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ORDINANCE NO. 1259
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ARCADIA, CALIFORNIA,
ADDING TO CHAPTER 6 OF ARTICLE II
OF THE ARCADIA MUNICIPAL CODE A NEW
PART 6 ENTITLED "UNIFORM TRANSIENT
\ OCCUPANCY TAX" CONTAINING DIVISIONS
1 , 2 , 3 AND 4. '
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES
ORDAIN AS FOLLOWS:
SECTION 1. That the Arcadia Municipal Code is hereby
amended by adding to Chapter 6 of Article II thereof a new Part 6,
the same to read as follows:
ARTICLE II.
CHAPTER 6.
PART 6,
DIVISION 1.
ADMINISTRATION
TAXES
UNIFORM TRANSIENT OCCUPANCY TAX
DEFINITIONS
2661 DEFINITIONS. For the purpose of this Part certain
words and terms are hereafter defined and shall have the meaning
thus ascribed.
266l.1. TITLE. This Part shall be known as the Uniform
Transient Occupancy Tax of the City of Arcadia.
2661.2. HOTEL. "Hotel" 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.
2661.3, OCCUPANCY. 'llQccupancy" 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.
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2661. 4. TRANSIENT. "Transient" means any person who
exercises occupancy or is entitled to occupancy by reason of con-
cession, 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 occupy-
ing 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 perio~s of time extending both prior and
subsequent to the effective date of this Part may be considered.
2661.5, 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
otherwise, including all receipts, cash, credits and property and
services of any kind or nature, without any deduction therefrom
whatsoever.
2661.6. OPERATOR. "Operator" means j:i 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 Part and
shall have the same duties and liabilities as his principal. Com-
pliance with the provisions of this Part by either the princi-
pal or the managing agent shall, however, be considered to be com-
pliance by both.
2661.7. TAX ADMINISTRATOR. "Tax Administrator" means the
City License Officer.
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,
DIVISION 2. IMPOSITION AND RATE.
2662. TAX IMPOSED. For the privilege of occupancy in any
hotel, each transient is subject to and shall pay a tax in the amount
of four per cent (4%) of the rent charged by the operator. Said tax
constitutes a debt owed by the transient to the City which is ex-
tinguished 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 proportion-
ate share of the tax shall be paid with each installment. The un-
paid 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.
DIVISION 3. EXEMPTIONS.
2663. EXEMPTIONS. The tax enacted by this Part shall not be
imposed upon any person or agency defined in the following subsections,
2663.1. SAME. EXEMPTED BY LAW. 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.
2663.2. SAME. OFFICIALS. Any federal or State of Cali-
-
fornia officer or employee when on official business.
2663.3, SAME. FOREIGN AGENCIES. Any officer or employee of
a foreign government who is exempt by reason of express provision of
federal law or international treaty,
2663.4. SAME. PROCEDURE. 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 Administra-
tor.
DIVISION 4. COLLECTION PROCEDURE.
2664.1. OPERATOR'S DUTIES. Each operator shall collect the
tax imposed by this Part to the same extent and at the same time as the
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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.
2664,2, REGISTRATION, Within thirty (30) days after the
effective date of this Part, or within thirty (30) days after cownen-
cing business, whichever is later, each operator of any hotel rent-
ing occupancy to transients shall register said hotel with the Tax
Administrator and obtain from him a "Transient Occupancy Registra-
tion 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 sig-
nifies that the person named on the face hereof has fulfilled the re-
quirements of the Uniform Transient Occupancy Tax Ordinance by regis-
tering 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."
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2664.3. REPORTING AND REMITTING. 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 Adminis-
trator, on forms provided by him, of the total rents charged and re-
ceived 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 Part shall be held in
trust for the account of the City until payment thereof is made to the
Tax Administrator.
2664.4. PENALTIES AND '~NTEREST. Penalties shall apply and
. interest be due as provided in the fol~owing subsections.
2664,4,l, SAME. ORIGINAL DELINQUENCY. Any operator who
fails to remit any tax imposed by this Part within the time required
shall pay a penalty of 10% of the amount of the tax in addition to the
amount of the tax,
2664.4.2. SAME. CONTINUED DELINQUENCY. 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 be-
came delinquent shall pay a second delinquency penalty of 10% of the
amount of the tax in addition to the amount of the tax and the 10%
penalty first imposed.
