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HomeMy WebLinkAbout50B - TRANSIENT OCCUPANCY TAX REQU EST FOR COUNCIL ACTION . CITY COUNCIL MEETING DATE: MARCH 15, 2004 TITLE: ~ ~ CLERK OF COUNCIL USE ONLY: ORDINANCE AMENDING ARTICLE V OF CHAPTER 35 OF THE SANTA ANA MUNtCIPAL CODE RELATING TO TRANSIENT OCCUPANCY TAX. APPROVED 0 As Recommended 0 As Amended 0 Ordinance on 1" Reading 0 Ordinance on 2nd Reading 0 Implementing Resolution 0 Set Public Hearing For ¥ a~ CONTINUED TO FILE NUMBER RECOMMENDED ACTION Adopt an Ordinance amending Article V of Chapter 35 of the Santa Ana Municipal Code regarding the title of said article. DISCUSSION . Cities in the State of California are authorized to levy a tax on all hotel guests that rent or occupy rooms or space within every hotel or motel in the City. The tax is entitled "Transient Occupancy Tax". The purpose of this tax is to provide for general ,services, which the visitor would benefit from (such as police, fire and other municipal services). To provide a more specific title that better reflects the purpose of the tax, it is proposed that the name "Transient Occupancy Tax" be changed to "Hotel Visitors' Tax". Several cities in California, including Garden Grove, recently changed the title of the tax to "Hotel Visitors' Tax". Other cities are also considering this title change. FISCAL IMPACT There is no fiscal impact associated with this action. Services Agency 508-1 (MJV 3/09/04) ORDINANCE NO. NS-2648 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE V OF CHAPTER 35 TO THE SANTA ANA MUNICIPAL CODE CHANGING THE TITLE FROM TRANSIENT OCCUPANCY TAX TO HOTEL VISITOR TAX THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In order to provide continuous improvement by providing a more specific title that better reflects the purpose ,of the tax imposed on hotel guest, it is proposed that the name "Transient Occupancy Tax. be changed to "Hotel Visitors' Tax", B. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of section 418 of the Charter of the City of Santa Ana. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 2. ARTICLE V of Chapter 35 of the Santa Ana Municipal Code is amended to read in full as follows: (new language in bold, deleted language in strikeout) This article shall be known as "The Uniform Tmnaient Occup¡;mcy Hotel I Visitor -Tax Ordinance of the City of Santa Ana," Section 3. Section 35-125 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-126. Definitions. 508-2 Ordinance No, NS-XXX Page 1 of 14 . Except where the context otherwise requires, the definitions given in this section govern the construction of this article: (a) Person. The term "person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. (b) Hotel. The term "hotel" means any structure, or any portion of any I structure, which is occupied or intended or designed for occupancy by tfaß&ieAt hotel visitors for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. (c) Occupancy. The term "occupancy" means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. ' . (d) TFaR&¡eRt Hotel visitor. The term "tfaß&ieAt hotel visitor" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement. Any such person I so occupying space in a hotel shall be deemed to be a tfaß&ieAt hotel visitor until after the thirtieth consecutive day of such occupancy and said tax shall continue to be due upon all rent collected or accruing prior to said thirtieth day of occupancy unless such occupancy is pursuant to a qualifying rental agreement I as defined in this article. In determining whether a person is a tfaß&ieAt hotel visitor, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered, (e) Rent. The term "rent" means the total consideration charged to the I tfaß&ieAt hotel visitor as shown on the guest receipt for the occupancy of space . in a hotel, including charges for equipment (such as rollaway beds, cribs and television set, etc.), and in-room services (such as movies and other services not subject to Califomia taxes), valued in money, whether received or to be received in money, goods, labor or otherwise. It shall include all receipts, cash, credit, property and services of any kind or nature without any deduction therefrom whatsoever. The costs of additional goods and services, which are not "rent," but which may be sold as a package with the room (such as meals, excursions, and recreational services), must be accounted for in accordance with the rules and regulations promulgated by the finance director. ' . (f) Operator. The term "operator" means the per:son who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an Ordinance No. NS-XXX Page 2 of14 508-3 employee, the managing agent shall also be deemed an operator for the purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both. (g) Qualifying rantal agraement. The term "qualifying rental agreement" means and shall be limited to a written contract signed by both the landlord and tenant, legally enforceable by either party thereto, and for a rental period of not less than thirty (30) consecutive days, Notwithstanding