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ORD 1994-11 - Increase Hotel - Motel Occupancy Tax To 7% 03-15-1994ORDINANCE NO. 94 -11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 15B, TAXATION, OF THE CODE OF ORDINANCES OF THE CITY; INCREASING THE HOTEL - MOTEL OCCUPANCY TAX TO 7% (SEVEN PER CENT) OF CONSIDERATION PAID BY OCCUPANTS; MAKING OTHER PROVISIONS AND FINDINGS RELATED THERETO; AND PROVIDING A PENALTY OF UP TO $1,000 PER DAY FOR VIOLATIONS. WHEREAS WHEREAS WHEREAS Texas Tax code Chapter 351 authorizes a City to levy an occupancy tax on hotels; The City currently levies a tax of 4 %; The City now desires to increase the tax by 3% for the purpose of the construction, improvement, equipping, operation and maintenance of a visitor information center; and WHEREAS The City desires to implement this tax increase effective April 1, 1994. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: SECTION 1: Article II, Hotel -Motel Occupancy Tax, of Chapter 15B, Taxation, of the Code of Ordinances of the City of Huntsville, Texas, is hereby amended by the repeal of Article II, as presently constituted, and by the adoption of a new Article II that shall read as follows: Sec. 15B -3. Levy of tax; rate; exceptions. (a) Tax imposed (1) A tax is imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room or space in a hotel costing $2 or more each day. (2) The price of a room in a hotel does not include the cost of food served by the hotel and the cost of personal services performed by the hotel for the person except for those services related to cleaning and readying the room for use or possession. (b) Collection of tax A person owning, operating, managing, or controlling a hotel shall collect for the City the tax that is imposed by this article and that is calculated on the amount paid for a room in the hotel. (c) Exception - Permanent Resident This article does not impose a tax on a person who has the right to use or possess a room in a hotel for at least 30 consecutive days, so long as there is no interruption of payment for the period. Sec. 15B-4. Definitions. The following words, terms and phrases are, for the purpose of this article, except where the context clearly indicates a different meaning, defined as follows: (a) "Hotel" means a building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, or rooming house, but does not include a hospital, sanitarium, or nursing home. (b) "Person" means any individual, company, corporation or association owning, operating, managing or controlling any hotel. (c) "Monthly" means any regular calendar month of the year. Sec. 15B -5. Taxes held in trust. All taxes collected by operators pursuant to this article shall be held in trust for the account of the City until payment thereof is made to the City tax assessor - collector. Sec. 15B -6. Reports and payment. On the fifteenth day of the month following each monthly period, every person required to collect the tax imposed in this article shall pay the City tax assessor - collector the tax collected during the preceding monthly period and at the same time shall file a report with the tax assessor - collector of the City of Huntsville, showing the consideration paid for all room occupancies in the preceding month, the amount of tax collected on such occupancies, the amount of taxes (if any) already remitted to the City, and any other information as the assessor - collector may reasonably require. Sec. 15B -7. Access to books and records. The City tax assessor - collector shall have the power to make such rules and regulations as are necessary to effectively collect the tax levied herein, and shall upon reasonable notice have access to books and records necessary to enable him to determine the correctness of any report filed as required by this article and the amount of taxes due under the provisions of this article. Sec. 15B -8. Agency for administration. The Mayor of the City is authorized to enter into a contract with an agency outside of the City government to administer the funds made available under this article for the purpose of expending the fund pursuant to the purpose for which intended. Sec. 15B -9. Civil penalties and interest on delinquent taxes. (a) Every person who collects a tax imposed under this article shall remit the tax collected by the City tax assessor - collector no later than the fifteenth day of the month following monthly period in which the tax was collected. Provided, however, that all payments are due immediately upon cessation of business for any reason. (b) Any person who fails to remit the tax imposed by this article within thirty (30) days shall forfeit to the City as a penalty an additional five (5) per cent of such tax, or the portion thereof not remitted. (c) Delinquent taxes shall draw interest at the rate of ten (10) percent per annum beginning thirty (30) days from the due date thereof (d) Every penalty imposed, and such interest as accrues under the provisions of this section, shall