HomeMy WebLinkAbout5.2 Transient Occupancy Tax
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 13, 1984
SUBJECT
PUBLIC HEARING
Ordinance Imposing a Tax Upon the Privilege of
Transient Occupany and Providing for the Collection
Thereof .
EXHIBITS ATTACHED Draft Ordinance
RECOMMENDATIO~~ Waive reading and adopt ordinance
FINANCIAL STATEMENT: Additional revenue would be generated for the City
DESCRIPTION This ordinance provides for the imposition of a tax on
transients for the privilege of occupancy in any hotel within the City of
Dublin. It is proposed that a tax of 6 1/2% of the amount of rent charged
by the operator be imposed.
At present the City of Dublin is the only valley city which does not have
such a tax. Shown below is a list of the valley communities which presently
impose a transient occupancy tax and the corresponding amount of tax.
Danville
Livermore
Pleasanton
San Ramon
6 1/2%
8%
8%
6 1/2%
Although several cities impose a tax of 8% it is Staff's position that
6 1/2% is a more appropriate rate since it is equal to the present sales tax
levied in the City.
This tax would not affect residents, but only those individuals traveling
through Dublin who use the services of a hotel. Since hotels do not usually
quote taxes as part of their room rental rates, this tax should not impact a
hotel's ability to be competitive with other hotels in the area.
Revenue
Without a transient occupancy tax, hotels typically generate very little
revenue for cities, but yet still require municipal services. Assuming that
the City imposed a transient occupancy tax of 6 1/2% and the average room
rental rate was $5G/day, this tax would generate the following amounts of
revenue for the City.
Number of Rooms
Annual Revenue
100% Occupancy
Annual Revenue
80% Occupancy
100
150
200
250
/
$118,625
177,938
237,250
296,563
$ 94,900
142,350
189,800
237,250
If the City Council chooses to adopt this ordinance, it will give the City a
revenue source which would not be subject to State manipulation. It will
also positively impact the City's Revenue Sharing allocation, which is based
on a formula that takes into consideration local tax effort.
This ordinance could be negated, if Proposition 36 is approved by the voters
in November and the retroactivity provisions of the Proposition are held
constitutional. Proposition 36 would negate any new taxes or increased
taxes and fees adopted after August 15, 1983, unless they were approved by
at least 2/3 of the voters in the community.
Recommendation
It is Staff's recommendation that the City Council waive the reading and
adopt this ordinance as an urgency measure.
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COPIES TO: Howard Johnsons
ITEM NO.
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ORD'INANCE NO.
- 84
AN ORDINANCE OF THE CITY OF DUBLIN
IMPOSING A TAX UPON THE PRIVILEGE OF TRANSIENT OCCUPANCY
AND PROVIDING FOR THE COLLECTION THEREOF
The City Council of the City of Dublin does ordain as follows:
Section 1.
Title
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The ordinance ,shall be known as the Uniform Transient Occupancy Tax
Ordinance of the City of Dublin.
Section 2.
Definitions,
Except where the context otherwise requires, the definitions given in
this section govern the construction of this ordinance:
(a) Person; "Person" means any indivldual, firm, partnership, joint
venturei association, social club, fraternal organization, joint stock
company, corporation, estate, trust, business trust, receiver, trustee,
syndicate, or any other group or combination acting as a unit.
(b) Hotel; "Hotel" mearis any structure, or any portion of any
structure, which is occupied or intended ot designed for occupancy by
transients for dwelling, lodging or sleeping purpoSes, ,ahd includes any
hotel, inn, tour ist home or hoLlse, ~Ii1oteL; studio hotel, bachelor hotel,
lodg ing house, rooming hous,e, apar tme7ffhouse, dormi tory, publ ic or pr i va te
club, mobile home or house trailer ata fixed location, or other similar
structure or portion thereof. r
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(c) Occupancy: "Occupancy" means the use or possession, or the right
tQ the use or possession of any room or rooms or portion thereof, in any
hotel for dwelling, lodging or sleeping purposes.
(d) Transient: "Transient" means any person who exercises occupancy
or is entitled to occupancy by reason of concession, permit, right of
access, license or other agreement for a period of thirty (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 to be a transient
until the period of thirty (30) days has expired unless there is an
agreement in writing between the opera'tor and the occupant providing for a
longer period of occupancy. In determining whether a person is a transient,
uninterrupted periods of time extending both prior and subsequent to the
effective date of this ordinance may be considered.
(e) Rent: "Rent" means 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 oL,erwise, including all receipts,
cash, credits and property and services Qf any kind or nature, without any
deduction therefrom whatsoever.
