CHAPTER 117
MOTEL TAX
|
117.001 Title 117.002 Definitions 117.003 Tax imposed 117.004 Rules and regulations 117.005 Books and records 117.006 Transmittal of tax revenue 117.007 Collection |
117.008 Refunds 117.009 Proceeds of tax and fines 117.010 Penalties 117.011 Purpose of penalties 117.012 Use of receipts 117.013 Severability |
§ 117.001 TITLE.
This chapter shall be known and recited as the City Motel Tax.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.002 DEFINITIONS.
For the purposes of this chapter, whenever any of the following words, terms or definitions are used herein, they shall have the meanings ascribed to them in this section:
HOTEL ROOM or MOTEL ROOM. A room within a structure kept, used or maintained as or advertised or held out to the public to be in an inn, motel, hotel, apartment hotel, lodging house, dormitory or place where sleeping, rooming, office, conference or exhibition accommodations are furnished for lease or rent, whether with or without meals. One room offered for rental with or without an adjoining bath shall be considered as a single hotel or motel room. The number of hotel or motel rooms within a suite shall be computed on the basis of those rooms utilized for the purpose of sleeping.
OWNER. Any person or persons having a sufficient proprietary interest in conducting the operation of a hotel or motel room or receiving the consideration for the rental of such hotel or motel room so as to entitle such person or persons to all or a portion of the net receipts thereof. The word also includes a person who is the proprietor, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee or any other capacity.
PERSON. Any natural person, trustee, court-appointed representative, syndicate, association, partnership, firm, club, company, corporation, business trust, institution, agent, government corporation, municipal corporation, district or other political subdivision, contractor, supplier, vendor, vendee, operator, user or owner, or any officers, agents, employees or other representative acting either for himself or for any other person in any capacity, or any other entity recognized by law as the subject of rights and duties. The masculine, feminine, singular or plural is included in any circumstances.
OPERATOR. Any person who is the 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 chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.
TRANSIENT. Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of seven (7) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel or motel shall be deemed to be a transient until the period of seven (7) days has expired unless there is an agreement in writing between the owner and the occupant providing for a longer period of occupancy, or the occupant has paid in advance for over seven (7) days occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.003 TAX IMPOSED.
There is hereby levied and imposed upon the use and privilege of renting a hotel or motel room within the city a tax of five percent (5%) of the rental or leasing charge for each such hotel or motel room rented for each twenty four (24) hour period or any portion thereof; provided, however, that the tax shall not be levied and imposed upon any person to rent a hotel or motel room for more than seven (7) consecutive days or to a person who works and lives in the same hotel or motel.
The ultimate incident of and liability for payment of said tax shall be borne by the person who seeks the privilege of occupying any such hotel or motel room, said person hereinafter referred to as "renter".
The tax herein levied shall be paid in addition to any and all other taxes and charges. It shall be the duty of the owner, manager, or operator of every hotel or motel to act as trustee for and on account of the city, and to secure said tax from the renter of the hotel or motel room and pay over to the City Clerk said tax under procedures prescribed by the City Clerk or as otherwise provided in this chapter.
Every person required to collect the tax levied by this chapter shall secure said tax from the renter at the time he collects the rental payment for the hotel or motel room. Upon the invoice receipt or other statement or memorandum of the rent given to the renter at the time of payment, the amount due under the tax provided in this chapter shall be stated separately on said documents.
There is hereby levied and imposed upon the use and privilege of renting a hotel or motel room within the City an additional tax of one percent (1%) of the rental or leasing charge for each hotel or motel room rented for each 24-hour period or any portion thereof; provided, however, that the tax shall not be levied and imposed upon any person to rent a hotel or motel room for more than seven (7) consecutive days or to a person who works and lives in the same hotel or motel nor shall it be imposed on any person renting a room in a hotel or motel containing less than ten (10) sleeping rooms.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07; Am. Ord. 2804, passed 11-17-08)
§ 117.004 RULES AND REGULATIONS.
The City Administrator may promulgate rules and regulations not inconsistent with the provisions of this chapter concerning enforcement and application of this chapter. The term "rules and regulations" includes, but is not limited to, case by case determination of whether or not the tax imposed by this chapter applies.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.005 BOOKS AND RECORDS.
The City Administrator, or any person certified as his deputy or representative, may enter the premises of any hotel or motel for inspection and examination of books and records in order to effectuate the proper administration of this chapter and to assure the enforcement of the collection of the tax imposed. It shall be unlawful for any person to prevent, hinder, or interfere with the City Administrator or his duly authorized deputy or representative in the discharge of his duties and the performance of this chapter. It shall be the duty of every owner to keep accurate and complete books and records to which the City Administrator or his deputy or authorized representative shall at all times have access, which records shall include a daily sheet showing:
The number of hotel or motel rooms rented during the twenty four (24) hour period, including multiple rentals of the same hotel rooms where such shall occur; and
The actual hotel or motel tax receipts collected for the date in question.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.006 TRANSMITTAL OF TAX REVENUE.
The owner or owners of each hotel or motel within the city shall file tax returns showing tax receipts received with respect to each hotel and motel room for each quarter of the city's fiscal year, commencing on May 1, 1993, and continuing on the first day of each of the city's quarters (i.e., August 1, November 1, February 1) thereafter on forms prescribed by the City Administrator. The returns shall be due on or before the thirtieth (30th) day following the end of the quarterly filing period.
