HomeMy Public PortalAboutOrdinance No. 1088-07 07-24-2007
• ORDINANCE NO. 1088-07
AN ORDINANCE ADDING A NEW ARTICLE V. TO CHAPTER 78 OF
THE CITY CODE, ESTABLISHING A HOTEL OCCUPANCY TAX OF
SEVEN PERCENT ON THE PRICE PAID FOR A ROOM IN A HOTEL;
DEFINING TERMS; PROVIDING FOR A TAX LEVY; PROVIDING FOR
EXCEPTIONS; PROVIDING FOR THE DISPOSITION OF REVENUE
AND REFUNDS; PROVIDING FOR RESPONSIBILITY FOR
COLLECTION, REPORTING, AND PAYMENT OF THE TAX;
PROVIDING FOR REPORTS, PAYMENTS AND FEES; PROVIDING
RULES, REGULATIONS AND PENALTIES; PROVIDING A
CUMULATIVE CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR PUBLICATION IN PAMPHLET FORM; PROVIDING
FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Richland Hills is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter
9 of the Local Government Code; and
WHEREAS, the City Council of Richland Hills has determined that public facilities and
services in general benefit and are enjoyed by visitors to the City of Richland Hills and the
display, entertainment, meeting and other public convenience facilities are provided for the
special use convenience and additional benefit of visitors; and
WHEREAS, the burden of financing the cost of the establishment and maintenance of
public convenience facilities should be equally and uniformly borne by the persons for whom the
facilities are being provided and who make use of the facilities from time to time; and
WHEREAS, the City Council of the City of Richland Hills has determined that it is
necessary to adopt this ordinance to impose a hotel occupancy tax pursuant to Chapter 351 of the
Tax Code so that the best interests of the citizens of Richland Hills are served.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
RICHLAND HILLS, TEXAS:
1.SECTION
ADOPTION OF HOTEL OCCUPANCY TAX
Chapter 78 of the Code of Ordinances of the City of Richland Hills is hereby amended by
adding a new Article V., composed of new Sections 78.120 through 78.128, which new Article
shall provide as follows:
• ARTICLE V.
HOTEL OCCUPANCY TAX
§ 78.120. Definitions.
For purposes of this Chapter, the following terms shall have the meanings stated
herein:
(a) "City Manager" means the City Manager for the City of Richland Hills or
the City Manager's designated agent.
(b) "Consideration" means the cost of a room in a hotel, and does not include:
(1) the cost of any food served or personal services rendered to the occupant
not related to cleaning and readying the room or space for
occupancy; or
(2) any tax assessed by any other governmental agency for occupancy of the
room.
(c) "Hotel" means any building in which members of the public obtain
sleeping accommodation 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 of the Texas Education Code, as
amended, that is used by the institution for the purpose of
providing sleeping accommodations for persons engaged in
an educational program or activity at the institution.
(d) "Occupancy" means the use or possession, or the right to the use or
possession, of any room in a hotel.
(e) "Occupant" means any person who, for a consideration, uses, possesses, or
has a right to use or possess any room in a hotel under any lease, concession,
permit, right of access, license, contract, or agreement.
(f) "Tax" means the hotel occupancy tax levied in this Chapter
pursuant to Chapter 351 of the Texas Tax Code, as amended.
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• (g) "Tourist" means an individual who travels from the individual's residence
to a different municipality, county, state, or country for pleasure, recreation,
education, or culture.
(h) "Visitor Information Center" means a building or a portion of a building
used to distribute or disseminate information to tourists.
§ 78.121. Levy and amount of tax.
(a) There is hereby levied a tax upon the occupant of any room that:
(1) is in a hotel within the City or its extraterritorial jurisdiction;
(2) is ordinarily used for sleeping; and
(3) the cost of occupancy of which is two dollars ($2) or more each day.
(b) The tax is equal to seven percent (7%) of the consideration paid by the
occupant of the room to the hotel.
§ 78.122. Exemptions and refunds.
. (a) All persons, organizations and entities specified in Section 351.006 of the
Texas Tax Code, as amended, are exempt from the payment of the tax imposed
under this Chapter.
