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Ordinance No. 3078
2
3 ORDINANCE OF THE COUNTY OF BUTTE AMENDING SECTIONS 23A-2, 23A-3,
4 23A-5, 23A~-9, 23A-10, 23A-11 AND ADDING SECTIONS 23A-15 THROUGH 23A-19
5 OF CHAPTER 23A OF THE BUTTE COUNTY CODE
6
7 The Board of Supervisors of the County of Butte ordains as follows:
8 Section 1. Le illative Findin s and Declaration.
9 The Butte County Board of Supervisors is authorized to levy a
10 transient occupancy tax pursuant to Revenue and Taxation Code Section
11 7280 and currently does so pursuant to Chapter 23{a) of the Butte County
12 Code. This ordinance (1) amends the definition of "lodging" in Chapter
13 23(a) of the Butte County Code and (2) provides the tax callectar with
14 additional transient occupancy tax enforcement and collection authority.
15 It is further declared that revenue levied pursuant to this tax
16 shall be available as general revenue for expenditures as the Board of
17 Supervisors deems appropriate.
18 Section 2. Cha ter 23A of the Butte Count Code is amended to read as
19 follows•
20 Section 23A-2. Definitions.
21 Far the purposes of interpreting this Chapter, the following
22 definitions are intended to be controlling;
23 (a) "County" means the County of Butte, a political subdivision of
24 the State of California.
25 {b) "Day", unless atherwise specified, means calendar day.
26 (c) "Delinquency" means the failure to do any act required to be
27 done pursuant to this chapter, at the time required by this chapter.
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1 (~.) "Tax" means the Transient Occupancy Tax imposed by this
2 chapter.
3 {j) "Tax Collector" means the Tax Collector of the County of
4 Butte.
5 (k) "Transient" means any person having occupancy or a lodging for
6 a period of thirty (30} consecutive calendar days or less regardless of
7 the form of agreement, license, permit or entitlement. Any person
8 actually occupying a lodging shall be deemed to be a transient until the
9 period of thirty (30) days has expired unless there is an agreement in
10 writing, between the operator and occupant, providing for a longer
11 period of occupancy.
12 Section 23-A-3. Tax Tm osed• Amount of Tax.
13 For the privilege of occupying a lodging within the unincorporated
14 area of the County, each transient shall pay a tax in the amount of six
15 (5%} percent of the rent charged by the operator. Such tax shall
16 constitute a debt owed by the transient to the County, and that debt can
17 be satisfied only by payment in full to the operator or to the County.
18 The transient shall pay the tax to the operator at the time that the
19 rent is paid. If the rent is paid in installments, a proportionate
20 share of the tax shall be paid with each installment. The unpaid tax
21. shall be due upon the transient's termination of the lodging. If for
22 any reason the tax due is not paid to the operator of the lodging, the
23 Tax Collector may require that such tax be paid directly to the Tax
24 Collector.
25 Section 23A-6. Transient Occu anc Re istration Certificate.
26 Within ten (10) days after commencing business, each operator of
27 the lodging, located within the unincorporated area of the County, who
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~. rents occupancies to transients, shall register the lodging with the Tax
2 Collector. The Tax Collector shall provide the operator with a
3 "Transient Occupancy Registration Certificate" which shall be pasted at
4 all tames in a conspicuous place at the lodging. The certificate shall
5 include, but is not limited to, the following information:
6 a) The name of the operator;
7 b) The address of the lodging;
S c) The date upon which the certificate was issued; and shall
9 read:
10 d} "This Transient Occupancy Registration Certificate signifies
11 that the person named on the face hereof has fulfilled the
~.2 requirements of the uniform Transient Occupancy Tax ordinance
13 by registering with the Tax Collector for the purposes of
I4 collecting from transients the Transient Occupancy Tax, and
15 remitting said tax to the Tax Collector. This certificate
16 does not authorize any person to conduct any unlawful
17 business, to conduct any lawful business in any unlawful
18 manner, or to operate a lodging without strict compliance with
19 all local applicable laws, including, but not limited to,
20 those requiring a permit from any board, commission,
21 department, or office of this County. The certificate does
22 not constitute a permit."
23 Section 23A-9. Penalties and Interest.
24 (a) Late Registrations. Any operator who shall fail to obtain a
25 registration certificate within the time specified by this Chapter shall
26 pay a penalty of fifty dollars and no/100 ($5D.D0) per certif icate.
27 (b) Ori final Delin uenc Any operator who fails to remit any tax
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1 imposed by this Chapter within the time required shall pay a penalty of
Z ten (10%) percent of the amount of tax in addition to the amount of the
3 tax.
4 {c} Continued Felinquency. Any operator who fails to remit any
5 delinquent remittance on or before a period of thirty (30} days
6 following the date on which the remittance first became delinquent shall
7 pay a second delinquency penalty of ten {10%) percent of the amount of
8 tax in addition to the amount of tax and the ten (10%) percent penalty
9 first imposed.
