Title 3 REVENUE AND FINANCE

Chapter 3.04 FISCAL PROVISIONS GENERALLY

3.04.010 Investment of city moneys and deposit of securities.

Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer.

3.04.020 Authorized investments.

Pursuant to the delegation of authority in Section 3.04.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601, 53635 and 53735.5 of the Government Code, as the sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased.

3.04.030 Sales of securities.

From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury.

3.04.040 City bonds.

Bonds issued by the city and purchased pursuant to this chapter may be canceled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held unconcealed and while so held may be resold.

3.04.050 Reports.

The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter.

3.04.060 Deposits of securities.

Pursuant to the delegation of authority in Section 3.04.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with the section, the city treasurer shall take from such institution or depository a receipt for the securities so deposited and shall not be responsible for such securities delivered to and receipted for by such institution or depository until they are withdrawn therefrom by the city treasurer.

3.04.070 Trust fund administration.

Any departmental trust fund established by the council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Sections 36523 and 36524 of the Government Code and any other applicable provisions of law.

3.04.080 Codification of debts to the city.

(A) The amount on any fee, service charge, utility charge, license, or tax of any nature whatsoever imposed by this code or by any other resolution, ordinance, rule, regulation or in any other fashion by the city shall be deemed a civil debt owing to the city.

(B) An action may be commenced in the name of the city in any court of competent jurisdiction for the collection of the amount of any such delinquent or unpaid ft, service charge, utility charge, license, or tax, together with any penalties applicable thereto as prescribed by this code or any other enactment.

(C) Such action may also be commenced for the collection of any other amount or debt determined to be due the city on account of any contractual obligation or on account of any tortious act or conduct by person.

(D) The remedy prescribed by this section shall be cumulative, and the use of an action to collect such an amount as a debt by civil action shall not bar the use of any other remedy provided by this code or any law for the purpose of enforcing the provisions thereof.

3.04.090 Assessment and collection of city taxes by county.

Pursuant to, and in compliance with Section 51501 of the Government Code of the state, the assessment and tax collection duties which otherwise might he performed by a city assessor and tax collector are transferred to the assessor and tax collector of the county.

Chapter 3.08 CLAIMS AGAINST THE CITY

3.08.010 Claims for money or damages.

As a prerequisite to bringing suit thereon against the city or any officer, department, commission or board of the city, any claim for money or damages (including claims which would otherwise be excepted by Section 905 of the Government Code of California) which is not governed by any other statutes or regulations expressly relating thereto, shall be presented and acted upon in accordance with Title 1, Division 3.6, Part 3, Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910), of the Government Code of California. This section shall relate only to the bringing of suit upon any claim, and shall not be deemed to apply to the authority of the director of finance and general services, the council, and other officers to process and pay, in the ordinary course of business, the just obligations of the city, such as routine salaries and wages, principal and interest on bonds, payments of purchases, and other like expenditures for which there is an express budget appropriation, and in connection with which there is no dispute as to the obligation and amount being payable.

3.08.020 Auditing prerequisite to payment.

No payment shall be made from the city treasury or out of the funds of the city unless the demand which is to be paid is duly audited as prescribed herein or by other provisions of law.

3.08.030 Forms—Blanks for demands.

Claim against the city shall be paid on demands on the treasury as herein provided on forms to be prescribed by the director of finance and general services.

3.08.040 Departmental approval of claims.

Except for tort claims, every claim and demand received against the city shall be first presented to and approved in writing by the receiving department or office, which shall certify to the actual delivery or rendition of the supplies, materials, property or service for which payment is claimed; that the quality and prices correspond with the original specifications and contracts, if any, upon which the claim is based; that the demand in all other respects is proper and valid, and which shall further indicate the budgetary account to which said demand is to be charged.

3.08.050 Approval by director of finance and general services.

Each demand approved by the receiving department or office shall be presented to the director of finance and general services who shall satisfy himself whether:

(A) The claim is legally due and owing by the city;

(B) There are budgeted or otherwise appropriated funds available to pay the claim;

(D) The prices and computations shown on the claim are verified;

(E) The claim contains the approval of other departments and officials as required.

