[Adopted 1-10-2023 by Ord. No. 9314]
This article shall be known and cited as the City of El Reno
Lodging Tax Ordinance.
As used in this article:
The City of El Reno, Oklahoma.
Duly authorized City Council of the City acting in their
official capacity.
The City Manager of the City, or such other individual as
may be designated from time to time by the City Council to act in
such capacity.
Any building or buildings, structures, trailer, or other
facility in which the public may, for consideration, obtain sleeping
accommodations, and in which rooms are used for the accommodation
of such occupant whether such rooms are in one or several structures.
The term shall include hotels, apartment hotels, motels, tourist courts,
lodging houses, inns, rooming houses, recreational vehicle (RV) park
spaces, and all other facilities where rooms or sleeping facilities
or space are furnished for consideration. The term shall not include
hospitals, mental health care facilities, assisted living centers
or nursing homes. The term shall also not include places of assembly.
As used herein, "place of assembly" means a room or space which is
not capable of being occupied for lodging purposes and which is used
for educational, recreational, or amusement purposes and shall include
dance halls; cabarets; nightclubs; restaurants; any room or space
for 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; halls or rooms
used for public or private catering purposes; funeral parlors; markets;
recreational room; concert hall; broadcasting studios; and all other
places of similar type of occupancy.
The use or possession, or the right to the use or possession
of any room or rooms in a hotel.
The person, who for a consideration, uses, possesses, or
has the right to the use or possession of any room or rooms in a hotel
under any lease, concession, permit, right of access, license to use,
or other agreement.
Any person operating a hotel within the City, including,
but not limited to, the owner, proprietor, manager, lessee, sub lessee,
mortgagee in possession, licensee, or any other person otherwise operating
such hotel.
Any individual, corporation, company, partnership, voluntary
association, firm, club, society, organization or any other entity
of whatever kind or nature.
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 operator to the occupant,
without any deduction therefrom whatsoever.
Any report filed or required to be filed as herein provided.
Any room, suite of rooms, or designated space of any kind
in any part or portion of a Hotel which is available for or let out
for use or possessed for sleeping facilities.
The tax levied pursuant to this article.
There is hereby levied an excise tax of 4.5% (in addition to
any and all other excise taxes now in force) upon the gross proceeds
or gross receipts derived from all rent for every occupancy of a room
or rooms in a hotel in this City. Rooms provided free of charge, through
barter, trade or any other arrangement or agreement of any kind or
nature, are also subject to such tax at the sales value of the room
so provided (with "sales value" to mean the price at which the room
would be rented to the operator's best customer in the ordinary
course of business).
The exemptions from excise tax enumerated in Title 68, Oklahoma
Statutes, as amended, Section 1350 et seq. (the "Oklahoma Sales Tax
Code") are hereby adopted and incorporated herein by reference. To
the extent any conflicts in connection with the permitted exemptions
should arise under this Ordinance and the Oklahoma Sales Tax Code,
the Oklahoma Sales Tax Code shall prevail.
The operator shall separately designate, charge and show the
tax on all bills, statements, receipts or any other evidence of charge
or payment of rent for occupancy issued or delivered by the operator.
A.
Operator responsible for collections. The operator shall be responsible
for the collection of the tax from the occupant and shall be liable
to the City for the tax which shall be held in trust by the operator
until paid to the City or the Oklahoma Tax Commission pursuant to
an agreement to collect municipal lodging taxes as set forth in Title
68, Oklahoma Statutes, as amended, Section 2701 et seq. of the Oklahoma
Sales Tax Code. The operator shall join the City as a party to any
action brought by the operator to enforce collection of the tax.
B.
Records to be kept. Every operator shall keep records of every occupancy
and of all rent paid, charged, or due thereon and of the tax payable
thereon in such form as the City Manager or Oklahoma Tax Commission
may by regulation require. Such records shall be available for inspection
and examination at any time upon demand by the City Manager, or a
duly authorized agent or employee of the City or the Oklahoma Tax
Commission, and shall be preserved for a period of three years.
C.
Returns.
