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HomeMy WebLinkAboutOrdinance 5147 03/21/1983 ("': ....... ',.; I' . I. . (.:. ......~ . :'.1 () ( . ORDINANCE NO. 5147 (GENERAL) AN ORDINANCE CONCERNING THE ADOPTION OF TRANSIENT ROOM TAX AND ADDING ARTICLE 21, SECTIONS 8-21-1 THROUGH 8-21-20 TO THE SPRINGFIELD CODE, 1965, AND DECLARING M~ ErmRGENCY. THE CITY OF SPRINGFIELD DOES ORDAIN AS FOLLOWS: Section 1: There shall be added to the Chapter VIII, Business, Springfield Code, 1965, a new Article 21, Sections numbered 8-21-1 through 8-21-2.0, and reading as follows: , , See attached Chapter VIII, Business, Article 21, Transient Room Tax attached hereinto and incorporated herein by reference. Section 2: It is hereby found and determined that matters pertaining to transient room tax are matters affecting the welfare of the City of Springfield and that an emergency is therefore found to exist, and that this Ordinance shall therefore take effect immediately upon its passage by the Council and approval by the Mayor. ADOPTED by the Common Council of the City of Springfield this 21stday of March , 1983, by a vote of -6- for and ---=-0- against. APPROVED by the Mayor this 21 st day of 1983. March , ~~D.~ Mayor City Ordinance No. 5147 Ulfd'TEf< VIII BU~IflESS C" ARTICLE 21 TRANSIENT ROOr~ TAX l 8-21-1 Definitions. The following words and phrases as used in this Article shall have the following meanings: (1) Hotel means any structure or portion of any structure which is occupied or intended or designed for transient occupancy for 30 days or less 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. pub 1i c or pri vate dormitory. fraterni ty, sorority, public or private club, space in a mobile home or trail~r park, or similar structure or portion thereof so occupied, provided the occupancy is for less than ~ 30 day pe~iod. (2) Council means the Common Counc1l of the C1 ty of Springfield, Oregon. (3) Occupancy means the use or possession, or the right to use or possession, for lodging or sleeping purposes, of any room in a hotel. or space in a mobile home or trailer park or portion thereof. . (4) Operator means the person who is proprietor of a hotel in any capacity and, where the operator performs his/he'r functions through a managing agent other than an employe. the managing agent who shall have the same duties and liabilities as his principal. Compliance with the provisions of this Article by either the principal or the managing agent shall be considered to be compliance by both. (5) Person means any 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 any other group or tombination acting as a unit. (6) Cash accounting means a system of accounting in which the operator does not enter on his records the rent due from a transient until the rent is paid. (7) Accrual accounting means a system of accounting in which the operator enters on his records the rent due from a transient when the rent is earned, whether or not it is paid. (8) Rent means the consideration charged, whether or not received by the operator, for the occupancy of space in a hotel whether or not valued in money, goods, labor, credits, property, or other consideration valued in money, without any deduction. (9) Rent package plan rr~ans the consideration charged for both food and rent where a single rate is made for the total of both. The amount applicable to rent for determination of the transient room tax under section 8-21-2 of this Code shall be the same charge made for rent when not a part of a package plan. (10) Tax administrator means the Director of Finance, City of Springfield. (11) Transient means any indlvidual who exercises occupancy or is entitled to occupancy in a hotel for a period of less than 'e Ordinance No. 5147 (\ 30 consecutivr~ cdlcndiJr dilYS, counting portions of cillendar days as full days. The day a trans i r~nt checks out of the hotel sha 11 not be includr'd in determining t.he 3D-day period of the transient is not charg(.d rent for that day by the operator. Any individual so occupying ';pace in a hotel shall be deemed to be a transient until the period of 30 days has expired, unless there is an agreement in \'/rit i ng between the operator and the occupant providing for a longer period of occupancy.. A person who pays for lodging on a monthly basis, irrespective of the number of days in the month, shall not be deemed a transient. (12) Tax means either the tax payable by the transient, or the aggregate amount of taxes due from an operator during the period for which he is required to report his collections. 