3.08.060 Approval of claims under Section 57384 of the Government Code.

Claims submitted by the county under Section 57384 of the Government Code for services furnished during the remainder of fiscal year 1991-92 shall be paid in accordance with the provisions of the section. Such claims shall be in compliance with all provisions of Section 57384 of the Government Code and shall be accompanied by itemized statements regarding the actual delivery of the supplies, materials, property or service for which payment is claimed, including any and all indirect charges constituting a portion of the claim.

3.08.070 Prepayment of demands.

(A) Prepayment of demands prior to audit by the finance committee and the council may be made by the director of finance and general services in conformity with the authority provided by Section 37208 of the Government Code of the state.

(B) Whenever the director of finance and generally services determines that a refund is due of fees, taxes or other receipts collected in error or in advance of being earned, or of money the refund of which is otherwise due pursuant to specific provisions of this code or of any other ordinance of this city, they any such refund shall be deemed as conforming to the currently approved budget, and may be prepaid in the same fashion as other demands encompassed within the terms of subsection (A) of this section.

3.08.080 Register of demands.

Following audit of demands of the director of finance and general services shall prepare a register of audited demands showing the claimant's name, amount of demand, the warrant number and date thereof, and transmit said register to the city manager for his review and presentation to the finance committee and the council, with his approval or other report.

3.08.090 City council approval.

The register of demands shall be presented to the council at the next regular meeting thereof. The council may by resolution approve, conditionally or partially approve or reject such register of demands and in connection therewith consider the recommendations of the finance committee and the city manager.

3.08.100 Record of approved demands.

Following approval of the register of demands by the council, the chairperson of the finance committee and the city manager shall endorse the resolution approving the register of audited demands to signify there was proper processing of demands therein before the council took action.

Chapter 3.12 PURCHASING SYSTEM [Repealed]

3.12.010 Adoption of purchasing system. [Repealed]

Repealed.

3.12.020 Centralized purchasing division. [Repealed]

Repealed.

3.12.030 Purchasing agent. [Repealed]

Repealed.

3.12.040 Purchasing regulations. [Repealed]

Repealed.

3.12.050 Exemptions from centralized purchasing. [Repealed]

Repealed.

3.12.060 Estimates of requirements. [Repealed]

Repealed.

3.12.070 Requisitions. [Repealed]

Repealed.

3.12.080 Purchase orders. [Repealed]

Repealed.

3.12.090 Encumbrance of funds. [Repealed]

Repealed.

3.12.100 Inspection and testing. [Repealed]

Repealed.

3.12.110 Bidding. [Repealed]

Repealed.

3.12.120 Formal (sealed) bid procedures. [Repealed]

Repealed.

3.12.130 Notice inviting formal bids. [Repealed]

Repealed.

3.12.140 Published notice for formal bids. [Repealed]

Repealed.

3.12.150 Approved vendors list. [Repealed]

Repealed.

3.12.160 Bulletin board notice. [Repealed]

Repealed.

3.12.170 Bidder's security. [Repealed]

Repealed.

3.12.175 Other formal bond requirements. [Repealed]

Repealed.

3.12.180 Formal bid opening procedure. [Repealed]

Repealed.

3.12.190 Rejection of formal bids. [Repealed]

Repealed.

3.12.200 Award of formal bid contracts. [Repealed]

Repealed.

3.12.210 Tie formal bids. [Repealed]

Repealed.

3.12.215 No formal bids. [Repealed]

Repealed.

3.12.230 Open market or informal bid procedure. [Repealed]

Repealed.

3.12.240 Minimum number of informal bids. [Repealed]

Repealed.

3.12.250 Notice inviting informal bids. [Repealed]

Repealed.

3.12.260 Record of informal bids. [Repealed]

Repealed.

3.12.270 Exceptions to competitive bidding requirement. [Repealed]

Repealed.

3.12.275 Local business preference policy. [Repealed]

Repealed.

3.12.280 Regulation re selection of contract services. [Repealed]

Repealed.

3.12.300 Surplus supplies and equipment. [Repealed]

Repealed.

3.12.310 Surplus supplies—Trade-ins. [Repealed]

Repealed.

