HomeMy WebLinkAbout027265 ORD - 05/15/2007AN ORDINANCE
AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS
CHRISTI, CHAPTER 17 REGARDING HOTEL OCCUPANCY
TAXATION; PROVIDING FOR PENALTIES; PROVIDING FOR
SEVERANCE; AND PROVIDING FOR PUBLICATION.
SECTION 1. The City Code of Ordinances, Chapter 17, Article II Taxation, Sections
17-35 through 17-42regarding collection of hotel occupancy taxes, is amended to
read as follows
"Soc. 17-35. Room occupancy tax --Definitions.
As used in sections 17-36 through 17-40, the following words, terms and phrases
are defined as follows
Consideration The cost of the room in a hotel only if the room is one ordinarily 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.
Foto. Primary documentation produced by a hotel that demonstrates interaction
beleen the lodging provider and the occupant, and which, at a minimum, reflects
the name and address given by the occupant, the date(s) of occupancy, the amount
of consideration charged for each date together with the amounts of applicable tax.
Hotel A building in which members of the public obtain sleeping accommodations
for consideration. The term includes a hotel, motel, tourist home, tourist house,
tourist court, lodging house, inn, rooming house, or bed and breakfast. The term
does not include
(1) A hospital, sanitarium, or nursing home; or
(2) A dormitory or other housing facility owned or leased and operated by an
institution of higher education or a private or independent institution of higher
education as those terms are defined by Section 61.003, Education Code, used by
the institution for the purpose of providing sleeping accommodations for persons
engaged in an educational program or activity at the institution.
Locbginq Provider. Any person owning, operating, managing or controlling a hotel in
the city, ipcluding, but not limited to, the owner or proprietor of such premises,
lessee, sublessee, lender in possession, licensee or any other person operating
such hotel and who is subject to collecting and remitting the tax imposed upon
quests.
Monthly period: The regular calendar month of the year.
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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 one 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
Occupant or quest: Anyone, who, for a consideration, uses, possesses, or has a
right to use or possess any room or rooms of sleeping space or facility in a hotel
under any lease, concession permit, right of access, license, contract or agreement.
any room or rooms or
Person: Any individual, company, corporation or association owning, operating,
managing or controlling any hotel
Tax assessor and collector: The tax assessor and collector of this city.
"Sec. 17-36. Same --Levy of taxes; rates; registration; exceptions.
(a) There is hereby imposed, as authorized by and for the purposes provided in
Chapter 351, Texas Tax Code, a tax of nine (9) per cent of the price paid for a room
in a hotel on a person who, under a lease, concession, permit, right of access,
license, contract, or agreement, pays for the use or possession or for the right to the
use or possession of a room that is in a hotel, costs two dollars ($2.00) or more each
day, and is ordinarily used for sleeping.
(b) Every person engaging or about to engage in business as a lodging provider in
the city shall immediately register with the finance director on a form provided by
sail official. Persons engaged in such business must so register not later than
thirty (30) days after the date that this ordinance becomes effective. Such
restration shall set forth the name under which such person transacts business or
intends to transact business, the location of his place(s) of business and such other
information which would facilitate the administration of the tax as prescribed by the
finance director. The registration shall be signed by the owner if a natural person in
cafe of ownership by an association or partnership, by a member or partner in case
of pwnership by a corporation, by an officer. The finance director shall, after such
rec, 'stration, issue without charge a certificate of authority to each lodging provider to
collect the tax from the occupant. A separate registration shall be required for each
plaice of business of a lodging provider. Each certificate shall state the name and
locution of the business to which it is applicable.
(c) _ •
to tax are as follows:
Exceptions
(1) No tax shall be collected from a guest after becoming a permanent resident. A
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quest becomes a permanent resident either after thirty (30) continuous days'
occupancy, or upon notifying the lodging provider in writing of his intention to occupy
a guest room for longer than thirty (30) continuous days and then proceeding to
actually occupy the quest room for such period. A guest who would express intent,
but fails to stay thirty (30) continuous days, is not a permanent resident and is not
excepted from the tax. However, a guest who expresses intent and does stay is
excepted from the tax as of the date he notified the lodging provider of his intention.
A bdginq provider may levy the tax for the first thirty (30) days and refund tax if
quest meets the criteria for a permanent resident.
(2) No tax shall be collected from the U.S. federal government nor an officer or
enrloyee of said government when traveling on government business and
presenting official identification.
(3) No tax shall be collected from the following Texas quasi -governmental entities,
no( an officer or employee of any thereof when traveling on business and presenting
official identification: public facility corporations, housing authorities, housing finance
corporations, and health facilities development corporations.
