TITLE
Recommendation to declare ordinance amending the Long Beach Municipal Code by amending Chapter 3.64 relating to transient occupancy tax, read and adopted as read.
DISCUSSION
In recent years, State law, as well as Internet and computer technology, have changed and require the City to amend Chapter 3.64 of the Long Beach Municipal Code in regards to Transient Occupancy Tax (TOT). This ordinance clarifies the intent of the existing chapter, taking into account recent changes in State law and technology, and does not represent any change in the rate or amount of the tax, or the persons taxed; and it does not increase the amount of tax paid by any transient visiting the City.
The following summarizes this revision to Chapter 3.64, Transient Occupancy Tax, of the Long Beach Municipal Code:
§ The definitions of Guest Room, Hotel, Occupancy, Operator and Rent are clarified.
§ Clarifies that a "Secondary Operator" has the same duties and responsibilities as the principal operator of the hotel for collecting TOT. The definition of Secondary Operator includes on-line hotel reservation services.
§ Provides for a Tax Clearance Certificate (a new State law) for the purchaser of a hotel to establish that the hotel has no unpaid taxes to the City; adds an administrative fee (not to exceed $1,500) to cover the cost of a City audit and issuance of the Tax Clearance Certificate.
§ Clarifies that TOT cannot be included in the rent, that it must be itemized separately on the hotel bill.
§ Expands on refund procedures. Clarifies that refunds of TOT come from the fund into which it was originally deposited.
§ Allows for the City to collect four years unpaid taxes (a new State law). Presently the City goes back three years.
§ Requires the hotel operator to keep records for five years to facilitate auditing four years' tax returns.
§ Adds some documentation requirements that are already being followed by most hotels, such as guest registration cards that are prenumbered wi...
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