3.12.320 Surplus supplies—Sale. [Repealed]

Repealed.

Chapter 3.16 REAL PROPERTY TRANSFER TAX

3.16.010 Short title—Adoption.

This chapter shall be known as the Real Property Transfer Tax Ordinance of the city. It is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the state.

3.16.020 Imposition—Rates.

There is imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rate of twenty-seven and one-half cents for each five hundred dollars or fractional part thereof.

3.16.030 Payment.

Any tax imposed pursuant to Section 3.16.020 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

3.16.040 Tax inapplicable to instruments in writing to secure debts.

Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt.

3.16.050 Government and its agencies not liable.

Any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof is a party shall be exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title.

3.16.060 Tax inapplicable to instruments and writings taken in lieu of foreclosure.

Any tax imposed pursuant to this chapter shall not apply to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of, or in lieu of foreclosure. However, the tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. In addition, the amount and nature of the consideration, amount of the unpaid debt and identification of the grantee as a beneficiary or mortgagee shall be noted on any deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury.

3.16.070 Tax inapplicable to instruments dividing property assets between spouses.

Any tax imposed pursuant to this chapter shall not apply to any deed, instrument or other writing which purports to transfer, divide, or allocate community, quasi-community or quasi-marital property assets between spouses for the purpose of dividing such property, provided that it is required by a judgment decreeing a dissolution of the marriage or legal separation or by any other judgment or order rendered pursuant to the California Family Code, or by a written agreement between the spouses executed in contemplation of any such judgment or order. However, the exemption shall not apply unless the deed, instrument or other writing includes a written recital, signed by either spouse, stating that the deed, instrument or other writing is entitled to the exemption.

3.16.080 Tax inapplicable to certain instruments of the state, political subdivision and agencies.

Any tax imposed pursuant to this chapter shall not apply to any deed, instrument or other writing by which the state of California, any political subdivision thereof, or any agency or instrumentality of either the state or a political subdivision conveys to a nonprofit corporation realty, where the acquisition, construction or improvement of the real property was financed or refinanced by obligations issued by the nonprofit corporation on behalf of a government unit, within the meaning of Section 1.103-1(b) of Title 26 of the Code of Federal Regulations.

3.16.090 Tax inapplicable to conveyances to make effective plan of reorganization or adjustment.

(A) Any tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

(1) Confirmed under the Federal Bankruptcy Act, as amended;

(2) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (m) of Section 205 of Title 11 of the United States Code, as amended; or

(3) Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of Section 506 of Title 11 of the United States Code, as amended; or

(4) Whereby a mere change in identity, form or place or organization is effected.

(B) Subsections (A)(1) through (4), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.

3.16.100 Tax inapplicable to make effective order of Securities and Exchange Commission.

Any tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:

(A) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79K of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;

(B) Such order specifies the property which is ordered to be conveyed;

3.16.110 Partnerships.

(A) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:

(1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and

(2) Such continuing partnership continues to hold the realty concerned.

(B) If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this chapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien of encumbrances remaining thereon), all realty held by such partnership at the time of such termination.

(C) Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection B of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of termination.

3.16.120 Tax roll parcel number requirements.

(A) Each deed, instrument or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed shall have noted upon it the tax roll parcel number. The number will be used only for administrative and procedural purposes and will not be proof of title and in the event of any conflicts, the stated legal description noted upon the document shall govern.

(B) The validity of such a document shall not be affected by the fact that such parcel number is-erroneous or omitted, and there shall be no liability attaching to any person for an error in such number or for omission of such number. The recorder shall not accept any deed, instrument or conveyance for recording unless the tax roll parcel number has been noted upon it. A parcel which has been created by the division of an existing parcel and which at the time of recording has no separate parcel number shall have noted upon it the words "portion of" and the parcel number of the parcel from which it was created.

3.16.130 Administration.

The county recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto.

3.16.140 Claims for refund.

Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the State of California.

Chapter 3.20 SALES AND USE TAX

3.20.010 Short title.

This chapter shall be known as the Uniform Local Sales and Use Tax Ordinance.

