Loading...
2005-697-Minutes for Meeting March 29,2005 Recorded 5/12/2005COUNTY OFFICIAL NANCYUBLANKENSHIP, COUNTY CLERKDS 1~~1 ~OV5-691 COMMISSIONERS' JOURNAL 45112I2405 03;16;34 PM 2005-50 DESCHUTES COUNTY CLERK CERTIFICATE PAGE This page must be included if document is re-recorded. Do Not remove from original document. ~v~tsc gV N 2 A Deschutes County Board of Commissioners 1130 NW Harriman St., Bend, OR 97701-1947 (541) 388-6570 - Fax (541) 388-4752 - www.deschutes.org- MINUTES OF SPECIAL MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS TUESDAY, MARCH 29, 2005 Commissioners' Conference Room - Administration Building - 1300 NW Wall St.., Bend Present were Commissioners Michael M. Daly, Dennis R. Luke and Tom DeWolf. Also present were Mike Maier, County Administrator; Marty Wynne and Cheryl Circle, Finance; Mark Amberg, Legal Counsel; representatives of various lodging companies (see attached sing-in sheet); and Barney Lerten of bend.com. The meeting was to discuss proposed changes to the transient room tax ordinance.. Chair De Wolf opened the meeting at 10: 00 a. m. Mark Amberg distributed a handout that gave an overview of the proposed changes. He reminded the group that a hearing is scheduled on March 30 to consider adoption of the changes. A lengthy discussion took place regarding various aspects of the proposed changes where the County and the lodging providers had not yet reached a resolution. The group addressed these items one at a time until consensus was reached on how they would be handled. Although agreement was not reached on all items, compromises were made and those attending the meeting left relatively satisfied with the outcome. Everyone agreed that they would work toward incorporating the changes in good faith, and that if issues arise that need further discussion, all parties will be advised. Being no further discussion, the meeting adjourned at 11:10 a. m. Minutes of Special Meeting Tuesday, March 29, 2005 Page 1 of 2 Pages DATED this :.29th Day of March 2005 for the Deschutes County Board of Commissioners. Tom DeWolf, Chair Comoissioner ATTEST: Recording Secretary is R. Luke, Commissioner Attachments Exhibit A: Sign-in sheet (1 page) Exhibit B: Summary of Proposed Revisions to the Ordinance (5 pages) Exhibit C: Proposed Ordinance (12 pages) Minutes of Special Meeting ~3 L j OS_Monday,- eh~, 2005 Page 2 of 2 Pages i &vt Airw Ck- 9 ~ 3 ~30cc Exhibit A Page of 1 SUMMARY OF PROPOSED REVISIONS TO DESCHUTES COUNTY ROOM TAX ORDINANCE Based upon recommendations of an external auditor and after receiving input from representatives of the Central Oregon lodging industry, Deschutes County is proposing certain revisions to the County's Transient Room Tax Ordinance (Deschutes County Code Chapter 4).The intent of the proposed changes is to try to create a system of assessment and collection of transient room taxes that is as fair and equitable as possible and which creates a tax system that is easier to administer. The proposed changes are summarized below. Section Proposed Change 4.08.015 Notices Clarifies how notices may be given (personal delivery or first class mail) and when a notice is deemed delivered. 4.08.042 Definition - Destination Resort Adds a definition for "Destination Resort" "Destination Resort" means any Hotel which includes on the grounds of the Hotel three or more of the following outdoor recreation facilities that are available to Hotel occupants with or without additional charge: Bike paths, walking trails, running trails or horse trails at least two miles in length, horseback riding facilities, one or more golf courses, tennis courts, skating facilities and one or more swimming pools. 4.08.045 Definition - Hotel Clarifies that campgrounds and R.V. parks are included in the definition of "Hotel." 4.08.062 Definition - Recreation Fee Adds a definition for "Recreation Fees" "Recreation Fee" means a fee charged, assessed or allocated by a Hotel to a Hotel occupant or Page 1 of 5 - Summary of Proposed Revisions to Deschutes County Room Tax Ordinance Exhibit B Page of -45 - occupants for use of Destination Resort recreation facilities, whether the Hotel charging the Recreation Fee ` is a Destination Resort or has a contract or agreement for use of the recreation facilities of a Destination Resort. 4.08.065 Definition - Clarifies that "rent", for purposes of assessing room Rent tax, includes all charges for occupying a room, which are not optional for the hotel guest with a limited exception for "Recreation Fees" as defined in the ordinance. Any charges other than charges for providing a room which are optional to the guest may be excluded from "rent" for assessment of room tax. It will be up to the hotel operator to decide whether to include charges such as cleaning fees or facilities use fees as part of the mandatory (non-optional) charge for the room or to give the guest an option to rent the room without paying those fees. If those charges are not optional to the guest, however, they are to be included in "rent" for calculating Deschutes County room tax. This includes, but is not limited to, fess for cleaning and maid serve if those fees are not optional. Also clarifies that Deschutes County room tax is not imposed on taxes or assessments of other governmental entities (such as state room tax). Finally, clarifies that "comp" rooms are not subject to assessment of room tax. The text of the new proposed definition of "Rent" is: "Rent" means the full consideration charged, whether or not received by the Operator, for the occupancy of space in a Hotel valued in money or in goods, labor, credits, property or other consideration valued in money, without any deduction. Except as otherwise provided in this section, rent includes all fees, charges and assessments (including, but not limited to, cleaning fees) charged, assessed or allocated by Operator for the occupancy of space in a Hotel, the payment for which is not optional to the person occupying space in the Hotel. Rent does not include: Page 2 of 5 - Summary of Proposed Revisions to Deschutes County Room Tax Ordinance Exhibit G Page 2- of 5 Any taxes, fees or assessments levied by any other governmental entity; 2. The sale of any goods, services or commodities separate and independent from occupancy of a room or space in the Hotel; 3. Any fees, charges or assessments, other than the furnishing of rooms or accommodations or parking space in mobile home parks or trailer parks, the payment for which is optional to the person occupying the room or rooms in a hotel or parking in a space in a mobile home or trailer