any other provision thereof, the term "qualifying rental agreement" as used in this article shall expressly exclude: (1) any agreement regardless of rental term which is terminated for any reason by either party thereto, or by mutual consent, prior to the thirtieth consecutive day of tenancy, or (2) any agreement regardless of length of rental term which would be unlawful or constitute a violation of any provision of law. Section 4, Section 35-127 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-127, Tax imposed. . (a) For the privilege of occupancy in any hotel, each tfaß&ieAt hotel I visitor is subject to and shall pay a tax in the amount of nine (9) per cent of the rent charged by the operator, The tax constitutes a debt o1l\(ed by the transient hotel visitor to the city which is extinguished only by payment to the operator or to I the city, The tfaß&ieAt hotel visitor shall pay the tax to the operator of the hotel at the time the rent is paid, If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the tfaß&ieAt hotel visitor's ceasing to occupy space in the hotel. If for any reason I the tax due is not paid to the operator of the hotel, the finance director may require that such tax shall be paid directly to the finance director. (b) In the event that a qualifying rental agreement exists between the hotel and any person for occupancy, as hereinabove defined, for a period in excess of thirty (30) days and in the event that such person allows occupancy by another person as subtenant, guest, licensee or permittee, the person who has made the agreement with the hotel as aforesaid shall be subject to and shall pay the tax provided for herein, . Section 5. Section 35-128 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-128. Exemptions. 508-4 Ordinance No. NS-XXX Page 3 of 14 . . . No tax shall be imposed upon: (a) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax herein provided; Any officer or employee of a foreign govemment who is exempt by reason of express provision of federal law or international treaty; (b) (c) Any federal or state officer or employee while, on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a tr-ansient hotel visitor who is employed by the United States government or the State of Califomia or their respective instrumøntalities from payment of the tax when the payment is later to be reimbursed by the United States govemment or the State of California or their respective instrumentalities. No exemption shall be granted except upon a claim therefore made at the time rent is collected and under penalty of perjury, upon a form prescribed by the finance director, Section 6, Section 35-129 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-129, Operator's duties. (a) Each operator shall collect the tax imposed by this article to the I same ,extent and at the same time as the rent is collected from every tfaß&ieAt hotel visitor. The amount of t~x shall be ~~parately stat~ from th~ amount of the . rent charged, and each tfaß&ieAt hotel vIsitor shall receive a receipt for payment from the operator, No operator of a hotel shall advertise or 'state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided. Each operator shall account separately for and maintain separate monthly summary totals for taxable and nontaxable rents and for taxes collected. (b) The operator shall maintain its financial and accounting records in accordance with established accounting principles acceptable to the finance director. In the event the operator offers paid packages or complementary services to guests, the charges shall be accounted for in accordance with the rules and regulations promulgated by the finance director. (c) The tax required to be collected (any amount unretumed to the Ordinance No. NS-XXX Page 4 of14 508-5 tmnsient hotel visitor which is not tax but was collected under the representation that it was tax) constitutes a debt owed by the operator to the City of Santa Ana and shall be paid to the city with the monthly remittance. (d) Whenever an operator who has collected any sum under the representation that it was a tax, which sum is not required to be collected as a tax, remits said sum to the city and thereafter refunds such sum to such person in whole or part, such operator may take the amount of such refund as a credit against future taxes only upon submitting to the finance director a statement under penalty of perjury specifying the reasons for the credit and providing proof of payment of such refund, (e) Nothing contained in this article shall be deemed to authorize as a credit against taxes owed any amount retumed by the operator to any tour promoter, travel agent, or third party other than the tFaßeieAt hotel visitor, Travel agent commissions are an expense of the operator and may not be deducted from the rent. ' Section 7. Section 35-130 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-130, Registration, (a) Within thirty (30) daysafter.commencing business each operator of any hotel renting occupancy to tfaß&ieAt hotel visitors shall register said hotel