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HomeMy WebLinkAboutOrdinances (O-98-1088)-02/03/1998 ORDINANCE 0-98-1088 AN ORDINANCE AMENDING THE COLLEYVILLE CODE OF ORDINANCES; ESTABLISHING A HOTEL OCCUPANCY TAX, SPECIFYING RULES FOR COLLECTION OF THE TAX; PROVIDING FOR CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS; ESTABLISHING AN ADMINISTRATIVE FEE FOR COLLECTION; SPECIFYING THE DISPOSITION OF OCCUPANCY TAX REVENUE; AND PROVIDING FOR PUBLICATION. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec.1. That the Colleyville Code of Ordinances be amended by adding a new Section 90-3 to read as follows: "Sec. 90-3. Hotel Occupancy Tax A. Definition of terms. The following words, terms and phrases are, except where the context clearly indicates a different meaning, defined as follows: 1. Consideration shall mean the cost of the room in such hotel used for sleeping, and shall not include the cost of any food served or personal services rendered to the occupant of such room not related to the cleaning and readying of such room for occupancy. 2. Director of Finance shall mean the Director of Finance of the City of Colleyville or his/her designated representative. 3. Hotel shall mean any building or buildings in which the public may, for a consideration, obtain sleeping accommodations. The term shall include hotels, motels, tourist homes, houses, or courts, lodging houses, inns, rooming houses or other buildings where rooms are furnished for a consideration, but "hotel" shall not be defined so as to include hospitals, sanitariums, or nursing homes. 4. Occupancy shall mean the use or possession, or the right to the use or possession, of any room in a hotel if the room is ordinarily used for sleeping and if the occupant's use, possession, or right to use or possession extends for a period of less than thirty (30) days. 5. Occupant shall mean anyone who for a consideration uses, possesses, or has a right to use or possess any room in a hotel if the room is ordinarily used for sleeping. Ordinance 0-98-1088 Page 2 of6 6. Permanent resident shall mean any occupant who has or shall have the right to occupy any room or rooms or sleeping space or facility in a hotel for at least thirty (30) consecutive days during the current calendar year or preceding year, so long as there is no interruption in payment for the period. 7. Quarterly period shall mean a calendar quarter of the City fiscal year; the first quarter is October, November and December, the second quarter is January, February and March, the third quarter is April, May and June and the fourth quarter is July, August and September. B. Levy of tax; rate; exceptions. 1 . There is hereby levied a tax upon the cost of occupancy of any room or space furnished by any hotel where the cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven (7) percent of the consideration paid by the occupant of such room, space or facility to such hotel, exclusive of other taxes imposed by other governmental agencies. The price of a room in a hotel does not include the cost of food served by the hotel or the cost of personal services performed by the hotel for the person except those services related to the cleaning and readying of the room for possession. 2. Exceptions are as follows: a. No tax shall be imposed hereunder upon a permanent resident. b. This section does not impose a tax on the United States, this state, or an agency, institution, board, or commission of this state other than an institution of higher education. c. This section does not impose a tax on an officer or employee of a governmental entity described in paragraph (b) when traveling on or otherwise engaged in the course of official duties for the governmental entity. d. No tax shall be imposed hereunder for diplomatic personnel who present a tax exemption card issued by the United States Department of State. e. No tax shall be imposed hereunder for federal or state military personnel traveling on official military business. This exemption does not cover military staff on leave or between stations. Ordinance 0-98-1088 Page 30f6 c. Collection. 1. Every person owning, operating, managing or controlling any hotel or any employee of a hotel who in the course of their duties collects money from patrons in exchange for room occupancy, shall collect the tax imposed in paragraph 90-3.8. hereof for the City of Colleyville. 2. Said tax shall be a preferred lien, first and prior to any and all other existing liens, contractual or statutory, legal or equitable, and regardless of the time such liens originated, and this lien shall attach as of the date such tax is due and payable but before such lien shall become a lien on real estate, notice thereof shall be filed in the county deed records where the real estate is located on which the lien is desired and said lien shall not be valid or effective as against any mortgagee, holder of a deed of trust, purchaser, pledgee, or judgment creditor acquiring title, lien or other right or interest before such notice has been so filed and recorded. D. Registration reports; quarterly reports to Director of Finance. 1. As a condition of operating a hotel in the City of Colleyville, the person who owns, operates, manages or is in control of any hotel in the City of Colleyville, shall file a registration report with the Director of Finance. 