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OR 97-788 Provide levy of hotel occupancy tax AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. 97788 AN ORDINANCE OF THE OF COPPELL, TEXAS, AMENDING THE CODE OF ORDINANCES BY REEALING ARTICLE 6- 4, HOTEL OCCUPANCY TAX; BY AMENDING CHARTER 1 TO ADD ARTICLE 1-14 TO PROVIDE FOR THE LEVY OF A HOTEL OCCUPANCY TAX; PROVIDING FOR DEFINITIONS; PROVIDING FOR THE COLLECTION OF HOTEL OCCUPANCY TAX; PROVIDING FOR THE DISPOSITION OF HOTEL OCCUPANCY TAX REVENUES; PROVIDING FOR REPORTS; PROVIDING FOR RULES AND REGULATIONS; PROVIDING FOR A PENALTY AND INTEREST FOR DELINQUENT HOTEL OCCUPANCY TAX; POVIDING A SAVINGS CLAUSE; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00) FOR EACH OFFENSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That the Code of Ordinance of the City of Coppell, Texas be , and the same is hereby amended by repealing Article 6-4, Hotel Occupancy Tax and by amending Chapter 1 to add Article 1-14, Hotel Occupancy Tax to read as follows: "ARTICLE 1-14 HOTEL OCCUPANCY TAX Sec. 1-14-1 DEFINITIONS The following words, terms and phrases when used in this Article shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: City Manager - means the City Manager of the City or designee. Consideration - means the cost of the room, sleeping space, bed or dormitory space or other facilities in a hotel, and shall not include the cost of any food served or personal services rendered to the occupancy of such room or space 8S5944 1 for occupancy, and shall not include any tax assessed by any other governmental agency for occupancy of the room. Itotel - means any building or buildings in which members of the public obtain sleeping accommodations, for a consideration. The term includes hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, or bed and breakfast. The term does not include: hospitals, sanitariums or nursing homes; or 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, Education Code, used by the institution for the purpose of providing sleeping accommodations for person engaged in an educational program or activity at the institution. Occupancy - means the use or possession, or the right to the use or possession, of any room or space in a hotel if the room or space is one ordinarily used for sleeping and, if the occupant's use, possession, or right to use or possession extends for a period of less than thirty (30) days. Occupant - means anyone, 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, if the room is one ordinarily used for sleeping. Permanent Resident - means any occupant who has or shall have the right of occupancy of any room or sleeping space or facility in a hotel for at least thirty (30) consecutive days during the current calendar year, or preceding year. Person - means any individual, company, corporation or association, owning operating managing or controlling any hotel. Quarterly Period - means a quarter of the calendar year. The first quarter is composed of the months of January, February, and March; the second quarter is composed of the months of April, May, and June; the third quarter is composed of the months of July, August, and September; and the fourth quarter is composed of the months of October, November, and December. Sec. 1-14-2 TAX IMPOSED There is hereby levied a tax upon the cost of occupancy of any sleeping room furnished by any hotel where the cost of occupancy is at the rate of two dollars ($2.00) or more per day, such tax to be equal to seven percent (7%) of the SS5944 2 consideration paid by the occupant of such sleeping room to the hotel, exclusive of other occupancy taxes imposed by other governmental agencies. Sec. 1-14-3 DISPOSITION OF REVENUE The revenue received from any occupancy tax authorized under this article shall be used only for the purposes authorized by V.T.C.A., Tax Code Ch. 351, as amended. Sec. 1-14-4 COLLECTION OF TAX Every person owning operating managing or coreroiling any hotel in the City shall collect the tax imposed by this article for the City. Sec. 1-14-5 REPORTS On the last day of the month following each quarterly period, every person required by this article to collect the tax shall file a report with the City Manager showing: the consideration paid for all occupancies in the preceding quarter; the amount of the tax collected on such occupancies; and, any other information as the City Manager may reasonably require. Such person shall pay the tax due on all occupancies in the preceding calendar quarter to the City Manager at the time of filing the report required herein. Sec. 1-14-6 TAX COLLECTION ON TERMINATION OF BUSINESS (A) lfa person who is liable for the payment of an amount under this article 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 