This chapter shall be known as the Transient Room Tax Ordinance.
(Ord. 1719, passed 3-11-91)
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
(Ord. 1719, passed 3-11-91; Am. Ord. 1971, passed 10-12-98)
(A) Every person engaging or about to engage in business as an operator of a hotel in this city shall register with the Finance Director/Recorder on a form provided by him.
(B) Operators engaged in business at the time this chapter is adopted must register not later than 30 calendar days after passage of this chapter. Operators starting business after this chapter is adopted must register within 15 calendar days after commencing business. The privilege of registration after the date of imposition of the tax shall not relieve any person from the obligation of payment or collection tax regardless of registration.
(C) Registration shall set forth the name under which an operator transacts or intends to transact business, the location of his place or places of business and other information to facilitate the collection of the tax as the Finance Director/Recorder may require. The registration shall be signed by the operator. The Finance Director/Recorder shall, within ten days after registration, issue without charge a certificate of authority to each registrant to collect the tax from the occupant, together with a duplicate thereof for each additional place of business for each registrant.
(D) Certificates shall be non-assignable and non-transferable and shall be surrendered immediately to the Finance Director/Recorder upon the cessation of business at the location named or upon its sale or transfer. Each certificate and duplicate shall state the place of business to which it is applicable and shall be prominently displayed therein so as to be seen and come to the notice readily of all occupants and persons seeking occupancy.
(E) The 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” signifies that the person named on the face hereof has fulfilled the requirements of the “Transient Room Tax Ordinance” of the city by registration with the Finance Director/Recorder for the purpose of collection from transients the room tax imposed by the city and remitting the tax to the Finance
(Ord. 1719, passed 3-11-91)
(A) For the privilege of occupancy in any hotel, on and after April 1, 2003, each transient shall pay a tax in the amount of 8% of the rent charged on each room, rental space, or other occupancy defined in this chapter for each day of occupancy, provided, however, the occupancies rented for seven consecutive days to the same individual or party shall pay a rate of 2½% of the rent charged per night of occupancy up to the 30-day limitation of this chapter. The tax constitutes a debt owed by the transient to the city which is extinguished 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. The operator shall enter the tax on his records when 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.
(B) If 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 Finance Director/Recorder may require that the tax shall be paid directly to the city. In all cases, the rent paid or charged for occupancy shall exclude the sale of any goods, services and commodities, other than the furnishing of rooms, accommodations, and parking space in mobile home parks or trailer parks.
(C) Rates established herein shall not be increased for at least five years from effective date hereof.
(Ord. 1719, passed 3-11-91; Am. Ord. 1850, passed 8-8-94; Am. Ord. 2067, passed 1-27-03)
(A) Every operator renting rooms in this city, the occupancy of which is not exempted under the terms of this chapter, shall collect a tax from the occupant. The tax collected or accrued by the operator constitutes a debt owed by the operator to the city.
(B) In all cases of credit or deferred payment of rent, the payment of tax to the operator may be deferred until the rent is paid, and the operator shall not be liable for the tax until credits are paid or deferred payments are made.
(C) The Finance Director/Recorder shall enforce provisions of this chapter and shall have the power to adopt rules and regulations not inconsistent with this chapter as may be necessary to aid in the enforcement.
(D) For rent collected on portions of a dollar, fractions of a penny of tax shall not be remitted.
(Ord. 1719, passed 3-11-91)
Each operator shall collect the tax imposed by this chapter at the same time as the rent is collected from every transient. The amount of tax shall be separately stated upon the operator's records, and any receipt rendered by the operator. No operator of a hotel shall advertise 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, except in the manner provided by this chapter.
(Ord. 1719, passed 3-11-91) Penalty, see § 112.99
(A) The tax imposed by this chapter shall be paid by the transient to the operator at the time that rent is paid. All amounts of the taxes collected by any operator accrue and are payable to the Finance Director/Recorder on a quarterly basis. The taxes accrue on the last day of the quarter and are delinquent 30 days thereafter.
