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HomeMy WebLinkAboutOrd 17051 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1705 ORDINANCE OF THE CITY OF BURLINGAME AMENDING CHAPTER 4.09 TO CLARIFY REVIEW AND MANAGEMENT PROCEDURES REGARDING TRANSIENT OCCUPANCY TAX The CITY COUNCIL of the CITY OF BURLINGAME does hereby ordain as follows: Section 1. Oversight of the payment of the transient occupancy taxis vital to the fairness and equity of that tax among hotel operators and owners, as well as the fiscal well- being of the City. This ordinance is intended to clarify and strengthen that oversight. Section 2. Subsection 4.09.010(g) is amended to read as follows: (g) "Tax administrator" means the city finance director/treasurer or the director/treasurer's designated representative. Section 3. Section 4.09.040 is amended to read as follows: 4.09.040 Exemptions. No tax shall be imposed upon: (a) Any person as to whom, or any occupancy as to which itis beyond the power of the city to impose this tax; provided, employees of the state or federal government are exempt only if room charges are paid directly by their employing agency. Copies of official travel orders are generally required.* (b) Any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. * See 46 Cal. Ops. Arty. Gen. 16. Section 4. Section 4.09.060 is amended to read as follows: 4.09.060 Registration, change of operator and change of name. (a) No more than five (5) days after commencing business or after a change in operator, 4/7/2003 1 2 4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 each operator of any hotel renting occupancy to transients shall register the hotel with the tax administrator and obtain from the administrator a transient occupancy registration certificate that will be posted at all times in a conspicuous place on the hotel premises. This certificate shall, among other things, state the following: (1) The name of the operator; (2) The name and address of the hotel; and (3) The date upon which the certificate was issued; (b) This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform transient occupancy tax ordinance by registering with the tax administrator for the purpose of collecting from transients the transient occupancy tax and remitting said tax to the tax administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this city. The certificate does not constitute a permit. (c) No more than five (5) days after chan ging the name of a hotel registered under this section, the hotel operator shall notify the tax administrator of the new name in wri ting and obtain from the administrator an amended transient occupancy registration cert ificate specifying the new hotel name. Section 5. Section 4.09.070 is amended to read as follows: 4.09.070 Report ing remitting and security. (a) Each operator shall, on or before the last day of each month, make a return to the tax administrator, on forms provided by the administrator, of the total rents charged and the amount of tax calculated for transient occupancies for the preceding month. Unless a separate bank account is permitted and established as hereinafter set forth, the full amount of the tax calculated shall be remitted to the tax administrator together with the return. If any exemptions or bad debts are included on the return, copies of back-up information including room folios 4/7/2003 2 4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall be included with the return. The signed, original return together with the remittance shall be delivered in person to the tax administrator or postmarked no later than the last day of the month in which it is due. Returns and remittances mailed pursuant to this subsection shall be sent by certified mail. The tax administrator may establish shorter reporting and/or remitting periods for any operator and may require additional information in any return. Returns and payments are due immediately upon cessation of business for any reason. (b) Any operator collecting less than $10,000 in transient occupancy taxes per quarter shall deposit such taxes in a separate bank account in trust for the benefit of the city, until payment thereof is made to the tax administrator. (c) All other operators shall post a bond or irrevocable letter of credit guaranteeing payment of taxes, equal to one quarter's tax as determined by the tax administrator. Any such bond shall provide for no more than ten days notice of cancellation to city. (d) Notwithstanding subsection (c) above, the tax administrator may require an operator to establish a separate bank account in trust for the city for deposit of transient occupancy taxes, until payment is made to the city, when the tax administrator determines that an operator may not be capable of properly complying with the collection or remittance requirements of this chapter. (e) The city may also appoint or obtain an agent or receiver to collect the taxes due at the hotel itself. Section 6. Section 4.09.090 is amended to read as follows: 4.09.090 Failure to collect and report tax — Determination of tax by tax administrator. (a) If any operator shall fail or refuse to collect said tax and to make, within the ti me provided in this chapter, any report and remitt ance of said tax or any portion thereof required by this chapter or if the tax administrator reasonably believes that a hotel operator has not accurately and fully made any such report or remittance, the tax administrator shall proceed in such manner as the administrator may deem best to obtain facts and information on which to base the administrator's estimate of the tax due. 4/7/2003 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) The tax administrator may review any return filed pursuant to this chapter and may request or inspect any documents or accounts as provided for in this chapter to determine what the correct tax due is. The tax administrator, and any person designated as an agent by the tax administrator, may, at any time during normal business hours, for the purpose of enforcing the provisions of this chapter, inspect and audit the accounts, books, papers, and documents of any operator that holds any tax certificate of the city under this chapter or that has filed a return with the city under this chapter. Any person shall produce under the seal of the city the person's authority to make such an audit or inspection. (c) No person conducting an inspection or review pursuant to this section may reveal the information obtained from such an inspection or audit to anyone not charged with the administration or enforcement of the provisions of this title. (d) As soon as the tax administrator shall procure such facts and information as the administrator is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has neglected, failed or refused to collect the same and to make such report and remittance, the administrator shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. The administrator may include in said assessment costs of any necessary audits or investigations. These costs will include any additional visits or expenses incurred because an operator failed to provide records as required 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 place of address. (e) The operator to be assessed by the administrator's determination may, within ten (10) days after the serving or mailing of such notice, make application in writing to the tax administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five (5) days' written notice in 4/7/2003 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why the amount specified should not be fixed for such tax, interest and penalties. At the hearing, the operator may appear and offer evidence why such 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 operator of the determination and the amount of the tax, interest and penalties now due. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section 4.09.100. Section 7. Section 4.09.110(c) is amended to read as follows: (c) List of bad debts claimed for exemption, including names and addresses of debtor, amount of room rent unpaid, and all room folios documenting the applicable occupancies. Section 8. Section 4.09.130(a) is amended to read as follows: (a) Actions to Collect. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the tran sient to the city. Any such tax collectible by any operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. The amount of the tax collected by the operator shall be held to be a special fund in trust for the city and shall be deemed to be public monies upon collection. This trust obligation shall apply whether the taxes collected are held in a separate account or not. 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. Section 9. This ordinance relates to taxes for the usual and current expenses of the City and shall be effective upon adoption. 4/7/2003 r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I, DORIS MORTENSEN, Deputy City Clerk of the City of Burlingame, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held on the 7' day of April, 2003, and adopted thereafter at a regular meeting of the City Council held on the 21" day of April, 2003, by the following vote: AYES: COUNCILMEMBERS: BAYLOCK, COFFEY, GALLIGAN, JANNEY, O'MAHONY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE 4/7/2003 A City Clerk 6