8-21-2 Levy. For the privilege of occupancy in any hotel each transient shall pay a tax of four percent of the rent charged by the operator for the occupancy. The tax shall constitute a debt owed by the transient to the city and be extinguished only by payment to the operator of the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. The operator shall enter the tax on his records when the rent is collected, if the operator keeps his records on the cash accounting basis, and when earned, if the operator keeps his 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. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that the tax be paid directly to the city. In all cases the rent paid or charged for occupancy shall exclude amounts received for the sale of goods, services or commodities, other than the furnishing of rooms, accomodations, and parking space in mobile home parks or trailer parks. "8-21-3 Collection. (1) Every operator renting a room in this city, the occupancy '0 of which is not exempted under the terms of section 8-21-5 of this code shall collect a tax from the occupant of the room. The tax collected or accured by the operator constitutes a debt owing by the operator to the city. (2) In all cases of credit or deferred payment of rent, the payment of the tax to the operator may be deferred until the rent is paid, and the operator shall not be liable for the tax until the credit is paid or the deferred payment is made. (3) The tax administrator shall enforce sections 8-21-2 and 8-21-19 of this Article and may adopt rules and regulations consistent with those sections and necessary to aid in the enforcement. (4) For rent collected on portions of a dollar the first one cent (It) of tax shall be collected on twenty cents (20t) through thirty-nine cents (39t), inclusive; the second one cent (It) of tax shall be collected on forty cents (40t) through fifty-nine cents (59t), inclusive; the third one cent (It) of tax shall be collected on sixty cents (60t) through i, () l... (" c_) c Ordinance No. 5147 seventy-nine lf~nt:; (j9t), and the fourth one ((:nt (It) of tax shall be collect.ed on eighty cents (80t) to one dollar ($1.00), inclusive. Operator's Duties. Each operat~r sha~l collect the !ax imposed by section 8-21-2 of th1s Art1cle on a tran~lent at the same time as he collects rent from the translent. The amount of the tax shall be separately stated upon the operator's records and on any receipt for the rent rendered. by the operator to the transient. No operator shall advert1se that the tax or any part of the tax will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, when added, any part will be refunded. 8- 21 - 4 8-21-5 Exemttions. No tax may be imposed upon: a) Any occupant for more than 30 successive calendar , days; (b) Any person who pays for lodging on ~ monthly basis, irrespective of the number of days 1n the month; (c) Any occupant whose rent is of a value less than $2.00 per day; (d) Any person who rents a private home, vacation, ca~i~, or like facility from any owner who rents the fac111ty incidentally to his own use thereof; (e) Any occupant whose rent is paid for a hospital room or to a medical clinic, convalescent home, or home for aged people. 8-21-6 Registration. Every person engaging in , Dus1ness as an operator of a hotel in this"c.ity shall register with the tax administrator on a form provided by him within 15 calendar days after commencing the business. Nonregistration under this section shall not relieve any person from the obligation to pay the tax. The registration shall set forth the name under which the 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 ta:c~s the tax administrator requires. The registration shall be signed by'tne operator. The tax administrator shall, within 10 days after the registration, issue without charge a certificate of authority to the registrant to collect the tax from the occupants of the hotel, together with a duplicate thereof for each additional place of business of the registrant. Such a certificate shall be nonassignable and nontransferrable and shall be surrendered immediately to the tax administrator upon the cessation of business at the location named on the certificates or upon sale or transfer of the business. Each such certificate and duplicate thereof shall state the place of business to which it is applicable and shall be prominently displayed so as to come to the notice readily of all occupants and persons seeking occupancy therein. The certificate shall, among other things state the following: (a) The name of the operator; - ' (b) The address of the hotel; (c) The date when the certificate is issued; (d) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the transient room tax ordinance of the City of Springfield by registration with the tax administrator for the c ..".1 . . ~." ( ( Ordinance No. 5147 purpose of collectinq from transients the cityl~ room tax i.;Tld remitting the tax to the tax administrator. This certificate does not authorize any person to conduct any unlawful businc~s or to conduct any lavlful 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. This certificate does not constitute a permit." 