(1)
In the event of collection of the tax levied pursuant to this
article by the Oklahoma Tax Commission, each operator shall file with
the City Manager a copy of their completed Oklahoma State Sales Tax
Form within 20 days after the end of each month following the effective
date of this article.
(2)
In the event of collection of the Tax levied pursuant to this
article by the City, every operator shall file with the City Manager
a return as prescribed by the City and shall contain such information
as may be deemed necessary and proper for the administration of this
article, of any occupancy and of rents, and of the taxes payable thereon
for the period ending on the last day of each month following the
effective date of this article. Such return shall be filed within
the first 20 days after the end of each such month. The City Manager
may require amended returns to be filed within 10 days after notice
and to contain the information specified in the notice.
D.
Payment of tax. The payment of the tax levied pursuant to this article
shall be due prior to the 20th day following the month during which
the charge for the occupancy of a hotel is incurred by the occupant,
or at such times as returns may be submitted to the Oklahoma Tax Commission
in accordance with the Oklahoma Sales Tax Code. At the time of filing
a return of occupancy and of rents, each operator shall pay to the
City treasurer or the Oklahoma Tax Commission (in the manner and form
prescribed for payment of the municipal lodging tax under the laws
of the State of Oklahoma) the taxes imposed by this article upon the
rents included in such return. All taxes not paid with a timely return
shall be delinquent. All the taxes for the period for which a return
is required to be filed shall be due from the operator and payable
to the City Treasurer or Oklahoma Tax Commission on or before the
date fixed for the filing of the return for such period without regard
to whether a return is filed or whether the return which is filed
correctly shows the amount of rents and the taxes due thereon.
E.
Deduction for recordkeeping. For so long as the operator maintains
compliance with the collection and remittance of the tax due hereunder,
the operator shall be allowed a deduction in accordance with the provisions
of Title 68, Oklahoma Statutes, as amended, Section 1367.1, as compensation
for the keeping and maintaining of sales tax records, filing reports
and remitting the tax when due.
F.
Delinquent taxes. All taxes not paid within 20 calendar days following
the last day of the period for the collection of the tax levied by
this article shall be delinquent.
G.
Interest and penalties on unpaid taxes. If any tax levied by this
article becomes delinquent, the person responsible and liable for
remittance of such tax shall pay penalties on such unpaid tax at the
rates and charges as established in Title 68, Oklahoma Statutes, as
amended, Section 217.
In the event of initial collection of the tax levied hereunder shall be collected by the City, or after such termination of an agreement of administration authorized in § 318-129 hereof, where the City Manager believes that any operator is about to cease business, leave the state, or remove or dissipate assets, or for any other similar reason the City Manager deems it necessary in order to protect revenues under this article may require such operator to file with the City a bond issued by a surety company authorized to transact business in the state in such amount as the City Manager may fix to secure the payment of any tax or penalties and interest due, or which may become due from such operator. In the event that the City Manager determines that an operator is to file such bond, the City Manager shall give notice to such operator specifying the amount of security required. The operator shall file such security as a performance bond or irrevocable letter of credit within five days after the filing of such notice unless within such five days the operator shall request in writing a hearing before the City Council, at which time the necessary propriety and amount of the bond shall be determined by the City Council. Such determination shall be final and shall be complied with within 15 days thereafter. In lieu of such bond, a cash or securities escrow, in an amount and under terms approved by the City Manager, may be deposited with the City Manager, who may at any time after five days' notice to the depositor, apply them to any tax and/or any penalties due and for that purpose the securities may be sold at private or public sale.
A.
If a return required by this article is not filed, or if a return
when filed is incorrect or insufficient, the amount of tax due shall
be assessed by the City Manager or the Oklahoma Tax Commission from
such information as may be obtainable and, if necessary, the tax may
be estimated on the basis of external indices, such as number of rooms,
location, scale of rents, comparable rents, types of accommodations
and services, number of employees, or other factors. 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:
B.
After such hearing, the City Council shall give written notice of
its determination within 30 days to the person against whom the tax
is assessed and such determination shall be final.
A.
Procedure.