(B) On or before the thirtieth day following each quarter of collection a return for that quarter's tax shall be filed with the Finance Director/Recorder. The return shall be filed in the form as the Finance Director/Recorder may prescribe by every operator liable for payment of tax.
(C) Returns shall show the amount of tax collected or otherwise due for the related period. The Finance Director/Recorder may require returns to show the total rentals upon which tax was collected or otherwise due, and an explanation in detail of any discrepancy between reported rentals and amounts tendered, the amount of rents exempt, if any, and description of units rented for periods of seven consecutive days, or for more than 30 days.
(D) The person required to file the return shall deliver the return, together with the remittance of the amount of tax due, to the Finance Director/Recorder at his office either by personal delivery or by mail. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies.
(E) For good cause, the Finance Director/Recorder may extend, but not to exceed, one month the time for making any return or payment of tax. No further extension shall be granted, except by action of the City Council as provided herein. Any operator to whom an extension is granted shall pay interest at the rate of 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 described elsewhere in this chapter.
(Ord. 1719, passed 3-11-91)
(A) Original delinquency. Any operator who has not been granted an extension of time for remittance of tax due and who fails to remit any tax imposed by this chapter prior to delinquency shall pay a penalty of 10% of the amount of the tax due in addition to the amount of the tax.
(B) Continued delinquency. Any operator who has not been granted an extension of time for remittance of tax due, and who failed to pay any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 15% of the amount of tax due plus the amount of the tax and the 10% penalty first imposed.
(C) Fraud. If the Finance Director/Recorder determines that the nonpayment of any remittance due under this chapter is due to fraud or intent to evade the provisions thereof, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B) above of this section.
(D) Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of .5% 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 became delinquent until paid.
(E) Penalties merged with tax. Every penalty imposed and the interest as accrues under the provisions of this section shall be merged with and become a part of the tax herein required to be paid.
(F) Petition for waiver. Any operator who fails to remit the tax herein levied within the time herein stated shall pay the penalties herein stated provided, however, the operator may petition the City Council for waiver and refund of the penalty or any portion thereof, and the Council may, if a good and sufficient reason is shown, waive and direct a refund of the penalty or any portion thereof.
(Ord. 1719, passed 3-11-91)
(A) Deficiency determination. If the Finance Director/Recorder determines that the returns are 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 or that may come into his possession. One or more deficiency determinations may be made of the amount due for one, or more than one period, and the amount so determined shall be due and payable immediately upon service of notice as herein provided after which the amount determined is delinquent. Penalties on deficiencies shall be applied as set forth in ' 112.08.
(1) In making a determination the Finance Director/Recorder may offset overpayment if any, which may have been previously made for a period or periods, against any underpayment for a subsequent period or periods, or against penalties, and interest, on the underpayment. The interest on underpayment shall be computed in the manner set forth in ' 112.08.
(2) The Finance Director/Recorder shall give to the operator or occupancy 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 Finance Director/Recorder. In case of service by mail or any notice required by this chapter the service is complete at the time of deposit in the United States Post Office.
(3) Except in the case of fraud, intent to evade this chapter or authorized rules and regulations, 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 amount is proposed to be determined or within three years after the return is filed, whichever period expires the later.
(4) Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Finance Director/Recorder has given notice thereof, provided, however, the operator may petition redemption and refund if the petition is filed before the determination becomes final as herein provided.
(B) Fraud, refusal to collect, evasion. If any operator shall fail or refuse to collect the tax or to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, or makes a fraudulent return or otherwise wilfully attempts to evade this chapter, the Finance Director/Recorder shall proceed in the manner he may deem best to obtain facts and information on which to base an estimate of the tax due. As soon as the Finance Director/Recorder has determined the tax due that is imposed by this chapter from any operator who has failed or refused to collect the same and to report and remit the tax, he shall proceed to determine and assess against the operator the tax, interest, and penalties provided for by this chapter. In case a determination is made, the Finance Director/Recorder shall give a notice in the manner aforesaid of the amount so assessed. The determination and notice shall be made and mailed within three years after discovery by the Finance Director/Recorder of any fraud, intent to evade or failure or refusal to collect the tax, or failure to file return. Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Finance Director/Recorder has given notice thereof, provided, however, the operator may petition redemption and refund if the petition is filed before the determination becomes final as herein provided.
