G-12-02-09-9A1 - 2/9/2012 1 ORDINANCE NO. - -OZ- -q�
2
3
4 AN ORDINANCE AMENDING CHAPTER 38, CODE OF ORDINANCES (2010
5 EDITION), CITY OF ROUND ROCK, TEXAS, BY AMENDING ARTICLE IV
6 REGARDING HOTEL OCCUPANCY TAX, AND PROVIDING FOR A SAVINGS
7 CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS.
8
9 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
10 TEXAS:
11 That Chapter 38, Article IV, Hotel Occupancy Tax, Code of Ordinances (2010 Edition),
12 City of Round Rock, Texas, is hereby amended to read as follows:
13 I.
14 ARTICLE IV.
15
16 HOTEL OCCUPANCY TAX
17
18 Sec. 38-76. Definitions.
19
20 The following words, terms and phrases, when used in this article, shall have the meanings
21 ascribed to them in this section, except where the context clearly indicates a different meaning:
22
23 Consideration mean
24 sleeping, and net ind-ding the Gest of any food sewed or persepal sepoinpm; rAndereed to the 9GGupant 9f
25 the price of, or value
26 received for, the right to use a sleeping room, bed, or dormitory space or other sleeping facility in a hotel,
27 and includes the price of conveniences customarily provided in connection with sleeping
28 accommodations, including mattress, sheets, bedspreads, pillows, pillow cases, bed frames, air
29 conditioning, electricity, lighting, water, soap, towels, wash cloths, toilet tissue, shower or bath facilities,
30 lavatory, chairs, trash receptacles, plus any other goods or services which are not ordinarily subject to
31 sales tax. The consideration paid for a sleeping room or facility shall not include the price of food served,
32 nor the price of personal services rendered to the occupant which are unrelated to cleaning and readying
33 a room for occupancy, nor any sales tax, nor occupancy tax assessed by other governmental agencies,
34 provided that these charges are stated separately on the folio or invoice of the occupant. Charges not
35 stated separately shall be presumed to be part of the consideration paid for occupancy of a sleeping room
36 or sleeping facility, and shall be taxed under this article.
37
38 Director means the Director of Finance or the Director's designated representative..
39
40 Hotel.
41
42 (1) The term "hotel" mean
43 ,
44
45 any building or complex of buildin_g
46 trailer, converted railroad Pullman car, or any other facility in which the public may, for a
47 consideration, obtain sleeping accommodations. The term shall include hotels, motels,
48 tourist homes, houses or courts, lodging houses, inns, rooming houses, trailer houses,
oozaisw.nocx
1 trailer motels, parked railroad Pullman cars used for sleeping accommodations and not
2 involving the transportation of travelers, dormitory where bed space is rented, apartments
3 not occupied by permanent residents, and all other facilities where rooms or sleeping
4 facilities or space are furnished for consideration..
5
6 (2) The term "hotel' does not include:
7
8 a. Hospitals, sanitariums, or nursing homes; or
9
10 b. A dormitory or other housing facility owned or leased and operated by an
11 institution of higher education or a private or independent institution of higher
12 education, as those terms are defined by V.T.C.A., Education Code § 61.003,
13 used by the institution for the purpose of providing sleeping accommodations for
14 persons engaged in an educational program or activity at the institution-.Lor
15
16 C. An oilfield portable unit, as defined by Sec. 152.001, Tax Code.
17
18 Occupancy means the use or possession, or the right to the use or possession, of any room in a
19 hotel if the room is one ordinarily used for sleeping and if the occupant is other than a permanent resident
20 as hereinafter defined.
21
22 Occupant means anyone who, for a consideration, uses, possesses, or has a right to use or
23 possess any room in a hotel under any lease, concession, permit, right of access, license, contract or
24 agreement, other than a permanent resident as hereinafter defined.
25
26 Permanent resident means any occupant who has or shall have the right to occupancy of any
27 room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the
28 period.