(b) Any person, organization, or entity entitled to receive a refund of tax paid
under this Chapter, may file a refund claim as provided in Section 156.154 of the
Texas Tax Code, as amended.
(c) A person described in Section 156.103(c) of the Texas Tax Code, as
amended, shall pay the tax imposed by this Chapter, but the state governmental
entity with whom the person is associated is entitled to a refund of the tax paid.
(d) To receive a refund of tax paid under this Chapter, the governmental entity
entitled to the refund must file a refund claim with the City Manager on a form
prescribed by the state comptroller and provided by the City Manager. A
governmental entity may file a refund claim with the City Manager only for each
calendar quarter for all reimbursements accrued during that quarter.
§ 78.123. Responsibility for collection, reporting, and payment of tax.
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• Every person owning, operating, managing, or controlling any hotel shall collect
the tax for the City and report and pay the tax to the City in accordance with all
requirements and procedures set forth in this Chapter.
§ 78.124. Reports; payments; fees.
(a) On the 15th day of the month following each month in which a tax is
earned, every person required by this Chapter to collect the tax shall file a report
with the City Manager showing:
(1) the consideration paid for all occupancies in the preceding month;
(2) the amount of the tax collected on the occupancies; and
(3) any other information the City Manager may reasonably
require.
(b) Every person required by this Chapter to collect the tax shall pay the tax
due on all occupancies in the preceding month to the City Manager at the time of
filing the report required under Subsection (a) of this section.
(c) Every person collecting a tax under this Chapter may deduct a one percent
• (1%) collection fee from the gross amount of tax collected on all occupancies in
the preceding month if the tax is paid to and received by the City Manager no
later than the 15th day of the month following the month in which the tax is
required to be collected. If the 15th day falls on a weekend or holiday, the City
Manager must receive the tax by the next business day. If the tax is paid by mail,
the date of receipt by the City Manager is the date postmarked by the U.S. Postal
Service.
(d) Each remittance of a tax required by this Chapter must contain the
following statement and representation signed by the person required by this
Chapter to collect the tax:
The tax remitted and paid to the City of Richland Hills with
this report was collected pursuant to the
requirements of Chapter 78, Richland Hills City
Code, as amended.
(e) The City Manager shall maintain a record that accurately identifies the
receipt and expenditure of all revenue derived from the tax imposed by this
Chapter.
§ 78.125. Tax collection on purchase of a hotel.
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• (a) If a person liable for the payment of a tax under this Chapter is the
owner of the 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 tax
due until the seller provides a receipt from the City Manager showing that the
amount has been paid or a certificate stating that no tax is due.
(b) The purchaser of a hotel who fails to withhold an amount of the purchase
price as required by this section is liable for the amount required to be withheld to
the extent of the value of the purchase price.
(c) The purchaser of a hotel may request that the City Manager 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 City Manager shall issue a
certificate or statement not later than sixty (60) days after receiving the request.
(d) If the City Manager fails to issue the certificate or statement within the
period provided by Subsection (c) of this section, the purchaser is released from
the obligation to withhold the purchase price or pay the amount due.
§ 78.126. Rules and regulations.
• The City Manager is authorized to make any rules and regulations
necessary to effectively collect the tax. The City Manager shall, upon giving
reasonable notice, have access to all books and records necessary to enable the
City Manager to determine the correctness of any report filed as required by this
Chapter and the amount of taxes due under this Chapter.
§ 78.127. Use and allocation of revenues.
(a) The revenue derived from any hotel occupancy tax imposed and levied by
this Chapter may be used only to promote tourism and the convention and hotel
industry, and that use is limited to the following:
(1) the acquisition of sites for and the construction, improvement, enlarging,
equipping, repairing, operation, and maintenance of
convention center facilities or visitor information centers,
or both;
(2) the furnishing of facilities, personnel, and materials for the registration of
convention delegates or registrants;
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• (3) advertising and conducting solicitations and promotional
programs to attract tourists and convention delegates or
registrants to the City or its vicinity;
(4) the encouragement, promotion, improvement and application of
the arts, including instrumental and vocal music, dance,
drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and
draft arts, motion pictures, radio, television, tape and sound
recording and other arts relating to the presentation,
performance, execution and exhibition of these major art
forms; and
(5) historical restoration and preservation projects or activities
or advertising and conducting solicitations and promotional
programs to encourage tourists and convention delegates to
visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention center facilities or visitor
information centers; or
(B) located elsewhere in the City or its vicinity that would be frequented by
• tourists and convention delegates.