8-21-7 Returns. (l) The tax imposed by section 8-21-2 of this Article shall be paid by the transient to the operator when the transient pays rent to the operator. All such taxes collected by any operator are due and payable to the tax administrator on the fifteenth day of the month for the preceding month and are delinquent on the last day of the month in which they are due. ' , ' (2) On or before the fifteenth day of the month 'following each month of collection bv an operator. he shall file a return for that month's tax collections with the tax administrator. The return shall be filed in such form as the tax administrator prescribes. (3) A return shall show the amount of tax collected or otherwise due for the period for which the return is filed. The total rentals upon which the tax is collected or otherwise due, gross receipts of the operator for the period, and an explanation in detail of any discrepancy between such amounts. and the amount of rents exempt. if any. (4) The person required to file the return shall deliver the return, tog~ther with the remittance of the amount of the tax due, with the tax administrator at his office either by personal delivery or by mail. If the return is mailed, the postmark shall be considere.d.the date of del i very. ," ;"""'~"" (5) For good cause. the tax administrator may extend for not to exceed one month the time for making any return or payment of tax. No further extension may be granted. except by the city manager. Any operator to whom an extension is granted shall pay interest at the rate of one per cent (1%) per month on the amount of tax due. without proration for a fraction of ' a month. If a return is not filed. and the tax and interest due:is not paid by the end of the extension granted. then the interest shall become a part of the tax for computation of penalties prescribed in section 8-21-8 of this Article. (6) The tax administrator. if he deems it necessary in order to insure payment or facilitate collection by the city of the amount of taxes in any individual case, may require returns and payment of the amount of taxes for other than monthly periods. I ' I 1 8-21-8 Penalties and Interest. (1) Any operator who has not been granted an extension of time 'ror remi ttance of tax due and who fai 1 s to remi t any tax imposed by section 8-21-2 of this Article prior to delinauency shall p'aya penalty of t~n per cent (10%) of the amount of the tax due 1n addition to the amount of the tax. c (I l Ordinance No. 5147 (2) Any oper2tor \'iho has not Lr:r:n granted vn extension uf time for rerr:ittance of tax due, and vlhofails to pay any delinquent remittance on or before a period of 30 days followirig the date on which the remittance first becomes delinquent shall pay a second delinquency penalty of fifteen per cent (15%) of the amount of the tax due plus the amount of the tax and the ten per cent (10%) penalty first imposed. (3) If the tax administrator determines that the nonpayment of any remittance due under section8-21-2 of this Article is due to fraud or intent to evade the provisions thereof, a penalty of twenty-five per cent (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subsections (1) and (2) of this section. (4) In addition to the penalties imposed. any operator who fails to remit any tax imposed by section 8-21-2 of this Article shall pay interest at the rate of one half of one per cent per month or fraction thereof, without proration for portions of a month. on the amount of the tax due. exclusive of penalties, from the date on which the remittance first becomes delinquent. until paid. (5) Every penalty imposed and such interest as accrues under the provisions of this section shall be merged with, and become a part of. the tax required to be paid. 8-21-9 D~fici~ncies, Fraud, Evasion, Delay. {I) It the tax administrator determines that a tax return required by section 8-21~7 of this Code is incorrect, he may compute and determine the amount required to be paid. upon the basis of the facts contained in the return or returns or upon the basis of any information within his possession. One or more deficiency determinations may be made of the amount due for one or more periods, and the amount so determined shall be due and payable immediately upon service of'notite'as herein provided. after which the amount determined shall be delinquent. Penalties on deficiencies shall be applied as set forth in section 8-21~8 of this Article. (a) In making a deficiency determination the tax