10 (d) Fraud. If the Tax Collector determines that the non-payment
11 of any remittance due under this chapter is due to fraud, a penalty of
12 twenty-five (25%) percent of the amount of tax shall be added thereto in
13 addition to the penalties stated in subparagraphs (b) and {c} of this
14 section.
15 (e) Interest. In addition to the penalties imposed, any operator
16 who fails to remit any tax imposed by this chapter shall pay interest at
17 the rate of one (1%) percent per month, or a fraction thereof, on the
18 amount of the tax, exclusive of penalties, from the date on which the
19 remittance first became delinquent until paid. Tf the last of any month
20 falls on a Saturday, Sunday, or legal holiday, the additional one (1%}
21 percent shall attach after 5 p.m. an the next business day.
22 (f) Penalties and Interests Mer ed With Tax. Every penalty
23 imposed, and such interest as accrues, pursuant to the provisions of
24 this section shall become part of the tax required to be paid by the
25 provisions of this Chapter.
26 ///
27 ///
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1 Section 23A-10. Failure of O eratar to Re art Tax.
2 a. Tax Collector to estimate tax due.
3 In the event any operator fails or refuses to collect the tax
4 imposed by this chapter, or to make, within the time provided in this
5 chapter, any required report ar any payment of the tax or any portion of
6 the tax required by this chapter, the Tax Collector may make an estimate
7 of the tax due. 1n making the estimate, the Tax Collector sha11 proceed
8 in the manner the Tax Collector deems appropriate to attain facts and
9 information on which to base an estimate of the tax due. In the absence
1.0 of informatian which the Tax Collector deems mast appropriate, it shall
11. be deemed appropriate for the Tax Collector to estimate the tax by
12 multiplying the number of days in the reporting period by the estimated
13 number of lodging units customarily available from rent by the operator
14 and then multiplying such result and number by the estimated average
15 rent for the subject lodging units ar similar lodging units and
16 thereafter multiplying that result and numberr by the tax rate. The
17 foregoing shall not limit the Tax Collector in estimating the tax due
18 but if utilized shall in and of itself be deemed reasonable.
19 (b) Notice of Tax Due.
20 The Tax Collector shall proceed to determine and assess against the
21 operator the tax, interest, and penalties due as provided by this
22 chapter. The Tax Collector shall give a notice of the amount so
23 assessed by mail or personal service addressed to all persons so
24 assessed, at their last known addresses.
25 (c} Tax is Final if Hearin Not Re uested.
26 The operator may make application in writing to the Tax Collector
27 for hearing on the amount assessed within ten {10} calendar days after
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1 personal service of any notice of taxes, or within fifteen (15} days
2 from the date of mailing of any notice of taxes due. If application by
3 the operator for a hearing is not made within the time prescribed, the
4 tax, interest and penalties, if any, determined by the Tax Collector
5 shall become final and conclusive and shall be immediately due and
6 payable.
7 Section 23A-11. A eals Process.
8 (a) Hearin and Dis ute Resolution.
9 In the event an operator applies for a hearing within the time
10 prescribed, the Tax Collector shall give at least fifteen (15) days
11 written notice to the operator of the time and place of the hearing by
12 mail or at least ten (10) days notice if by personal service. Such
13 hearing may be held at any time within sixty (60) days of receipt of
14 application of the hearing by the Tax Collector. At the hearing, the
15 operator may appear and offer evidence why the specified tax, interest,
16 or penalties should not be so established.
17 (b) Determination of Tax.
18 Within thirty {30) days after the hearing, the Tax Collector shall
19 determine the proper tax to be remitted and shall give written notice to
20 the person by personal service or certified mail of the determination
21 and amount of tax, interests, and penalties. The total due shall be
22 payable fifteen (15) days from mailing or serving of notice unless an
23 appeal is made as provided in Section 23A-11(c).
24 (c) A eal from initial hearin .
25 Any operator aggrieved by any decision of the Tax Collector with
25 respect to the amount of such tax, interests, and penalties, if any, may
27 appeal to the Board of Supervisors by filing a Notice of Appeal with the
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1 Clerk of the Board within fifteen (15) days of the serving or mailing of
2 the determination of tax due. The Board of Supervisors shall fix a time
3 and place far hearing such appeal, and the Clerk of the Board shall give
4 notice in writing to such operator at his last known place of address.
5 The findings of the Board of Supervisors shall be final and conclusive,
6 and shall be served upon the appellant in the manner prescribed above
7 for service of notice of hearing. Any amount found to be due shall be
8 immediately due and payable upon receipt of the notice. No appeal may
9 be taken without first having completed the initial hearing process set
10 forth in subparts (a) and (b).
