HomeMy WebLinkAboutORD 2567l j
-~-• ~-· ORIGlt'4AL
ORDINANCE NO. 2567
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
ADDING CHAPTER 2 .33 TO THE PALO ALTO MUNICIPAL CODE
ESTABLISHING A TAX UPON THE PRIVILEGE OF TR~NSIENT
·I
OCCUPANCY, AND PROVIDING FOR-THE COLLECTION THEREOF
AND PENALTIES FOR VIOLATION
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Chapter· 2.33 is hereby added to the Palo Alto
Municipal Code to read as follows:
Sections:
2.33.010
2.33.020
2.33.030
2.33.040
2.33.050
2.33.060
2.33.070
2.33.080
2.33.090
2~33.100
2.33.110
2.33.120
2.33.130
11 CHAPTER 2.33
TRANSIENT OCCUPANCY TAX
Definitions.
Tax imposed.
Exemptions.
Operator's duties.
Registration.
Reporting and remitting.
Pen~ltie~ and interest.
Failure to collect and report tax; determin
ation of tax Lv city tteasurer.
Appeal. , · -
Re.cords.
Refunds; credits.
Actions to 6ollect.
Violations i misdemeanor •.
2.33.010 Definitions.·F.xcept where the.context otherwise
requires, the definitions given in this section govern the
construction of this chapter:
(a) Person. •i'.Per~on 11 means any individual; firm,_ partnership,
joint venture, ,,association, . social club, fraternal organization,
joint stock company, corporation; _estate, ti;ust, business trust,
receiver, tru·stee, syndicate, or any other group or combination
acting as a unit.
(b) Hotel. naotel" means any structure, or any p~rtion of ah}'
structure, which is occupied or int-ended or designed for occupancy
by trartsients for dwelling, lodging or sleeping purposes, and
includes any. hotel I inn t tOUf-iSt 'home. Q~ hoµge I ffiOtel I StUdiO
hotel, bachelor hotel; lodging hquse; ro(>miJ'lg house, apart1n~rit
house, dormi,tory, public or private ,clµb,. m0Bile9om1e or house
trailer at a fixed · iocation, or other· similar ·-~$tru<!t.ure or por-
. tion thereof. , ·.
. (c) Occupancy. . 11 0ccupancy 11 means the Use 'or possession,. ot -the
right to the use ,or poss<3ssion of any room or -rooms or portion ,
thereof, in any hotel for dweiling,'. lodging-or s~eeping purposes.
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{d)· Transient. "Transient" mean~ 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 conAecutive days or ·1ess, counting portions
of calendar days as full days. Any such oerson 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.
(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 other
wise, including all receipts, cash, credits and property and
services of apy 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, sub
lessee, mortgagee in possession, licensee, or any other capacity.
Where the operator performs his functions through a managing
agent of any type of 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.
2.33.020 'l'ax 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 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 1 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 city treasurer may require t:hat such tax shall be paid
directly to the city treasure_r.
2.33.030 Exemptions.-No tax shall b~ imposed.Uf>On:
(a)· Any person a,s to whom, or any occupancy as to which, it
is. beyond the power of the city to impose the tax her'ein pro
vided;
(b) · A11y officer or employee of a foreign government. who·\is
exempt by reason of express provision of federal law or inter
national treaty •.
No exemption shall be granted except upon a claim therefor
made at the.time rent is collected and µpder penalty of perjury
upon a form prescribed by the city treasurer. "
2.33.040'. Operatbr's.'duties. Each operator· shall collect the
tax imposed by tfiis ordinance to the same extent and at t:he same
time as the rent ·is collected from every transient. The ·amount
of tax shail be ·se;parately stated from the amount of the rent
charged, and each.transient shall receive a receipt for 1 paym.ent
from the operator •. No operator of a hotel shall advertise or
state in any manner, whether directly or indirectly, th~t the
tax or· any part thereof will be assumed or absorbed .bY the .
operator, or that··"lt will not be added to the rent, or that,. if
added, any part will be refunded except in the manner herein
after provided.
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2.33.050 Re~istratio~~. ~it~in thirty days after the effective.
<late of this c apter or within thirty days after com.~encing
business, whichever is later, each operator of any hotel renting
occupancy to transients shall register said hotel WLth the city
treasurer 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:
{l) 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 th~ person named on the face hereof has
fulfilled the tequirements of Chapter 2.33 of the Palo
Alto Municipal Code 'Transient Occupancy Tax ' by
registering with the city treasurer for the purpose of
collecting from transients the Transient Occripancy Tax
and remitting said tax to the city treasurer. 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,
conunission, department or off icf! of this city. This
certificate does not constitute· a permit."
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2. 3 3. 060 Reporti.ng and remi ttinc.i:-Each .operator shall, on or
before the last day of tfie month following the close of each
calendar quarter, or at the close of any shorter reporting period
which may be established by the city treasurer fuake a return to
the city treasurer, 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 city treasurer. The
city treasurer may establish shorter reportiriij 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 tipon
cessation of business. for any reason. All taxes collected by
operators pursuant: tot this chapter st~1ill be held in trust for
the account of the city until payment thereof is made to the
city treasurer. ·
2.33.070 Penaltiea and interest~· (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.
(),:>) 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 r.emittance first became
delinquent shall pay a second delinquency penalty of ten percent
of the.amount of·th~ tax in addition to the amount of the tax
and the te.q percent penalty first imrosed.