29
30 Person means any individual, company, corporation, or association owning, operating, managing,
31 or controlling any hotel.
32
33 Quarter4--petied means the regular calendar quarters of the year, the first quarter being
34 composed of the months of OGteber, November, and esembef January, February, and March; the
35 second quarter being the months of April, May, and June; the third quarter
36 being the months of April, May, and juAe July, August and September; and the fourth quarter being the
37 months of July, Act and September October, November, and December. The municipal fiscal
38 quarters are composed of the same months, but the first quarter is composed of the months of October,
39 November and December.
40
41
42
43 Sec. 38-77. Levy of tax; amount and exceptions.
44
45 (a) There is hereby levied a tax of seven percent of the price paid for a room in a hotel on every
46 person who, under a lease, concession, permit, right of access, license, contract or agreement,
47 pays for the use or possession or for the right to the use or possession of a room that is in a
48 hotel, costs $2.00 or more each day, and is ordinarily used for sleeping. The price of a room in a
49 hotel does not include the cost of food served by the hotel and the cost of personal services
50 performed by the hotel for the person except those services related to the cleaning and readying
51 of the room for possession.
52
53 (b) Exceptions are as follows:
54
55 (1) No taw shall be hereunder upon a permanent resident.
56
57 (2) We taw c.hall be imnnced hereunder for federal eF state empleyeec traveling en_business.
2
1
2
3 by the United States DePaFtmeRt of State-.
4
5
6 offineRl mtlffitaFy businer,& This exemption does AGt GeveF militaFy staff OR leaVA OF hPhMPAR
7 statieas
8
9 (5) No tax shall be 4Fnp9sP_d_ hPrP,,ndPr fer state eor employees who resent a tax
10 exemption nerd iss,reit by a governmental entity of the staRte
11
12
13 nard ed by a gevernmental entity of the state are subjert to the tax imposed
14 efeanQer; vever, the s#.to�governmental entity with whom the stro nffinpr-Gr
15 employee is ossoniater! is entitled- to a refund- of the toy n.�irl
16
17 (1) A person described in Section 156.101, Section 156,103(a) or Section 156.1 03(d) of the
18 Texas Tax Code, as amended, is exempt from the payment of the tax imposed under this
19 article.
20 (2) A governmental entity excepted from the tax imposed by Chapter 156 of the Texas Tax
21 Code, as amended, under Section 156. 103(a)(1)or(a)(3)of that chapter shall pay the tax
22 imposed by this article, but is entitled to a refund of the tax paid.
23 (3) A person described in Section 156.103(c) of the Texas Tax Code, as amended, shall pay
24 the tax imposed by this article, but the state governmental entity with whom the person is
25 associated is entitled to a refund of the tax paid.
26
27 (c) To receive a refund of the tax paid hereunder, the governmental entity entitled to a refund must
28 file a refund claim form provided by the city containing the information required by the city. The
29 governmental entity entitled to claim a refund may file only one claim form with the city for each
30 calendar quarter for all reimbursements accrued during that quarter.
31
32 Sec. 38-78. Collection of tax.
33
34 (a) Every person, owning, operating, managing, or controlling any hotel shall collect the tax levied by
35 section 38-77 for the city.
36
37 (b) The hotel operator shall be entitled to one percent of the hotel occupancy tax revenues collected
38 as reimbursement for the operator's administrative costs for collecting the tax. However, as
39 hereinbelow provided, this reimbursement may be forfeited at the discretion of the city if the hotel
40 operator fails to timely pay over the tax or timely file a report as required by the city, or files a
41 false report with the city.
42
43 Sec. 38-79. Collection procedures on purchase of hotel.
44
45 (a) If a person who is liable for the payment of a tax imposed under section 38-77 is the owner of a
46 hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an
47 amount of the purchase price sufficient to pay the amount of tax due until the seller provides a
48 receipt by the dDirector of finaase showing that the amount has been paid or a certificate showing
49 that no tax is due.