11 (d} Limitation of_ zssues on Appeal.
12 The issues on appeal shall be limited to:
13 1. Operator named on the tax bill is not correct.
14 2. Estimated tax is based on incorrect number of units.
15 3. Estimated tax is based an incorrect lodging rates.
16 4. Estimated tax is based on incorrect occupancy rates.
17 (e} Pa ment of Tax A Condition of A eal.
18 After the determination of amount of tax due from any operator has
19 been made following an initial hearing as specifled in subpart {a)
20 above, an operator must pay the taxes specified in the notice as a
21 condition precedent to filing an appeal. Failure to pay such tax,
22 together with penalties and interest thereon, if any, shall result in
23 appeal being denied. In the event that it is ultimately determined that
24 the whole or any part of the tax, interest and penalties was not due,
25 the operator shall be entitled to a full refund of the amounts paid, but
26 determined not to be due together with interest at the rate of nine (9%)
27 percent per annum. The County may retain without interest those funds
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1 ultimately determined to be to the County pursuant to this Chapter.
2 Section 23A-15. Recordin Certificate of Lien.
3 The Tax Collector may record a Certificate of Lien in the Office of
4 the Butte County Recorder, within three {3) years after the amount
5 required to be paid to the County under this chapter is not paid when
6 due. The certificate shall specify the amount of tax, penalties, and
7 interest due, the name and address as it appears on the records of Tax
8 Collector of the operators liable for the tax and the fact that the Tax
9 Collector has complied with all provisions of this chapter and the
10 determination of the amount required to be paid. From the time of
11 filing for record, the amount required to be paid together with
12 penalties and interest constitutes a lien upon all real and personal
13 property in the County owned by the operator or afterwards acquired by
14 the operator prior to the expiration of the lien. The lien has the
15 force, effect and priority of a judgment lien and sha11 continue for ten
16 (10) years from the tame of filing of their certificate unless sooner
17 released or otherwise discharged. The lien may be extended for two
18 additional ten (l0) year periods by re-recording the original lien. The
19 lien may be recorded in any other County in which the operator may have
20 property.
21 Section 28A--16. Priorit and Lien of Tax.
22 The amounts required to be paid by any operator under this chapter
23 with penalties and interest shall be satisfied first in any of the
24 following cases:
25 {a) Whenever the person is insolvent,
25 (b} Whenever the person makes a voluntary assignment of his/her
27 assets,
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1 {c) Whenever the estate of the person in the hands of the
2 executors, administrators or heirs is insufficient to pay all the debts
3 due from the deceased,
4 {d) Whenever the estate and the affects of an absconding,
5 concealed or absent person requires to pay any amount under
6 this Chapter are levied upon by process of law.
7 {e) Whenever a lien -recorded hereunder is senior to other claimant
8 interest.
9 Section 23A-17. Tax Collector Remedies.
10 The Tax Collector may utilize any remedy available for the
11 collection of taxes to enforce collection of the tax under this chapter,
12 including seizure and sale (Revenue and Taxation Code Section 2951 et
13 seq.). Any tax required to be paid by any transient under the
14 provisions of this chapter shall be deemed a debt owed by the transient
15 to the County. Any such tax collected by an operator which has not been
16 paid to the County shall be deemed a debt awed by the operator to the
17 County. Any person owing money to the County under the provisions of
18 this chapter shall be liable to an action brought by the Tax Collector
19 in the name of the County of Butte, as plaintiff, far the recovery of
20 the tax, penalties and interests and costs of collection, including but
21 not limited to, attorneys and County Counsel fees.
22 Section 23A-18. Chan e in Ownershi .
23 When ownership of a lodging is transferred, the following duties
24 arise:
25 (a) Dut of Transferor Seller .
26 Prior to a change of ownership of a lodging, the transferor or
27 operator of the lodging shall give written notice to the Tax Collector
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1 of the sale no later than fifteen (15) days before the close of escrow
2 ar the transfer of title. The transferor sha11 request and complete a
3 final Transient Occupancy Report farm and pay upon close of escrow or
4 upon delivery of title or transfer, whichever first occurs, ail taxes,
5 penalties and interest due in addition to any unsecured property taxes
6 which are a statutory lien against the transferor.
7 (b) I]uty of Transferee ~y_er)
8 Prior to the change in ownership of a lodging, the transferee or
9 perspective operator of the lodging shall give written notice to the Tax
10 Collector of the sale no later than fifteen (15} days before the close
11 of escrow or the transfer of title. The transferee shall retain from
12 the purchase price the amount for which the transferor is liable until
13 the transferor produces a certificate from the Tax Collector stating
14 that the taxes have been paid. Tf the tax is not paid as provided in
15 this chapter, the Tax Collector shall request the retained amount from
16 the transferee. The transferee shall pay the request within ten (10)
17 days.
18 (c) Effective Notice.
