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Home My Public Portal About1986_06_25_O029eesl~urg in ~Zirginia ORDINANCE NO. AN ORDINANCE: PRESENTED June 25~ 1986 86-0-29 ADOPTED June 25~ 1986 AMENDING THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, AS A~NDED, BY THE ADDITION OF ARTICLE V "TRANSIENT OCCUPANCY TAX", TO CHAPTER 17 "TAXATION AND LICENSES" WHEREAS, the Town of Leesburg under §3.1 of its Charter and §15.1-841, Code of Virginia (1950), as amended, is authorized to enact taxes on property and other lawful subjects such sums of money as in the judgment of the Town Council are necessary to pay the debts, defray the expenses, accomplish the purposes and perform the functions of the town; and WHEREAS, §58.1-3840, Code of Virginia (1950), as amended, and the aforesaid authority, the town is authorized to levy a tax upon each transient obtaining lodging within the town; and WHEREAS, this Council deems the levy of such a tax on transient lodging necessary to pay the debts, defray the expenses, accomplish the purposes and perform the functions of the town; and WHEREAS, a public hearing was held on June 11~ 1986 as required by the Town Code: THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The Town Code is amended by adding an article to be numbered Article V which said article reads as follows: ARTICLE V. TRANSIENT OCCUPANCY TAX Section 17-111. Definitions. For the purpose of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section unless the context clearly indicates a different meaning: -2- AMENDING THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, AS AMENDED, BY THE ADDITION OF ARTICLE V "TRANSIENT OCCUPANCY TAX", TO CHAPTER 17 "TAXATION AND LICENSES" (a) Director of Finance. The Director of Finance of the Town of Leesburg and any of his duly authorized agents. (b) Hotel. Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house or other lodging place within the town, offering lodging, as defined in this section, for compensation to any transient, as hereinafter defined in this section. (c) Lodging. Room or space furnished any transient. (d) Person. Any individual, corporation, company, association, firm, co-partnership, or any group of individuals acting as a unit. (e) Transient. Any person who, for a period of not more than ninety consecutive days, either at his own expense or at the expense of another obtains lodging or the use of any space at any hotel, for which lodging or use of space a charge is made. Section 17-112. Tax Imposed; Amount. There is hereby imposed and levied, in addition to all other taxes and fees of every kind imposed by law, on each transient obtaining lodging or the use of space at any hotel, a tax at a rate of three percent of the total amount paid for such lodging or the use of space by or for any such transient to any hotel. Such tax shall be collected from such transient at the time and in the manner provided by this article. Section 17-113. Collection from Transients; When Payable. Every person receiving any payment for lodging or the use of space with respect to which a tax is levied under this article shall collect the amount of such tax so imposed from the transient on whom such tax is levied, or from the person paying for such lodging, at the time payment for such lodging is made. The taxes required to be collected under this article shall be deemed to be held in trust by the person required to collect such taxes until the same shall have been remitted to the Director of Finance. Section 17-114. Reports and Remittances. The Director of Finance shall require all prospective hotels licensed to do business in the town to register for collection of the tax imposed by this article. Every hotel shall make a report to the town for each calendar quarter, showing the amount of charges collected for room receipts and the amount of tax required to be collected. The quarterly reports shall be made on forms prescribed by the Director of Finance and shall -3- AMENDING THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, AS AMENDED, BY THE ADDITION OF ARTICLE V "TRANSIENT OCCUPANCY TAX", TO CHAPTER 17 "TAXATION AND LICENSES" be delivered to the Director of Finance on or before the twentieth day of the calendar month following the quarter being reported. Each report shall be accompanied by a remittance of the amount of tax due, made payable to the town. Section 17-115. Discount. For the purpose of compensating individuals for the collection of the tax imposed by this article, every individual shall be allowed five percent of the amount of the tax due and accounted for in the form of a deduction on his or her quarterly return; provided, the amount due is not delinquent at the time of payment. Section 17-116. Penalty and Interest for