MEETING DATE:
JANUARY 28, 2025
SUBJECT:
Title
RECEIVE DAY’S INN TRANSIENT OCCUPANCY TAX APPEAL FROM CITY CLERK, SET A HEARING BEFORE THE CITY COUNCIL TO CONSIDER PROPOSED ASSESSED PENALTIES, AND AUTHORIZE THE CITY MANAGER OR DESIGNEE TO RESCHEDULE SAID HEARING IN THE EVENT THE PARTIES MUTUALLY REQUEST A REVISED HEARING DATE AND TIME
Body
Recommendation
Recommendation
ACCEPT the Day’s Inn appeal notice of Transient Occupancy Tax filed in accordance of San Marcos Municipal Code 3.16, SCHEDULE a hearing before the City Council concerning said tax appeal, recommended to occur on February 25, 2025, at 3:00 pm, and AUTHORIZE the City Manager or designee to reschedule said hearing in the event the parties mutually request a revised hearing date and time.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Not applicable
Executive Summary
The Uniform Transient Occupancy Tax (TOT) Ordinance of the City of San Marcos was established by a vote of the people for the privilege of occupancy in any hotel. Each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator, as outlined in San Marcos Municipal Code (SMMC) 3.16.
Pursuant to SMMC Section 3.16.100, each hotel operator shall file a return and pay the full amount of the tax due on or before the last day of the month following the close of each calendar quarter. Pursuant to SMMC section 3.16.110, failure to pay the tax due within the time required will result in a 10% penalty of the tax due for the first 30 days late and an additional 10% penalty if delinquency continues over the 30 days.
SMMC section 3.16. 130, provides the right for hotel operators to appeal to the City Council the determination of tax penalty due. Operators have fifteen (15) days from the date of the Notice of Determination to file a written appeal with the City Clerk's office.
Discussion
On November 1, 2024, the Days Inn hotel operator paid the amount of $62,666.29 for the tax due on October 31, 2024, along with the interest of $10.44 for one day of delinquency. The 10% penalty amount due for the delinquency in the amount of $6,266.63 remained outstanding. The Notice of Determination dated November 5, 2024, from the Tax Administrator was provided to the hotel operator and stated that if no appeal request was timely filed, then the penalty amount of $6,266.63 must be paid on or before November 30, 2024. If payment was not received on or before November 30, 2024, then an additional 10% penalty will be assessed. Pursuant to SMMC section 3.16.150, any tax required to be paid to the City shall be deemed 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.
The hotel operator aggrieved by any decision of the Tax Administrator with respect to the amount of the tax, interest and penalties assessed pursuant to this chapter, if any, may appeal to the City Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. On November 11, 2024, the City received a notice of appeal the Days Inn operator Joe Lin with the required timeframe pursuant to SMMC 3.16.130. The City 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 place of address. The proposed hearing date agreed upon by all parties is Tuesday, February 25, 2025, at 3pm. The hearing will take place at San Marcos City Hall City Council Chambers located at 1 Civic Center Drive.
The findings of the City Council during the hearing shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this section for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice of findings.
Environmental Review
The activity performed under this action is not a “project” as defined under Section 15378 of the California Environmental Quality Act Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000 - 15387), and is therefore not subject to environmental review pursuant to Guidelines Section 15060(c)(3).
Fiscal Impact
The costs associated with the Uniform Transient Occupancy Tax Ordinance appeal hearings are budgeted in the approved Fiscal Year 2024- 25 budget.
Attachment(s)
Notice of Determination
Letter of Appeal-Days Inn
Prepared by: Phil Scollick, City Clerk
Reviewed by: Helen Holmes Peak, City Attorney
Approved by: Michelle Bender, City Manager