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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. ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 2 docRead • (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. • ORDINANCE ESTABLISHING HOTEL OCCLiPANCY TAX Page 3 docRead • 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. • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 4 docRead • (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; • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 5 docRead • (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 • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 6 docRead • (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 • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 7 docRead • 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: • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 8 docRead • NDA CANTU, CITY SECRETARY EFFECTIVE DATE: o~'~ ~00 1 APP VED AS O FORM AND LEGALITY: ~(/Yw TIM G. SRALLA, CITY ATTORNEY • • ORDINANCE ESTABLISHING HOTEL OCCUPANCY TAX Page 9 docRead