3.20.020 Rate.

The rate of sales tax and use tax imposed by this chapter shall be one percent.

3.20.030 Operative date.

"Operative date" means the first day of the first calendar quarter following the adoption of the ordinance codified in this chapter.

3.20.040 Purpose.

The council declares that this chapter is adopted to achieve the following, among other, purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those purposes:

(A) To adopt a sales and use tax chapter which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;

(B) To adopt a sales and use tax chapter which incorporates provisions identical to those of the Sales and Use Tax Law of the state of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;

(C) To adopt a sales and use tax chapter which imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adopts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes;

(D) To adopt a sales and use tax chapter which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter.

3.20.050 Contract with state.

Prior to the operative date this city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax chapter; provided, that if this city shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this chapter.

3.20.060 Sales tax.

For the privilege of selling tangible personal property at retail a tax is imposed upon all retailers in the city at the rate stated in Section 3.20.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date.

3.20.070 Place of sale.

(A) For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination.

(B) The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made.

(C) In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

3.20.080 Use tax.

An excise tax is imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate stated in Section 3.20.020 of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

3.20.090 Adoption of provisions of state law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth in this chapter.

3.20.100 Limitations on adoption of state law.

(A) In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor.

(B) The substitution, however, shall not be made when the word "State" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury, or the Constitution of the state of California; the substitution shall not be made when the result of that substitution would require action to be taken by or against the city or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the provisions of that code; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be made for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 or in the definition of that phrase in Section 6203.

3.20.110 Permit not required.

If a seller's permit has been issued to a retailer under Section 6068 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this chapter.

3.20.120 Exclusions.

There shall be excluded from the measure of tax:

(A) The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;

(B) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state;

(C) The gross receipts from the sale of tangible personal property to operators or aircraft to be used or consumed principally outside this city and to be used or consumed in the use of the aircraft as a common carrier under the authority of the laws of this state, the United States or any foreign government;

(D) In addition to the exemptions provided in Revenue and Taxation Code Section 6366 and 6366.1, storage, use, or other consumption of tangible personal property purchased by operators or aircraft to be used or consumed by the operators in the use of the aircraft as a common carrier under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government.

3.20.130 Amendments.

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become apart of this chapter.

3.20.140 Enjoining collection forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or this city, or against any officer of the state or this city, to prevent or enjoin the collection under this chapter, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3.20.150 Violation—Penalty.

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

Chapter 3.24 TRANSIENT OCCUPANCY TAX

3.24.010 Short title.

The short title of this chapter shall be the Transient Occupancy Tax Ordinance.

3.24.020 Definitions.

Except where the context otherwise requires, the definitions given in this section shall govern the construction of this chapter:

"Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for use or occupancy by transients, including but not limited to dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, timeshare project or facility, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof, duplex, triplex, single-family dwelling units except any private dwelling house or other individually owned single-family dwelling house unit rented only occasionally (infrequently) and incidentally to the normal occupancy by the owner or his family; provided that the burden of establishing that the housing or facility is a hotel as defined herein shall be upon the owner or operator thereof who shall file with the tax administrator such information as the tax administrator may require, to establish and maintain such status.

"Occupancy" means the use or possession, or the right or entitlement to the use or possession, of any hotel, room, rooms or any portion thereof offered for rent to be used or occupied for dwelling, lodging or sleeping purposes regardless of the purpose for which such rooms are rented or provided.

"Operator" means the person who is proprietor of the hotel whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee, timeshare project or facility manager or operator, or in any other capacity. Where the operator performs his or its functions through a managing agent of any type or character, the managing agent shall also be deemed an operator for the purpose of this chapter, and shall have jointly and severally the same duties and liabilities as the principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be in compliance by both.

"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.

"Rent" means the amount of the consideration charged or chargeable to the tenant or person entitled to occupancy, for the occupancy of space, valued in money whether received in money, goods, labor or otherwise, including the full value of receipts, cash, credits, property or services of any kind or nature, without any deduction whatsoever. "Rent" may have been, or may be in part, payable or paid prior to or following (in whole or in part) the occupancy to which it is attributable, and may have been paid in whole or in part in advance on a long-term basis, such as in a time-share project or similar arrangement. It is not the intent of this subsection to make the operator liable for the tax on uncollected rent. However, uncollected rent must be reported.