50
51 (b) The purchaser of a hotel who fails to withhold an amount of the purchase price as required is
52 liable for the amount required to be withheld to the extent of the value of the purchase price of the
53 hotel.
3
1
2 (c) The purchaser of the hotel may request that the dDirectorof ee issue a certificate stating that
3 no tax is due or issue a statement of the amount required to be paid before a certificate may be
4 issued. The dDirectorof finanne shall issue the certificate or statement not later than the 60th day
5 after the date that he receives the request.
6
7 (d) If the dDirectorof#inanne fails to issue the certificate or statement within 60 days after the date
8 that he receives the request, the purchaser of the hotel is released from the obligation to withhold
9 the purchase price or pay the amount due.
10
11 Sec. 38-80.Qaafteray Monthly reports t the director.
12
13 On the laast day of the FneRth f19llGWiR9 eaGh quaFterly peFied (beginning the last day of the MORth following
14 the senend quaFteFly peFind nf rz;alondar yeaF 1989), every per-son Fequired tG GG"eGt the tax imposed by
15 rOp-r-lon-ri 38. 77 shall file a report with thp derpr-tor nf fop:;nnp shewipq the PFiGe paud for all reem
16
17
18 1 . r ;at- thp- fimm..e of filing GUGh Fepert. The report shall be in a form pFeSGFibed by the direnter of
19
20
21
22 the hotel. On or before the last day of each month, every person required to collect the tax imposed by
23 this Article IV shall file a report with the Director for the preceding month, showing the price paid for all
24 room occupancies in the preceding month, the amount of tax collected on such occupancies, and any
25 other information the Director may reasonably require. Such person shall pay the tax due on such
26 occupancies at the time of filing such report. The report shall be in a form prescribed by the Director. The
27 Director is hereby authorized and directed to do all such things necessary or convenient to carry out the
28 terms of this Article IV. The Director shall have the authority to request and receive within a reasonable
29 time documentation of information contained in the Report.
30
31 Sec.38-81. Rules and regulations of the Director; access to books and
32 records.
33
34 The dDirector of finamn shall have the power to make such rules and regulations as are
35 reasonable and necessary to effectively collect the tax levied by section 38-77 and shall, upon reasonable
36 notice, have access to books and records necessary to enable him to determine the correctness of any
37 report filed as required by section 38-80, and the amount of taxes due under the provisions of this article.
38 (Code 1995, § 1.1805)
39
40 Sec. 38-82. Penalties.
41
42 (a) if any per-soR shall fail to file a FepeFt as Fequired seGt*GR 38 80 or sha;" file a false FepeFt, of
43 shall fail to pay to the dmrPrtnr of fon:;nnp thLz t:;x imposed by sentinn 2R-77 when Sand report 0
44 payment is due, he shall foFfeit five peFGent of the arnount due -as peRalty, and- after the first 3-Q)
45 days he shall forfe-it an additional fiVe PeFGeRt Of 6UGh tAx HeweaveF, suGh penalty shall never be
46
47 beginning 69 days ftem the d,-A date
48
49
50 ,
51 .
52
4
I (a) A person commits an offense if a person:
2 (1) fails to collect the tax imposed by this article:
3 (2) fails to file a report as required by this article;
4 (3) fails to pay the tax when payment is due;
5 (4) files a false report: or
6 (5) fails to comply with this article when purchasing a hotel.
7
8 (b) An offense committed under Subsection (a) of this section is punishable by a fine not to exceed
9 Five Hundred and No/100 Dollars ($500) for each offense. Each day that a violation is permitted
10 to exist shall constitute a separate offense.
11 (c) In addition to any criminal penalties imposed under Subsection (b) of this section, a person shall
12 pay five percent(5%) of the tax due as a penalty if the person fails to pay the tax or file the report
13 as required by this article by the due date. An additional penalty of five percent (5%) of the tax
14 due shall be paid if the tax is not paid within thirty (30) days from the date the tax was due.
