Ordinance No. 238 - Imposing Transient Occupancy Taxa
ORDINANCE NO. 238
AN ORDINANCE OF THE CITY OF ROSEMEAD
IMPOSING A TAX UPON THE PRIVILEGE OF
TRANSIENT OCCUPANCY, PROVIDING FOR THE
COLLECTION THEREOF, AND AMENDING THE
ROSEMEAD MUNICIPAL CODE.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS:
Section 1. The Rosemead Municipal Code is hereby amended
by adding a new Chapter 6 to Article VI thereof, to read:
"CHAPTER 6 - TRANSIENT OCCUPANCY TAX
"6600, Title. This Chapter shall be known as the Uniform
ransient Occupancy Tax Ordinance of the City of Rosemead,
116601. Definitions, Except where the context otherwise requires,
the detin ions given in this section govern the construc-
tion of this Chapter:
"(a) Person. "Person" 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.
."(b) Hotel. "Hotel" means any structure, or any
poron of any structure, which is occupied or
intended or designated 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, mobilhome or house trailer at a
fixed location, or other similar structure or
portion thereof.
"(c) Occupancy. "Occupancy" means the use or possession,
or t e right to 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
exert-i'ses 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 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 this Chapter
may be considered.
"(e) Rent. "Rent" means the consideration charged,
wF e-ther 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.
"(f) Operator. "Operator" 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.
"(g) Tax Administrator. "Tax Administrator" means the
qty Clerk o t e City of Rosemead.
116602. Tax Imposed. For the privilege of occupancy in any hotel,
each transient is subject to and shall pay a tax in the
amount of five percent (5%) 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 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.
"6603. 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 of
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 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.
116604. 0 erg ator's_Duties. 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, of that it will not be added to the rent, or
that, if added, any part will be refunded except in
the manner hereinafter provided.
116605. Registration. Within thirty (30) days after the effective
date ohs Chapter, or within thirty (30) 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:
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"(1) The name of the operator;
11(2) The address of the hotel;
11(3) The date upon which the certificate was issued;
11(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 Tar.
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 requir-
ing a permit from any board, commission, department
or office of this City. This Certificate does not
constitute a permit.'
116606. Reporting and Remitting. Each operator shall, on or before
the last day o~ t~Fie 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 Admin-
istrator.
116607. Penalties and interest.
• "(a) Original Delinquency. Any operator who fails to
r remit any tax imposed by this Chapter within the
time required shall pay a penalty of ten percent
(10%) of the amount of the tax in addition to the
amount of the tax.
"(b) Continued Delinqguency. 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 ten
percent (10%) of the amount of the tax in addition
to the amount of the tax and the ten percent (10%)
penalty first imposed.
"(c) Fraud. if the Tax Administrator determines that
07ie non-payment of any remittance due under this
Chapter is due to fraud, a penalty of twenty-five
percent (25%) of the amount of the tax shall be
added thereto in addition to the penalties stated
in subparagraphs (a) and (b) of this section.
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"(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 (z%) 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 kIith Tax: [very penalty imposed
an sue interest as accrues under the provisions
of this section shall become a part of the tax
herein required to be paid.
115608. Failure to Collect and Report Tax. Determination of
Tax Tax Administrator. I any operator Shall fail
or refuse 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 informa-
tion 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 re-
mittance, he shall proceed to determine and assess
against such operator the tax, interest and penalties
provided for by this Chapter. In case such determina-
tion 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 (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 hear-
ing 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 the manner prescribed
herein to the operator to show cause at a time and
place fixed in said notice .hy 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 :pecified 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 pre-
scribed 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 6609 hereof.
Ta A m nistrator with respect to the amount of such tar,,
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 Council shall fix a time
and place for hearing such appeal, and the City Clerk shall
give notice in writing to such operator at !Js 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
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"6609. Appeal. Any operator aggrieved by any decision of the
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hearing. Any amount found to be due shall be immediately
due and payable upon the service of notice.
116610. Records. it shall be the duty of every operator liable
or 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.
"6611. Refunds.
"(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
subparagraphs (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 refund or take as
credit against taxes collected and remitted
the amount overpaid, paid more than once or
erroneously or illegally collected or re-
ceived 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 over-
paid or paid more than once or erroneously or
illegally collected or received by the City by
filing a claim in the manner provided in sub-
paragraph (a) of this section, 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 entitle-
ment thereto.
116612. Actions to Collect. Any tax required to be paid by any
transient un er t e 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 Rosemead for the
recovery of such amount.
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116613. Violations; Misdemeanor. Any person violating any of the
provisions o this C apter 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 the
City jail for a period of not more than six (6) 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.
116614. Severability. If any section, subsection, subdivision,
paragrap sentence, clause or phrase of this Chapter
or any part thereof is for any reason held to be un-
constitutional, such decision shall not affect the
validity of the remaining portions of this Chapter
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 any one or more
sections, subsections, subdivisions, paragraphs, sentences,
clauses or phrases be declared unconstitutional."
Section 2. Effective Date. This Ordinance shall be
effective FI irty (30 ays rom and after the date of its passage
except that the tax imposed by this ordinance shall become opera-
tive and be imposed on July 1, 1968, and shall not apply prior to
said date.
PASSED, APPROVED and ADOPTED this 16th day of April, 1963.
is MAYOR OF THt CITY Of-ROSEMEA,)
ATTEST:
CITY CLERK
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