"Tax administrator" means the city manager or his designated agent, whether a city employee or county officer or employee.

"Time-share occupancy" means occupancy related to the situation wherein a purchaser receives the right or entitlement in perpetuity, for life, or for a term of years or other extended term, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, room(s), hotel or portion thereof, or segment of real property, annually or on some other seasonal or periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the time-share project which is involved has been divided. The said right or entitlement to occupancy may attach in advance to a specific lot, parcel, unit, room(s), or portion of a hotel, or segment of real property, or may involve designation or selection of the same at a future time or times.

"Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, timeshare arrangement or ownership or agreement, or other agreement of whatever nature, for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any person so occupying space in a hotel shall be deemed to be a transient if his actual total period of occupancy does not exceed thirty days. Unless day of occupancy or entitlement to occupancy by one person are consecutive without any break, then prior or subsequent periods of such occupancy or entitlement to occupancy shall not be counted when determining whether a period exceeds the stated thirty calendar days.

3.24.030 Tax imposed.

(A) For the privilege of occupancy in any hotel, each transient is subject to, and shall pay, a tax in the amount of twelve percent of the rent charged by the operator or otherwise payable by the transient. Insofar as the transient is concerned, the tax constitutes a debt owed by the transient to the operator or to the city.

(B) For the purposes of this section, the rent deemed payable on account of time-share occupancy by a transient shall be the rental value of the unit or room(s) which accommodated such occupancy, which rental value shall be computed by determining the pro rata share of the total purchase price of the time-share right or entitlement (whether or not involving an estate or any ownership in real property), which share is allocable to the period of transient occupancy currently involved, and adding thereto the total applicable operating costs including, but not limited to, the applicable real and personal property taxes, plus the total amount of any and all fees, assessments, charges and expenses (not including the previously referred to taxes) charged by the operator as attributable to the time-share occupancy of the transient by whatever name such fees, assessments, charges or expenses may be denominated, whether "occupying fee," "maintenance or operations charge," "per diem fee," "management fee" or like name or otherwise.

(C) In making the computation referred to above of the pro rata share of the total purchase price, in any case wherein the time-share right or entitlement is in perpetuity or for life or otherwise not for a definite or ascertainable term, such pro ration shall be made upon an assumed term of forty years.

3.24.040 Exemptions.

(A) No tax shall be imposed upon:

(1) 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;

(2) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

(B) No exemptions shall be granted except upon a claim therefor made at the time the rent is collected and under penalty or perjury upon a form prescribed by the tax administrator.

3.24.050 Operator's duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of the tax shall be separately stated from the amount of the rent charged. 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.

3.24.060 Registration.

(A) Every person desiring to engage in or conduct business as operator of a hotel renting to transients within the city shall file with the tax administrator an application for a transient occupancy registration permit for each place of business. Every application for such a permit shall be made upon a form prescribed by the tax administrator and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place of business and such other information as the tax administrator may require. The application shall be signed by the owner if a natural person, if a member or partner, if an association or partnership, by an executive officer or some person specifically authorized by the corporation to sign the application in the case of a corporation. The transient occupancy registration permit must be in effect at all times while the business is in operation and shall be at all times posted in a conspicuous place on the premises. The permit shall, among other things, state the following:

(1) Name of hotel;

(2) Name of operator;

(3) Hotel address;

(4) The date upon which the permit was issued;

(5) "This Transient Occupancy Registration Permit signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Chapter by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This Permit does not authorize any person to conduct any unlawful business in an unlawful manner, nor operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This Permit does not apply in lieu of such other permits which are otherwise required."

(B) At the time of making an application for a

registration permit, the applicant shall pay a registration fee of five dollars for each permit issued.

3.24.070 Returns and remittances.

The tax imposed under Section 3.24.030 is:

(A) Due to the tax administrator at the time it is collected by the operator; and

(B) Becomes delinquent and subject to penalties if not received by the tax administrator on or before the last working day of the month following the close of each calendar month.