amoum due until the seller provides a receipt ~om the City tax assessor/collector showing that the amount has been paid or a certificate stating that no amount is due. (B) The purchaser of a hotel who fails to withhold an amoum 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 tax assessor/collector 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 tax assessor/collector shall issue the certificate or statement within 60 days after receiving the request or within 60 days after the day on which the records of the former owner of the hotel are SS5944 3 made available for audit, whichever period expires later. In either event, the City tax assessor/collector shall issue the certificate or statement within ninety (90) days after the date of receiving the request. (D) If the City tax assessor/collector fails to mail the certificate or statement within the applicable 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. 0!) The period of limitation during which the City tax assessor/coBector may assess tax against the purchaser under this section is four years from the date when the former owner of the hotel sells the hotel or when a determination is made against the former owner, whichever event occurs later. At any time within three years after a deficiency determination against the purchaser has become due and payable, the City attomey may bring an action in a district court of Dallas County or a court of any other state of the United States in the name of the City to collect the delinquent amounts together with penalties and interest. Sec. 1-14-8 PENALTIES (A) A person commits an offense if:.' (1) the person fails to collect the tax; (2) the person falls to file a report as required by this article; (3) the person fails to pay the tax when payment is due; (4) the person files a false report; or (5) the person fails to comply with Section 1-14-7 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). (C) In addition to any penalties imposed under Subsection (B) of this section, a person failing to pay the tax to the City within the time required shall forfeit five (5%) percent of the tax due as a penalty. An additional five (5%) percent of the tax due shall be forfeited thirty (30) days later if the tax is not paid. The penalty provided by this subsection SS5944 4 may never be less than five dollars ($5.00). Delinquent taxes shall draw interest at the rate of six (6%) percent per year beginning sixty (60) days from the date the tax is due. (D) The City Attorney or other attorney acting for the City may bring suit against a person who is required to collect the tax imposed by this article and pay the collections over to the city and who has failed to file a tax report or pay the tax when due to collect the tax not paid or to enjoin the person from operating a hotel in the City unf~ the tax is paid or the report fled, as applicable, as provided by the Coun's order. In addition to the amount of any tax owed under this article, the person is liable to the City for the City's reasonable attomey's fees and a penalty equal to fii~een (15%) percent of the total amount of the tax owed. SECTION 2. That all provisions of the Code of Ordinances of the City of Coppell, Texas, in conflict with the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. That should any word, phrase, paragraph, section or phrase of this ordinance or of the Code of Ordinances, as amended hereby, be held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole, or any pan or provision thereof other than the pan so decided to be unconstitutional, illegal or invalid, and shall not affect the validity of the Code of Ordinances as a whole. SECTION 4. An offense committed before the effective date of this ordinance is governed by prior law and the provisions of the Code of Ordinances, as amended, in effect when the offense was committed and the former law is continued in effect for this purpose. SECTION 5. That any persun, firm or corporation violating any of the provisions or terms of this ordinance or of the Code of Ordinances, as amended hereby, shall be guilty of a misdemeanor and upon conviction in the Municipal Court of the City of Coppell, Texas, shall be subjected to a fine not to SS5944 5 exceed the sum of Five Hundred Dollars ($500.00) for each offense, except where a different penalty has been established by State law for such offense. SECTION 6. That this ordinance shall take effect immediately ~-om and at~er its passage and the publication of the caption, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, this the ,9 r,; day of ')/~' ¢"/l , 1997. APPROVED: ~lcdM MORTON, MAYOR ATrEST: KATHLEEN ROACH, CITY SECRETARY APPROVED AS TO FORM: PETER G. SMITH, CITY ATTORNEY (PGS/ttl 3/13/97) SS5944 6