(4) No tax shall be collected from electric cooperatives formed under Chapter 161 of
the Texas Utilities Code, nor telephone cooperatives formed under Chapter 162, nor
an officer or employee of either thereof when traveling on business and presenting
official identification.
(5) Generally, employees of State governmental agencies must pay the tax;
however, no tax shall be collected from a State of Texas elk.% officials or
err Ioyee such as heads of State agencies. members of State boards and
co mis '•ns district ttorne s State ud•es District Courts Courts of A••eals
Cogrt of Criminal Appeals, and Supreme Court). State le islators le islative
err)ploy- - Secretar .f the Senate and the Executive Director of the Legislative
Coyncil, when traveling on State • usiness, when presenting a photo identification
ca • iss , d b a State a enc verif in • the identi tha s • ecificall states the are
exnpt from hotel oc a
completed hotel tax exemption certificate .
(6) No tax shall be collected from a foreign diplomat when presenting a tax
exemption card issued by the United States Department of State.
u
•
•
anc
taxes under Tax Code
Section 156.103
d
and
`Sec. 17-37. Same --Collection.
(a) Every e - - e • : . - . - : - I lodging
provider shall collect the tax imposed in section 17-36 hereof for the city. The
lodging provider shall provide a receipt to each guest, which receipt shall reflect both
the amount of consideration and the amounts of this and other tax applicable. In lieu
of a recebt for a room that is prepaid through a third party booking entity, the lodging
provider shall include in its monthly report the amount of consideration actually
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reand applicable tax due. All tax shall be due from the quest,
and shall be collected by the lodging provider at the same time that the
consideration is collected. The lodging provider shall be liable for any amount of tax
that he fails to collect appropriately on revenue that is actually received by the hotel
and must remit to the city any amount of tax collected in excess of that which should
have been collected,
(b) Lodging provider selling or quitting business. If any lodging provider liable for any
amount under this ordinance sells his business or quits his business, he shall make
a fnal return and remittance of taxes due within fifteen (15) days after the date of
selnq or quitting the business.
(c) Duty of successors or assignees of lodging provider to withhold tax from
purchase money. If any lodging provider liable for any amount of tax, interest or
penalty under this ordinance sells out his business or quits the business, his
successors or assigns shall withhold sufficiently from the purchase price to cover
such amount until the former owner produces from the finance director either a
receipt reflecting full payment or a certificate stating that no amount is due.
(d) Liability for failure to withhold. If the purchaser of a business fails to withhold from
the purchase price as required, he shall be personally liable for the payment of the
amount required to be withheld by him to the extent of the purchase price.
(e) Credit for tax or penalty overpaid. If the lodging provider or person determines
that he has overpaid hotel tax or penalty to the City, such person shall have four (4)
years from the date of payment to file a claim in writing stating the specific ground
upcgn which the claim is founded. The claimant may request a hearing before the
City Manager or designee at which the claim and any other information available will
be considered. The City Manager or designee shall approve or disapprove the claim,
and notify the claimant of his action.
'Sec. 17-38. Same --Reports.
On or before the last day of the month following each monthly period, every person
required in section 17 -37 hereof to collect the tax imposed herein shall file a report
with the finance department showing the consideration paid for all room or sleeping
space occupancies in the preceding month, the amount of tax collected on such
occupancies, number of room nights available during the reporting period, number of
roorn nights rented occupied during the reporting period, and any other information
as the finance department may reasonably require, which report shall be in writing.
Such persons shall pay the tax due on such occupancies at the time of filing of such
report, provided that a one per cent discount may be retained for payment within -the
made before the due date. Reports must be postmarked or
received by the last day of the month following the reporting period to be timely.
`Sec. 17-39. Same --Procedures.
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(a) The finance department shall adopt procedures, rules, and regulations as are
reasonably necessary to effectively collect the tax levied herein, and shall upon
request of any person owning operating, managing, or controlling any hotel furnish
a copy of such procedures, rules, and regulations for the guidance of such person
and facilitate the collection of such tax as a collection is required herein. Such
procedures, rules, and regulations shall be in writing and a copy thereof shall be
placed on file with the city secretary.
amount due under the provisions of this article, or to determine whether or not a
report -should have been filed and the amount,
(b) Records required from lodging providers. Every lodging provider offering guest
roans in the city shall preserve, for a minimum of four (4) years, all folios, receipts,
itemized statements from third party booking entities, certificates of exemption and
such other documents as the finance director may prescribe, and in such form as he
or she may require. Said records shall at all times be available with reasonable
note for examination within the city_
(c) Examination of records, audits. The finance director or any person authorized in
writing by her or him may examine the books, papers, records, financial reports,
equipment and other facilities of any lodging provider offering guest rooms and any
lodging provider liable for the tax, in order to verify the accuracy of any return made,
or if no return is made by the lodging provider, to ascertain and determine the
amount required to be paid. Such examination shall be conducted with reasonable
no 'eat the place of lodging provision unless the finance director shall authorize
another place within the city In the event that the tax has been delinquent for at
leaist (2) complete fiscal quarters, the reasonable cost of the examination may be
assessed against the lodging provider.
