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HomeMy WebLinkAboutOrd1993-030 . . . ~ f Q 0-5GLc.l Chd,_,\f'-.(.~\l\..~ <-\l\\ \~L\ QI..\-22- Sponsored by: Tones Introduction Date: 11/22/93 Public Hearing Date: 12/13/93 CITY OF SEWARD, ALASKA ORDINANCE NO. 93-30 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVIDING FOR A HOTEIJMOTEL ROOM TAX THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA HEREBY ORDAINS that: Section 1. New Chapter 5.40 of the Seward City Code is hereby created to read as follows: Chapter 5.40 Hotel/Motel Room Tax 5.40.010 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 consider- ation for the use of a room or rooms in a hotel/motel for a tenn of less than 30 consecutive days. C. "Hotel/Motel" means a structure or portion of a structure located in the city which is rented or offered for rent for a tenn 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 donnitory. 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 hotel/motel 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. . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 93-30 5.40.020 Levy of tax. A. There is hereby levied a tax on all hotel/motel room rent not exempt from taxation under subsection B of this section in an amount equal to five percent of the hotel/motel room 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. 5.40.030 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. 5.40.040 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 hotel/motel 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 fonn prescribed by the city of the hotel/motel 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 fonn prescribed by the city of the hotel/motel 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 hotel/motel 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 hotel/motel tax. In addition, the delinquent hotel/motel tax shall bear interest at a -2- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 93-30 rate of 10 percent per year, compounded monthly, from the date of delinquency until paid. E. Every operator shall maintain records of all hotel/motel 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 of this section and in section 5.40.070. 5.40.050 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. 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 the data are cumulative and do not identify particular returns or operators. 5.40.060 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 hotel/motel location. 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. -3- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 93-30 5.40.070 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 but 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. 5.40.080 Regulations. A. The city manager may adopt regulations applying and interpreting this chapter, and may prescribe fonns 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 detennines that such a ruling has general application, he may adopt it as a regulation. Section 2. This ordinance shall take effect thirty (30) days following its enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13th day of December, 1993. THE CITY OF SEWARD, ALASKA f)(JJJ'f( U C~ Dave W. Crane Mayor AYES: NOES: ABSENT: ABSTAIN: Anderson, Crane, Darling, Krasnansky and Sieminski None Bencardino and O'Brien None -4- . CITY OF SEWARD, ALASKA ORDINANCE NO. 93-30 ATTEST: . . (City Seal) APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska ~f-~ -5-