(b) Revenue from any hotel occupancy tax imposed and levied by this
Chapter may not be used for the general revenue purposes for general
goverrunental operations of the City.
(c) Allocations of the hotel occupancy tax revenue by the City for the purposes
set out by subsection (a) above, must comply with the provisions of Chapter 351
of the Texas Tax Code.
§ 78.128. Penalties.
(a) A person commits an offense if the person:
(1) fails to collect the tax imposed by this Chapter;
(2) fails to file a report as required by this Chapter;
(3) fails to pay the City Manager the tax when payment is due;
(4) files a false report; or
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• (5) fails to comply with Section 78.125(a) when purchasing a hotel.
(b) An offense committed under subsection (a) of this section is punishable by
a fine not to exceed Five Hundred Dollars ($500.00).
(c) In addition to any criminal penalties imposed under Subsection (b) of this
section, a person failing to pay the tax to the City Manager by the 25th day of the
month following the month in which the tax is required by this Chapter to be
collected shall pay an amount equal to fifteen percent (15%) of the tax due as a
penalty. Delinquent taxes draw interest at the rate often percent (10%) per year
beginning 30 days from the date the tax is due to the City Manager.
(d) In addition, the City is authorized to file legal proceedings against the hotel
for noncompliance seeking any other remedies provided by state law.
(e) In addition to the amount of any tax owed, a person is liable to the City for
all reasonable attorney's fees incurred by the City in enforcing this Chapter
against the person and in collecting any tax owed by the person under this
Chapter.
SECTION 2.
PROVISIONS CUMULATIVE
• This ordinance shall be cumulative of all provisions of ordinances and of the Code of
Ordinances of the City of Richland Hills, Texas, as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in which
event the conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
PROVISIONS SEVERABLE
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
ordinance, since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
SECTION 4.
RIGHTS AND REMEDIES SAVED
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• All rights and remedies of the City are expressly saved as to any and all violations of the
provisions of the City Code amended or revised herein, or any other ordinances affecting the
matters regulated herein which have accrued at the time of the effective date of this ordinance;
and, as to such accrued violations and all pending litigation, both civil and criminal, whether
pending in court or not, under such ordinances, same shall not be affected by this ordinance but
may be prosecuted until final disposition by the courts.
SECTION 5.
PUBLICATION
The City Secretary of the City of Richland Hills is directed to publish the caption, penalty
clause, publication clause and effective date of this Ordinance to the extent required by law.
SECTION 6.
PUBLICATION IN BOOK OR PAMPHLET FORM
The City Secretary of the City of Richland Hills is hereby authorized to publish this
ordinance and the exhibits to this ordinance in book or pamphlet form for general distribution
among the public, and the operative provisions of this ordinance and the exhibits to this
ordinance as so published shall be admissible in evidence in all courts without further proof than
the production thereof.
• SECTION 7.
PENALTY FOR VIOLATION
Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to
comply with or who resists the enforcement of any of the provisions of this Ordinance shall be
fined no more than Five Hundred Dollars and no cents ($500.00) for each violation of this
Ordinance. Each day that a violation is permitted to exist shall constitute a separate offense.
SECTION 8.
EFFECTIVE DATE
This ordinance shall be in full force and effect from and after its passage and publication
as required by law, and it is so ordained. 1
PASSED AND APPROVED ON THIS 0~ DAY OF , 2007.
HE HONORABLE DA D . RAGAN, MAYOR
ATTEST:
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•
NDA CANTU, CITY SECRETARY
EFFECTIVE DATE: o~'~ ~00
1
APP VED AS O FORM AND LEGALITY:
~(/Yw
TIM G. SRALLA, CITY ATTORNEY
•
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