become a part of the tax required to be paid. Sec. 15B -10. Offenses and criminal penalties. (a) A person commits an offense if the person intentionally or knowingly fails to file a report of taxes collected under this article by the fifteenth day of the month following a monthly period in which taxes were collected. (b) A person commits an offense if the person intentionally or knowingly fails to collect a tax for the City or pay a tax to the City's tax assessor - collector as the person is required to do by this article. (c) An offense under this section is punishable by a fine of not less than one dollar ($1.00) nor more than one thousand dollars ($1, 000.00). Sec. 15B -11. Tax liability secured by lien; tax collection on termination of business. (a) All taxes, fines, interest and penalties due by a person to the City under this article are secured by a lien on all of the person's property that is subject to execution. (b) The lien for taxes attaches to all of the property of a person liable for the taxes. (c) The tax assessor - collector shall issue and file a tax lien notice required by this article. (d) A tax lien notice must include the following information: (1) The name and address of the taxpayer; (2) That the tax owing is local hotel occupancy tax; (3) Each period for which the tax is claimed to be delinquent; and (4) The amount of the tax only due for each period, excluding the amount of any penalty, interest or other charge. (e) The tax lien shall be filed in the official public records of the Walker County Clerk or with the county clerk in any county where the owner has property. (f) With approval of the City Attorney, the tax assessor- collector may release the tax lien on specific real or personal property when the reasonable cash market value of the property is paid to the tax assessor - collector. (g) A tax lien release shall be filed in the office of the county clerk The tax assessor - collector may collect the amount of the fee paid under this subsection by the tax assessor collector from the taxpayer against whom the lien was filed. (h) The tax lien on personal property and real estate continues until the taxes secured by the lien are paid. The tax lien on personal property and real estate attaches to personal property and real estate owned by the taxpayer on or after the date the lien is filed by the tax assessor - collector. In an action to determine the validity of the tax lien, the lien shall be perpetuated and foreclosed, or nullified. If a lien is perpetuated and foreclosed, no further action is required. If all or part of a lien is nullified, a certified copy of the judgment may be filed with the county clerk in the same manner as a release by the tax assessor - collector. Execution, order for sale, or other process for the enforcement of the lien may be issued on the judgment at any time. 0) If a person who is liable for the payment of a tax under this article 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 amount due until the seller provides a receipt from the City tax assessor - collector showing that no taxes are due. The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to withheld to the extent of the value for the purchase price. Sec. 15B -11.1. Injunctive relief. In addition to other remedies provided by law or this chapter for the collection of a tax levied under this chapter, the City Attorney, or other attorney acting for the City Attorney, may bring suit against a person who is required to collect the tax imposed and who has failed to file a report or pay the tax when due to collect the tax not paid or to enjoin the operation of the hotel in the City for which said report or taxes are due until the reports are filed and the taxes are paid. Section 2: Any person, firm or corporation violating any provision of this ordinance or failing to comply with any requirement of the ordinance will be guilty of a misdemeanor and subject to a fine of up to one thousand ($1,000.00) dollars upon conviction. Each day during or upon which said person shall violate or continue violation of any provision of this ordinance or non - compliance with any requirement of this ordinance shall constitute a distinct and separate offense. The violation of any provision of the ordinance or the failure to comply with any requirement of this ordinance shall each constitute a distinct and separate offense. Section 3: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect any of the remaining provisions of this ordinance. Section 4: All ordinances and parts of ordinances in conflict with the provisions of this ordinance are hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. Section 5: This ordinance shall take effect April 1, 1994. The City Secretary shall publish the caption of this ordinance in the official City newspaper at least twice within ten (10) days of its passage. PASSED AND APPROVED THIS 15TH DAY OF MARCH, 1994. THE CITY OF HUNTSVILLE Danna Welter, City Secretary H. Hodges, Mayor