park; or 4. Recreation Fees charged, assessed or allocated by a Hotel Operator as of January 1, 2005. If any Operator intends to increase the amount the Operator charges, assesses or allocates for Recreation Fees, the Operator must notify the Board of such intended change at least three (3) months prior to implementation of the intended change. Example 1: A hotel operator charges $100 for a room and the rate includes cable TV, cleaning and maid service and a continental breakfast. If the guest does not have the option of renting the room at a lower rate that does not include these amenities and services, the full $100 is subject to assessment of room tax. However, if the operator chooses to make these amenities and services available at an additional charge which is optional to the guest e.g. room charge is $80 and the guest has the option to pay an extra $10 for breakfast and $10 for cable T.V. - then only $80 is subject to assessment of room tax. Example 2: A hotel operator charges $100 for a room. The hotel either has "Destination Resort" recreation facilities on the premises of the hotel or guests of the hotel, by agreement between the hotel and a "Destination Resort," can use the recreation facilitates," of the "Destination Resort." The amount allocated by the Hotel Operator as a "Recreation Fee" for use of the "Destination Page 3 of 5 - Summary of Proposed Revisions to Deschutes County Room Tax Ordinance Exhibit 5 Page 5 of 5 Resort" recreation facilities, as of January 1, 2005, does not need to be included in "Rent" for assessment of Deschutes County Room Tax. If the allocated amount for the Recreation Fee is $10, only $90 is subject to Room Tax. 4.08.070 Definition - For hotels that offer "package" plans (e.g. room Rent Package Plan plus golf for a package rate), clarifies that Hotel Operators may exclude from rent an amount allocated by Operator as the Operator's reasonable cost for providing an activity or activities as part of a Rent Package Plan. The text of the proposed definition of "Rent Package Plan" is: "Rent Package Plan" means the full consideration charged, whether or not received by the Operator, for Rent plus food and/or activities where a single rate is charged for the combination of Rent, food and/or activities. For purposes of determining Deschutes County transient room tax for a Rent Package Plan, the Operator may exclude from Rent an amount allocated by Operator as the Operator's reasonable cost for providing an activity or activities as part of the Rent Package Plan. Example: The hotel offers a package of a room plus two rounds of golf for $150. The Operator allocates $50 as Operator's reasonable cost of providing the two rounds of golf. Only $100 is subject to Room Tax. 4.08.085 Definition - Clarifies that the owner of a hotel or private Transient residence used as a hotel is not considered a "Transient" and is not subject to room tax when the owner occupies the owner's residence or a room in the owner's hotel. Also clarifies that any rental of lodging on a monthly basis or longer is not subject to room tax. 4.08.120 Operator - Provides that each operator may retain, as a fee for Collection - collecting room tax, up to five percent (5%) of Procedures - the room tax revenues collected by the operator. Operator Fee Page 4 of 5 - Summary of Proposed Revisions to Deschutes County Room Tax Ordinance Exhibit V-5 Page LA of 5 4.08.120 B Identification Provides that the amounts charged for Deschutes of Deschutes County Transient Room Tax must be separately County Room stated and identified on all records of Operator Tax and on all invoices and receipts. No taxes, fees, charges or assessments other than Deschutes County Room Tax may be included in the amount designated as "Deschutes County Room Tax." 4.08.130 Exemptions Clarifies that employees of the Federal Government who are on government business and employees of Federally chartered organizations (such as the Red Cross) who are on organization businesses, are exempt from payment of room tax. This is in conformance with IRS regulations. 4.08.150 Returns and Clarifies when returns and payments are due. Payments 4.08.230 Fraud Clarifies penalties for fraud; makes fraud a Class A Violation. 4.08.300 Recordkeeping Clarifies that room tax records must be retained by an operator for a minimum period of three years and six months. Page 5 of 5 - Summary of Proposed Revisions to Deschutes County Room Tax Ordinance Exhibit Page of EXHIBIT A Chapter 4.08. TRANSIENT ROOM TAX 4.08.010. Short title. 4.08.015 Notices. 4.08.020. Definitions. 4.08.025. Definition-Accrual accounting. 4.08.030. Definition-Board. 4.08.035. Definition-Cash accounting. 4.08.040. Definition-County. 4.08.042. Definition-Destination Resort..08.045. Definition-Hote1.4.08.050. Definition-Occupancy. 4.08.055. Definition-Operator. 4.08.060. Definition-Person. 4.08.062. Definition-Recreation Fee. 4.08.065. Definition-Rent. 4.08.070. Definition-Rent package plan. 4.08.074. Definition-Site. 4.08.075. Definition-Tax. 4.08.080. Definition-Tax Administrator. 4.08.085. Definition-Transient. 4.08.090. Tax Imposed.4.08.100. Applicability. 4.08.110. Operator-Collection Amount. 4.08.120. Operator-Collection Procedure; Operator Fee. 4.08.125. Personal liability. 4.08.127. Penalties-Noncompliance with advertising requirements. 4.08.130. Exemptions. 4.08.140. Operator-Registration-Form and contents-Execution-Certificate of authority. 4.08.145. Operator-Advertising of Hotel Rentals-Identification required. 4.08.150. Returns and payments-Date due. 4.08.160. Penalties and interest-Delinquency. 4.08.170. Penalties and interest-Continued delinquency. 4.08.180. Penalties and interest-Fraud. 4.08.190. Penalties and interest-Assessment of interest. 4.08.200. Penalties and interest-Penalties merged with Tax. 4.08.210. Penalties and interest-Petition for waiver. 4.08.220. Deficiency determination. 4.08.230. Fraud-Refusal to collect-Evasion. 4.08.240. Operator delay. 4.08.250. Redeterminations. 4.08.260. Security for collection of tax. 4.08.270. Lien. 4.08.280. Refunds. 4.08.290. Transient room tax fund. 4.08.300. Recordkeeping. 4.08.310. Examination of records. 4.08.320. Administration-Confidentiality. 4.08.330. Appeals. 4.08.340. Unlawful acts-Penalty. 