the determination and, if the local tax trustee requested a hearing in the appeal, shall grant the hearing and give the local tax trustee ten days' notice of the time and place of the hearing.
C. 
The city council may change the amount of the determination as a result of the hearing. If an increase is determined, the increase is payable immediately after the hearing. The city council may also reinstate the business license.
D. 
The decision of the city council on a petition for redetermination becomes final ten days after service of notice on the petitioner.
E. 
A petition for redetermination or an appeal is not effective unless the local tax trustee has complied with the payment provisions.
(Ord. 83-21 § 15; Ord. 92-3 §§ 6, 7; Ord. 18-5 § 1)
A. 
The tax administrator, whenever it is deemed necessary to insure compliance with this chapter, may require the local tax trustee, or an operator if that person is not the local tax trustee, to deposit security in the form of cash, bond or other security. The amount of security shall be fixed by the tax administrator and shall be no greater than twice the local tax trustee's estimated average quarterly liability for the period for which the local tax trustee files returns or five thousand dollars, whichever amount is less.
B. 
Within three years after the tax becomes payable or within three years after a determination becomes final, the city may bring an action in the courts of this state, another state, or the United States to collect the amount delinquent and penalties and interest.
(Ord. 83-21 § 16; Ord. 89-17 § 11; Ord. 18-5 § 1)
A. 
The tax, interest, penalty and filing fees paid to the city and any advertising costs incurred when the tax becomes delinquent shall be a lien from the date of its recording with the county clerk until the tax is paid. The lien shall be superior to all subsequently recorded liens on all tangible personal property in the operator's hotel. The lien may be foreclosed and the necessary property may be sold to discharge the lien.
B. 
Notice of the lien shall be issued by the city when the local tax trustee has defaulted in payment of the tax, interest and penalty. A copy of the notice shall be sent by certified mail to the local tax trustee and the operator if the operator is not the local tax trustee.
C. 
Personal property subject to the lien may be sold at public auction after ten days' notice published in a newspaper of general circulation in the city.
D. 
A lien for the tax, interest and penalty shall be released by the city when the full amount has been paid to the city. The operator or person making the payment shall receive a receipt stating that the full amount of the tax, interest and penalty has been paid, that the lien is released and that the record of the lien is satisfied.
(Ord. 83-21 § 17; Ord. 18-5 § 1)
When the tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the city, it may be refunded if a written verified claim stating the specific reason for the claim is filed within three years from the date of payment. The claim shall be submitted on forms provided by the tax administrator. If the claim is approved, the excess amount may be refunded to the local tax trustee or it may be credited to an amount payable by the local tax trustee and any balance refunded.
(Ord. 83-21 § 18; Ord. 18-5 § 1)
If the tax has been collected by the local tax trustee and deposited with the city and it is later determined that the tax was erroneously or illegally collected or received by the tax administrator, it may be refunded to the transient if a written verified claim stating the specific reason for the claim is filed with the city within three years from the date of payment.
(Ord. 83-21 § 19; Ord. 18-5 § 1)
If the tax has been collected by the local tax trustee and it is later determined that the transient occupied the hotel for a period exceeding thirty days without interruption, the local tax trustee shall refund the tax to the transient. The local tax trustee shall account for the collection and refund to the city. If the local tax trustee has remitted the tax prior to refund or credit to the transient, the local tax trustee shall be entitled to corresponding refund.
(Ord. 83-21 § 20; Ord. 05-15 § 3; Ord. 18-5 § 1)
Every local tax trustee shall keep guest records, accounting books and records of room rentals for a period of three years and six months.
(Ord. 83-21 § 21; Ord. 18-5 § 1)
During normal business hours and after notifying the local tax trustee, the city auditor, at the direction of the tax administrator, may examine books, papers and accounting records related to room rentals to verify the accuracy of a return or, if no return is made, to determine the amount to be paid. The auditor may initiate audits regarding the imposition and administration of the transient room tax.