I with the finance director and obtain from him a tfaß&ieAt eSGUpaRsy hotel visitor registration certificate to be at all times pQsted in a conspicuous place on the premises. Said certificate shall, among other things, state the following: The name of the operator; (1 ) (2) (3) (4) The address of the hotel; The date upon which the certificate was issued; The words: "This trilnaiont oGsupancy hotel visitor registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the uniform tFanaiont eSGUpaRGY hotel visitor tax ordinance by registering with the finance director for the purpose of collecting from tFaRsient hotel visitors th. e tr-ansieRt aGGUpaRey hotel I visitor tax and remitting said tax to the finance director. The certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, 508-6 Ordinance No. NS-XXX Page 5 of 14 . nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this city. This certificate does not constitute a permit." . (b) No transient 06Gl-IfJan6Y hotel visitor registration certificate issued pursuant to this article shall be transferable or assignable; provided, that where a person holding a certificate issued under the provisions of this article changes the name of the business, such person shall upon changing the name make a written application to the finance director to have said certificate amended to reflect the change in name; and provided further, that transfer, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership after the transfer is substantially similar to the ownership existing before the transfer shall not be prohibited by this section. For the purpose of this section stockholders, bondholders, partnerships, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such Corporation or other entity, ' I (c) Whenever, upon the sale or transfer of an existing hotel, a tfaß&ieAt occufJan6Y hotel visitor registration certificate is applied for, the finance director shall require that the succeeding operator produce a certificate of nonliability or other receipt issued by the finance director establishing that no unsatisfied I liability for tmnsient occupancy hotel visitor taxes exists. (d) It shall be unlawful and a misdemeanor to operate a hotel without a I valid transient aCGUfJaA6Y hotel visitor registration certificate or to fail to post the certificate issued in a conspicuous place at all times. Section 8, Section 35-131 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-131. Reporting and remitting. . All operators shall report and remit monthly the full amount of transient 06GUfJancy hotel visitor taxes collected for the previous month upon the appropriate approved form available from the finance director. Tmnsiont occl-Jpancy hotel visitor taxes shall be deemed to be cOllected at that time at which the rent is earned if the operator uses the accrual basis of accounting or the time at which rent is received if the operator uses the cash basis of accounting. The same basis of accounting used for keeping the books and I records shall be used for reporting and remitting tmnsiont accupancy hotel visitor taxes. The finance director may establish shorter reporting periods for any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected Ordinance No. NS-XXX Page 6 of14 508-7 by operators pursuant to this article shall be held in trust for the account of the city until payment thereof is made to the finance director. (a) Calendar month reporting period. Each operator reporting on a calendar month basis shall, on or before the last day of the following month, make a retum to the finance director on approved forms of the total taxable rents charged and the full amount of tmnsient oGGu )ancy hotel visitor taxes.colleeted for the previous month. At the time the retum is filed, the full amount of the tax collected shall be remitted to the finance director. Timely ratums. Returns and taxes remitted monthly and actually received by the finance director on or before the last day of the following month shall be deemed to be timely filed and remitted; otherwise, the taxes are delinquent and subject to the penalties imposed pursuant to section 35-132. Provide~, however, that when the last day upon which a return may be filed and taxes remitted falls on a Saturday, Sunday, or city, state, or national holiday, a timely filing and remittance may be made upon the first following working day, Retums filed and taxes remitted by mail shall be deemed to be timely filed only if the envelope or similar container enclosing the returns and taxes is addressed to the finance director, has sufficient postage and bears a ~nited States postmark or a postage meter imprint prior to midnight o,n the last day for reporting and remitting without a penalty,. if the last day for reporting and remitting said tax falls on a weekend or holiday, a filing shall be deemed to be timely filed if mailed prior to midnight of the first following working day, If such envelope or other container bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall govern in determining whether the filing and remittance are timely, Section 9, Section 35-136 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) (b) See, 35-136, Refunds. (a) When made. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than onCe, or has been erroneously or illegally collected or received by the city under this article it may be refunded as provided in subparagraph (b) and (c) of this section provided a claim in writing therefor, stating under penalty of pe~ury the specific grounds upon which the claim is founded, is filed with the finance director within one (1) year of the date of payment. The claim shall be on forms fumished by the finance director. 508-8 Ordinance No. NS-XXX Page 7 of 14 . . . (b) Refund to tFaRsíeRt hotel visitor. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the finance director that the person from I whom the tax has been collected was not a tmnsient hotel visitor; provided however, that neither a refund nor a credit shall be allowed unless the amount of 'I the tax so collected has either been refunded to the tfaß&ieAt hotel visitor or credited to rent subsequently payable by the tmAsieRt hotel visitor to the operator. (c) TFaRs:eRt Hotel visitor's recourse, A tfaß&ieAt hotel visitor may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in subparagraph (a) of this section, but only when the tax was paid by the I tfaß&ieAt hotel visitor directly to the finance director, or when the tfaß&ieAt hotel visitor having paid the tax to the operator, establishes to the satisfaction of the finance director that the tr-aRsient hotel visitor has been unable to obtain a refund from the operator who collected the tax. ' (d) Written records. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. Section 9. Section 35-137 of the Santa. Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) See, 35-137. Actions to collect taxes; recording and enforcement of liens; cumulative remedies. I (a) Actions to collect. Any tax required to be paid by any transient hotel visitor under the provisions of this article shall be deemed a debt owed by the transient hotel visitor to the city, Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city, Any person owing money to the city under the provisions of this article shall be liable to an action brought in the name of the City of Santa Ana for the recovery of such tax, penalties, interest, and administrative costs incurred in connection therewith, including attomey fees, ' (b) Recording of a certificate of lien. If any amount required to be paid under this article is not paid when due, the finance director or his designated agent may record in the office of the county recorder(s).of such counties as the finance director may determine a certificate which specifies the amount of tax, penalties and interest due, the name and address of the operator liable for the same, a statement that the finance direct~>r has complied with all provisions of this article in the determination of the amount required to be paid, and a legal description of the real property owned by the operator. From the time of the Ordinance No. NS-XXX Page 8 of14 508-9 recording of the certificate, the amount required to be paid together with penalties and interest constitutes a lien upon all real property in the county owned by the operator or thereafter acquired before the lien expires. The lien shall have the force, effect and priority of a tax lien and shall continue for ten (1O) years from the filing of a certificate unless sooner released or otherwise discharged. (c) Wanant for collection of tax. At any time within three (3) years after the recording of a certificate of lien, the finance director or his designated agent may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of any taxes, penalties and interest required to be paid to the city under this article. The warrant shall have the same effect as a writ of execution and be executed in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. (d) Seizura and sale. In lieu of issuing a warré;lnt under subsection (c), at any time within three (3) years after an, assessment was'issued or a certificate of lien was recorded under subsection (b), the finance director or his designated agent may collect the delinquent amount by seizing or causing to be seized any property, real or personal, of the operator and sell any non-cash or nonnegotiable property or a sufficient part of it at public auction to pay the amount of tax due together with any penalties and any costs incurred on account of the seizure and sale. Any seizure made to collect taxes due shall only be of property of the operator not exempt from execution' under provisions of. the Code of Civil Procedure, ' Section 9, Section 35-131 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) See, 35-139. Security for collection of the tax. (a) To ensure compliance with transient occupancy hotel visitor tax payment requirements, the finance director shall require each new operator subject to such requirements to deposit with the city within'one (1) year after the effective date of this article, or within thirty (30) days after commencing business, whichever is later, such security in a form acceptable to the finance director in the amount not greater than the person's estimated average liability for the first period for which a return must be filed or the sum of ten thousand dollars ($10,000.00), whichever is the lesser. To recover tmnsient occupancy hotel visitor taxes, including penalties and interest, remittable by the depositor, the finance director may apply the security deposited with the finance director, (b) At least fifteen (15) days prior to the application of a security deposit, the finance director shall serve upon the depositing operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing 508-10 Ordinance No, NS-XXX Page 9 of 14 . . . operator at his hotel. Any portion of the security remaining after satisfaction of I outstanding transiantoccupanc;y hotel visitor taxes, penalties, interest and costs of sale may be retained by the finance director for security or may be paid over by him to the depositing operator, (c) In the case of the transfer or cessation of business by the depositor, the finance director shall refund or release the security amount required pursuant to this section. upon depositor's presentåtion to the finance I director of either a receipt from the finance director showing that all tfaß&ieAt occupancy hotel visitor taxes, including any penalty, interest or other charges or costs outstanding, have been paid or a certificate of nonliability stating the I non liability of the depositor for payment of tmnsioAtessul"ancy hotel visitor tax as hereunder provided in section 35-140, ' Section 10. Section 35-140 of the Santa Ana Municipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35.140, Transfer or cessation of business; operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's liability; certificate of non liability. ' (a) Operator's duty to notify. An operator who is transferring, selling or terminating his business shall notify the finance director in writing of such sale, transfer or termination and the name and address of the purchaser or transferee at least thirty (30) days in advance of the date of the transfer, sale or termination, unless the decision to sell, transfer or terminate was made within less than a thirty-day period prior to the transfer, sale or termination, in which case the operator shall then immediately notify the purchaser or transferee of their responsibility for unpaid taxes as set forth in subsections (c) and (d) below, and further certify in writing to the finance director that the tran~eree or purchaser was notified of the requirements of this article regarding its responsibility for unpaid collected taxes. (b) Remitting and reporting raquiraments. Each operator upon the transfer or cessation of business for any reason shall, on or before the last day of the next month following the transfer or cessation of business, make a return to the finance director on approved forms of the total taxable rents charged, the amount of tax collected for the reporting period, remittances made, if any, and the balance of the tax due, if any, shall be remitted to the finance director. (c) Closeout audit. After filing the final retum and remitting the balance due, the operator shall make his records of account available for a closeout audit by the finance director or duly authorized employee or agent of the city. If, upon audit by the city, the operator transferring or quitting his business is found to I have satisfied all tfaß&ieAt essul"ancy hotel visitor liability, the finance director Ordinance No. NS-XXX Page 10 of14 508-11 shall issue to such operator a certificate of non liability stating the non liability of the operator for payment of tRansient OGGU 33Acy hotel visitor taxes. If, upon audit I by the city, the operator transferring or quitting his business is deficient in either his return or his remittance or both, the finance director shall immediately assess such operator the amount of the net deficiency in accordance with section 35-132 above, Upon such operator's remittance of the deficient amount plus any penalty and interest assessed, the finance director shall issue a certificate of nonliability. (d) Successor's duty to notify. If an operator who is liable for any tr-aRsientocGupSRGY hotel visitor taxes, penalties or interest under this article sells I or otherwise transfers his business, his assignee or successor in interest shall notify the finance director of the date of the sale or transfer at least thirty (30) days before the date of the sale or transfer, If the decision to sell or transfer was made within less than a thirty-day period prior to the sale or transfer, the assignee or successor in interest shall notify the finance director immediately and shall withhold an amount equal to the accrued or outstanding tmAsieRt I occupancy hotel visitor tax liability of the operator until the transferring operator produces either a receipt from the finance director showing that the tax, including any penalty, interest or other charge or cost