(C) Operator delay. If the Finance Director/ Recorder believes that the collection of any tax or any amount of tax required to be collected and paid to the city will be jeopardized by delay, or if any determination will be 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 herein provided shall be immediately due and payable, and the operator shall immediately pay same determination to the Finance Director/Recorder after service of notice thereof, provided, however, the operator may petition, after payment has been made, for redemption and refund of determination, if the petition is filed within ten days from the date of service of notice by the Finance Director/Recorder.
(Ord. 1719, passed 3-11-91)
(A) Any person against whom a determination is made under 112.09 or any person directly interested may petition for a redetermination and redemption and refund within the time required in 112.09 hereof. If a petition for redetermination and refund is not filed within the time required in 112.09, the determination becomes final at the expiration of the allowable time.
(B) If a petition for redetermination and refund is filed within the allowable period, the Finance Director/Recorder 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 ten days notice of the time and place of the hearing. The Finance Director/Recorder may continue the hearing from time to time as may be necessary.
(C) The Finance Director/Recorder may decrease or increase the amount of the determination as a result of the hearing and if any increase is determined the increase shall be payable immediately after the hearing.
(D) The order or decision of the Finance Director/Recorder upon a petition for redetermination of redemption and refund becomes final ten days after service upon the petitioner of notice thereof, unless appeal of the order or decision is filed with the Council within the ten days after service of the notice.
(E) No petition for redetermination of redemption and refund or appeal therefrom shall be effective for any purpose unless the operator has first complied with the payment provisions hereof.
(Ord. 1719, passed 3-11-91)
(A) The tax imposed by this chapter together with the interest and penalties herein provided and the filing fees paid to the Clerk of Umatilla County, the advertising costs which may be incurred when same becomes delinquent as set forth in this chapter shall be and, until paid, remain a lien from the date of its recording with the Clerk of Umatilla County, Oregon. The lien shall be superior to all subsequently recorded liens on all tangible personal property used in the hotel of an operator within Hermiston and may be foreclosed on and the necessary property sold to discharge the lien, if the lien has been recorded.
(B) Personal property subject to the lien may be foreclosed in the same manner as a nonpossessory chattel lien for labor or material expended on chattel in ORS Chapter 87. When the Finance Director/ Recorder files a notice of claim of lien with the County Recorder, the Finance Director/Recorder or deputy shall send forthwith a copy of the notice to the operator and the owner of the chattel (if different from the operator) by certified mail at their last‑known address.
(C) 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 becomes final, the Finance Director/Recorder 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.
(D) In suits to foreclose the lien the court shall, upon entering judgment, allow as part of the lien the moneys paid for the filing or recording of the lien. The court shall also allow reasonable attorney fees at trial and on appeal to the prevailing party.
(E) Any lien for taxes as shown on the records of the proper county official shall, upon the payment of all taxes, penalties, and interest thereon, be released by the Finance Director/Recorder when the full amount determined to be due has been paid to the city and the operator or person making the payment shall receive a receipt therefor stating that the full amount of taxes, penalties, and interest thereon have been paid and that the lien is thereby released and the record of lien is satisfied.
(Ord. 1719, passed 3-11-91; Am. Ord. 2162, passed 10-26-09)
(A) Operators' refunds. Whenever the amount of any tax, penalty, or interest has been paid more than once or has been erroneously or illegally collected or received by the Finance Director/ Recorder under this chapter, 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 Finance Director/Recorder within three years from the date of payment. The claim shall be made on forms provided by the Finance Director/ Recorder. If the claim is approved by the Finance Director/Recorder, 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 each operator, his administrators, executors or assignees.
