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HomeMy WebLinkAboutOrd1995-001z . I I CITY OF SEWARD, ALASKA ORDINANCE NO. 95-01-INIT AN ORDINANCE OF THE PEOPLE OF THE CITY OF SEWARD, ALASKA, PROVIDING FOR A HOTELIMOTEL ROOM TAX THE PEOPLE OF THE CITY OF SEWARD, ALASKA HEREBY ORDAIN that: Section 1. New Chapter 5.45 of the Seward City Code is hereby created to read as follows: HotellMotel Room Tax 1. Definitions. As used in this chapter: A. "City manager" means the city manager of the city or the designee of the city manager. B. "Guest" means a person paying or agreeing to pay monetary consideration for the use of a room or rooms in a hoteVmotel for a term of less than 30 consecutive days. C. "HotellMotel" means a structure or portion of a structure located in the city which is rented or offered for rent for a term of less than 30 days for dwelling, lodging or sleeping purposes and includes, hotel, motel, bed and breakfast, inn or similar structures, but excludes a structure or part of a structure rented or offered for rent solely in connection with a principal business or institutional purpose other than providing meals, lodging, entertainment or recreation; for example, a hospital or university dormitory. D. "Operator" means a person who furnishes, offers for rent or otherwise makes available rooms in a hotel/motel for monetary consideration whether acting directly or through an agent or employee. E. "Quarter" means a three-month period commencing January 1, April 1, July 1 or October 1. F. "Rent" means the amount paid as monetary consideration for the use of a room or rooms in a hoteVmotel by a guest. Rent includes all monetary consideration payable as a condition of obtaining lodging, regardless of whether the consideration entitles the guest to services other than lodging (for example, meals) where the consideration is payable regardless of whether the guest uses such other services. 2. Levy of tax. A. There is hereby levied a tax on all hotel/motel rent not exempt from taxation under subsection B ofthis section in an amount equal to four percent (4%) of the hotel/motel rent. B. The following rent is exempt from the tax levied by subsection A of this section: 1. Rent paid by the United States, the state, or any instrumentality or political subdivision of either. 2. Rent paid by an organization recognized by the United States Internal Revenue Service under Section 501(c) of the United States Internal Revenue Code, provided that the organization provides proof of such recognition to the city manager. 3. Rent paid by a church organized as a nonprofit corporation under the laws of the state, provided that the church provides proof of such incorporation to the city manager. Page 1 of 4 CITY OF SEWARD, ALASKA Initiative Ordinance No. 95-01-INIT 3. Payment and collection of tax. The guest is responsible for paying the tax levied by this chapter, and the tax shall be due and payable at the time rent subject to the tax is due and payable. The operator shall collect the tax when the operator collects the rent. The operator shall state the tax as a separate item on the guest's bill. 4. Tax receipts. returns and records. A. Title to all tax collected under this chapter vests in the city upon collection. The operator shall segregate the hoteVmotel tax that it collects from any of its other funds and safeguard the tax that it collects until transmitted to the city as provided in this section. B. Except as provided in Subsection C of this section, an operator shall submit to the city manager a return on a form prescribed by the city of the hoteVmotel tax collected during each quarter on or before the last day of the month immediately following the end of the quarter. C. An operator who within the past six months (i) has failed to file either a hotel/motel tax return or pay hotel/motel tax when due, and (ii) has not cured such failure within 10 days after the city has mailed written notice thereof to the operator, shall submit to the city manager a return on a form prescribed by the city of the hoteVmotel tax collected during each month on or before the last day of the following month. D. The operator shall sign the return and transmit it together with the related hotel/motel tax on or before the date the return is due. An operator that fails to deliver hoteVmotel tax to the city on or before the due date of the related return shall incur a penalty equal to 10 percent of the amount of the delinquent hoteVmotel tax. In addition, the delinquent hotel/motel tax shall bear interest at a rate of 10 percent per year, compounded monthly, from the date of delinquency until paid. E. Every operator shall maintain records of all hoteVmotel rooms rented, rent collected and rent exempt from hotel/motel tax, and such other books and accounts as are necessary to determine the amount of hotel/motel tax the operator is required to collect. All such books and records shall be maintained for a period of not less than three years and shall be available for examination at reasonable times by the city manager to determine the correctness of a return or the amount of hotel/motel tax payable or collected. F. When an operator fails to file a return as required by Subsection B or C of this section or when the city manager finds that a return filed by an operator is not supported by the records to be maintained under Subsection E of this section, the city manager may prepare and file a return on behalf of the operator. Hotel/motel tax estimated on a return filed on behalf of the operator under this subsection may be premised upon any information that is available to the city manager, including without limitation comparative data for similar businesses. An operator for whom an involuntary return is filed under this subsection shall be liable for the hotel/motel tax stated on the return as well as the penalties and interest provided in Subsection D ofthis section and in Section 7 ofthis chapter. 5. Confidentiality of returns. A. All returns filed under this chapter and all data obtained from such returns are confidential and may not be inspected by persons other than those authorized to enforce the provisions of this chapter. Page 2 of 4 I I I CITY OF SEWARD, ALASKA Initiative Ordinance No. 95-01-INIT B. Subsection A of this section does not prohibit the city from collecting or publishing statistical data derived from returns filed under this chapter, provided that the data are cumulative and do not identify particular returns or operators. 6. Operator's certificate of registration. A. No person may engage in business as an operator in the city without first obtaining a certificate of registration under this section. A separate certificate is required for each of an operator's hotel/motel locations. B. An operator shall apply to the city clerk for a certificate of registration on a form prescribed by the city not later than 10 days from (i) the later of the effective date of this chapter and the date of commencement of its business as an operator, and (ii) the date it commences business at a new hoteVmotellocation. C. The certificate of registration shall be displayed prominently at the registered place of business. D. A certificate of registration may not be assigned or transferred. If an operator ceases to engage in business as an operator at the registered place of business or changes its form of business organization, the certificate of registration expires and shall be surrendered to the city clerk for cancellation. 7. Prohibited acts: collections: penalty. A. No person may fail or refuse to pay the tax imposed by this chapter to an operator authorized to collect the tax. B. An operator may not advertise or state to the public that the hotel/motel tax or any part thereof will be assumed or absorbed by the operator, will not be added to the rent, or will be refunded. C. Hotel/motel taxes due but not paid, or collected by not transmitted to the city, may be recovered in an action at law against the operator. Tax returns shall be prima facie proof of taxes collected but not transmitted. D. An operator who willfully fails to collect the tax levied by this chapter shall be subject to a civil penalty equal to twice the amount of the tax which should have been collected. 8. Regulations. A. The city manager may adopt regulations upon approval by the city council applying and interpreting this chapter and may prescribe forms required for the administration of this chapter. B. A guest or an operator may apply to the city manager for a ruling on the application of this chapter to the guest or operator. If the city manager determines that such a ruling has general application, it may be adopted as a regulation upon approval by the city council. Section 2. This ordinance, if approved by the voters, shall take effect thirty (30) days following certification of the election. Page 3 of 4 CITY OF SEWARD, ALASKA Initiative Ordinance No. 95-01-INIT LEGISLATIVE HISTORY NOTE: This ordinance was placed before the voters at the regular election in October 1995 and was approved by a majority of those voting on the question. The ordinance took effect in November 1995 and was implemented on January 1, 1996. Page 4 of 4