(o) Fraud. If the city· treasurer determines that the·
non-payment of any.remittance due under this chapter is·due to
fraud, a penalty of twenty-five percent ·of the amount of the
tax shall be added thereto in addition to the penalties stated
:in sub~aragraphs (a) and (b) of this section.
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{d) Interest. In addition to the penalties imposed, any
oper_ator 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 penaities, from the date on which the remittance firs·
became delinquent'until paid.
{e) Penalties merged with tax •. ~very penalty imposed
and such interest as accres under the provisions of this section
shall become a part of the tax herein required to be paid~
2.33.080 _Failure to colle~t and report tax:detet;mination
of tax by cit~ treasurer. If any operator snail fail or refuse
. to collect said tax anCl to make, within the time provided in
'this chapter, any report and remittance of said t~x or any portion
thereof required by this chapter, the city treasurer shall pro
ceed in such manner as he may deem best to obtain facts and
information on which to base his estimate.of the tax due. ~q
soon as the city treausrer shall procure such facts and.information
as he is able to obtain upon which to base the a!Jsessment 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 by this
chapter. In case such determination is ·mader the city treasurer
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 city treasurer for· a hearing on the amount assessed. If
application by the operator for a hearing is not made within the
time prescribed, the tax, in.ter~st and penalties, if any, deter
mined by the.city treasurer shall become final and conclusive
and im.~ediately due and payable. If such application is made,
the city treasurer 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 hear"ing the city treasurer
shall determine the proper tax to be rernl.tted and shall there
after 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 2.33.090.
2.33.090 Appe~l. Any operator aggriey~d by any decision of the
city treasurer with respect to the amount qf s':lch tax, interest
and penalties, if any, may appeal to the City Council by filing
a notice· of appedl with the City Clerk within fifteen 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 Cler]<-shall give notice in writing to such operator
at his last known· place of address. The findings of the City
Council shall be· final and conclusi.ve.,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 inuuedi-
. ately due and payable upon .the service of notice.
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2.33~100 Records. It shall be the duty of every operator
liable for tfie 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 city treasurer
shall have the right to inspect at all reasonable times.
2. 33 .110 Refunds; cred.i,~,1>~~ (a) Claim required. 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
or credited as provided in subsections (b) and (c) of this
section provided a claim in writing therefor,· stating under
penalty of perjury the spec.if ic grounds upon which the claim is
founded, is filed with the city treasurer within three year~
of the date of payment. The claim shall be on fb~ms furnished
by the city treasurer.
(b) Operators. 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
receiyed when it is established in a manrter prescribed by the
city treasurer that the person from whom the tax has been col-
. lected. was not a transient; provided, however, that nP.ither a
refund nor a ere.di t shall h~ all owen 1rn 1 e.sR the amount of the
tax so collected has either been r-efunded to the transient or
credited to rent subsequently payable by the transient to the
operator.
(c) Transients. 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 iri the manner
provided in subsection (al of this s~ctionJ but dnly when the
tax was paid by the transient directly, to the city treasurer, or
when the transient having paid the tax· to the operator, esta
blishes to the satisfaction of the city treasurer that the
transient has been unable to obtain a refund from the operator
who collected the tax.
(d} Burden ~n claimant. No ~efurid shall be paid or credit
taken under this section unless the claimant establishes his
right thereto by written records showing.ent.i..t,lement thereto.
2.33.120 Actions to collect. 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 b~ an operator ~hich bas riot been paid to the city Shrill
be deemed a debt owed by tlie ope.rat6r 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
Palo Alto for the recovery of such amount.
2.33.130 Vlolation$1 misdernearior. Any operator or-oth¢r
person who violates any of the provisions of this chapter o_r who
fails or refuses to register as :required herein, or to furnish
any return requir.ed ·to be made 1 or who fails or refuses_ to fur
i:dsh a supplemental return or other data requir~d by Jhe' 'city
treasurer, or who renders a false or fraudulent retut:I\ or claim,
is guilty of a misdemeanor, and-is punishable as.provided in
this code. "
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SECTION 2. If any-section, subsection, subdivision, paragra9h,
·sentence, clause of phrase of this ordinance or any part thereof
is for any reason held to be unconstitutional, such decision shall
not affect the validity of the remaining portions of this ordinance
of 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, subseqtions, subdivisions, paragrpahs,
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sentences, clauses or phrases be declared unconstitutional.
SECTION 3. This ordinance shall become effective upon the'
expiration of thirty days from the passage of this ordinance and
the tax established herein shall become operative on October 1,
1970.
INTRODUCED: June ZZ, 1970
PASSED: July 6, 1970
AYES: Arnold~ Bea.hrs, Clark, Comstock, Dias, Gallagher, Norton,
Pearson, Spaeth, Wheatley
NOES: Berwald
APPROVED:
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