administrator may offset overpayments, if any, which may have been previously made against any underpayment for a subsequent period or periods, or against penalties, _and interest. on the underpayments. The interest on underpayments shall be computed in the manner set forth in section 8-21-8. (b) The tax administrator shall give to the operator or occupant a written notice of his determination. The notice may be served personally or by mail; if by mail, the notice shall be addressed to the operator at his address as it appears in the records of the tax administrator. In case of service by mail of any notice required by this section, the service shall be complete at the time of deposit in the United States Post Office. (c) Except in the case of fraud or intent to evade sections 8-21-2 to 8-21-19 of this Article or rules and regulations pursuant to it, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the monthly period for which the deficiency is proposed to be determined or within three years after the return is filed. whichever period expires the later. ( ( l Ordinance No. 5147 (d) Imy deficiency determination ',hall !)cco..~ due and payable immediately upon receipt of nCJt;ce by the operator and shall become final within ten days after the tax administrator gives notice thereof. but the operator may petition for redemption and refund if the petition is filed before the determination becomes final. (2) If any operator fails or refuses to collect the tax or to make. withi n the t_i,rn~requi ,=-ed,_by secti on 8-21-2 of thi s Cod~_,_.an'y report and remittance of tne tax or any portion thereof required by section 8-21-2 of thisArticl~, or makes a fr~udule~t return or otherwise wilfully attempts to evade sectlon 8-21-2 of thlS Artlcle, the tax administrator shall .proceed in such manner as he deems best to obtain facts and information on wn1c~ to base an estimate of the tax due. As soon as the tax administrator determines the tax due from any operator who has failed or refused to collect the same and to report and remit said tax, he shall proceed to determine and assess against the operator the tax, interest, and penalties provided for by sections 8-2J-2 and 8~21-8 of this Article. In case such a determination is made. the tax administrator shall give a notice, in the manner prescribed by section 8-21-9 of the amount so assessed. . The determination and notice shall be made and mailed within three years after discovery by the tax administrator of any fraud, intent to evade, or failure or refusal to collect the tax, or failure to file a required return. Any deficiency determination shall become due and payable immediately upon receipt of the notice and shall become final within 10 days after the tax administrator gives notice thereof. The operator may, however, petition for redemption and refund if the petition is filed before the determination becomes final as provided in subsection (1) of this section. (3) If the tax administrator believes that the collection of any tax or any amount of tax !"equi .red. to be .coll ectedand,pa i 9 to the c1 ty by section 8-21-2 of th1S Art1cle 1S JeopardlZed by delay~'or 1f any def1c1ency determination made under this section is jeopardized by delay, he shall thereupon make a determination of the tax or amount of tax required to be collected, noting the fact upon the determination. The amount so determined as provided in this section shall be immediately due and payable, and the operator shall immediately pay the determined amount to the tax administrator after service of notice thereof. The operator may petition, r.:::':-2ver, after payment is made, for redemption and refund of the determination, if the petition is filed within 10 days from the date of service of notice by the tax administrator. 8-21-10 Redeterminations. (I) Any person against whom a determination is made under section 8-21-9 of this Article or any person directly interested in the determination may petition for a redetermination and redemption and refund, within the time required in section 8-21-9 of this Article. If a petition for redetermination and refund is not filed within the time required in section 8-21-9, the determination shall become final at the expiration of the allowable time. (2) If a petition for redetermination and refund is filed within the allowable time period, the tax administrator shall reconsider the determination, and, if the person has so requested in his petition, shall grant the person an oral hearing and shall give him 10 days notice of the time and place of the hearing. The tax administrator may continue the hearing from time to time as necessary. , . C\ Ordinance No. 5147 (3) The tax administriitrJf rrwy d(:crl'a~.