(f) Operator: "Operator" ]!,(:'CL1~; U;<:: person who is proprietor of the
hotel, whether in the capacity at awn~f lessee, sublessee, mortgagee in
possess ion, 1 icensee, or any oth-:-';, ,-;,; :;: y. Where the opera tor per forms
his functions through a managin',' ',C;\:'i'l c' any type or character other than
an employee, the managing agent ::,1 ,'",:"l be deemed an operator for the
purposes of this ordinance and - ;',Y' the, same duties and liabilities as
his pr incipal. Compliance wi th ,,' ::':' ions of this ordinance by ei ther
the principal o~ the managing a~Pll however, be considered to be
compliance by both.
(g) Tax Administrator: ",
the City of Dublin or such othe
Council of the City of Dublin.
rator" means the City Clerk of
,.s may be appointed by the City
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Section 3.
Tax Imposed.
Pursuant td the authorityo( Section 7280 and 7281 of the Revenue arid
Taxation Code, for the privilege of occupancy in any hotel, each transient
is subject to and shall pay a tax in the amount of."s'f:t~.9nd'::'::"'QJ'te::b~)e perce,nt
(6 1/2%) of the rent charged by the operator . Said tax 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 pa.id. If the re;nt is pai'd in
installments~ a proportionate s'hare of the ,tax shall be paid with 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 that such tax shall
be paid directly to the Tax Administrator.
Section 4.
Exemptions.
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond
the power of the City to impose the tax herein provided;
(b) Any federal or State of California officer or employee when on
official business;
(c) Any officer or employee of a foreign government who is exempt by
reason of express provision of federal law or internation~l treaty.
No exemption shall be granted except upon a claim therefor made at th~
time rent is collected and under pena~ty of perjury upon a, form 'prescribed
by the Tax Administrator.
Section 5.
Operator's Duties.
Each operator shall collect the tax imposed by this ordinance to the
same extent and at the same~time as the rent is ~orlecte~ from every
transient. 'The amount of tax shall be separate~y stated fromt6e arnountof
the rent charged, and each transient shall receive a receiPt from the
operatoi. No operator of a hotel shall advertise or state in ahymanner,
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
hereinafte~ provided. '
Section 6.
-Registration.
Within thirty (30) days after the effecti~e date of this ordinance, or
within thirty (30) days after commencing business, ~hichever is later; each
operator of any hotel renting occupancy to trarsients shall register said
hotel with the,Tax Admlnistr~tor and'obtain frcmthe Tax Administrator a '
"Transient bccupancyRegistration Certificate" to be at,:all times ~osted in
a conspicuous place on the premises. Saidc~rt~ficate s~all, a~ong other
things, state the following:
(1) The name of the operator;
(2) The address oL the hotel; ,- .
(3) The da te upon which the 'ceit i.h(:.~\t(:, ~';;dS issued;
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(4) "This Transient ..occupancy Re?J~:,i ,caC.I.Vn ,Cer,tificate signif.ie's that
the person named on the face hereofha~ [.ilfill~d ~he requirements of the
Unifo'rm Tra'lJs'ient Occupancy Tax OrdinaL('('Yc\ji>stering with the Tax, '
Administrator for the purpose of cOllec:t.:-:ij"J frqm t"'r:ansients the Transient
Occupancy Tax and remitting said tax b) the 'tax Ad,ministrator.' This'
cer t i fica te does not author ize any penH)I' ;:'(; ('l;;:friduct any unlawful business
or to conduct any lawful business in all u;;'i'""',,)(uJm~nner, or to operate a .
hotel wi th9ut st~ ictly ~omplyirig w.f th i:~i ".t appli~able ,laws, including
but not limited to those, requiring a rk.nd '('Oil: ',any board, commission,
department or office of this City. ThL, ; ,i~icate,does not constitute a
permit." \
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Section 7.
Reporting and Remitting.
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 the Tax Administrator, 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 deemed necessary in order to insure collection of the tax and 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 ordinance shall be held in trust for the
account of the City until payment thereof is made to the Tax Administrator.
Section 8.
Penalties and Interest.
(a) Original Delinquency. Any operator who fails to remit any tax
imposed by this ordinance within the time required shall pay a penalty of
10% of the amourit 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 thirty (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 non-payment
of any remittance due under this ordinance 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 sub-paragraphs (a) and (b) of this section.
(d) Interest. In addi~~on to the penalties imposed, any operator who ~.
fails to remit any tax imposed by this ordinance shall pay interest at the
rate of one-half of one percent 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) Penalties Merged with Tax. Every penalty imposed and such
interest as accrues under the provisions of this section shall become a part
of the tax herein required to be paid.
Section 9.
Failure to Collect and Report Tax. Determination of Tax
by Tax Administrator.