3.24.080 Reporting and remitting.

(A) Each operator shall, on or before the last working day of the month following the close of each calendar month, file a return with the tax administrator on the forms provided by him, of the total rents charged or chargeable as provided in Section 3.24.030, whether or not received, including any rentals charged for occupancies exempt under the provisions of Section 3.24.020(G) and 3.24.040 and the amount of tax collected for transient occupancies.

(B) Each such return shall contain a declaration under penalty of perjury, executed by the operator or his authorized agent, that to the best of the signator's knowledge, the statements in the return are true, correct and complete. Amounts claimed on the return as exempt from the tax pursuant to Section 3.24.020(G), 3.24.040 and 3.24.150 shall be fully itemized and explained on the return or supporting schedule. In determining the amount of "taxable receipts" on the tax return, "rent" as defined in Section 3.24.020(E), may not be reduced by any business expenses including but not limited to the amount of service charges deducted by credit card companies or commissions paid to travel agencies.

(C) At the time the return is filed, the tax filed at the prevailing transient occupancy tax rate for the amount of rentals charged or chargeable, which are not exempt from tax under Sections 3.24.020(G), 3.24.040 and 3.24.150 shall be remitted to the tax administrator. The tax administrator may establish other reporting periods and may require a cash deposit or bond or a separate trust fund bank account for any permit holder if he deems it necessary in order to insure collection of the tax and he may require further information in the return. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until remittance thereof is made to the tax administrator.

3.24.090 Cessation of business.

Each operator shall notify the tax administrator, ten days prior to the sale or cessation of business for any reason and returns and remittances are due immediately upon the sale or cessation of business.

3.24.100 Delinquency.

Any operator who fails to remit any tax to the city or any amount of tax required to be collected and remitted to the city including amounts based on determination made by the tax administrator under Section 3.24.120, within the time required, shall pay a penalty of ten percent of the tax or amount of the tax in addition to the tax or amount of tax plus interest at the rate of one-half percent per month, or fraction thereof, from the date on which the tax or the amount of any tax required to be collected becomes delinquent until the date of remittance or payment. Any operator who fails to pay any penalty imposed under this section within ten days after receipt of notice thereof shall pay interest thereon at the rate of one-half of one percent per month, or fraction thereof from the date on which the penalty becomes due and payable to the city until the date of payment.

3.24.110 Fraud.

If the tax administrator determines that the failure to make any remittance or payment due under this chapter is due to fraud, a penalty on one hundred percent of the amount of the tax and penalties shall be added thereto in addition to the penalties stated in Section 3.24.100.

3.24.120 Failure to collect and report tax—Determination of tax administrator.

(A) If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the tax administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due.

(B) As soon as the tax administrator procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter payable by any operator who has failed or refused to collect the same and make such report and remittance, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter.

(C) In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable.

(D) If such application is made, the tax administrator shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed.

(E) After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of the determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.24.130.

3.24.130 Appeal.

Any operator aggrieved by any decision of the tax administrator with respect to the amount of any tax, interest and penalties, if any, may appeal to the council by filing a notice of appeal with the city clerk within fifteen days of serving of the assessment or determination of tax and penalties, if any, due. The council shall fix a time and place for hearing the appeal, and the city clerk shall give notice in writing to the operator at his last known address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

3.24.140 Records.

It shall be the duty of every operator liable for the collection and remittance to the city of any tax imposed by this chapter to keep and preserve, in the city, for a period of three years, records in such form as the tax administrator may require to determine the amount of such tax. The tax administrator shall have the right to inspect such records at all reasonable times and may subpoena the records of any operator who refuses to make them available for examination.

3.24.150 Refunds.

(A) 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 chapter, it may be refunded as provided in subsections B and C of this section, provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within three years of the date of payment. The claims shall be on forms furnished by the tax administrator.

(B) 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 tax administrator that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the person or credited to rent subsequently payable by the person to the operator.

(C) A transient may obtain a refund of taxes overpaid or paid more than once erroneously or illegally collected or received by the city by filing a claim in the manner provided in subsection A of this section, but only when the tax was paid by the transient directly to the tax administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the tax administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records.

