[1961 Code, § 20.10; Ord. 408]
This subchapter shall be known as the “Uniform Transient Occupancy Tax Ordinance” of the city.
[1961 Code, § 20.11; Ord. 408; Ord. 877; Ord. 1036; Ord. 1667, 11-4-2014]
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
Any real property where transients may locate a tent, trailer, tent trailer, pick-up, camper, vehicle or other similar temporary structure for the purposes of lodging, dwelling, or sleeping, whether or not water, electricity or sanitary facilities are provided. Real property includes but is not limited to a camping site or a space at a "campground."
Any structure or any portion of any structure which is occupied or intended or designed for use or occupancy by transients including, but not limited to, dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other like structure or portion thereof. "Hotel" includes a recreational vehicle, as defined in Cal. Health & Safety Code § 18010.
The use or possession or the right to the use of possession of any room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes.
The person who is proprietor of the hotel, whether in the capacity of the owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the "operator" performs his or her functions through a managing agent of any type or character other than employee, the managing agent also shall be deemed an "operator" for the purposes of this subchapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered compliance by both.
The consideration charged, whether or not received, for the occupancy of space in a hotel 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.
The City Manager or the City Manager's designated agent.
Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, time-share arrangement, or ownership or agreement 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 space in a hotel shall be deemed a transient until the period of 30 days has expired. Unless days of occupancy or entitlement to occupancy by one person are consecutive without any break, then prior to subsequent periods of the occupancy or entitlement to occupancy shall not be counted when determining whether a period exceeds the stated 30 consecutive days. 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 in this subchapter may be considered.
[1961 Code, § 20.12; Ord. 408; Ord. 502; Ord. 649; Ord. 877; Ord. 878; Ord. 1036; Ord. 1667, 11-4-2014]
(A)
For the privilege of occupancy in any hotel that has less than 50 sleeping rooms or occupancy in any campground or recreational vehicle park, each transient is subject to and shall pay a tax in the amount of 13% of the rent charged by the operator.
(B)
For the privilege of occupancy in any hotel that has 50 or more sleeping rooms, each transient is subject to and shall pay a tax in the amount of 10% of the rent charged by the operator; provided, however, that each transient is subject to and shall pay a tax in the amount of 13% of the rent charged by the operator in the event that: (i) the boundaries of the Palm Springs Desert Resort Communities Tourism Business Improvement District, as established by Ordinance No. 883 of the County of Riverside (as amended from time to time) (“Tourism BID”) and the Greater Palm Springs Convention & Visitors Bureau Tourism Marketing District, as established by Ordinance No. 2013-001 of the Palm Springs Desert Resort Communities Convention and Visitors Authority (as amended from time to time) (“Marketing BID”), no longer include a portion of the City of Indio or (ii) the respective governing entities of the Tourism BID and Marketing BID cease to levy an assessment on any hotel subject to the tax imposed by this division (B).
(C)
This tax set forth in this section constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax 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 in each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If, for any reason, the tax due is not paid to the operator of the hotel, the Tax Administrator may require the tax shall be paid directly to the Tax Administrator.
[1961 Code, § 20.14; Ord. 408]
(A)
Each operator shall collect the tax imposed by this subchapter 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.
(B)
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.
[1961 Code, § 20.15; Ord. 408]
Within 30 days after the effective date of this subchapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transient shall register the hotel with the Tax Administrator and obtain from the Administrator a “transient occupancy registration certificate” to be, at all times, posted in a conspicuous place on the premises. The 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 the 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 or to operator 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 the city. This certificate does not constitute a permit.”
[1961 Code, § 20.16; Ord. 408]
Each operator shall, on or before the last day of the month following the close of each calendar quarter or at the close of any shorter reporting period which may be established by the Tax Administrator, make a return to the Tax Administrator on forms provided by him or her of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to ensure collection of the tax, and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this subchapter shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator.