(1)
Oklahoma Tax Commission collection of tax. If collection of
the tax levied pursuant to this article is delegated to the Oklahoma
Tax Commission pursuant to an agreement for the collection of municipally
imposed lodging tax, the Oklahoma Tax Commission shall be responsible
for making refunds to taxpayers previously collected by the Oklahoma
Tax Commission on the City's behalf in accordance with the guidelines,
procedures and regulations previously adopted by the Oklahoma Tax
Commission.
(2)
City collection of tax. The City Manager shall direct the refund
or credit of any tax erroneously, illegally or unconstitutionally
collected if written application to the City Manager for such refund
is made within two years from the date of payment thereof. For like
causes, and in the same period, a refund may be so made upon the initiative
of the City Manager, subject to existing limits on the authority of
the City Manager as to amount. The City Manager, in lieu of any refund
required to be made, may allow credit thereof on payments due from
the applicant. Whenever a refund is made, the reasons therefor shall
be stated in writing. Such application may be made by the person who
has collected and paid such tax to the City treasurer; however, no
refund of money shall be made to the operator until the operator has
repaid to the occupant the amount for which the application for refund
is made.
(a)
Determination and hearing. Upon application for a refund the
City Manager may receive evidence with respect thereto, and make such
investigation as is deemed necessary. After making a determination
as to the refund, the City Manager shall give written notice thereof
to the applicant. Such determination shall be final unless the applicant,
within 30 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.
Notices provided for under this article shall be deemed to have been given when such notice has been delivered personally to the operator or deposited in the United States mail, postage prepaid, to the last known address of the operator. In the absence of written evidence received by the City to the contrary, the last known address shall be presumed to be the address shown on the certificate of registration as required by § 318-131 herein.
The remedies provided in this article shall be the exclusive
remedies available to any person for the review of tax liability imposed
by this article.
Upon approval of the tax by a majority of the qualified voters
of the City, the City shall be authorized, but not obligated, to enter
into an agreement of administration (the "agreement") with the Oklahoma
Tax Commission for collection of the tax levied hereunder. Should
the City elect to enter into said agreement, operators shall follow
the normal rules and procedures of collection and administration of
excise tax as prescribed by the Oklahoma Tax Commission. In the event
of a subsequent change in administration and collection of the tax,
operators shall be notified in accordance with the notice provisions
required under state law and the rules of the Oklahoma Tax Commission
of the date of such change in collection practices and any requirements
of operators enumerated under this article where the City shall serve
as the collector of the tax.
In addition to all other powers granted to the City Manager,
the City Manager is hereby authorized:
A.
To make, adopt and amend rules and regulations appropriate to the
execution of this Ordinance and for the purposes hereof;
B.
To extend for cause shown the time for filing any return for a period
not exceeding 30 days; and for cause shown to waive, remit, or reduce
penalties or interest;
C.
To delegate functions hereunder to authorized designees for the City;
D.
To assess, reassess, determine, revise and readjust the amount of
taxes (but not the tax rate) imposed by this article;
E.
To prescribe methods for determining the taxable and nontaxable rents;
F.
To administer oaths and take affidavits concerning any matter or
proceeding under this article; and
G.
To subpoena and require the attendance of witnesses and the production
of books, papers and documents to secure information pertinent to
the performance and the enforcement of this article and to examine
them in relation thereto.
Every operator shall file with the City Manager a certificate
of registration in a form prescribed by the City Manager within 10
days after the effective date of this article, or in the case of operators
commencing business or opening new hotels after such effective date,
within three days after such commencement or opening. The City Manager
shall, within five days after such registration, issue, without charge,
to each operator a certificate of authority empowering such operator
to collect the tax from the occupant and duplicates thereof for each
additional hotel. Each certificate or duplicate shall state the hotel
to which it is applicable. Such certificate of authority shall be
permanently displayed by the operator in such manner that it may be
seen and will come to the notice of all occupants and persons seeking
occupancy. Such certificates shall be nonassignable, nontransferable,
and shall be surrendered immediately to the City Manager upon the
cessation of business at the hotel named, or upon its sale or transfer.
A.
