HomeMy WebLinkAboutOrdinance 1707ORDINANCE N0. >~
AN ORDINANCE ESTABLISHING A TRANSIENT ROOM TAX
AND ADMINISTRATIVE COLLECTION PROCEDURES
THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS
FOLLOWS:
Section 1. There is hereby added to the Central Point
Municipal Code a new chapter, Chapter 3.24, entitled "Transient
Room Tax", to read as follows:
3.24.010 Definitions: For purposes of this Chapter, the
following definitions apply:
Accrual Accounting. A system of accounting in which the
operator enters the rent due from a transient into the record
when the rent is earned, whether or not it is paid.
Cash Accountino. A system of accounting in which the
operator does not enter the rent due from a transient into the
record until the rent is paid.
Council/City Council. The City Council of Central Point,
Oregon.
Hotel. Apart of a structure that is occupied or designed
for occupancy by transients for lodging or sleeping including a
hotel, inn, tourist home or house, motel, studio hotel, bachelor
hotel, lodging house, rooming house, apartment house, dormitory,
public or private club, mobile home or house trailer at a fixed
location, recreational vehicle and trailer park, or similar
structure or portions thereof so occupied, provided such
occupancy is for twenty-seven (27) days or less.
Occupancy. Use or possession of, or the right to use or
possess, a room in a hotel for lodging or sleeping.
Operator. A person who is the proprietor of a hotel in any
capacity. When an operator's functions are performed through a
managing agent of a type other than an employee, the managing
agent shall also be considered an operator. For purposes of this
Chapter, compliance by either the operator or the managing agent
shall be considered compliance by both.
Person. An individual, firm, partnership, joint venture,
association, social club, fraternal organization, fraternity,
sorority, public or private dormitory, joint stock company,
corporation, estate, trust, business trust, receiver, trustee,
syndicate, or another group or combination acting as a unit.
1 - ORDINANCE NO. ~ D 7 (101294)
Rent. The gross rent, exclusive of other services; the
consideration charged.
Tax. Either the tax payable by the transient or the
aggregate amount of taxes due from an operator during the period
for which the operator is required to report collections.
Tax Administrator. The City of Central Point City
Administrator, or his designee.
Transient. An individual who occupies or is entitled to
occupy space in a hotel for a period of twenty-seven (27)
consecutive days or less, counting portions of days as full days.
The day a transient checks out of a hotel shall not be included
in determining the twenty-seven day period if the transient is
not charged rent for that day. A person occupying space in a
hotel shall be considered a transient until a period of 27 days
has expired unless there is an agreement in writing between the
operator and the occupant providing for a longer period of
occupancy or the tenant actually extends occupancy more than 27
consecutive days. A person who pays for lodging on a monthly
basis, regardless of the number of days in the month, shall not
be considered a transient.
3.24.020 Tax Imposed. A transient shall pay a tax in the
amount of six percent (6%) of the rent charged for the privilege
of occupancy in a hotel in the City. The tax constitutes a debt
owed by the transient to the City, and the debt is extinguished
only when the tax is remitted by the operator to the City. The
transient shall pay the tax to the operator at the time rent is
paid. The operator shall enter the tax into the record when rent
is collected if the operator keeps records on the cash accounting
basis and when earned if the operator keeps records on the
accrual accounting basis. If the rent is paid in installments, a
proportionate share of the tax shall be paid by the transient to
the operator with each installment. In all cases, rent paid or
charged for occupancy shall exclude the sale of goods, services
or commodities.
3.24.030 Rules for Collection of Tax by Operator.
A. Every operator renting space for lodging or sleeping
shall collect a tax from the occupant. The tax collected or
accrued constitutes a debt owed by the operator to the City.
B. In cases of credit or deferred payment of rent, the
payment of tax to the operator may be deferred until the rent is
paid, and the operator shall not be liable for the tax until
credits are paid or deferred payments are made. Adjustments may
be made for uncollectible accounts.
C. The tax administrator shall enforce this Chapter and may
adopt rules and regulations necessary for enforcement.
D. The rent collected on portions of a dollar, fractions of
a penny of tax shall not be remitted.