2664.4.3, SAME. FRAUD. If the Tax Administrator deter-
mines that the non-payment of any remittance due under this Part is
due to fraud, a penalty of 25% of the amount of the tax shall be
added thereto in addition to the penalties stated in Bubsections
2664.4,1. and 2664.4,2,
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2664,4.4. SAME. INTEREST. In addition to the penalties
imposed, any operator who fails to remit any tax imposed by this Part
shall pay interest at the rate of one-half of 1% per month or frac-
tion thereof on the amount of the tax, exclusive of penalties, from
the date on which the remittance first became delinquent until paid.
2664,4.5. SAME. PENALTIES MERGED WITH TAX. Every penalty
imposed and such interest as accrues under the provisions of this
Division shall become a part of the tax herein required to be paid,
2664.4.5. TAX ADMINISTRATOR DETERMINATIONS. If
any operator shall fail or refuse to collect said tax and to make,
within the time provided in this Part, any report and remittance of
said tax or any portion thereof required by this Part, the Tax Ad-
ministrator shall proceed in such manner as he may deem best to ob-
tain 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 assess-
ment of any tax imposed by this Part and payable by any opera-
tor 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 Part. 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 (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 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 imme-
diately due and payable, If such application is made, the Tax Ad-
ministrator shall give not less than five (5) days written notice
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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 speci-
fied 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 (15) days unless an appeal is taken as provi-
ded in the following subsection.
2664.5.1. SAME. APPEAL. 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 (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 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.
,2664.6. RECORDS. It shall be the duty of every operator
liable for the collection and payment to the City of any tax imposed
by this Part 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.
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2664.7. REFUNDS. Whenever the amount of any tax, interest
or penalty has been overpaid or paid more than onceor has been
erroneously or illegally collected or received by the City under
this Part it may be refunded as provided in the following subsec-
tions 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 Adminis-
trator.
2664.7.1. SAME. CREDITS. An operator may claim a re-
fund 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 ~ax
so collected has either been refunded to the transient or credited
to rent subsequently payable by the transient to the operator.
2664.7.2. SAME. CLAIMS. A transient may obtain a re-
fund 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 Section 2664.7, 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 frorn the operator who collected the
tax.
2664.7.3. SAME. PROOF. No refund shall be paid under
the provisions of this Part unless the claimant establishes his
right thereto by written records showing entitlement thereto.
2664.8. ACTION TO COLLECT. Any tax required to be paid
by any transient under the provisions of this Part shall be deemed a
debt owed by the transient to the City. Any such tax collected by an
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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 Part shall be liable to an action brought
in the name of the City for the recovery of such amount.
2664.9. VIOLATIONS. No person shall fail or refuse to
register as required by this Part, or to furnish any return required
to be made by this Part, or fail or refuse to furnish a supplemental
return or other data required by the Tax Administrator. No person
required to make, render, sign or verify any report, return or claim
shall make any false or fradudulent report, return or claim with
intent to defeat or evade the determination required by this Part
to be made of any amount due. No person shall fail or refuse to pay
any sum required by this Part to be paid.
SECTION 2. This ordinance shall be effective thirty (30)
days from and after the date of its adoption except that the tax
imposed b~ this ordinance shall become operative and be imposed on
February 1, 1965
~pli~~if/t'/t~%fi, and shall not apply prior to said date.
SECTION 3. Any person violating any of the provisions
of this ordinance 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 jailor County jail for a
period of not more than six (6) months or by both such fine and
imprisonment.
SECTION 4. The City Clerk shall certify to the adoption
of this ordinance.
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I HEREBY CERTIFY that the foregoing ordinance was adopted
at a regular meeting of the City Council of the City of Arcadia
held on the
6TH day of OCTOBER
, 1964, by the affirmative
vote of at least three Councilmen, to wit:
AYES:
COUNCILMEN BALSER, CONSIDINE, FORMAN, REIBOLD AND TURNER
NOES:
NONE
ABSENT: NONE
~Z~..~
City Clerk of the City of Arcadia
SIGNED AND APPROVED this 6TH day of
OCTOBER
, 1964.
~~~~
Mayor of the City of Arcadia
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