Failure of the local tax trustee to allow the auditor to examine requested records is a violation of this provision and may constitute grounds for the tax administrator to revoke the local tax trustee's or operator's, if the operator of the hotel is not the local tax trustee, business license.
(Ord. 83-21 § 22; Ord. 89-17 § 12; Ord. 02-9 § 1; Ord. 18-5 § 1)
The tax administrator or a person having an administrative or clerical duty under the provisions of this chapter shall not make known in any manner the business affairs, operations or information obtained by an investigation of records and equipment of a person required to file a return or pay a transient occupancy tax or a person visited or examined in the discharge of official duty; or the amount or source of income, profits, losses or expenditures contained in a statement or application; or permit a statement or application, or a copy of either, or a book containing an abstract or particulars to be seen or examined by any person. However, nothing in this section shall be construed to prevent:
A. 
Disclosure to or examination of records and equipment by a city official, employee or agent for collecting taxes for the purpose of administering or enforcing the provisions or collecting the taxes imposed by this chapter.
B. 
Disclosure, after filing a written request, to the taxpayer, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information concerning tax paid, unpaid tax, amount of tax required to be collected or interest and penalties. However, the city attorney shall approve each disclosure, and the tax administrator or city manager may refuse to make a disclosure referred to in this subsection when, in their opinion, the public interest would suffer.
C. 
Disclosure of names and addresses of persons making returns.
D. 
Disclosure of general statistics regarding taxes collected or business done in the city.
(Ord. 83-21 § 23; Ord. 89-17 § 13; Ord. 18-5 § 1)
Revenues received from the transient room tax shall be appropriated annually as recommended by the city budget committee and adopted by the city council in accordance with Oregon Budget Law. Any reserve fund shall be accounted for in a transient room tax reserve fund.
(Ord. 83-21 § 24; Ord. 89-17 § 14; Ord. 18-5 § 1)
The tax administrator:
A. 
Shall enforce this chapter and may propose rules and regulations necessary for enforcement.
B. 
May affirm or modify or deny a petition. In this process, he or she may take evidence and make investigations.
C. 
May examine during normal business hours the books, papers and accounting records relating to room sales of any local tax trustee or operator, after notification to the operator liable for the tax; and may investigate the business of the operator in order to verify the accuracy of any return made; or if no return is made by the operator or local tax trustee if not the operator, to ascertain and determine the amount required to be paid.
D. 
May grant extension of time for filing a return or paying the tax of not more than one month.
E. 
Shall give notice of its determination and shall file a certified copy of each determination with the city. Determinations become final after ten days and tax becomes due, subject to interest and penalties.
F. 
May assess penalties when he or she determines that nonpayment of a remittance is due to fraud or an intent to evade the tax.
G. 
Shall consider petitions for waiver/refund of penalties.
H. 
May, for good cause, grant extensions of time in excess of fifteen days for filing a return or paying the tax.
I. 
Makes investigations and initiates audits to be performed by the city auditor regarding imposition and administration of the tax; recommends to the city the adoption, amendment or repeal of legislation pertaining to the tax.
(Ord. 83-21 § 26; Ord. 89-17 § 16; Ord. 18-5 § 1)
A person aggrieved by a decision of the tax administrator may appeal to the city council by filing a notice of appeal with the city within twenty days of service or mailing of the notice of a decision. The council shall fix a time and place for hearing the appeal and shall give the appellant twenty days' written notice of the time and place of the hearing.
(Ord. 83-21 § 27; Ord. 89-17 § 17; Ord. 18-5 § 1)
In addition to any other remedy available under the local, state or federal law, any person violating any of the provisions of this chapter may be punished by a fine of not to exceed five hundred dollars, in the discretion of the city manager, for each violation. Such fine may be adjudicated in the Cannon Beach Municipal Court.
(Ord. 18-5 § 1)