2. On the last day of the month following each quarterly period, every person required to collect the tax imposed hereby shall file a report with the Director of Finance showing the consideration paid for all room occupancies in the preceding quarter, the amount of the tax collected on such occupancies, and any other information or on any form the Director of Finance may reasonably require. Such person shall pay the tax due on such occupancies at the time of filing the report. The report shall be in a form prescribed by the Director of Finance and shall include a copy of the occupancy tax report filed with the state comptroller for the same time period. The Director of Finance is hereby authorized and directed to do all such things necessary or convenient to carry out the terms of this article. The Director of Finance shall have the authority to request and receive within a reasonable time documentation of information contained in the report to the city by the hotel. The hotel operator shall retain all such documentation for a period of two (2) years. Ordinance 0-98-1088 Page 4 of 6 E. Rules and regulations for collection. The Director of Finance is authorized to make such rules and regulations as are necessary to effectively collect the tax levied herein. F. Civil penalties for failure to collect or remit. If any person shall fail to file a report as required herein, or shall file a false report or shall fail to pay to the director of finance the tax as imposed herein when said report or payment is due, then such person shall be required to pay as a penalty an amount equal to five (5) percent of the amount of tax due until said tax is thirty (30) days delinquent, which shall be a minimum amount of one dollar ($1.00). After said tax is thirty (30) days delinquent, such person shall pay as an additional penalty an amount equal to ten (10) percent of the amount of tax due, provided, however, that the penalty shall never be less than one dollar ($1.00). Delinquent taxes shall, in addition, draw interest at the rate of nine (9) percent per annum beginning sixty (60) days from the date due. G. Additional civil penalties for failure to collect or remit. The city is hereby authorized to take the following action against any person who is required to collect the tax imposed hereby and pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due or any person purchasing a hotel when the hotel owes occupancy taxes pursuant to paragraph 90-3.B. hereof: 1. Bring suit against the hotel for noncompliance; and/or 2. Bring suit against the hotel seeking any other remedies provided under law. H. Additional authorization to bring suit. The city attorney is hereby authorized to bring suit against any person required to collect the tax imposed hereby and required to pay the collection over to the city and who has failed to file a report, or filed a false report, or failed to pay the tax when due or any person purchasing a hotel when the hotel owes occupancy taxes, pursuant to paragraph 90-3. B. Such suit may seek to collect such tax not paid or to enjoin such person from operating a hotel in the city until the tax is paid or the report is filed or both, as applicable, and may seek any other remedies provided by law. Ordinance 0-98-1088 Page 5 of6 I. Collection procedures on purchase of hotel. 1. If a person who is liable for the payment of a tax under this chapter is the owner of a hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount due until the seller provides a receipt from the Director of Finance showing that the amount has been paid or a certificate showing that no tax is due. 2. The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this paragraph is liable for the amount required to be withheld to the extent of the value of the purchase price. 3. The purchaser of a hotel may request that the Director of Finance provide a receipt under paragraph (1) and issue a certificate stating that no tax is due or issue a statement of the amount required to be paid before a certificate may be issued. The Director of Finance shall issue the certificate or statement not later than the sixtieth day after the date of the request. J. Criminal penalties for failure to collect or remit. If any person shall fail to file a report as required herein, or shall file a false report, or shall fail to pay to the Director of Finance the tax as imposed here when said report or payment is due, then such person shall be deemed guilty of a misdemeanor and shall, upon conviction, be punished by a fine not to exceed five hundred dollars ($500.00), and each twenty-four (24) hours of any such violation shall constitute a separate offense. K. Collection fee. The City of Colleyville shall retain four (4) percent of the gross amount of the hotel occupancy tax collected to cover the cost of collection duties. L. Disposition of revenue. Revenue derived from this tax shall be used only for the following purposes as the City Council shall authorize and direct: 1. The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities, including but not limited to, civic center convention buildings, auditoriums, coliseums, and parking areas or facilities for the parking or storage of motor vehicles or other conveyances located at or in the immediate vicinity of these facilities; Ordinance 0-98-1088 Page 6 of6 2. The furnishing of facilities, personnel and materials for the registration of convention delegates or registrants; 3. For advertising for general promotional and tourist advertising of the city and its vicinity and conducting a solicitation and operating program to attract conventions and visitors either by the city or through contracts with persons or organizations selected by the city; 4. The encouragement, promotion, improvement and application of the arts, including music (instrumental and vocal), dance, drama, folk art, creative writing, architectural design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, television, radio, tape and sound recording and the arts related to the presentation, performance, execution, and exhibition of these major art forms; or 5. The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of auditoriums, galleries and civic theaters, plus debt service." Sec. 2. The City secretary is hereby authorized and directed to cause publication of the descriptive caption and clause hereof as an alternative method of publication provided by law. AND IT IS SO ORDERED. Th~ first reading and public hearing being conducted on the 2.0 th day of uan u.ar/ ,1998. The pecond reading and public hearing being conducted on the 3rd day of _~ I1rLLtt r'f ' 1998. ATTEST: kd~ CITY OF COLLEYVILLE: ~ !lewt-- Richard Newton Mayor fl~ FORM AND LEGALITY: Ross T. Foster City Attorney