2 - ORDINANCE NO. 17D7 (101294)
3.24.040 Operator's Duties. An operator shall collect the
tax when the rent is collected from the transient. The amount of
tax shall be stated separately in the operator's records and on
the receipt given by the operator. An operator shall not
advertise that the tax will not be added to the rent, that a
portion of it will be assumed or absorbed by the operator, or
that a portion will be refunded, except in the manner provided in
this Chapter.
3.24.050 Exemptions. The tax shall not be imposed on:
A. An occupant staying for more than 27 consecutive days.
B. A person who rents a private home, vacation cabin or
similar facility from an owner who personally rents the facility
incidentally to the owner's personal use.
C. Any occupant whose rent is paid for a hospital room or
to a medical clinic, convalescent home, or home for aged people,
or to a public institution owned and operated by a unit of
government.
Authority. A. Every person engaging or about to engage in
business as an operator of a hotel in the City of Central Point
shall register with the tax administrator on a form provided by
the tax administrator within fifteen days after beginning
business.
B. The registration form shall set forth the name in which
an operator transacts or intends to transact business, the
location of his place or places of business and such other
information to facilitate the collection of the tax as the tax
administrator may require. The registration shall be signed by
the operator.
C. The tax administrator shall, within ten days after
registration, issue without charge a Certificate of Authority to
each registrant to collect the tax from the occupant, together
with a duplicate thereof for each additional place of business of
each registrant. Certificates shall be nonassignable and
nontransferable and shall be surrendered immediately to the tax
administrator upon the cessation of business at the location
named or upon its sale or transfer. Each certificate and
duplicate shall state the place of business to which it is
applicable and shall be prominently displayed therein so as to be
seen and come to the notice readily of all occupants and persons
seeking occupancy. Failure to register does not relieve the
operator from collecting the tax or a person from paying the tax.
D. Each Certificate of Authority shall state the place of
business to which it applies, shall be prominently displayed, and
shall set forth:
1. The name of the operator.
2. The address of the hotel.
3. The date the certificate was issued.
3 - ORDINANCE NO. I~ O 7 (101294)
4. The following statement: "This Transient Occupancy
Registration Certificate signifies that the person named on the
certificate has fulfilled the requirements of the Transient Room
Tax Ordinance of the City of Central Point by registering with
the tax administrator for the purpose of collecting the room tax
imposed by the City of Central Point 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 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 the City of Central Point.
This certificate does not constitute a permit."
3.24.070 Collections, Returns and Payments. A. The taxes
collected by an operator are payable to the tax administrator on
a quarterly basis on the fifteenth day of the following month for
the preceding three months and are delinquent on the last day of
the month in which they are due. The initial return may be for
less than the three months preceding the due date. The quarters
are:
1st Quarter: January, February, March
2nd Quarter: April, May, June
3rd Quarter: July, August, September
4th Quarter: October, November, December
B. A return showing tax collections for the preceding
quarter shall be filed with the tax administrator, in a form
prescribed by the tax administrator, before the sixteenth day of
the month following each collection quarter.
C. The operator may withhold 5% of the tax collected to
cover the expense of collecting and remitting the tax.
D. Returns shall show the amount of tax collected or due
for the related period. The tax administrator may require
returns to show the total rentals on which the tax was collected
or is due, gross receipts of the operator for the period, a
detailed explanation of any discrepancy between the amounts, and
the amount of rentals exempt.
E. The operator shall deliver the return and the tax due to
the tax administrator's office. If the return is mailed, the
postmark shall be considered the date of delivery for determining
delinquencies.
F. For good cause, the tax administrator may extend the
time for filing a return or paying the tax for not more than one
month. Further extension may be granted only by the City
Council. An operator to whom an extension is granted shall pay
interest at the rate of 1% per month on the amount of tax due,
without proration for a fraction of a month. If a return is not
filed and if the tax and interest due are not paid by the end of
the extension granted, the interest shall become a part of the
tax for computation of penalties prescribed in Section 3.24.080.