3.24.160 Revocation of permit.

(A) Whenever any operator fails to comply with any provision of this chapter relating to occupancy tax or any rule or regulation of the tax administrator relating to occupancy tax prescribed and adopted under this chapter, the tax administrator upon hearing, after giving the operator ten days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may suspend or revoke any one or more of the permits held by the operator.

(B) The tax administrator shall give to the operator written notice of the suspension or revocation of any of his permits. The notices in this chapter required may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The tax administrator shall not issue a new permit after the revocation of a permit unless he is satisfied that the former holder of the permit will comply with the provisions of this chapter relating to the occupancy tax and regulations of the tax administrator.

3.24.170 Closure of hotel without permit.

During any period of time during which a permit has not been issued, or is suspended, revoked or otherwise not validly in effect, the tax administrator may require that the hotel be closed.

3.24.180 Recording certificate—Lien.

(A) If any amount required to be remitted or paid to the city under this chapter is not remitted or paid when due, the tax administrator may, within three years after the amount is due, file for record in the office of the county recorder a certificate specifying the amount of tax, penalties and interest due, the name and address as it appears on the records of the tax administrator of the operator liable for the same and the fact that the tax administrator has complied with all provisions of this chapter in the determination of the amount required to be remitted and paid.

(B) From the time of the filing for record, the amount required to be remitted together with penalties and interest constituting a lien upon all real property in the county owned by the operator or afterwards and before the lien expires acquired by him. The lien has the force, effect and priority of a judgment lien and shall continue for ten years from the time of filing of the certificate unless sooner released or otherwise discharged.

3.24.190 Priority and lien of tax.

(A) The amounts required to be remitted and/or paid by any operator under this chapter with penalties and interest shall be satisfied first in any of the following cases:

(1) Whenever the person is insolvent;

(2) Whenever the person makes a voluntary assignment of his assets;

(3) Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased;

(4) Whenever the estate and effects of an absconding, concealed or absent person required to pay any amount under this chapter are levied upon by process law. This chapter does not give the city a preference over any recorded lien which attached prior to the date when the amounts required to be paid became a lien.

(B) The preference given to the city by this section shall be subordinate to the preferences given to claims for personal services by Sections 1204 and 1206 of the Code of Civil Procedure.

3.24.200 Warrant for collection of tax.

(A) At any time within three years after any operator is delinquent in the remittance or payment of any amount herein required to be remitted or paid or within three years after the last recording of a certificate under Section 3.24.160, the tax administrator may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the city under this chapter.

(B) The warrant shall be directed to any sheriff, marshal, or constable and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner with the same effect as a levy of and a sale pursuant to a writ of execution. The tax administrator may pay or advance to the sheriff, marshal, or constable the same fees, commissions and expenses for his services as are provided by law for similar services pursuant to a writ of execution. The tax administrator, and not the court, shall approve the fees for publication in a newspaper.

3.24.210 Seizure and sale.

At any time within three years after any operator is delinquent in the remittance or payment of any amount, the tax administrator may forthwith collect the amount in the following manner. The tax administrator shall seize any property, real or personal, of the operator and sell the property, or a sufficient part of it, at public auction to pay the amount due together with any penalties and interest imposed for the delinquency and any costs incurred on account of the seizure and sale. Any seizure made to collect occupancy taxes due shall be only of property of the operator not exempt from execution under the provisions of the Code of Civil Procedure.

3.24.220 Successor's liability—Withholding by purchase.

If any operator liable for any amount under this chapter sells out his business or quits the business, his successor or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the tax administrator showing that it has been paid or a certificate stating that no amount is due.

3.24.230 Liability of purchaser—Release.

If the purchaser of a hotel fails to withhold purchase price as required, he shall become personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within sixty days after receiving a written request from the purchaser for a certificate, or within sixty days from the date the former owner's records are made available for audit, whichever period expires the later, but in any event not later than ninety days after receiving the request, the tax administrator shall either issue the certificate or mail notice to the purchaser at his address as it appears on the records of the tax administrator of the amount that must be paid as a condition of issuing the certificate. Failure of the tax administrator to mail the notice will release the purchaser from any further obligation to withhold purchase price as above provided. The time within which the obligation of the successor may be enforced shall start to run at the time the operator sells his business or at the time that the determination against the operator becomes final, whichever event occurs the later.

