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HomeMy WebLinkAbout93-12 - Amending Portions of Chapter 3.16 of the Newport Beach Municipal Code Pertaining to the Uniform Transient Occupancy TaxORDINANCE NO. 93 -12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING PORTIONS OF CHAPTER 3.16 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO THE UNIFORM TRANSIENT OCCUPANCY TAX. The City Council of the City of Newport Beach does hereby isordain that portions of Chapter 3.16 of the Newport Beach Municipal Code shall be amended to read as follows: 3.16.020 3.16.030 3.16.040 3.16.060 3.16.070 3.16.090 3.16.110 Definitions. Tax Imposed. Exemptions. Registration of Hotel. Reporting and Remittin Proceedings for Remedy Records. 3.16.020 Definitions. Except where the context otherwise requires, the definitions in this section shall govern the • construction of the chapter: PERSON. Except as used in the definition of "Transient" below, the term "person" shall mean any individual, firm, partnership, joint venture, 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. HOTEL. The term "hotel" shall mean any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, • apartment house, rental unit, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. The term "hotel" shall also include a space, campsite or similar facility which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer, motorhome or similar vehicle used, or intended for use as a dwelling, lodging or for sleeping purposes. OCCUPANCY. The term "occupancy" shall mean the use or possession, or the right to use or possession of a specific room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. TRANSIENT. The term "transient shall mean any individual 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 individual occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired, unless there is a qualifying rental agreement between the operator and the individual providing for a longer period of occupancy. In determining whether an individual is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. RENT. The term "rent" shall mean 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 whatsoever. OPERATOR. The term "operator" shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his • principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. (Ord. 84 -12 § 1, 1984; Ord. 1255 § 1, 1968: Ord. 1101, 1964: 1949 Code § 6901). K V INDIVIDUAL. The term "individual" shall mean any natural person. FINANCE DIRECTOR. The term "Finance Director" shall mean the Finance Director of the City of Newport Beach or his or her designated representative. • QUALIFYING RENTAL AGREEMENT. The term "qualifying rental agreement" shall mean a written contract signed by both the landlord and tenant, legally enforceable by either party, by which a room or rooms in a hotel are rented for a period of not less than thirty -one (31) consecutive days. "Qualifying rental agreement" expressly excludes: (a) any agreement, regardless of the rental term, which is terminated for any reason, by either party, or by mutual consent, prior to the thirty -first consecutive day of occupancy; or, (b) any agreement which would be unlawful or constitute a violation of law. • 3.16.030 Tax Imposed. (a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of nine percent (9k) of the rent charged by the operator. The 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 paid. If the rent is paid in installments, a proportionate share 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 Finance Director may require that • such tax shall be paid directly to the Finance Director. (b) Notwithstanding the provisions of subsection (a), in those cases where a transient is occupying a dwelling unit for which a short term lodging permit is required, and the owner and the transient have entered into a written agreement prior to the irl effective date of this ordinance, pursuant to which the transient is given the right to occupy the dwelling unit for a period of less than thirty (30) days, with the occupancy to commence on or before October 1, 1993, the transient shall be subject to and shall pay a tax in the amount of eight percent (8 %) of the rent charged by the owner or operator. (c) Notwithstanding the provisions of subsection (a) , in those cases where a person is occupying a dwelling unit and the owner and the person have entered into a qualifying rental agreement prior to the effective date of this ordinance, the person shall be subject to and shall pay the tax as required by the provisions of this Chapter prior to the adoption of this ordinance. This subsection shall be effective only until July 14, 1998. 3.16.040 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 officer or employee of a foreign government who • is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim therefore made at the time rent is collected and under penalty of perjury upon a form prescribed by the Finance Director. (Ord. 1101, 1964: 1949 Code § 6903). 3.16.060 Reaistration of Hotel. Within thirty (30) days after January 27, 1965, or within thirty (30) days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the Finance Director and obtain from him 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. 4 (c) The date upon which the certificate was issued. (d) The following statement: This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law Chapter by registering with the Finance Director • for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Finance Director. 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 by not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit. (1949 Code § 6905 added by Ord. 1101; December 28, 1964). 3.16.070 Reporting and Remitting. Each operator shall, on or before the last day of the month following the close of each calendar quarter or of such different reporting period as may be • established by the Finance Director, make a return to the Finance Director, on forms provided by him, of the total rents charged and received, the amount of tax collected for transient occupancies, the number of rental units available on the premises, and such other information as he may reasonably require. At the time the return is filed, the full amount of the tax collected shall be remitted to the Finance Director. The Finance Director may establish either shorter or longer reporting periods for any individual certificate holder or category of certificate holders if he deems it necessary or desirable in order to insure collection of the tax or to increase the efficiency of its administration. Returns and payments are due immediately upon cessation of business • for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment thereof is made to the Finance Director. (Ord. 1215 § 1; May 8, 1967; prior 1949 Code§ 6906 added by Ord. 1101; December 28, 1964). 5 V 3.16.090 Proceedings for Remedy. If any operator shall fail or refuse to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required,by this chapter, the Finance Director 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 Finance Director shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Finance Director 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. Such operator may within ten (10) days after the serving or mailing of such notice make application in writing to the Finance Director 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. Such operator may within ten (10) days after the serving or mailing of such notice make application in writing to the Finance Director 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 Finance Director shall become final and conclusive and immediately due and payable. If such application is made, the Finance Director shall give not less than five (5) 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 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 Finance C1 Director 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 •provided in Section 3.16.100. (1949 Code § 6908 added by Ord. 1101; December 28, 1964). 3.16.110 Records. It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection and payment of to the City, which records the Finance Director shall have the right to inspect at all reasonable times. Such records shall be maintained at the operator's premises or shall be available for delivery to the tax administrator within one week after request. The records shall include at least the following: • (a) Daily summaries of room occupancies; (b) A record of each occupancy charge for which exemption is claimed, including the name of the individual occupying the room, dates of occupancy and reasons for exemption; (c) All qualifying rental agreements which establish the non - transient nature of an occupancy. Section 2: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after the date of its adoption. • Section 3: That if any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have WA passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. • Section 4: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 24th day of May , 1993, and adopted on the 14th day of Jame , 1993, by the following vote, to -wit: • ATTEST: AYES, COUNCILMEMBERS HEDGES, SANSONE, WATT, TURNER, HART. DEBAY NOES, COUNCILMEMBERS NONE ABSENT COUNCILMEMBERS COX wb \tot.ord 6/17/93 8