15 Another penalty of five percent (5%) of the tax due shall be paid if the tax is not paid within sixty
16 (60) days from the date the tax was due. The penalties provided by this subsection may never be
17 less than Five Dollars ($5.00). Delinquent taxes shall draw interest at the rate of ten percent
18 (10%) per annum beginning sixty(60)days from the date the tax was due.
19
20 (d) In addition to the amount of any tax owed, a person is liable to the City for all reasonable
21 attorney's fees incurred by the City in enforcing this article against the person and in collecting
22 any tax owed by the person under this article.
23
24 (e) The Director may release, relinquish, compromise and/or settle the penalty and/or interest due as
25 a result of an act or omission of an employee or officer of the City.
26
27 (f) The Director is hereby authorized to make an assessment of the tax for any period for which a
28 person has failed to file a correct report as required in section 38-80 or failed to pay the tax
29 imposed by section 38-77 within 30 days from the due date. The tax assessed, together with any
30 penalties and interest shall be a prior and superior lien on all property of the hotel.
31
32 (q) This section shall not be construed to limit or restrict the City Council's powers to release,
33 relinquish, compromise and/or settle the penalty and/or interest due for delinquent hotel
34 occupancy taxes as provided by the Texas Constitution or other applicable laws.
35
36 Sec. 38-83.Additional penalties.
37
38 The city is hereby authorized to take the following actions against any person required to collect
39 the tax imposed by section 38-77 and pay the collection over to the city and who has failed to file a report,
40 or filed a false report, or failed to pay the tax when due:
41
42 (1) Require the forfeiture of any revenue the city allowed the hotel operator to retain for his
43 cost of collecting the tax;
44
45 (2) Bring suit against the hotel operator for noncompliance; and/or
46
47 (3) Bring suit against the hotel operator seeking any other remedies provided under state
48 law.
49
5
1 Sec. 38-84. Additional authorization to bring suit.
2
3 The city attorney is hereby authorized to bring suit against any person required to collect the tax
4 imposed by section 38-77 and required to pay the collection over to the city and who has failed to file a
5 report, or filed a false report, or failed to pay the tax when due. Such suit may seek to collect such tax not
6 paid or to enjoin such person from operating a hotel in the city until the tax is paid or the report is filed or
7 both, as applicable, and as provided in the injunction. In addition to the amount of any tax owed to the
8 city, the person is liable to the city for the city's reasonable attorney's fees and a penalty equal to 15
9 percent of the total amount of the taxes owed, if the tax has been delinquent for at least one complete
10 municipal fiscal quarter.
11
12 Sec.38-85. Use of revenue derived from levy.
13
14 (a) The revenue derived from any hotel occupancy tax imposed and levied by section 38-77 may be
15 used only to promote tourism and the convention and hotel industry, and that use is limited to the
16 purposes set out in V.T.C.A., Tax Code§ 351.101.
17
18 (b) Revenue derived from the hotel occupancy tax shall be expended only in a manner which directly
19 enhances and promotes tourism and the convention and hotel industry as delineated. Such
20 revenue shall not be used for the general revenue purposes or general governmental operations
21 of the municipality.
22
23 Sec.38-86.Allocation of revenue.
24
25 (a) Not less than the amount of revenue received by the city from the tax at a rate of one percent of
26 the cost of the room shall be allocated for the purposes provided in V.T.C.A., Tax Code
27 §351.101(a)(3).
28
29 (b) Not more than 15 percent of the hotel occupancy tax revenue collected by the city or the amount
30 of tax received by the city at the rate of one percent of the cost of the room, whichever is greater,
31 may be used for the purpose provided by V.T.C.A., Tax Code§351.101(a)(4).