4 - ORDINANCE NO. ~~~_ (101294)
G. The tax administrator may require returns and payment of
the taxes for other than monthly/quarterly periods in individual
cases to ensure payment or to facilitate collection by the City.
3.24.080 Delinquency Penalties. A. An operator who has
not been granted an extension of time for remittance of tax due
and who fails to remit the tax prior to delinquency shall pay a
penalty of 10% of the tax due in addition to the tax.
B. An operator who has not been granted an extension of
time for remittance of tax due and who fails to pay a delinquent
remittance before the expiration of 31 days following the date on
which the remittance became delinquent shall pay a second
delinquency penalty of 15% of the tax due, the amount of the tax,
and the loo penalty first imposed.
C. If the tax administrator determines that nonpayment of a
remittance is due to fraud or intent to evade the tax, a penalty
of 25% of the tax shall be added to the penalties stated in
subsections A. and B.
D. In addition to the penalties imposed by this section, an
operator who fails to remit the required tax shall pay interest
at the rate of 1o per month, without proration for portions of a
month, on the tax due, exclusive of penalties, from the date on
which the tax first became delinquent until paid.
E. Each penalty imposed and the interest accrued under
provisions of this section shall be merged with and become part
of the tax required to be paid.
F. An operator who fails to remit the tax within the
required time may petition the Council for waiver and refund of
the penalty or a portion of it. The Council may, if good cause
is shown, direct a refund of the penalty or a portion of it.
3.24.090 Deficiency Determinations. A. If the tax
administrator determines that the returns are incorrect, the tax
administrator may compute and determine the amount required to be
paid on the basis of the facts contained in the return or returns
or upon the basis of any information within the tax
administrator's possession or that may come into his or her
possession.
B. A deficiency determination may be made on the amount due
for one or more than one period. The determined amount shall be
payable immediately on service of notice, after which the
determined amount is delinquent. Penalties on deficiencies shall
be applied as provided in Section 3.24.080.
C. In making a determination, the tax administrator may
off-set overpayments that have been made against a deficiency for
a subsequent period or against penalties and interest on the
deficiency. The interest on the deficiency shall be computed as
provided in Section 3.24.080.
D. A determination becomes payable immediately on receipt
of notice and becomes final within 15 days after mailing.
However, the operator may petition for redemption and refund by
filing a petition before the determination becomes final.
5 - ORDINANCE NO. 1~0 7 (101294)
3.24.100 Fraud• Refusal to Collect• Evasion• Determination.
A. If an operator fails or refuses to collect the tax, make
the report, or remit the tax, or makes a fraudulent return or
otherwise willfully attempts to evade the tax payment, the tax
administrator shall obtain facts and information on which to base
an estimate of the tax due. After determining the tax due and
the interest and penalties, the tax administrator shall give
notice of the total amount due.
B. Determination and notice shall be made and mailed within
three years after discovery of fraud, intent to evade, failure or
refusal to collect the taxes, or failure to file a return. The
determination becomes payable immediately on receipt of notice
and becomes final 15 days after mailing.
C. The operator may petition for redemption and refund if
the petition is filed before the determination becomes final.
D. The tax administrator shall give the operator written
notice of the determination. If notice is mailed it shall be
addressed to the operator at the address that appears on the
records of the tax administrator, and service is complete when
the notice is deposited in the mail.
E. Except in the case of fraud or intent to evade the tax,
a deficiency determination shall be made and notice mailed within
three years after the last day of the month following the close
of the quarterly period for which the determination has been made
or within three years after the return is filed, whichever is
later.
3.24.110 Operator Delay. If the tax administrator believes
that collection of the tax will be jeopardized by delay, or if a
determination will be jeopardized by delay, the tax administrator
shall determine the tax to be collected and note facts concerning
the delay on the determination. The determined amount is payable
immediately after service of notice. After payment has been
made, the operator may petition for redemption and refund of the
determination if the petition is filed within 15 days from the
date of mailing of notice by the tax administrator.
3.24.120 Redetermination. A. An operator against whom a
determination is made under Section 3.24.090, 3.24.100 or
3.24.110, or a person directly interested, may petition for a
redetermination, redemption and refund within 15 days from the
date the notice was mailed. If a petition for redetermination
and refund is not filed within the time required, the
determination is final on expiration of the allowable time.