(B) Transient refunds. Whenever the tax required by this chapter has been collected by the operator, and deposited by the operator with the Finance Director/Recorder, and it is later determined that the tax was erroneously or illegally collected or received by the Finance Director/Recorder, it may be refunded by the Finance Director/Recorder to the transient, provided a verified claim in writing therefor, stating the specific reason on which the claim is founded, is filed with the Finance Director/ Recorder within three years from the date of payment.
(Ord. 1719, passed 3-11-91)
No tax imposed under this chapter shall be imposed upon:
(A) Any occupant for more than 30 successive calendar days; (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).
(B) Any occupant whose rent is of a value less than $3 per day.
(C) Any person who rents a private house, vacation cabin, or like facility from any owner who rents the facilities incidentally to his own use thereof.
(D) Any occupant whose rent is paid for a hospital room or to a medical clinic, convalescent home or home for aged people, to a public institution owned and operated by a unit of government, to a shelter home, half‑way house or other rehabilitation facility.
(Ord. 1719, passed 3-11-91)
(A) Distribution.
(1) Five‑eighths of the taxes remitted to the city, less 5% retained by the operator, shall be distributed as follows:
(a) 45% to improve, maintain and operate the Hermiston Community Center;
(b) 15% for recreation and recreation‑related programs and activities and park improvements administered by the advisory committee pursuant to ' 112.27(B);
(c) 25% to offset costs of programs such as the senior citizen taxi program, economic development, streets maintenance and similar programs funded from the general fund; and
(d) 15% for city parks and recreation development administered by the Parks and Recreation Committee pursuant to ' 112.27(D). The proceeds of the tax for parks and recreation development shall accumulate in a reserve account and may not be diverted or utilized in any other manner.
(2) Three‑eighths of the taxes remitted to the city, less 5% retained by the operator, shall be distributed to offset the cost of constructing a community outdoor swimming pool, including the retirement of any bonds issued for its construction.
(B) Records required from operators; forms. Every operator shall keep guest records of room sales and accounting books and records of the room sales. All records shall be retained by the operator for a period of three years and six months after they come into being.
(C) Collection fee. Every operator liable for collection and remittance of the tax imposed by this chapter may withhold 5% of the net tax herein collected to cover the operator's expenses in collection and remittance of the tax.
(D) Examination of records; investigations. The Finance Director/Recorder or any person authorized in writing by him may examine during normal business hours, the books, papers, and accounting records relating to room sales of any operator after notification to the operator liable for the tax 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.
(E) Confidential character of information obtained; disclosure unlawful. It shall be unlawful for the Finance Director/Recorder or any person having an administrative or clerical duty under the provisions of this chapter to make known in any manner whatever the business affairs, operations, 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 occupancy 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 to 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. Provided that nothing in this subsection shall be construed to prevent:
(1) The disclosure to, or the examination of records and equipment by another city official, employee, or agent for collection of taxes for the sole purpose of administering or enforcing any provisions of this chapter; or collecting taxes imposed hereunder.
(2) The disclosure after the filing of a written request to that effect, to the taxpayer himself, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, of information as to any paid tax, any unpaid tax or amount of tax required to be collected, or interest, and penalties; further provided, however, that the City Attorney approves each disclosure and that the Finance Director/Recorder may refuse to make any disclosure referred to in this division when in his opinion the public interest would suffer thereby.
(3) The disclosure of the names and addresses of any persons to whom transient occupancy registration certificates have been issued.
(4) The disclosure of general statistics regarding taxes collected or business done in the city.
(Ord. 1719, passed 3-11-91; Am. Ord. 1766, passed 5‑11‑92; Am. Ord. 1850, passed 8-8-94; Am. Ord. 2056, passed 6‑10‑02; Am. Ord. 2067, passed 1‑27‑03)
(A) Any dispute in the amount of taxes due, refunds, or other provisions of this chapter, may be filed with the Finance Director/Recorder. If not satisfied by the Finance Director/Recorder, the operator may appeal the decision of the Finance Director/Recorder to the City Manager, and if not satisfied by the Manager, to the City Council.