(d) Authority to require reports, contents. In administration of the provisions of this
ordnance, the finance director may require the filing of reports by any person or
class of persons having in their possession or custody information relating to the
guest rooms which are subject to the tax. The reports shall be filed with the finance
director when required by said official, and shall set forth the consideration for each
ocqupancy, the date(s) of occupancy, the basis for exemption, or such other
information as the finance director may prescribe.
"Sac. 17-40. Same --Penalties.
(a) If the person who is required to pay the tax imposed by sections 17-35
through 17-39 fails to collect such tax, file a report, or does not pay the tax when it is
due, the person shall pay to the city a penalty of five (5) fifteen (15) per cent of the
amount due
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"Sec. 17-41. Same-Interest—Reserved.
"Sec. 17-42. Same --Criminal penalty.
(a) A person commits an offense if the person fails to file a report with the finance
department, collect a tax for the city, or pay a tax to the finance department as the
person is required to do by sections 17-35 through 17-39, or fails to follow any
procedure, rule. or regulation promulgated by authority of section 17-39.
(b) An offense under this section is a misdemeanor punishable by fine as
provided in section 1-6 of the Corpus Christi City Code."
SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or unconstitutional by final
jument of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is
the definite intent of this City Council that every section, paragraph, subdivision,
clause phrase word or provision of this ordinance be given full force and effect for
its purpose
SECTION 3. A violation of this ordinance or requirements implemented hereunder
shall constitute an offense. punishable as provided in Section 1-6 of the City Code of
Ordinances.
SECTION 4. Publication shall be made in the official publication of the City of
Corpus Christi as required by the City Charter of the City of Corpus Christi.
SECTION 5. This Ordinance takes effect on July 1, 2007.
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That the foregoinginance''s read for the first time and passed to its second
reading on this the day of �( , 2007, by the following vote:
Henry Garrett
Brent Chesney
John E Marez
Melody Cooper
Jerry Garcia
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
That lie foregoing o . inance was read for the second time and passed finally on this
the --)widay of , 2007. by the following vote:
Henry Garrett
Brent Chesney
John E. Marez
Melocity Cooper
Jerry Garcia
APPROVED AND PASSED on this
ATTEST:
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
Armando Chapa, City`S'ecretary
Approved.
Lisa Aguilar
Assistant City Attorney
for City Attorney
day of
a
He ry Garrett,
, 2007.
-414401
ayor
EFFECTIVE DATE
`` I c ( 0
'tut( of I -'xas
t� tt ity- ,t NueceL
PUBLISHER'S AFFIDAVIT
CITY OF CORPUS CHRISTI
Ad # 5743350
PO
tietore t iv. the undersigned. ary Public, this day personally came CRIS
IURTADO. who beim first sworn according to law, says that she is
LEGAL SALES REPRESENTI'LiVE of the Corpus Christi Caller -Times, a daily
tewspal)r-r published at t'o pus Christi in said City and State, generally
in datt-c in Ar- nsas Bee_ Brooks. Duval, Jim Hogg, Jim Wells, Karnes,
Kent dv Kleber . Live ')ak. '. ieees, Refugio San Patricio, Victoria and Webb
(!tittles and that t_ht public ttiot} of, NOTICE OF PASSAGE OF ORDINANCE
O )vhte't► the annexe cl is tr >e :_ opy, was inserted in the Corpus Christi Caller-
"irtaf _s tori the Friday 2 1ST 2007dav(s) of MAY 2007.
588, O2
)n this ° _ _ day of
s r _ ue .ind an :°xact 'opv
GWENN J. MEDINA
M- COMMISSION SXPIREV,
August 2, 2Ci0@
LEGAL rAL SALES REPRESENTIVE
two (2) Tirne(s)
ade by me.
1 certify that the attached document
Notary Public. Nueces County, Texas
May 21, 2007 • Monday
NOTICE OF PASSAGE
OF ORDINANCE NO.
027265
Amending the Code of
Ordinances. City of
Corpus Christi,
Chapter 17 regarding
hotel occupancy
taxation; providing for
penalties; providing for
publication This
ordinance was passed
and approved by the
City Council of the City
of Corpus Christi on
May 15. 2007. This
ordinance takes effect
on July 1, 2007.
/s1 Armando C6rapa
City Secretary
City of Corpus Christi