outstanding, has been paid or a certificate of nonliability stating the non liability of the operator for payment of tfaß&ieAt eSGU 33AGy hotel visitor tax. If the transferor does not present a receipt or notice of nonliability within thirty (30) days after such sale or transfer after such assignee or successor commences to conduct business, the assignee or successor shall deposit the withheld amount with the finance director pending settlement of the account of the transferor, (e) Successor's liability. If the assignee or successor in interest fails to withhold the amount required to satisfy the tax liability, he shall become personally liable for the payment of the amount required to be withheld by him and shall be subject to penalty and interest charges as set forth in section 35- 132. ' (f) Certificate of nonliabi/ity. Within thirty (30) days from the receipt of the application of any operator for a certificate of nonliability for the payment of tfaß&ieAt oc0u 3ancy hotel visitor taxes, the finance director after conducting an audit therefor shall issue the certificate if the operator's tax, liability has been satisfied to the date of the application. If tax has accrued to that date, the finance director shall give notice to the operator of the amount which must be paid as a condition of issuing the certificate. ,Section 10, Section 35-141 of the Santa Ana MI,micipal Code is hereby amended such that it reads as follows (new language in bold, deleted language in strikeout) Sec. 35-141. Additional powers and duties oftax administrator, etc. 508-12 Ordinance No. NS-XXX Page110f14 . . . (a) The finance director shall have the power and duty to enforce this article and shall have the power to adopt rules and regulations not inconsistent with the provisions of this article for the purpose of carrying out and enforcing the payment, collection and remittance of the taxes herein imposed, A copy of all such rules and regulations adopted by the finance director shall be maintained on file in the offices of the finance director. Where uncertainty exists regarding the interpretation of any provision of this article or its application to a specific hotel, I operator or tfaß&ieAt hotel visitor, the finance director shall determine the intent of the provision. Such determination shall take the form of a written memorandum of intent. A copy of all such memoranda issued by the finance director shall be maintained on file in the offices of the finance director. (b) The finance director shall have the further power, for good cause shown, to extend the time for filing any required report and remitting any taxes collected for thirty (30) days; and shall have the further power, for good cause shown, to waive or release any cash deposit, bond, barikshare, lien, or other security required and to compromise any claim as to any penalty imposed or charge demanded. '(c) The finance director may with the consent and approval of the city attorney enter into written agreements with persons liable for the payment of delinquent taxes, penalties and interest, in monthly installments, or more often, extending over a period not exceeding one (1) year. In any' agreement so entered into, such person shall acknowledge the obligation owed the city and agree that, in the event of failure to make timely payment of any installment, the whole amount unpaid, principal together with interest, shall become immediately due and payable. In the event legal action is brought by the city to enforce collection of any amount included in the agreement, such person shall pay all costs of suit incurred by the city or its assignee, including attomey fees, The execution of such an agreement shall not prevent the prior accrual of penalties and interest on unpaid balances at the rate provided hereinabove, but no penalties or additional interest shall accrue as hereinafter provided on account of taxes included in the agreement after the execution of the agreement and the payment of the first installment and during such time as such operator shall not be in breach of the agreement. The execution of such an agreement shall render any subsequent appeal null and void and shall constitute a waiver against future action. (d) In addition to all other authority conferred upQn him, the finance director, upon the concurrence of the city attorney, shall have the authority to discontinue the collection of any claim if it appears that further proceedings would be without merit. Section 6. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision , of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana Ordinance No, NS-XXX Page 12 of14 508-13 hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this - day of ,2001. Miguel A, Pulido Mayor, APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: (name)- City Attomey AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-2648 to be the original ordinance adopted by the 508-14 Ordinance No. NS-XXX Page 13 of 14 . . . City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 508-15 Ordinance No, NS-XXX Page 14 of14