If any operator shall fail or refuse to collect said tax and to make,
within the time provided in this ordinance, any report and remittance of
said tax Or any portion thereof required by this ordinance, the Tax
Administrator shall proceed in such manner as he may deem best to obtain
facts and information on which to base his estimate of the tax due. As soon
as the ~ax .Administrator shall procure such facts and infar~2tion as is
possible ta obtain upon which to base th~ assessment of any tax imposed by
this ordinance and payable by any operator who has f~jled0r refused to
collect the same and to make such report and remittc';', ,,; hr,: 'I'ax
Administrator shall proceed to determine and assess>~<)..: SL'ch operator
theta~i interest and penalties provided for by thi~ ~:0i~~uce. In case
such determination is made, the Tax Administrator Shid} <Jive a notice of the
.amount 30 assessed by serving it personally or by dCf~~sitip~..it ih the
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.Unitei.'i.f;tates mail, postage prepaid, addressed to U,,", ,jp,?t'<..:(:i!i'f..r so assessed
at th~0perators last known place of address. Such tQr ~~y ~ithin ten
(10) d.:?s after the serving or mailing of such notic::' n:f.1ke: application in
writin<:, .to the Tax Administrator for a hearing on tIIZ: tlliiOtm.:t c.sse'ssed. If
applicc;tionby the operator for a hearing is not ma withtn the time
presccbed,the tax, interest and penalties, if any: . .t\:~rlId.ned by the Tax
Admin5~~A:.rator shall become final and conclusive and '!ii(:,Hatelydtie and
payab If. such appl ica t ion is made, the Tax Admin ,.;; t:vr shall give not
less \'.h;.m five (5) days wr i t ten not ice in the
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manner prescribed herein to the operator to show cause at a time and place
fixed in said notice why said 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 herein of such determination
and the amount of such tax, interest and penalties. The amount determined
to be due shall be payable after fifteen (15) days unless an appeal is taken
as pr~vided in Section 10.
S'ect ion 10.
Appeal.
Ani operator aggrieved by any decision of the Tax Administrator with
respect tq the amount of such tax, interest and penalties, if any, may
appeal to the City Council by filing a notice of appeal with the City Clerk
within fifteen (15) days of the serving or mailing of the determination of
tax due. The City Council shall fix a time and place for hearing such
appeal, and the City Clerk shall give notice in writing to such operator at
the operators last known place of addre~s. The findings of the Council
shall be final and conclusive and shall be served upon the appellant in the
manner prescribed above for serv~ce of notice of hearing. Any amount found
to be due shall be immediately d~e and payable upon. the service of notice.
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- - .-=:'-: S ecH:o n --1 i;---Re'c6r d s .
It shall be the duty of every operator liable for the collection and
payment to the City of any tax imposed by this ordinance to keep and
preserve, for a period of three years, all records as may be necessary to
determine the amount of such tax as the operator 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.
All tax returns and informatio~ furnished by any operator pursuant to
this article shall be confidential and shall not be open to public
inspection nor the specific contents thereof disclosed by any officer or
employee except as nece~sary in the performance of official duty pursuant to
this article, or in the course of any proceedings, hearing or litigation
involving the existence or amount of the tax liability of such operator, or
with the written consent of the operator or his authorized representative.
Section 12.
Refunds.
(a) Whatever 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 ordinance, it may be refunded
as provided in sub-paragraphs (b) and (c) of this section 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 refu~d or
collected ana remitt'ed..the amount oVE-rpaidr
erroneously or i.lleg.:'11y co}lE.'cted or ~..f:::t,'O:~\'(;('~
manner prcscTibec1 by the.,rI'ax p.dministrcf,t:o): , . t..
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(d) No refund shail be paid under the provisions of this section
unless the claimant establishes his right thereto by written records showing
entitlement ~hereto.
. Section 13.
Actions to Collect.
Any tax required to be paid by any transient under the provisions of
this ordinance shall be deemed a debt owed by the transient to the City.
Any such tax collected by an 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 ordinance shall be liable to
an action brought in the name of the City of Dublin for the recovery of such
amount.
Section 14.
Violations; Misdemeanor.
Any person violating any of the provisions of this ordinance shall be
guilty of a misdemeanor and shall be punishable therefor by a fine of not
more than five hundred dollars ($500.00) or by imprisonment in jail for a
period of not more than six months or by both such fine and imprisonment.
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" Any operator or other person who fails or refuses to register as
required herein, 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 ~eport or claim who makes any
false or fraudulent report or claim _~i_th intent to defeat or evade the
determination of any amount due required bY-this ordinance to be made, is
guilty of a misdemeanor jwd is punishable as aforesaid.
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Severability.
If any section, subsection, subdivision,. paragraph, sentence, clause or
phrase of this ordinance or any part thereof 'IS for any reason ReId to be
unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance or any part thereof. The City Council
hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of
the fact that anyone or more sections, subsections, subdivisions,
paragraphs, sentences, clauses, or phrases be declared unconstitutional.
Section 16.
Effective Date.
This ordinance relates to taxes for the usual and current expenses of
the City of Dublin and shall take effect upon its adoption.
pASSED, APPROVED AND ADOPTED this
the following vote:
day of
, 1984 by
AYES;
NOE;P;
ABSENT:
,
!\TTEST:
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