Nonremittance. If any person shall fail or refuse to report and remit to the Director of Finance the tax required to be collected and paid under this article within the time and in the amount as provided for in this article, there shall be added to such tax by the Director of Finance, a penalty in the amount of ten percent thereof and interest thereon at the rate of ten percent per annum, which shall be computed upon the tax and penalty from the date such taxes were due and payable. Section 17-117. Failure to Collect and Report Tax. If any person shall fail or refuse to collect the tax imposed under this article and to make within the time provided in the article, any report and remittance required, the Director of Finance shall proceed in such manner as he may deem best to obtain facts and information on which to base the tax due. As soon as the Director of Finance shall secure the facts and information as he is able to obtain upon which to base the assessment of any tax due and payable by any person who has failed or refused to collect such tax, and to make such report and remittance, he shall proceed to determine and assess against such person such tax and penalty and interest as provided for in this article, and shall notify such person by registered mail, sent to his last place of known address, the amount of such tax and penalty and interest, and the total amount thereof shall be payable within ten days of mailing of such notice. The Director of Finance shall have the power to examine such records for the purpose of administering and enforcing the provisions of this article as are provided by law. Section 17-118. Records; Inspection by Director of Finance. It shall be the duty of every person liable for the collection and payment to the town of any tax imposed by this article to keep and -4- AMENDING THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, AS AMENDED, BY THE ADDITION OF ARTICLE V "TRANSIENT OCCUPANCY TAX", TO CHAPTER 17, "TAXATION AND LICENSES" preserve for a period of two years, such suitable records as may be necessary to determine the amount of such tax as he may have been responsible for collecting and paying to the town. The Director of Finance shall be authorized to examine such records at reasonable times without unreasonable interference with the business of such person, for the purpose of administering and enforcing the provisions of this article. Section 17-119. Cessation of Business; Tax Due Immediately. Whenever any person required to collect and pay to the town a tax imposed by the article shall cease to operate, go out of business, or otherwise dispose of his business, any tax then payable to the town shall become immediately due and payable and such person shall immediately make a report and pay the tax due to the Director of Finance. Section 17-120. Advertising payment or absorption of tax prohibited. No hotel shall advertise or hold out to the public in any manner, directly or indirectly, that all or any part of a tax imposed under this article will be paid or absorbed by the seller or anyone else, or that the seller or anyone else will relieve any purchaser of the payment of all or any part of the tax. Section 17-121. Exceptions. No tax shall be payable hereunder with respect to any payment for lodging or the use of space paid by or for any federal, Commonwealth of Virginia, or Town of Leesburg official or employee when on official business. Section 17-122. Violations; Penalty. It shall be unlawful and constitute a misdemeanor for any person to violate any of the provisions of this article. Any conviction of violation of any of the provisions of this article shall be punishable by a fine of not less than ten dollars ($10.00) nor more than five hundred dollars ($500.00), or imprisonment for up to thirty (30) days, or both. Each day any such violation of the provisions of this article shall continue shall constitute a separate offense. Section 17-123. Regulations. (1) The Director of Finance may issue regulations for the administra- tion and enforcement of this article not in conflict with this article. (2) The provisions of this article are hereby declared to be severable. If any clause, sentence, paragraph, or part of this article -5- AMENDING THE CODE OF THE TOWN OF LEESBURG, VIRGINIA, AS AMENDED, BY THE ADDITION OF ARTICLE V "TRANSIENT OCCUPANY TAX", TO CHAPTER 17, "TAXATION AND LICENSES shall for any reason by adjudged to be invalid, such invalidity shall not affect the parts which are not adjudged invalid. SECTION II. are repealed. SECTION III. PASSED this Ail prior ordinances and resolutions in conflict herewith 25th This ordinance shall become effective July 1, 1986. day of June , 1986. Robert E. Sevi~ Town of Leesburg ATTEST: ncil ' / Clerk of