B. If a petition for redetermination and refund is filed
within the allowable period, the tax administrator shall
reconsider the determination and, if the operator requested a
hearing in the petition, shall grant the hearing and give the
operator 15 days notice of the time and place of the hearing.
The tax administrator may continue the hearing if necessary.
6 - ORDINANCE NO. ~ p (101294)
C. The tax administrator may change the amount of the
determination as a result of the hearing. If an increase is
determined, the increase is payable immediately after the
hearing.
D. The decision of the tax administrator on a petition for
redetermination becomes final 15 days after mailing of notice on
the petitioner unless appeal of the decision is filed with the
Council within 15 days after notice is mailed.
E. A petition for redetermination or an appeal is not
effective unless the operator has complied with the payment
provisions.
3.24.130 Security for Collection of Tax. A. The tax
administrator may require an operator to deposit security in the
form of cash, bond, or other security. The amount of security
shall be fixed by the tax administrator and shall not be greater
than twice the operator's estimated average quarterly liability
for the period for which the operator files returns or $5,000.00,
whichever amount is less.
B. Within three years after the tax becomes payable or
within three years after a determination becomes final, the tax
administrator may bring an action in the name of the City in the
courts of this state, another state or the United States to
collect the amount delinquent and penalties and interest.
3.24.140 Liens. After a determination of taxes owing has
become final, such taxes, together with all applicable interest
and penalties, shall become a lien on the real property used in
the operation of the hotel. The tax administrator shall cause
the lien to be recorded in the City's lien docket, and the lien
may thereafter be foreclosed in the same manner as in the case of
liens for local improvements, as set forth in Oregon Revised
Statutes 223.505 to 223.595.
3.24.150 Refunds by City to Operator. when the tax,
penalty or interest has been paid more than once or has been
erroneously or illegally collected or received by the tax
administrator, it may be refunded if a written verified claim
stating the specific reason for the claim is filed within three
years from the date of payment. The claim shall be submitted on
forms provided by the tax administrator. If the claim is
approved, the excess amount may be refunded to the operator or it
may be credited to an amount payable by the operator and any
balance refunded.
3.24.160 Refunds by City to Transient. If the tax has been
collected by the operator and deposited with the tax
administrator and it is later determined that the tax was
erroneously or illegally collected or received by the tax
7 - ORDINANCE NO. 17 D7 (101294)
administrator, it may be refunded to the transient if a written
verified claim stating the specific reason for the claim is filed
with the tax administrator within three years from the date of
payment.
3.24.170 Refunds by Operator to Transient. If the tax has
been collected by the operator and it is later determined that
the transient occupied the hotel for a period exceeding 27 days
without interruption, the operator shall refund the tax to the
transient. The operator shall account for the collection and
refund to the tax administrator. If the operator has remitted
the tax prior to refund or credit to the transient, the operator
shall be entitled to a corresponding refund.
A. 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 and
six (6) months, all records, books, reports, income tax reports
and other matters required by this Chapter 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 as set forth below. Every operator shall
maintain guest records of room rents, accounting books, and
records of income. The operators must, at a minimum, include a
daily room rental register, a room billing/revenue daily journal,
a cash receipt and deposit journal, and a cash disbursements
journal/check register for all authorized deductions. These
records and books shall reconcile to the transient room tax
reports and be auditable. They shall also reconcile to the
operator's income tax reports. If the tax administrator finds
the books and records of the operator are deficient in that they
do not provide adequate support for transient room tax reports
filed, or the operator's accounting system is inauditable, it
shall be the responsibility of the operator to improve their
accounting system to the satisfaction of the tax administrator.
B. During normal business hours and after notifying the
operator, the tax administrator, or an authorized representative,
may examine books, papers, and accounting records related to room
rentals to verify the accuracy of a return or, if no return is
made, to determine the amount to be paid.