4.08.010. Short title. DCC 4.08 shall be known as the Deschutes County Transient room Tax ordinance. (Ord. 203-3 § 1, 1975) 4.08.015 Notices. All notices required or permitted to be given under DCC 4.08 may be served personally or by first class mail, postage prepaid, to the recipient of the notice. If notice is mailed to an Operator, it will be addressed to the Operator at the Operator's address as the address appears in the record of the Tax Administrator. Operator is required to provide Tax Administrator with Operator's currant address and. to provide Tax Administrator with any change of Operator's address. If notice is Personally served, it is deemed served at the time of delivery. If notice is served by mail, it is deemed served (3) days after the date the notice is deposited for mailing with the United States Postal Service. (Ord. 2004-005 § 1. 2004). 4.08.020. Definitions. For the purposes of DCC 4.08, unless otherwise apparent from the context, certain words and phrases used in DCC 4.08 are defined as set forth in DCC 4.08.025- through DCC 4.08.085. EXHIBIT A TO ORDINANCE 2005- 1(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit (2~, Page of 12- - EXHIBIT A (Ord. 2004-005 § 1, 2004; Ord. 2001-016 § 2, 2001; Ord. 95-029 § 1, 1995; Ord. 203-3 § 2, 1975) 4.08.025. Definition-Accrual accounting. "Accrual accounting" means the Operator enters the Rent due from a Transient on his records when Rent is earned whether or not it is paid. (Ord. 203-3 § 2, 1975) 4.08.030. Definition-Board. "Board" means the Deschutes County Board of County Commissioners. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) public or private club, mobile home, R.V. or trailer park, campgrounds private home, or similar structure or portions thereof so occupied. (Ord. 2004-005 § 1, 2004; Ord. 93-049 § 1, 1993; Ord. 203-3 § 2, 1975)4.08.050. Definition-Occupancy and Occupying. "Occupancy" and "Occupying" mean the use or possession, or the right to the use or possession, for lodging or sleeping purposes, of any room or rooms in a Hotel, or space in a mobile home or trailer park or portion thereof. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) 4.08.035. Definition-Cash accounting. "Cash accounting" means the Operator does not enter the Rent due from a Transient on his records until Rent is paid. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) 4.08.040. Definition-County. "County" means Deschutes County and is limited to the unincorporated area of the County. (Ord. 203-3 § 2, 1975) 4.08.042 Definition - Destination Resort "Destination Resort" means any Hotel which includes on the site of the Hotel three or more of the following outdoor recreation facilities that are available to Hotel occupants with or without additional charge: Bike paths, walking trails, running trails or horse trails at least two miles in length, horseback riding facilities, one or more golf courses, tennis courts, skating facilities and one or more swimming pools. (Ord. 2005-00 § 1, 2005) 4.08.045. Definition-Hotel. "Hotel" means any structure or space, or any portion of any structure or space which is occupied or intended or designed for Transient Occupancy for 30 days or less, for dwelling, lodging or sleeping purposes, and includes, but is not limited to any Hotel, inn, tourist home, tourist accommodation, condominium, motel, studio Hotel, hostel, bachelor Hotel, lodging house, bed and breakfast, rooming house, apartment house, public or private dormitory, fraternity, sorority, 4.08.055. Definition-Operator. "Operator" means the Person who is proprietor of the Hotel in any capacity. Where the Operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an Operator for the purposes of DCC 4.08 and shall have the same duties and liabilities as his principal. Compliance with the provisions of DCC 4.08 by either the principal or the managing agent shall be considered to be compliance by both. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) 4.08.060. Definition-Person. "Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit. (Ord. 203-3 § 2, 1975) 4.08.062 Definition - Recreation Fee ":Recreation Pee" means a tee charged, assessed or allocated by a 1=lotel to a Hotel occupant or occupants for use of Destination Resort recreation facilities. whether the Hotel charging the Recreation Pee is a Destination Resort or has a contract or agreement with a Destination Resort t:or use by the 1-loteFs guests of the recreation. EXHIBIT A TO ORDINANCE 2005- 2(( /2005) \\ZEUS\CherylC\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit Page _9 of 12- EXHIBIT A facilities of the Destination Resort.(Ord. No. 200- 00 §l, 2005) PersonRentTaxPerson 4.08.065. Definition - Rent "Rent" means the full consideration charged, whether or not received by the Operator, for the Occupancy of space in a Hotel valued in money or in goods, labor, credits, property or other consideration valued in money, without any deduction. Except as otherwise provided in this section, Rent includes all fees, charges and assessments (including but not limited to, cleaning fees or fees for maid service) charged, assessed or allocated by Operator for the Occupancy of space in a Hotel, the payment for which is not optional to the Person occupying space in the Hotel. Rent does not include: 1. Any taxes, fees or assessments levied by any other governmental entity; 2. The sale of any goods, services or commodities which are separate and independent from occupancy of a room or space in the Hotel; 3. Any fees, charges or assessments, other than the furnishing of a room or accommodations in a Hotel or a parking space in a mobile home, R.V. or trailer park, the payment for which is optional to the Person occupying the room or rooms in a Hotel or parking in a space in a mobile home, R.V. or trailer park; or 4. Recreation Fees charged, assessed or allocated by a Hotel Operator as of January 1, 2005. If any Operator intends to increase the amount the Operator charges, assesses or allocates for Recreation Fees, the Operator must notify the Board of such intended change at least three (3) months prior to implementation of the intended change. (Ord. 2004-005 § 1.2004; Ord. 203-3 § 2, 1975) 4RentRentRentRentTransientTaxRentRentTransi entTax 4.08.070 - Definition - Rent Package Plan "Rent Package Plan" means the full consideration charged, whether or not received by the Operator, for Rent plus food and/or activities where a single rate is charged for the combination of Rent, food and/or activities. For purposes of determining Deschutes County Transient room Tax for a Rent Package Plan, the Operator may exclude from Rent an amount allocated by Operator as the Operator's reasonable cost for providing an activity or activities (but not food) as part of the Rent Package Plan. (Ord. 2005-00 § 1, 2005; Ord. 2003-003 § 2, 1975) 4.08.074. Definition-Site. "Site" means an individual Hotel, as defined in DCC 4.08, for which there is a separate real property tax account or accounts. An individual site may include more than one unit of separately rentable accommodations. (Ord. 97-073 § 2, 1997) 4.08.075. Definition-Tax. "Tax" means either the tax payable by the Transient, or the aggregate amount of taxes due from an Operator during the period for which the Operator is required to report collections for the Operator's Hotel. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) TaxRent 4.08.080. Definition-Tax Administrator. "Tax Administrator" means the County Finance Officer. (Ord. 97-013 § 1, 1997; Ord. 203-3 § 2, 1975) 4.08.085. Definition-Transient or Occupant. "Transient" or "Occupant" means any individual, except the owner of a Hotel or private residence used as a Hotel, who exercises Occupancy or is entitled to Occupancy in a Hotel for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. The day a Transient checks out of the Hotel shall not be included in determining the 30-day period if the Transient is not charged Rent for that day by the Operator. Any such individual so occupying EXHIBIT A TO ORDINANCE 2005- 3((_ /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit Page of ) Z EXHIBIT A space in a Hotel shall be deemed to be a Transient until the period of 30 days has expired unless there is an agreement in writing between the Operator and the occupant providing for a longer period of Occupancy. An owner of a Hotel, an owner of a private residence used as a Hotel, or a Person who pays for lodging on a monthly basis, regardless of the number of days in such month, shall not be deemed a Transient for purposes of the Deschutes County Transient Room Tax Ordinance. (Ord. 2004-005 § 1, 2004; Ord. 203-3 § 2, 1975) 4.08.090. Tax Imposed. For the privilege of Occupancy in any Hotel, on and after the effective date of the ordinance codified in DCC 4.08, each Transient shall pay a Tax in the amount of seven percent (7%) of the Rent for Occupancy of space in a Hotel. The Tax constitutes a debt owed by the Transient to the County which is extinguished only by payment to the Operator as agent for the County. The Transient shall pay the Tax to the Operator of the Hotel at the time the Rent is paid. The Operator shall enter the Tax on Operator's records when Rent is collected if the Operator keeps records on the Cash accounting basis and when earned if the Operator keeps records on the Accrual accounting basis. If Rent is paid in installments, a proportionate share of the Tax shall be paid by the Transient to the Operator with each installment. If, for any reason, the Tax due is not paid to the Operator of the Hotel, the Tax Administrator may require that such Tax shall be paid directly to the County. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Res. 87-053 adopted by the people 11/3/87; Ord. passed 3/11/80: Ord. 203-3 § 3, 1975)4.08.100. Applicability. The Tax imposed by this ordinance shall apply only to those Hotels located within the unincorporated area of the County. (Ord. 95-029 § 1, 1995; Ord. 203-3 § 4, 1975) 4.08.110. Operator-Collection Amount. A. Every Operator Renting rooms in the County, the Occupancy of which is not exempted under the terms of DCC 4.08, shall collect a Tax from the Transient occupying the room. The Tax collected or accrued by the Operator constitutes property of the County in the possession of the Operator, held in trust by such Operator until conveyed to the County in accordance with the provisions of DCC 4.08. B. In all cases of credit or deferred payment of Rent, the payment of Tax to the Operator may be deferred until the Rent is paid, and the Operator shall not be liable for the Tax until credits are paid or deferred payments are made. (Ord. 2004-005 § 1, 2004; Ord. 97-073 § 1, 1997; Ord. 95-029 § 1, 1995; Ord. 203-3 § 5, 1975) 4.08.120. Operator-Collection Procedure; Operator Fee. A. Each Operator shall collect the Tax imposed by DCC 4.08 at the same time as the Rent is collected from every Transient. B. The amount charged by an Operator for Deschutes County Transient Room Tax shall be separately stated on all records of Operator and on all invoices and receipts rendered by Operator and shall be specifically identified on all Operator records, invoices and receipts as "Deschutes County Room Tax." The amounts listed by an Operator on the Operator's records, invoices and receipts as "Deschutes County Room Tax" shall not include any other taxes, fees, charges or assessments. C. No Operator of a Hotel shall advertise that the Tax or any part of the Tax will be assumed or absorbed by the Operator, or that it will not be added to the Rent, or that, when added, any part will be refunded, except in the manner provided by DCC 4.08. D. Each Operator may retain, as a collection reimbursement charge, up to five percent (5%) of all Deschutes County Transient Room Tax revenues collected by Operator. (Ord. 2004-005 fi 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 6, 1975) EXHIBIT A TO ORDINANCE 2005- 4(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit 0 Page 4_ of I 'L EXHIBIT A 4.08.125. Personal liability. Each Person who uses, expends, diverts any Tax held in trust, or withholds or authorizes or directs such use, expenditure, diversion, or withholding, shall be Personally liable to the County for all Taxes so used, expended, diverted, or withheld, plus all penalties and interest accrued or imposed as a result of such action. (Ord. 97-073 § 2, 1997) 4.08.127. Penalties-Noncompliance with advertising requirements. It is a violation for any Operator who places or causes to appear through any medium an advertisement soliciting reservations or Rental availability for any location if such advertisement does not include the certificate of authority number as prescribed in DCC 4.08.140. No Operator shall fail or refuse to furnish information related to the advertising of any location upon request of the Tax Administrator. Violation of any provisions of DCC 4.08.127 is a Class A Violation. (Ord. 2004-005 § 1. 