(' or inClI'iJ~e the .:rilount of the determination as a result of the hearing, nnd if flrl increasf' is determined, the increase shall be payable immcdi~tcly after the he~ring. (4) The order or decision of the tax ~dmini5trator upon a petition for redetermination and redemption and refund shall become final 10 days after service upon the petitioner of notice thereof, unless appeal of such order or decision is filed with the city manager within the 10 days after service of such notice. (5) No petition for redetermination and redemption and refund or appeal therefrom shall be effective for any purpose unless the operator first complies with the payment provisions hereof. 8-21-11 Security for Collection. (l) The tax admin1strator, whenever he deems it necessary to , ~__ insure compliance with sections 8-21-2 to 8-21-10 of this Article may require '.. any operator subject to the transient room tax to deposit with him such security in the form of cash. bond, or other assets as the tax administrator determines. The amount of the security shall be fixed by the tax administrator but shall not be greater than twice the operator's estimated average monthly liability for the period for which he files returns, determined in such manner as the tax administrator deems proper, or five thousand dollars ($5,000), whichever amount is the lesser. The amount of the security may be increased or decreased by the tax administrator subject to the limitations herein provided. (2) At any time within three years after any tax or any amount of tax required to be collected becomes due and payable, or at any time (within three years after any determination by the tax administrator under /) sections8-21-2 to 8-21-19 of this Article becomes final, the tax administrator may bring an action in the courts of this state, or any<other state, or of the United States, in the name of the city, to collect the amount delinquent. together with penalties and interest. , ...- 8-21-12 Lien. The tax imposed by Section 8~21-2 of this Article, together with the interest and penalties provided by Sect'iofl::-8-21-8 and the fil i ng fees pai d to the Department of Records of lane County, Oregon, and advertising costs which may be incurred when the tax becomes delinquent under section 8-21-7 shall be, and until paid remain, a lien from the date of its recording with the Department of Records of lane County, Oregon, and superi or to a 11 subsequent recorded 1 i ens on all tangible personal property used in the hotel of an operator within Eugene and may be foreclosed on and sold as necessary to discharge the lien, if the lien has been so recorded. Notice of lien may be issued by the tax ad~inistrator whenever the operator is in default in the payment of the tax, interest and penalty, and shall be recorded with the Department of Records and a copy sent to the delinquent operator. The personal property l Ordinance No. 5147 c~, subject to the 1 icn and ~e:ized by iJny deputy e;f the tux ':ldfl1ini~ I r,lt(Jr rfi;JY be sold by the tax administrator ilt public auction after 10 day'.' notice thereof published in a nevlspaper in the city. Any such 1 i en as shown on the records of the Departmcllt of Records shall. upon the payment of the taxes, penalty and inten.~t for which the lien has been imposed, be released by the tax administrator when their full amount has been paid to the city. The operator or person making the payment shall receive a receipt therefor stating that the full amount of the taxes, penalties, and interest have been paid and that the lien is thereby released and the record of lien satisfied. 8-21-13 Refunds. Whenever the amount of any tax imposed under section 8-21-8 has been paid more than once or has been erroneously or illegally collected or received by the tax administrator, it may be refunded, provided a verified claim in writing therefor, stating the specific reason upon which the claim is founded, is filed with the tax administrator within three years from the date of payment. The claim shall be made on forms provided by him. If he approves the claim, the excess amount collected or paid may be refunded or may be credited on any amounts then due and payable from the operator from whom it was collected or by whom paid, and the balance may be refunded to him or his administrators, executors or assignees. All refunds shall be charged to the transient room tax fund. I i I () 8-21-14 Collection Fee. Every operator liable for the collection and remittance of the tax i~posed by section 8-21-2 Code may withhold fi ve per cent (5%) of the ne,t..J:ax due to cover hi s in the collection and remittance of the tax.. ::""'.,: of this expense ~~21-l5 Administration. (11 The tax adminlstrator shal I deposit all money collected pursuant to sections 8-21-2 to 