(B) The Council, acting as the review authority for disputes, may:
(1) Hear and determine appeals of decisions of the personnel of the city, prescribe the forms, rules and regulations relating to appeals, and take other actions consistent with the appeal function. In reviewing a decision or dispute the Council may take evidence and make an investigation. The Council shall give notice of determinations and shall file a certified copy of each determination with the Finance Director/Recorder. A determination of the Council becomes final after 20 days and becomes due, subject to interest and penalties, and enforceable by the city in the same manner as an order or decision of the Finance Director/Recorder as described herein.
(2) Approve, modify or disapprove all forms, rules and regulations prescribed by the Finance Director/Recorder if the forms, rules and regulations are challenged in the administration and enforcement of this chapter.
(3) Hear and determine protests made to a form, rule or regulation approved or prescribed by the Finance Director/Recorder.
(4) Prescribe rules for extensions and, for good cause, grant extensions of time in excess of one month for filing a return or paying the tax.
(5) Make investigations regarding imposition and administration of the tax and report findings publicly; assist in directing enforcement actions; and determine the necessity to amend or alter this chapter.
(6) Any other duties not specifically enumerated herein which are consistent with this chapter.
(Ord. 1719, passed 3-11-91)
(A) The city shall receipt for the proceeds of the tax in the ATransient Room Tax Fund.@
(B) The Council shall appoint an advisory committee consisting of a motel operator, a member of the Parks and Recreation Committee, a representative of the Chamber of Commerce, a member of the Council and one citizen at large not affiliated with any of the organizations potentially funded through the proceeds of the tax, to consider potential projects eligible for funding from the portion of the tax designated for recreation and recreation‑related programs and activities and park improvements in 112.25(A)(2). Committee members shall be appointed in accord with the charter of the city and rules of the Council.
(C) Advisory committee members will be appointed for three‑year staggered terms, and may be any individual dwelling within the boundaries of Hermiston School District 8R. The type of projects, method of administration, and similar matters shall be established by the Committee, with the advice and consent of the City Council. The Committee shall recommend annual appropriations to the City Manager and the Council. The proceeds accounted in this fund may not be expended for any project until the Committee and the Council have agreed on the project and the amounts to be expended. Should the Committee and the Council fail to agree, the proceeds of the tax shall continue to accumulate in this account and may not be diverted or utilized in any other manner.
(D) Pursuant to 112.25(A)(4), the Parks and Recreation Committee shall act as the advisory committee for parks and recreation development. The Parks and Recreation Committee shall recommend types of projects to be funded to the City Manager and Council. The proceeds accounted in this fund may not be expended for any project until the Parks and Recreation Committee and Council have agreed on the project and the amount to be expended. Should the Parks and Recreation Committee and the Council fail to agree, the proceeds of the tax for parks and recreation development shall continue to accumulate in this account and me not be diverted or utilized in any other matter.
(Ord. 1719, passed 3-11-91; Am. Ord. 1766, passed 5-11-92; Am. Ord. 1850, passed 8-8-94; Am. Ord. 2056, passed 6-10-02)
It is unlawful for any operator or other person so required to fail or refuse to register as required herein, or to furnish any return required to be made, or fail or refuse to furnish a supplemental return or other data required by the Finance Director/Recorder or to render a false or fraudulent return. No person required to make, render, sign, or verify any report shall make any false or fraudulent report, with intent to defeat or evade the determination of any amount due required by this chapter.
(Ord. 1719, passed 3-11-91) Penalty, see ' 112.99
Anyone who fails to register pursuant to this chapter commits a Class A violation for each continuing day of violation, and in addition is subject to the penalties assessed for non-payment as set forth in this chapter.
(Ord. 1719, passed 3-11-91; Am. Ord. 1976, passed 10-26-98)