2004; Ord. 97-073 § 2, 1997) 4.08.130. Exemptions. No Tax imposed under DCC 4.08 shall be imposed upon: A. Any occupant for more than 30 successive calendar B. Any occupant whose Rent is of a value less than $4.00 per day; C. Any occupant whose Rent is paid for a hospital room or to a medical clinic, convalescent home or home for aged people. D. The United States Government when a federal employee is on federal government business and the lodging for the employee is directly paid for by the government or employee with a government-issued check, credit card, purchase order or other form of procurement document. E. Any Federally Chartered organization when an organization employee is on organization business and the lodging for the employee is directly paid for by the organization or employee with an organization-issued check, credit card, purchase order or other form of procurement document. (Ord. 2004-005 § L 2004; Ord. 95-029 § 1, 1995; Ord. 93-049 adopted by the people 11/9/93; Ord. 93-020 § 1, 1993; Ord. 203-3 § 7, 1975) 4.08.140. Operator-Registration-Form and contents-Execution-Certificate of Authority. A. Every Person engaging or about to engage in business as an Operator of a Hotel in the County shall register within 15 calendar days after commencing business with the Tax Administrator on a form provided by the Tax Administrator. The privilege of registration after the date of imposition of such Tax shall not relieve any Person from the obligation of payment or collection of Tax regardless of registration. B. Registrants shall provide the following information: (1) the name under which an Operator transacts or intends to transact business; (2) the office address of his place or places of business; (3) a residence address, if no business address exists; (4) the address of each site operated or to be operated by registrant which is subject to DCC 4.08; and (5) and such other information to facilitate the collection of the Tax as the Tax Administrator may require. The registration form shall provide for submission of the information required by DCC 4.08.140, shall set forth in full the requirements imposed by DCC 4.08 regulating an Operator's advertisement of Hotel accommodations, and shall be signed by the Operator. C. The Tax Administrator shall, within ten (10) days after registration, issue without charge from the occupant, together with a duplicate thereof for each additional place of business for each registrant, a certificate of authority. EXHIBIT A TO ORDINANCE 2005- 5(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit C_ Page 5 of 12- EXHIBIT A Certificates shall be nonassignable and nontransferable and shall be surrendered immediately to the Tax Administrator upon the cessation of business at the location named or upon its sale or transfer. Each certificate and duplicate shall state the place of business to which it is applicable and shall be prominently displayed therein so as to be seen and come to the notice readily of all occupants and Persons seeking Occupancy. D. The certificate shall, among other things, state the following: 1. The name of the Operator; 2. The physical address of the Hotel; 3. The date upon which the certificate was issued; 4. The Deschutes County Certificate of Authority (DCCA) number, as assigned by the Tax Administrator; and 5. This Transient Occupancy Registration Certificate signifies that the Person named on the face hereof has fulfilled the requirements of the Transient Room Tax Ordinance of the County of Deschutes by registration with the Tax Administrator for the purpose of collecting from Transients the room Tax imposed by said County and remitting said Tax to the Tax Administrator. (Ord. 2004-005 § 1.2004; Ord. 97-073 § 1, 1997; Ord. 95-029 § 1, 1995; Ord. 203-3 § 8, 1975) 4.08.145. Operator-Advertising of Hotel Rentals-Identification required. Every Operator, in placing advertisements soliciting business for any location represented by that Operator, must include the certificate of authority (DCCA) number. For purposes of DCC 4.08, advertisement includes any print, electronic, or audio media, including, but not limited to, advertisements appearing in newspapers, magazines, newsletters, flyers, Internet sites, or any other advertising medium, regardless of origin, distribution method, or distribution location of such medium. Such identification shall appear as "DCCA followed by the certificate number assigned by the Tax Administrator for that location, shall appear in a readable size and font, if applicable, and shall be placed in such location that it is readily noticed as a part of the advertisement. This advertising requirement does not apply to Operators whose certificate of authority is assigned to only one physical location, and that location provides six or more rooms or individual units available for Transient Occupancy. (Ord. 97-073 § 2, 1997) 4.08.150. Returns and payments-Date due A. TaxTransientOperatoi-RentTaxOperator The Tax imposed by DCC 4.08 shall be paid by the Transient to the Operator at the time that Rent is paid. All amounts of such Taxes collected by an Operator, or for which the Tax is otherwise owed. by Operator to County, are due and payable to the Tax Administrator on a monthly basis by no later than the 15th day of the month f slowing the month in which the Tax is collected by the Operator or is otherwise owed by Operator to County, and are delinquent if not paid to the Tax Administrator by not later than the last day of the month in which such Taxes are due and payable to the Tax Administrator. B. On or before the 15th day of the month following each month of collection, every Operator liable for payment of Tax shall file a return for the preceding month's Tax collections with the Tax Administrator. The return shall be filed in such format or on such forms as the Tax Administrator may prescribe. C. Returns shall show the amount of Tax collected or otherwise due for the related period by site. The Tax Administrator may require returns to show any or all of the following: 1. The sites for which Rental income was collected during the month, listed by address and the number of separately Rentable units per site; 2. Gross receipts of Operator for such period; EXHIBIT A TO ORDINANCE 2005- 6(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit Page --U_ of 12 EXHIBIT A 3. The total Rentals upon which Tax was collected or otherwise due; 4. An explanation in detail of any discrepancy between such amounts; and 5. Any new units added from the previous months or any units deleted from the previous months; and 6. The amount of Rents exempt, if any. D. The Person required to file the return shall deliver the returnTaxto the Tax Administrator at the office of the Tax Administrator, either by Personal delivery or by mail. If the return is mailed, the postmark shall be considered the date of delivery for determining delinquencies. For good cause, the Tax Administrator may extend the time for making any return or payment of Tax for a period not to exceed one monthTax. No further extension shall be granted, except by the Board. Any Operator to whom an extension is granted shall pay interest at