8-21-12 of this Code to the credit of the transient room tax fund. (2) Every operator shall keep guest records of room rentals and accounting books and records of the rentals. All these records he shall retain for three years and six months after they come into being. (3) The tax administrator or any person authorized in writing by him may examine during normal business hours the books, papers, and accounting records relating to room rentals of any operator liable for the tax, after notification to him and may investigate the business of the operator in order to verify the accuracy of any return made. or if no return is made by the operator, to ascertain and determine the amount required to be paid by him. (4) Neither the tax administrator nor any person having an l/ . , . C--';" . Ordinance No. 5147 administrative or clerical duty under sections 8-21-4 to L-21-19 of this Article may make known in any manner whatever the business affairs.operatfons, or information obtained by an investigation of records and equipment of any person required to obtain a transient occupancy registration certificate, or pay a transient room tax, or any other person visited or examined in the discharge of official duty, or the amount or source of income. profits, losses. expenditures. or any particular thereof, set forth in any statement or application, or permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof, to be seen or examined by any person. Nothing in this subsection shall prevent, ho...:ever: (a) The disclosure to, or the examination of records and equipment by another City of Springfield emplo.ye. tax- collecting agent for the sole purpose of administering or collecting the tax. (b) The disclosure, after the filing of a written request to that effect. to the taxpayer himself or his receivers, trustees. executors. administrators, assignees, and guarantors, if directly interested. of information as to any such tax paid, any such tax unpaid or the amount of any such tax required to be collected, together with interest and penalties thereon provided the city attorney approves each such disclosure. The tax administrator may refuse to make any such disclosure referred to in this paragraph when in his opinion the public interest would suffer thereby. (c) The disclosure of the names and addresses of any persons to whom transient occupancy registration certificates have been issued. (d) The disclosure of general statis,.t.ics regarding taxes collected or business done in the city. . (i 8-21-16 Appeal to City Manager. Any person _ aggrieved by any dec1sion of the tax administrator may appeal to the city manager by filing a notice of appeal with the tax administrator ,~jthin 10 days of the serving or mailing of the notice of the decision. '~rhe tax administrator shall fix a time and place for hearing the appeal and shall give the appellant 10 days' written notice of the time and place, of the heari ng. 8-21-17 Trans i ent Room Tax - Ap~ea 1 to Counci 1 Any person aggri eved oy any declslon of the ity Illandger unaer section 8-21-16 of this Article ,nay appeal to the council by filing a notice of appeal with the tax nrlministrator within 10 days of the serving or the mailing of the notice of the decision given by the city manager. The tax administrator shall transmit the notice together with the file of the appealed matter, to the l, , . C-) , :~: I . () C'I., ,. . .. Ordinance No. 5147 council, who ~hall fix a tirr~ and place for hearing the appeal. The council shall give the appellant not less than 10 days written notice of the time and place of hearing of the appeal. Violations. No operator or other person required to do so may fail or refuse to register as required by Section 8-21-6 of this Article or to furnish any return required to be made under Section 8-21-17, or to furnish a supplemental return or other data required by the tax administrator. No person may render a false or fraudulent return under Section 8-21-17. No person required to make, render, sign, or verify any report regarding the transient room tax may make any false or fraudulent report. 8-21-19 Penalties. Any person wilfully violating any provision of sections 8-21-2 to 8-21-19 of this Article shall be guilty of a misdemeanor and be punishable therefor by a fine of not more than $500.00 or by imprisonment for not more than six months or by both such fine and imprisonment. 8-21-18 8-21-20 The City Manager may delegate the responsibility for the administration and collection of the transient room tax as set forth in Sections 8-21~1, 8-21-3, 8-21-4, 8-21-5, 8-21-6, 8-21-7, 8-21-8, 8-21-9, 8-21-10, 8-21-11, 8-21-12, 8-21-13, 8-21-14, 8-21-15, 8-21-16, 8-21-17, 8-21-18, 8-21-19, and 8-21-20 to the Director of Finance, City of Eugene.