All taxes collected pursuant to provisions of this article shall
be placed in the general funds of the City, shall be budgeted and
appropriated annually by the City, and shall be expended exclusively
for the following purposes:
B.
To provide revenues for the support of the functions of the municipal
government of the City of El Reno, Oklahoma, including but not limited
to the upkeep and renovation of municipal properties, parks and recreation,
and streets, and any and all revenues derived hereunder may be expended
by the governing body of the municipality for any purposes for which
funds may be lawfully expended as authorized.
The confidential and privileged nature of the records file concerning
the administration of the hotel tax is legislatively recognized and
declared and, in order to protect the same, the provisions of Title
68, Oklahoma Statutes, as amended, Section 205 of the State Sales
Tax Code, and each subsection thereof and all amendments thereto,
as hereby adopted by reference and made fully effective and applicable
to the administration of this article as if here set forth.
A.
The willful intent or refusal of any taxpayer to make reports and remittances therein required, or the making of any false and fraudulent report for the purpose of avoiding or escaping payment of any tax or portion thereof rightfully due under this article, shall constitute a violation of the Code of Ordinances of the City and shall be subject to the general penalty set forth in § 1-10 of the City Code of the City.
B.
The failure by an operator to file a security bond as required, to register or to display the certificate of registration, or to separately state the tax on the bill or to collect such tax from the occupant, shall constitute a violation of the Code of Ordinances of the City and shall be subject to the general penalty set forth in § 1-10 of the City Code of the City.
A.
Whenever any operator, occupant or other person shall fail to collect
and/or pay over any tax, or to owe any tax, penalty or interest imposed
by this article as herein provided, the mayor may authorize the director
of finance to file notice of liens on behalf of the City against the
real estate upon which the Hotel is located and/or against all franchises,
property and rights to property, whether real or personal, then belonging
to or thereafter acquired by the person owing the tax pursuant to
Title 68, Oklahoma Statutes as amended, § 2701 and § 2704.
B.
The liens shall, upon proper filing, attach to the real estate and/or
personal property then owned or thereafter acquired by the debtor,
whether such property is used by the debtor in the operation of business
or is under the authority of an assignee, trustee, or receiver for
the benefit of creditors, from the date such taxes are due and payable
as allowed by Title 68, Oklahoma Statutes, as amended, § 2704.
C.
The City Manager shall notify the person owing the tax by personal
service or by certified mail that the City will file such liens if
any delinquent taxes, interest and/or penalties are not paid within
15 days of receiving such notice.
D.
The City Manager may also authorize the City attorney to institute
an action in personam and in rem to enforce payment and collect any
delinquent taxes, penalties and/or interest.
The people of the City, by their approval of this article at
the election hereinabove provided for, hereby authorize the City by
ordinance duly enacted to make such administrative and technical changes
or additions in the method and manner of administration and enforcing
this article as may be necessary or proper for efficiency and fairness
or in order to make the same consistent with the Oklahoma Sales Tax
Code, except that the rate of the tax and the purpose of the tax herein
provided for shall not be changed without approval of the qualified
electors of the City as provided by law.
The provisions hereof shall be cumulative and in addition to
any and all other taxing provisions of City Ordinances.
The provisions of this article are severable, and if any part
or provision hereof shall be adjudged invalid by any court of competent
jurisdiction, such adjudication shall not affect or impair any of
the remaining parts or provisions hereof.
The collection of the excise tax referenced herein shall become
effective on and after June 1, 1997, subject to approval by a majority
of the qualified electors of the City voting on the same in the manner
prescribed by law. The provisions of this article and the collection
of the excise tax referenced herein shall have no stated termination
date.
It is immediately necessary for the immediate preservation of
peace, health, or safety of the City of El Reno, Oklahoma, and the
inhabitants thereof that the provisions of this article become operative
immediately and therefore, an emergency is hereby declared to exist
and this article shall be in full force and effect immediately from
and after its passage and approval.
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 such
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 moneys authorized to be collected
hereby in payment thereof, regardless of whether such cause was for
the purpose of enforcing or defending the provisions of this article.