the rate of one percent (1%) per month on the amount of Tax due without proration for a fraction of a month. If a return is not filed, and the Tax and interest due is not paid by the end of the extension granted, then the interest shall become a part of the Tax for computation of penalties described elsewhere in DCC 4.08. (Ord. 2004-005 § 1, 2004; Ord. 97-073 § 1, 1997; Ord. 95-029 § 1, 1995; Ord. 203-3 § 9, 1975) 4.08.160. Penalties and interest-Delinquency. Any Operator who has not been granted an extension of time for remittance of Tax due and who fails to remit any Tax imposed by DCC 4.08 prior to delinquency shall pay a penalty of ten percent (10%) of the amount of the Tax due in addition to the amount of the Tax. (Ord. 2004-005 § 1, 2004); Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(1), 1975) before thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of fifteen percent (15%) of the amount of the Tax due plus the amount of the Tax and the ten percent (10%) penalty first imposed. (Ord. 2004-005 § 1, 2004.- Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(2), 1975) 4.08.180. Penalties and interest-Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under DCC 4.08 is due to fraud or intent to evade the provisions thereof, a penalty of twenty-five percent (25%) of the amount of the Tax shall be added thereto in addition to the penalties stated in DCC 4.08.160 and DCC 4.08.170. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(3), 1975) 4.08.190. Penalties and interest-Assessment of interest. In addition to the penalties imposed, any Operator who fails to remit the Tax imposed by DCC 4.08 shall pay interest at the rate of one-half of one percent per month, or fraction thereof, without proration for portions of a month, on the amount of the Tax due, exclusive of penalties, from the date on which the remittance first became delinquent until paid. (Ord. 2004-005 § 1, 2004. Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(4), 1975) 4.08.200. Penalties and interest-Penalties merged with Tax. Every penalty imposed and such interest as accrues under the provisions of DCC 4.08.200 shall be merged with and become a part of the Tax required to be paid pursuant to DCC 4.08. (Ord. 2004-005 § 1, 2004); Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(5), 1975) 4.08.210. Penalties and interest-Petition for 4.08.170. Penalties and interest-Continued waiver. delinquency. Any Operator who fails to remit the Tax levied in Any Operator who has not been granted an DCC 4.08 within the time stated in DCC 4.08 extension of time for remittance of Tax due, and shall pay the penalties stated in DCC 4.08; who fails to pay any delinquent remittance on or provided, however, the Operator may petition for EXHIBIT A TO ORDINANCE 2005- 7( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit L' Page of 1 `l. EXHIBIT A waiver or refund of any penalty, or any portion thereof. If the total penalty due does not exceed $10,000, any petition for waiver or refund of penalties shall be directed to and determined by the Tax Administrator. If the total penalty due exceeds $10,000, any petition for waiver or refund of penalties shall be directed to and determined by the Board. Upon receipt of a petition for waiver or refund of penalties as set forth herein, the Tax Administrator or Board may, if a good and sufficient reason is shown, waive or direct a refund of the penalty or any portion thereof. (Ord. 2002-022 § 1, 2002; Ord. 95-029 § 1, 1995; Ord. 203-3 § 10(6), 1975) 4.08.220. Deficiency determination. If the Tax Administrator determines that any return is incorrect, the Tax Administrator may compute and determine the amount required to be paid upon the basis of the facts contained in the return or upon the basis of any information within the possession of or available to the Tax Administrator. One or more deficiency determinations may be made on the amount due for one, or more than one period, and the amount so determined shall be due and payable immediately upon service of notice as provided in DCC 4.08 after which the amount determined is delinquent. Penalties on deficiencies shall be applied as set forth in DCC 4.08.160 through DCC 4.08.210. A. In making a determination, the Tax Administrator may offset overpayments if any, which may have been previously made for a period or periods, against any underpayment for a subsequent period or periods, or against penalties and interest on the underpayments. The interest on underpayments shall be computed in the manner set forth in DCC 4.08.160 through DCC 4.08.210. B. The Tax Administrator shall give to the Operator or occupant a written notice of the determination made by the Tax Administrator. The notice may be served Personally or by mail; if by mail, the notice shall be addressed to the Operator at the Operator's address as it appears in the records of the Tax Administrator. In case of service by mail of any notice required by DCC 4.08 the service is complete at the time of deposit in the United States Post Office. C. Except in the case of fraud or intent to evade DCC 4.08 or authorized rules and regulations, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the month for which the amount is proposed to be determined or within three years after the return is filed, whichever period expires later. D. Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten (10) days after the Tax Administrator has given notice thereof, provided, however, the Operator may petition for redemption and refund if the petition is filed before the determination becomes final as provided for in DCC 4.08. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 11(1), 1975) 4.08.230. Fraud-Refusal to collect-Evasion. If any Operator shall fail or refuse to collect Tax the correct room Tax set forth in DCC 4.08 or to make, within the time provided in DCC 4.08 any report and remittance of such Tax or any portion thereof required by DCC 4.08, or makes a fraudulent return or otherwise willfully attempts to evade DCC 4.08, the Tax Administrator shall proceed in such manner as the Tax Administrator may deem best to obtain facts and information on which to base an estimate of the Tax due. As soon as the Tax Administrator has determined the Tax due that is imposed by DCC 4.08 from any Operator who has failed or refused to collect the same and to report and remit such Tax, the Tax Administrator shall proceed to determine and assess against such Operator the Tax, interest and penalties provided for by DCC 4.08. In case such determination is made, the Tax Administrator shall give a notice in