3.24.240 Responsibility for payment.

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been remitted to the city is a fiduciary obligation of the operator to the city and collectible in the same manner as a debt. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount.

3.24.250 Withhold notice.

(A) If any person or operator is delinquent in the remittance or payment of the amount required to be remitted or paid by him or in the event a determination has been made against him for the remittance of tax and payment of the penalty, the city may, within three years after the tax obligation became due, give notice thereof personally or by registered mail to all persons, including the state or any political subdivision thereof, having in their possession or under their control any credits or other personal property belonging to the taxpayer.

(B) After receiving the withholding notice, the person so notified shall make no disposition of the taxpayer's credits, other personal property or debts until the city consents to a transfer or disposition or until sixty days elapse after the receipt of the notice, whichever expires earlier.

(C) All persons, upon receipt of said notice, shall advise the city immediately of all such credits, other personal property or debts in their possession, under their control or owing by them. If such notice seeks to prevent the transfer or other disposition of a deposit in a bank or other credits or personal property in the possession or under the control of the bank, to be effective the notice shall be delivered or mailed to the branch or office of such bank at which such deposit is carried or at which such credits of personal property is held.

(D) If any person so notified makes transfer or disposition of the property or debts required to be held hereunder during the effective period of the notice to withhold, he shall be liable to the city to the extent of the value of the release up to the amount of the indebtedness owed by the taxpayer to the city.

3.24.260 Violations—Misdemeanor.

(A) Except for failure of an operator to pay to the tax administrator taxes collected under this chapter which is punishable as a felony pursuant to Section 424 of the Penal Code, every violation of this chapter is a misdemeanor and punishable by a fine not exceeding five hundred dollars or imprisonment in the county jail for not more than six months or by both such fine and imprisonment.

(B) If such offense is not otherwise punishable as mentioned in subsection A of this section, any person wilfully failing to comply with, or knowingly violating, any of the provisions of this chapter shall be guilty of a misdemeanor.

(C) Any operator other person who wilfully fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the tax administrator, or who renders a false or fraudulent return or claim is guilty of a misdemeanor. Any person required to make, render, sign or verify any report or claim who wilfully makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor.

3.24.270 Extension of time.

The tax administrator, for good cause, may extend for not to exceed one month the time for making any return or paying any amount required to be paid under this chapter. The extension may be granted at any time, provided a request therefore is filed with the tax administrator within or prior to the period for which the extension may be granted. Any person to whom an extension is granted shall pay, in addition to the tax, interest at the rate of one percent per month or fraction thereof, from the date on which the tax would have been due without the extension until the date of payment.

3.24.280 Divulging of information forbidden.

It is unlawful for any person having an administrative duty under this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of the records of any operator or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to knowingly permit any return or copy thereof or any abstract or particulars thereof to be seen or examined by any person. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the amounts of any unpaid tax or amounts of tax, penalties and interest required to be collected.

3.24.290 Agreement with county.

The city is empowered to enter into a joint powers agreement with other cities and the county, and if such agreement or agreements can be made wherein central collection for the county is provided, then it shall be done upon approval of the council.

Chapter 3.28 SPECIAL GAS TAX STREET IMPROVEMENT FUND

3.28.010 Created.

To comply with the provisions of Sections 2113 of the Streets and Highways Code of California and to avail the city of its benefits of Sections 2015, 2106, 2107 and 2107.5 of the code, there is created in the city treasury a special fund to be known as the "Special Gas Tax Street Improvement Fund."

3.28.020 Moneys included.

All moneys received by the city from the state of California under the provisions of the Streets and Highways Code for the acquisition of real property or interests therein, or for engineering, or for the construction, maintenance and improvement of streets or highways by the city shall be paid into the fund.

3.28.030 Expenditures.

All moneys in the fund shall be expended exclusively for the purposes authorized by and subject to the provisions of the Streets and Highways Code of California.