3.24.190 Confidentiality. The tax administrator or a
person having an administrative or clerical duty under the
provisions of this chapter shall not make known in any manner the
business affairs, operations, or information obtained by an
investigation of records and equipment of a person required to
file a return or pay a transient occupancy tax or a person
visited or examined in the discharge of official duty; or the
8 - ORDINANCE NO. (~ D ~ (101294)
amount or source of income, profits, losses or expenditures
contained in a statement or application; or permit a statement or
application, or a copy of either, or a book containing an
abstract or particulars to be seen or examined by any person.
However, nothing in this section shall be construed to prevent:
A. Disclosure to or examination of records and equipment by
a city official, employee or agent for collecting taxes for the
purposes of administering or enforcing the provisions or
collecting the taxes imposed by this Chapter.
B. Disclosure, after filing a written request, to the
taxpayer, receivers, trustees, executors, administrators,
assignees, and guarantors, if directly interested, of information
concerning tax paid, unpaid tax, amount of tax required to be
collected, or interest and penalties. However, the City Attorney
shall approve each disclosure, and the tax administrator may
refuse to make a disclosure referred to in this subsection when,
in the tax administrator's opinion, the public interest would
suffer.
C. Disclosure of names and addresses of persons making
returns.
D. Disclosure of general statistics regarding taxes
collected or business done in the City.
3.24.200 Disposition and Use of Transient Room Tax Funds.
All revenues received by the City of Central Point from the tax
shall be deposited in the General Fund.
3.24.210 Appeals to the City Council. A person aggrieved
by a decision of the tax administrator may appeal to the City
Council by filing a notice of appeal with the tax administrator
within 15 days of mailing of the notice of a decision. The City
Administrator shall fix a time and place for hearing the appeal,
as prescribed by the City council, and shall give the appellant
15 days written notice of the time and place of the hearing
before the City Council. At such hearing, the Council may take
any action it deems necessary regarding the matters before it at
the hearing, and action on the appeal shall be by resolution
passed by a majority of the Council members present at the
meeting where the appeal is considered.
3.24.220 Penalties and Violations. It is unlawful for any
operator or any other person so required to fail or refuse to
register as required herein, or to furnish any return required to
be made, or fail or refuse to furnish the supplementary return or
other data required by the tax administrator or to enter a false
or fraudulent report, with intent to defeat or evade the
determination of any amount due required by this Chapter.
3.24.230 Penalties. Collection. Violation of any provision
of this Chapter of this Code shall be punishable by the General
Penalty. Every day in which the violation is caused or permitted
to exist constitutes a separate infraction, and the punishment
9 - ORDINANCE N0. 17D 7 (101294)
therefor shall be in addition to any other penalty, interest, sum
or charge imposed by this Code or this Chapter. Delinquent taxes
and fees, penalty and interest imposed by this Chapter and this
Code may be collected in a civil action.
Section 2. Severability. If any section, subsection,
paragraph, sentence, clause, or phrase of this Ordinance, or any
part thereof, is for any reason held to be unconstitutional or
otherwise invalid, such decision shall not affect the validity of
the remaining portions of this Ordinance or any part thereof.
The legislative body hereby declares that it would have passed
each section, subsection, subdivision, paragraph, sentence,
clause or phrase thereof, irrespective of the fact that any one
or more sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases be declared unconstitutional or
otherwise invalid.
Section 3. The City Council shall have authority to enter
into contracts with hotel operators whereby the City may agree to
exempt all or a portion of the transient room tax up until
January 1, 2000. No transient room taxes which are or will
become due on or after January 1, 2000, may be exempted.
Section 4. For purposes of ORS 310.145, this transient room
tax is classified as an ~~other tax~~, not subject to the limits of
Section 11B, Article XI, of the Oregon Constitution.
Section 5. Based upon the necessity to promote the economic
development of the City, an emergency is declared to exist, and
this Ordinance shall become effective immediately.
Passed by the Council and
its passage this _~~ day of
by me in authentication of
s~,> 1994.
see
ATTEST:
City Re esen'tative
Approved by me this ~~ day of ~~~~~~_~ 1994.
May Roger Westensee
10 - ORDINANCE NO. ~~n2 (101294)