the manner aforesaid of the amount so assessed. Such determination and EXHIBIT A TO ORDINANCE 2005- 8(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit C. Page "p,_ of EXHIBIT A notice shall be made and mailed within three years after discovery by the Tax Administrator of any fraud, intent to evade or failure or refusal to collect such Tax, or failure to file return. Any amount of Tax, interest, and penalties which the Tax Administrator determines are owed shall become due and payable immediately upon service of notice by the Tax Administrator of the amount of deficiency. The determination shall become final within ten (10) days after service of notice of the amount owed. The Operator may petition for redemption and refund if the petition is filed with the Tax Administrator before the determination becomes final as provided in this section. The failure or refusal of an Operator to collect or remit any Tax or Taxes required under DCC 4.08 is a Class A Violation. (Ord. 2004-005 § 1; 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 11(2), 1975) 4.08.240. Operator delay. If the Tax Administrator believes that the collection of any Tax or any amount of Tax required to be collected and paid to the County will be jeopardized by delay, or if any determination will be jeopardized by delay, the Tax Administrator shall make a determination of the Tax or amount of Tax required to be collected, noting the determination. The amount so determined as provided in DCC 4.08 shall be immediately due and payable, and the Operator shall immediately pay same determination to the Tax Administrator after service of notice thereof; The Operator may file a petition, after payment has been made, for redemption and refund of all or a portion of any amount paid if the petition is filed within ten (10) days from the date of service of notice by the Tax Administrator. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 11(3), 1975) redemption and refund within the time required in DCC 4.08.220, 4.08.230 and 4.08.240. If a petition for redetermination and refund is not filed within the time required in DCC 4.08.220, 4.08.230 and 4.08.240, the determination becomes final at the expiration of the time allowed to submit a petition. B. If a petition for redetermination and refund is filed within the allowable period, the Tax Administrator shall reconsider the determination, and if the Person has so requested in the petition, shall grant the Person an oral hearing and shall given the Person ten (10) days written notice of the time and place of the hearing. The Tax Administrator may continue the hearing from time to time as may be necessary. C. The Tax Administrator may decrease or increase the amount of the determination as a result of the hearing and, if an increase is determined, such increase shall be payable immediately after the hearing. D. The decision of the Tax Administrator upon a petition for redetermination of redemption and refund becomes final ten (10) days after service upon the petitioner of notice thereof, unless appeal of such order or a decision is filed with the Board within ten (10) days after service of such notice. E. No petition for redetermination of redemption and refund or appeal therefrom shall be effective for any purpose unless the Operator has first complied with the payment provisions of DCC 4.08. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 12, 1975) 4.08.260. Security for collection of Tax. 4.08.250. Redeterminations. A. Any Person against whom a determination is made under DCC 4.08.220, 4.08.230 and 4.08.240 or any Person directly interested may petition for a redetermination and A. The Tax Administrator, after delinquency and when the Tax Administrator, in the Tax Administrator's sole discretion, deems it necessary to insure compliance with DCC 4.08, may require any Operator to deposit with the Tax Administrator such security in EXHIBIT A TO ORDINANCE 2005- 9(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit C.' Page Ot of 12. EXHIBIT A the form of cash, bond or other security as the Tax Administrator deems appropriate. The amount of the security shall be fixed by the Tax Administrator but shall not be greater than twice the Operator's estimated average monthly liability for the period for which the Operator files returns, determined in such manner as the Tax Administrator deems proper, or $5,000.00, whichever amount is less. The amount of the security may be increased or decreased by the Tax Administrator subject to the limitations provided in DCC 4.08. B. At any time within three years after any Tax or any amount of Tax required to be collected becomes due and payable or at any time within three years after any determination becomes final, the Tax Administrator may bring an action in any court of the State of Oregon, or of the United States, in the name of the County to collect the amount delinquent together with penalties and interest. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 13, 1975) 4.08.270. Lien. A. The Tax imposed by DCC 4.08 together with the interest and penalties provided in DCC 4.08 and the filing fees paid to the County Clerk and advertising costs which may be incurred when the same becomes delinquent as set forth in DCC 4.08 shall be and, until paid, remain a lien from the date of the recording with the County Clerk a notice of lien, which shall be superior to all subsequent recorded liens on all tangible Personal property used in the Hotel of an Operator and may be foreclosed on and sold as may be necessary to discharge such lien, if the lien has been recorded. Notice of lien may be issued by the Tax Administrator, or a deputy of the Tax Administrator, whenever the Operator is in default in the payment of such Tax, interest, and penalty and shall be recorded, and a copy sent to the delinquent Operator. The Personal property subject to such lien seized by any deputy or employee of the Tax Administrator may be sold by the department seizing the same at public auction after ten (10) days' notice which shall mean one publication in a newspaper of general circulation within the County. B. Any lien for Taxes as shown on the records of the proper County official shall, upon the payment of all Taxes, penalties and interest thereon, be released by the Tax Administrator when the full amount determined to be due has been paid to the County and the Operator or Person making such payment shall receive a receipt therefore stating that the full amount of Taxes, penalties and interest thereon have been paid and that the lien is thereby released and the record of lien is satisfied. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 14, 1975) 4.08.280. Refunds. A. Operator's Refunds. Whenever the amount of any Tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the Tax administrator under DCC 4.08, such amount may be refunded, provided a verified claim in writing therefore, stating the specific reason upon which the claim is founded, is filed with the Tax Administrator within three years from the date of payment. The claim shall be made on forms provided by the Tax Administrator. If the claim is approved by the Tax Administrator, the excess amount collected or paid may be refunded or may be credited against any amounts then due and payable from the Operator from whom it was collected or by whom paid and the balance may be refunded to the Operator or the Operator's administrator, executor or assignee. B. Transient Refunds. Whenever the Tax required by DCC 4.08 has been collected by the Operator, and deposited by the Operator with the Tax Administrator, and it is later determined that the Tax was erroneously or illegally collected or received by the Tax EXHIBIT A TO ORDINANCE 2005- 10((/2005) \\ZEUS\Chery1C\1\4Y DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit Page \t7 of 12 _ EXHIBIT A Administrator, it may be refunded by the Tax Administrator to the Transient, provided a verified claim in writing therefore, stating the specific reason on which the claim is founded, is filed with the Tax Administrator within three years from the date of payment. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 15, 1975) 4.08.290. Transient room Tax fund. The Tax Administrator shall place all moneys received pursuant to DCC 4.08 in the Transient room Tax fund. (Ord. 95-029 § 1, 1995; Ord. 203-3 § 16(1), 1975) 4.08.300. Recordkeeping. OperatorEvery Operator shall, on a current and ongoing basis, keep guest records, accounting books, records of room sales records of room Tax collected and remitted to the County and a record of all Operator fees retained by Operator pursuant to DCC 4.08.120.D. All records shall be retained by the Operator for a minimum period of three years and six months after the record is created.(Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 16(2), 1975) 4.08.310. Examination of records. The Tax Administrator, or any Person authorized in writing by the Tax Administrator, may examine, during regular business hours, the books, papers and accounting records relating to room sales of any Operator after notification to the Operator liable for the Tax and may investigate the business of the Operator in order to verify the accuracy of any return made, or if no return is made by the Operator, to ascertain and determine the amount required to be paid. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 16(3), 1975) investigation of records and equipment of any Person required to obtain a Transient Occupancy registration certificate or pay a Transient Occupancy Tax, or any other Person visited or examined in the discharge of official duty, or the amount of source of income, profits, losses, expenditures or any particular thereof, set forth in any statement or application, or to permit any statement or application, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any Person; provided, that nothing in DCC 4.08.320 shall be construed to prevent: A. The disclosure to, or the examination of records and equipment by another County official, employee or agent for collection of Taxes for the sole purpose of administering or enforcing any provision of DCC 4.08; or collecting Taxes imposed under DCC 4.08. B. The disclosure after the filing of a written request to that effect, to the Taxpayer himself, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to any paid Tax, any unpaid Tax or amount of Tax required to be collected or interest and penalties; provided further, that the district attorney approves each such disclosure and that the Tax Administrator may refuse to make any disclosure referred to in DCC 4.08.320 when in the opinion of the Tax Administrator, the public interest would suffer thereby. C. The disclosure of the names and addresses of any Persons to whom Transient Occupancy registration certificates have been issued. D. The disclosure of general statistics regarding Taxes collected or business done in the County. 4.08.320. Administration-Confidentiality. It is unlawful for the Tax Administrator, or any Person having an administrative or clerical duty under the provisions of DCC 4.08 to make known in any manner whatever the business affairs, operations or information obtained by an E. With respect to delinquent Transient room Taxes, the disclosure of information required in accordance with Oregon Revised Statute 192.502(17), or any amendment of said statute. EXHIBIT A TO ORDINANCE 2005- 11(( /2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit Page of EXHIBIT A (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 16(4), 1975) 4.08.330. Appeals. Any Person aggrieved by any provisions of the Tax Administrator may appeal to the Board by filing a notice of appeal with the Tax Administrator within twenty (20) days of the Tax Administrator's decision. The Tax Administrator shall transmit such notice of appeal, together with the file of such appealed matter to the Board who shall fix a time and place for hearing such appeal. The Board shall give the appellant not less than ten (10) days written notice of the time and place of hearing of such appealed matter. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 203-3 § 17, 1975) 4.08.340. Unlawful acts-Penalty. It is a violation for any Operator, or other Person so required, to fail or refuse to register as required in DCC 4.08, to fail or refuse to furnish any return required to be made, to fail or refuse to furnish a supplemental return or other data records or information required by the Tax Administrator, to fail or refuse to submit to an audit by or on behalf of the Tax Administrator or to render a false or fraudulent return. No Person required to make, render, sign or verify any report shall make any false or fraudulent report, with intent to defeat or evade the determination of any amount due required by DCC 4.08. Violation of any provision of DCC Chapter 4.08 is a Class A Violation. (Ord. 2004-005 § 1, 2004; Ord. 95-029 § 1, 1995; Ord. 83-013 § 1, 1983; Ord. 203-3 § 19, 1975) EXHIBIT A TO ORDINANCE 2005- 12((/2005) \\ZEUS\Chery1C\MY DOCUMENTS\cherylword\roomtaxordinancedraft.0305\roomtaxordinance.draft.0305.doc Revised on 7/16/2004 Revised 3/14/05 Exhibit C Page I- of