32
33 (c) If the city does not allocate any hotel occupancy tax revenue for the purposes provided by
34 V.T.C.A., Tax Code § 351.101(a)(1), then the city may allocate not more than 50 percent of the
35 hotel occupancy tax revenue collected by the city for the purposes provided by V.T.C.A., Tax
36 Code§ 351.101(a)(5).
37
38 Sec.38-87.Administrative requirements; accountability; keeping of records.
39
40 (a) The city council may, by contract, delegate to a person, including another governmental entity or
41 a private organization, the management or supervision of programs and activities funded with
42 revenue from the hotel occupancy tax. The city council shall approve in writing, in advance, the
43 annual budget of the entity to which it delegates those functions, and shall require the entity to
44 make periodic reports to the city council at least quarterly listing the expenditures made by the
45 entity of revenue from the tax provided by the city.
46
47 (b) The entity must maintain revenue provided by the municipality from the tax in a separate account
48 established for that purpose, and may not commingle that revenue with any other money or
49 maintain it in any other account.
50
51 (c) The municipality may not delegate to any person or entity the management or supervision of its
52 convention and visitors programs and activities funded with revenue from the hotel occupancy
53 tax, other than by contract as provided in subsection (a)of this section.
54
55 (d) The approval by the city council of the annual budget of the entity to which these functions are
56 delegated creates a fiduciary duty in the person or entity with respect to the revenue provided by
57 the municipality to the person or entity under the contract.
6
1
2 (e) A person or entity with whom the municipality contracts to conduct authorized activities shall
3 maintain complete and accurate financial records of each expenditure of hotel occupancy tax
4 revenue made by the person or entity and, upon request of the city council or other authorized
5 person, shall make the records available for inspection and review.
6
7 (f) Hotel occupancy tax revenue spent for authorized purposes may be spent for day-to-day
8 operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if
9 those administrative costs are incurred directly in the promotion and servicing expenditures
10 hereinbefore authorized. If the municipality or other entity conducts an activity for which hotel
11 occupancy tax revenue may be used, and such activity is a joint activity with another
12 nonauthorized activity, then the portion of the total administrative costs of the entity for which
13 hotel occupancy tax revenue may be used may not exceed the portion of those administrative
14 costs actually incurred in conducting the activities for which the hotel occupancy tax revenue may
15 be used.
16
17 (g) Hotel occupancy tax revenue may not be spent for travel for a person to attend an event or
18 conduct an activity the primary purpose of which is not directly related to the promotion of tourism
19 and the convention and hotel industry or the performance of the person's job in an efficient and
20 professional manner.
21
22 Secs.38-88--38-117. Reserved.
23
24 II.
25
26 A. All ordinances, parts of ordinances, or resolutions in conflict herewith are
27 expressly repealed.
28 B. The invalidity of any section or provision of this ordinance shall not
29 invalidate other sections or provisions thereof.
30 C. The City Council hereby finds and declares that written notice of the date,
31 hour, place and subject of the meeting at which this Ordinance was adopted was posted
32 and that such meeting was open to the public as required by law at all times during
33 which this Ordinance and the subject matter hereof were discussed, considered and
34 formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas
35 Government Code, as amended.
36 READ and APPROVED on first reading this the day of
37 , 2012.
7
1 READ, APPROVED and ADOPTED on second reading this the day of
2 , 2012.
3
4
5 ALAN MCGRAW, Mayor
6 City of Round Rock, Texas
8 ATTEST:
9 •
10
11n 111�f11(r,�111�
12
8
I*RMWNIDROCK,T W City Council Agenda Summary Sheet
B010N.PROSPERITY
Agenda Item No. *9A1.
Consider an ordinance amending Chapter 38, Article IV, Code of Ordinances (2010
Agenda Caption: Edition), regarding the existing hotel occupancy tax. (Second Reading)
Meeting Date: February 9,2012
Department: Finance
Staff Person making presentation: Cheryl Delaney
Finance Director
Item Summary:
This ordinance changes the frequency in which hotels pay their HOT taxes. It changes it from quarterly to monthly.
Cost: N/A
Source of Funds: N/A
Date of Public Hearing(if required): N/A
Recommended Action: Approval