[1961 Code, § 20.17; Ord. 408; Ord. 1144, 9-1-1993]
(A)
Original delinquency. Any operator who fails to remit any tax imposed by this subchapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.
(B)
Continued delinquency. 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.
(C)
Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under this subchapter 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 divisions (A) and (B) above.
(D)
Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of 0.5% 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.
(E)
Lien imposed on real property and bulk sales of business.
(1)
If any amount required to be remitted to the city under this section is not paid when due, the city 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 city of the operator liable for the same and the fact that the city has compiled with provisions of this section in the determination of the amount required to be paid. Before such filing, the city shall give 5 days written notice of its intent to file the lien to the operator. If the property is owned by a different party than the operator, then the city shall also give five days written notice to the real property owner before filing the lien.
(2)
At the time of filing for record, the amount required to be remitted together with penalties and interest constitutes a lien upon all real property in the County of Riverside and upon all bulk sales of personal property owned by the operator or afterwards acquired by him and prior to the expiration of the lien. The lien has the force, effect, and priority of a judgement lien and shall continue in force for ten years from the time of filing of the certificate unless released or otherwise discharged by payment of the amount of taxes, interest, and penalties due to the city.
(F)
Penalties merged with tax. Every penalty imposed and the interest as accrued under the provision of this section shall become a part of the tax herein required to be paid.
[1961 Code, § 20.18; Ord. 408]
If any operator shall fail or refuse to collect the tax and to make, within the time provided in this subchapter, any report and remittance of the tax or any portion thereof required by this subchapter, the Tax Administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Tax Administrator shall procure the facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this subchapter, and payable by any operator, who has failed or refused to collect the same and to make the report and remittance, he or she shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this subchapter. In case the 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. The operator may, within ten days after the serving or mailing of the 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 the application is made, the Tax Administrator shall become final and conclusive and immediately due and payable. If the 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 the notice why the amount specified therein should not be fixed of the tax, interest and penalties. At the hearing, the operator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed. After the 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 the determination and the amount of the tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 34.44.
[1961 Code, § 20.19; Ord. 408]
Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of the 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 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 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 immediately shall be due and payable upon the service of notice.
[1961 Code, § 20.20; Ord. 408]
It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this subchapter to keep and preserve for a period of three years all records as may be necessary to determine the amount of the tax as he 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.
[1961 Code, § 20.21; Ord. 408]
(A)
When 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 subchapter, it may be refunded as provided in divisions (B) and (C) below; 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 as not a transient; provided, 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 illegal collected or received by the city by filing a claim in the manner provided in division (A) above 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 record showing entitlement thereto.
[1961 Code, § 20.22; Ord. 408]
Any tax required to be paid by any transient under the provisions of this subchapter shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of that amount.
[Ord. 1144, 9-1-1993]
If an operator who is liable for any unreported or unremitted tax, interest, or penalties under this section sells, conveys, or otherwise disposes of his business in any manner, his successor shall withhold a sufficient portion of the sales price equal to the amount of such unreported or unremitted tax, interest, or penalties until the selling operator producers either (1) a receipt from the City Finance Department stating that no tax, interest or penalty is due. If the seller does not present either a receipt or tax clearance certificate within 30 days after such successor commences to conduct business, the successor shall deposit the withheld amount with the City Finance Department pending settlement of the account of the seller. If the successor to the business fails to withhold and/or deposit a potion of the purchase price as required by this section, the successor shall be personally liable to the city for the payment of the amount required to be withheld and/or deposited. Within 30 days after receiving written request from the operator or his successor for a receipt or tax clearance certificate stating that no tax or penalty is due, the City Finance Department shall either issue a record or certificate or mail notice to the requesting party at its address as it appears on the records of the City Finance Department of the estimated amount of tax, interest and penalty that must be paid as a condition of issuing the certificate. This section is intended to impose liability upon a successor for any taxes, interest, and penalties which may be due at the time of transfer.