19 If proper notice is given by the parties to the transfer of
20 ownership of a lodging, an audit may be performed by the Tax Collector
21 in order to determine any tax liability of the transferor prior to the
22 change of ownership. Tf proper notice was given, the County will
23 release the transferee from any tax liability of the transferor prior to
24 the change of ownership. If proper notice was given, the County wi11
25 release the transferee from any tax liability arising prior to the
26 change of ownership, even if no audit was conducted.
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1 (d} This section shall be deemed constructive notice to all new
2 owners of lodgings that they shall assume liability for all unpaid taxes
3 when the Tax Collector is not properly notified as set forth in this
4 Section.
5 Section 23A-19. Violation of This Cha ter is a Misdemeanor.
6 (a) In addition to any civil remedy far the collection of taxes,
7 any person violating any of the provisions of this Chapter is guilty of
8 a misdemeanor and shall be punishable by a fine of not more than five
9 hundred dollars ($500.00) or by imprisonment in the County jail for a
10 period of not more than six {6) months or by both fine and imprisonment.
11 (b) Any operator or other person liable under the provisions of
12 this Chapter who fails or refuses to register as required in this
13 Chapter, or who fails or refuses to furnish any return required to be
14 made, or fails or refuses to furnish any supplemental return or other
15 data required by the Tax Collector, or who renders a false or fraudulent
16 return or claim is guilty of a misdemeanor and is punishable as set
17 forth in subsection (a) of this Section. Any person required to make,
18 render, sign, or verify any report or claim, who makes any false or
19 fraudulent report or claim with intent to defeat or evade the
20 determination of any amount due required by this chapter to be made, is
21 guilty of a misdemeanor and is punishable as set forth in subsection (a}
22 of this Section.
23 Section 23A-20. Civil Remedies.
24 In addition to any and all other remedies provided herein, the Tax
25 Collector may utilize any and all civil remedies available to the Tax
26 Collector at law or in equity not otherwise prohibited by law or
27 inconsistent with the provisions of this chapter.
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Section 23A-21. Severabilit .
If any provision, clause, sentence, or paragraph of this chapter or
the application thereof to any person, establishment, err circumstance
shall be held invalid, such invalidity does not effect the other
pravisions ar application of the provisions of this chapter which can be
given effect without the invalid provision or application, and to this
in, the pravisions of this chapter are hereby declared severable.
Section 3. Effective Date and Publication. This Ordinance shall be and
it is hereby declared to be in full force and effect from and after
thirty (30} days after the date of its passage, and before the
expiration of fifteen (15) days after its passage, this ordinance shall
be published once with the names of the anembers of the Board of
Supervisors voting for and against it in the Chico Enterprise Record
a newspaper published in the County of Butte, State of
California.
PASSED AND ADOPTED by the Board of Supervisors of the County of
Butte, State of California, on the 13th day of ,Tiny , 1993,
by the following vote:
AYES: Supervisors Meyer, Do1,an, Thomas and Chair Houx
NOES : None
ABSENT: Supervisor McLaughlin
NOT VOTING: None
II ATTEST
~ ,
~ /
RY AN HOUX, Chair of the
Butte C my Berard of Supervisors
JOHN S. BLACKLOCK
Officer and Cle of the Board
By
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(transient.ord)
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1 (d) "Lodging" shall mean any building, portion of a building,
2 reserved outdoor space, ar other premises or area rented for use by
3 transients far overnight accommodations. A "lodging" shall refer to the
4 fallowing premises, including but not limited to: motel, hotel, inn,
5 tourist home, bed and breakfast, rooming house, apartment house,
6 mabilehame park, recreational vehicle park, campground, ar parking area.
7 {e} "occupancy'" means the use, or the right to use, any lodging.
8 (f) "operator" means the person who is proprietor of the lodging
9 whether in the capacity of owner, lessee, sublessee, mortgagee in
10 possession, licensee, or in any other capacity. Where the operator
11 performs his function through a managing agent of any type or character
12 other than that of an employee, the managing agent shall also be deemed
13 to be an operator for purposes of this Chapter and shall have the same
14 duties and liabilities as his principal. Compliance with the
15 provisions of this Chapter by either the principal or the managing agent
16 shall, however, be considered to be complianced by both.
17 (g} "Person" shall mean a natural person acting as an individual
18 or sole proprietorship, or any group or combination of nature persons,
19 or any business entity such as a partnership, joint venture,
20 association, club, corporation, trust, syndicate or other form of
21 entity.
22 (h) "Rent" means any fee, charge, or other valuable consideration
23 received by an operator as gross proceeds paid by a transient (defined
24 below} for lodging. The "rent" sha11 be valued in money, whether it is
25 received in money or in kind goads or services. "Rent" shall include
26 all services of any kind or nature prior to any deduction for any reason
27 whatever.
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