The first taxing period for the purpose of this chapter shall commence May 1, 1993, and end July 31, 1993, and the tax return and payment for such period shall be due on or before August 31, 1993. Thereafter, reporting periods and tax payments shall be in accordance with the provisions of this chapter. At the time of filing said tax returns, the owner shall pay to the City Clerk all taxes due for the period to which the tax return applies.
In case any person who is required under this chapter to file a tax return to the city fails to file a return when and as required under this chapter, said person shall pay to the city, in addition to the amount of tax required to be transmitted, a penalty of five percent (5%) of the tax that said person is required to transmit to the city; provided, however, that a twenty percent (20%) penalty shall be imposed for any fraudulent return.
In case any person who is required under this chapter to file a tax return to the city files a return at the time required but fails to transmit the tax proceeds, or any portion thereof, to the city when due, a penalty of five percent (5%) of the amount of tax not transmitted to the city shall be added thereto; provided, however, that the fraudulent failure to pay such tax shall result in a twenty percent (20%) penalty.
In addition to any penalty for which provision is made in this chapter, any amount of tax not transmitted when due shall bear interest at the rate of two percent (2%) per month, or fraction thereof, until fully transmitted.
Any officer or employee of any corporation, which is an owner subject to the provisions of this chapter, who has control, supervision or responsibility of collecting tax proceeds, filing returns, and transmitting collected tax proceeds of the tax imposed by this chapter and who willfully fails to file such return or to transmit any tax proceeds so collected to the city shall be personally liable for any such amounts collected, including interest and penalties thereon, in the event that after proper proceedings for the collection of such amount, such corporation is unable to pay such amounts to the city; and the personal liability of such officer or employees, as provided herein, shall survive dissolution of the corporation. For purposes of this subsection, a person willfully fails to act if he takes any conscious and voluntary action, intending not to perform any of his obligations hereunder, including, but not limited to, the utilizing of tax proceeds collected for the city to pay any other corporate obligations.
If any operator or owner shall fail or refuse to collect said tax and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the City Administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the City Administrator shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable to any operator or owner 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 or owner the tax, interest and penalties provided for by this chapter. In case such determination is made, the City 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 or owner so assessed at his last known address. Such operator or owner may within ten (10) days after the serving or mailing of such notice make application in writing to the City Administrator for a hearing on the amount assessed. If application by the operator or owner for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the City Administrator shall become final and conclusive and immediately due and payable. If such application is made, the City Administrator shall give not less than five (5) days written notice in the manner prescribed herein to the operator or owner to show cause at a hearing at a time and place fixed in said notice why said amount specified there should not be fixed for such tax, interest and penalties. At such hearing, the operator or owner may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing, the City 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 provided in paragraph (G) below.
Any operator or owner aggrieved by any decision of the City Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the Mayor 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 Mayor shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator or owner at his last known address. The findings of the Mayor 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.
It shall be the duty of every owner liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three (3) 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 City Administrator shall have the right to inspect at all reasonable times.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.007 COLLECTION.
Whenever any person shall fail to pay any tax as herein provided, the corporation counsel shall, upon the request of the City Administrator, bring or cause to be brought an action to enforce the payment of said tax on behalf of the city in any court of competent jurisdiction.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.008 REFUNDS.
Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded as provided in divisions (B) and (C) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with City Clerk within three (3) years of the date of payment. The claim shall be on forms furnished by the City Clerk.
An owner may claim a refund or take as credit against taxes collected and remitting the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the City Clerk 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 tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the owner.
A transient may obtain a refund 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 division (A) of this section, but only when the tax was paid by the transient directly to the City Clerk, or when the transient having paid the tax to the owner, establishes to the satisfaction of the City Clerk that the transient has been unable to obtain a refund from the owner who collected the tax.
No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.009 PROCEEDS OF TAX AND FINES.
All proceeds resulting from the imposition of the tax under this chapter, including penalties, shall be paid into the treasury of the city and shall be credited to and deposited in the General Corporate Fund of the city.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.010 PENALTIES.
Any person found guilty of violating, disobeying, omitting, neglecting or refusing to comply with, or resisting or opposing the enforcement of any of the provisions of this chapter, except when otherwise specifically provided, upon conviction thereof, shall be punished by a fine of not less than two hundred dollars ($200.00) nor more than three hundred dollars ($300.00) for the first offense and not less then three hundred dollars ($300.00) nor more than five hundred dollars ($500.00) for the second and each subsequent offense in any one hundred eighty (180) day period.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.011 PURPOSE OF PENALTIES.
The purpose of imposing the above penalties is to insure the integrity of the collection process established pursuant to this chapter.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.012 USE OF RECEIPTS.
The amounts collected by the city pursuant to this chapter shall be expended by the city as determined by the Corporate Authorities and shall not be limited to the provisions of Section 8-3-14 of the Illinois Municipal Code.
(Ord. 1787, passed 4-19-93; Am. Ord. 2746, passed 8-20-07)
§ 117.013 SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this chapter, or any part thereof, or application thereof to any person, firm, corporation, public agency or circumstance, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. It is hereby declared to be the legislative intent of the City Council that this Chapter would have been adopted had such unconstitutional or invalid provision, clause, sentence, paragraph, section or part thereof not then been included.
(Ord. 1787, passed 4-19-93)