This chapter shall be known as the "Uniform Transient Occupancy
Tax Ordinance of the city of Fountain Valley."
(Ord. 427 § 1, 1966)
Except where the context otherwise requires, the definitions
given in this section govern the construction of this chapter:
means 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, dormitory, public or private
club, mobilehome or house trailer at a fixed location, or other similar
structure or portion thereof.
means the use or possession, or the right to the use or possession
of any room or rooms or portion thereof, in any hotel for dwelling,
lodging or sleeping purposes.
means 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.
means 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.
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 otherwise, including all receipts,
cash, credits and property and services of any kind or nature, without
any deduction therefrom whatsoever.
means the director of finance or any other person designated
by the city manager or director of finance to serve as tax administrator.
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 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 days has expired unless there is an agreement
in writing between the operator 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 the ordinance codified herein may be considered.
(Ord. 427 § 2, 1966; Ord. 1610, 7/16/2024)
For the privilege of occupancy in any hotel, each transient
is subject to and shall pay a tax which shall be set by resolution.
Said tax constitutes a debt owed by the transient to the city which
is extinguished only be 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 tax administrator may require that such tax shall be paid directly
to the tax administrator.
(Ord. 427 § 3, 1966; Ord. 512 § 21, 1968; Ord. 595 § 1, 1983; Ord. 959 § 1, 1983; Ord. 1161 § 1, 1991)
No tax shall be imposed upon:
(1)
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;
(2)
Any
federal or state of California officer or employee when on official
business;
(3)
Any
officer 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 therefor made
at the time rent is collected and under penalty of perjury upon a
form prescribed by the tax administrator.
(Ord. 427 § 4, 1966)
Each operator shall collect the tax imposed by this chapter
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. 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.
(Ord. 427 § 5, 1966)
Within thirty days after the effective date of the ordinance
codified herein, or within thirty days after commencing business,
whichever is later, each operator of any hotel renting occupancy to
transients shall register said hotel with the tax administrator and
obtain from him a "Transient Occupancy Registration Certificate" to
be at all times posted in a conspicuous place on the premises. Said
certificate shall, among other things, state the following:
(1)
The
name of the operator;
(2)
The
address of the hotel;
(3)
The
date upon which the certificate was issued;
(4)
"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. This certificate does
not constitute a permit."
(Ord. 427 § 6, 1966)
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,
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 deems it necessary in order to insure
collection of the tax and he 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 chapter shall be held in trust for the account of the city
until payment thereof is made to the tax administrator.
(Ord. 427 § 7, 1966)
(a)
ORIGINAL
DELINQUENCY. Any operator who fails to remit any tax imposed by this
chapter within the time required shall pay a penalty of ten percent
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 thirty days following the date on which the
remittance first became delinquent shall pay a second delinquency
penalty of ten percent of the amount of the tax in addition to the
amount of the tax and the ten percent penalty first imposed.
(d)
INTEREST.
In addition to the penalties imposed, any operator who fails to remit
any tax imposed by this chapter 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.
(Ord. 427 § 8, 1966)
If any operator fails or refuses to collect said tax and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, 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 tax administrator 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 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. Such operator may within ten 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 days written notice in the 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 days unless an appeal is taken as provided in Section 3.08.100.
(Ord. 427 § 9, 1966)
Any operator aggrieved by any decision of the tax administrator
with respect to the amount of such tax, interest and penalties, if
any, may appeal to the council by filing a notice of appeal with the
city clerk within fifteen days of the serving or mailing of the determination
of tax due. The council shall fix a time and place for hearing such
appeal, and the city clerk shall give notice in writing to such operator
at his last known place of address. The findings of the 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 shall be immediately due and payable upon the
service of notice.
(Ord. 427 § 10, 1966)
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 years, all records as may be necessary
to determine the amount of such 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.
(Ord. 427 § 11, 1966)
(a)
Whenever 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 chapter it may be refunded as provided in subsections (b) and (c) 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 was not a transient; provided, however, that
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 illegally collected or received by the city by filing a claim in the manner provided in subsection (a), 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 right thereto by written records showing
entitlement thereto.
(Ord. 427 § 12, 1966)
Any tax required to be paid by any transient under the provisions
of this chapter 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 chapter
shall be liable to an action brought in the name of the city of Fountain
Valley for the recovery of such amount.
(Ord. 427 § 13, 1966)
Any person violating any of the provisions of this chapter shall
be guilty of a misdemeanor and shall be punishable therefor by a fine
of not more than five hundred dollars or by imprisonment in the city/county
jail for a period of not more than six months or by both such fine
and imprisonment.
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 report or claim who makes any false or fraudulent report or claim
with intent to defeat or evade the determination of any amount due
required by this chapter to be made, is guilty of a misdemeanor and
is punishable as aforesaid.
(Ord. 427 § 14, 1966)