Ordinance 1997-09ORDINANCE NO. 97-9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING CHAPTER 25A OF THE GILROY
CITY CODE TO INCLUDE RECREATIONAL VEHICLE
PARKS AMONG THE BUSINESSES THAT ARE REQUIRED
TO COLLECT AND REMIT THE CITY'S TRANSIENT
OCCUPANCY TAX AND TO IMPOSE SUCCESSOR' S
LIABILITY FOR THE CITY'S TRANSIENT OCCUPANCY
TAX
WHEREAS, Chapter 25A of the Gilroy City Code imposes a
Transient Occupancy Tax (~TOT Tax")and requires hotels to collect
the TOT Tax and remit the TOT Tax to the City; and
WHEREAS, state law has been amended to allow
municipalities to include recreational vehicle parks among those
businesses that are obligated to collect and remit TOT Taxes; and
WHEREAS, it is the intent of the City Council to
include recreational vehicle parks among those businesses that are
obligated to collect and remit TOT Taxes as allowed by state law;
and
WHEREAS, City Code Chapter 25A does not specify that a
person purchasing a business that is obligated to collect and
remit the TOT Tax must also assume the obligation for past due
taxes and penalties that may be existing at the time of the sale
as is permitted by state law; and
WHEREAS, it is the intent of the City Council to
clarify that the obligation for past due TOT Taxes and penalties
is to be assumed by the successor business owner;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
The definition of ~Hotel" in Section 25A.1 of the City Code
is amended to add the phrase "any recreational vehicle park, or"
so that the section reads in its entirety as follows:
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71-092204706038 ORDINANCE 97- 9
Hotel. "Hotel" means any recreational
vehicle park, or any structure, or any
portion of any structure, which is occupied
or intended or designed for occupancy by
transients 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.
SECTION II
Section 25A.4-1 is added to the City Code, which new section
shall read in its entirety as follows:
Sec. 25A.4-1 Successor of Operator's duties
If an operator who is liable for any taxes or
penalties under this Chapter sells his hotel,
his successor shall withhold a sufficient
portion of the purchase price to equal the
amount of such tax or penalty, for payment to
the city, until the selling operator produces
a receipt from the city showing that the tax
or penalty has been paid or a tax clearance
certificate from the city stating that no tax
or penalty is due. If the selling operator
does not present a receipt or tax clearance
certificate within thirty (30) days after
such successor commences to conduct business,
the successor shall deposit the withheld
amount with the city as payment, pending any
settlement of the account of the selling
operator.
If the successor to the operator fails
to withhold a portion of the purchase price
as required, it shall be liable to the city
for the payment of the amount required to be
withheld and any penalty. Within thirty (30)
days after receiving a written request from
the successor for a tax clearance certificate
stating that no tax or penalty is due, the
city shall either issue the certificate or
mail notice to the successor at its address
as it appears on the records of the city of
the estimated amount of tax and penalty that
must be paid as a condition of issuing the
certificate.
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71~92204706038 ORDINANCE 97- 9
SECTION III
If any section, subsection, subdivision, sentence, clause,
phrase or word of this Chapter is for any reason held to be
invalid by a court of competent jurisdiction, such decision shall
not affect the validity of the remaining portions of this
ordinance. The City Council hereby declares that it would have
adopted this ordinance and each and every provision herein,
irrespective of the possibility that one or more provisions might
be declared invalid.
This ordinance shall take effect and be in full force
thirty days from and after its adoption and approval.
PASSED AND ADOPTED this 20th day of October, 1997 by
the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLISON,
SPRINGER
COUNCILMEMBERS: NONE
COUNCILMEMBERS: NONE
APPROVED :__
Pete/valdez, Jr.,
Mayor Pro Tem
ATTEST
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71-092204706038 ORDINANCE 9 7 - 9
I, RHONDA PELL1N, City Clerk of the City of Gilroy, do hereby certify that the attached
Ordinance No. 97-9 is an original ordinance, duly adopted by the Council of the City of Gilroy at
a regular meeting of said Council held on the 20th day of October, 1997, at which meeting a
quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 27th day of October, 1997.
City Clerk of the City of Gilroy
(Seal)