HomeMy WebLinkAboutOrdinance 610 - Lodging Tax CHAPTER VI—GENERAL REGULATIONS
ORDINANCE 610 LODGING TAX.................................................................................. 610-1
Section 610.01: PURPOSE......................................................................................... 610-1
Section 610.02: DEFINITIONS.................................................................................. 610-1
Section 610.03: IMPOSITION OF TAX..................................................................... 610-1
Section 610.04: DISTRIBUTION OF TAX................................................................ 610-1
Section 610.05: EXCEPTIONS AND EXEMPTIONS................................................ 610-1
Section 610.06: COLLECTIONS ............................................................................... 610-2
Section 610.07: PENALTIES ..................................................................................... 610-3
Section 610.08: TAX DETERMINED BY THE CITY COUNCIL............................. 610-3
Section 610.09: ADMINISTRATION ........................................................................ 610-4
Section 610.10: DEPOSIT IN SPECIAL PURPOSE FUND....................................... 610-4
Section 610.11: DISTRIBUTION............................................................................... 610-4
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ORDINANCE 610 LODGING TAX
Section 610.01: PURPOSE. In order to increase commerce and to provide for a vibrant
city atmosphere that will attract tourism and convention business to the city, it is essential that
the city be marketed and promoted by a local convention and tourist bureau.
Section 610.02: DEFINITIONS. The word or words defined in this Section shall have
the meaning described in the subdivisions which follow:
Subd. 1: Hotel or Motel: Hotel or Motel or similar establishment means any building or
portion thereof containing six or more guest rooms intended or designed to be used, or which are
used, rented, hired out to be occupied, or which are occupied for sleeping purposes by guests for
a period of less than 30 continuous days.
Subd. 2: Rooming House: Rooming House or similar establishment means any building
or portion thereof containing not more than five guests rooms intended or designed to be used, or
which are used, rented, hired out to be occupied, or which are occupied for sleeping purposes by
guests for a period of less than 30 continuous days
Subd. 3: Operator. The person who is the proprietor of the hotel, whether in the capacity
of owner, lessee, sub lessee, licensee, or any other capacity, is an operator
Section 610.03: IMPOSITION OF TAX. The following tax, as authorized my MN
Statute 469.190 will apply:
Subd. 1: A tax of three percent is hereby imposed on the gross receipts generated within
the city from the furnishing for consideration of lodging at hotels, motels, rooming
houses/facilities, tourist courts or resorts, other than the renting or leasing of lodging for a
continual period of 30 days or more
Subd. 2: Those persons qualifying under paragraph one of this section will pay a tax on
the operator of the hotel or the establishment at the time the charge is paid. The tax constitutes a
debt owed to the City by the operator and is extinguished only by payment to the City.
Section 610.04: DISTRIBUTION OF TAX. The three percent (3%) tax collected will be
distributed according the MN Statute 469.190. Ninety-five percent of the proceeds must be used
to fund a local convention and tourist bureau for the purpose of marketing and promoting the
City as a convention and tourist center for that purpose.
Section 610.05: EXCEPTIONS AND EXEMPTIONS.
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Subd. 1: Privilege of Occupancy:
a) Exceptions. No tax will be imposed on room rentals paid by any
officer or employee of a foreign government who is exempt by reason of
express provisions of federal law or international treaty.
b) Exemptions. No exemption from the tax imposed under this Code will be
granted except upon a claim thereof made at the time the rent is collected
by the operator, and such claim will be made in writing and under
penalty of perjury. All such claims will be forwarded to the City when
the reports and collections are submitted as required under Section
610.05 of this Code. Such exemptions will be granted as follows: Upon
any person to whom, or occupancy to which, it is beyond the power of
the City to so tax
Section 610.06: COLLECTIONS.
Subd. 1: Operators Duties: Each operator will collect the tax imposed by this Code at
the time the rent is paid. The amount of tax will be separately stated from the rent charged. Those
persons paying the tax will receive a receipt of payment from the operator:
Subd. 2: Reports. Each operator collecting such tax will make a report upon forms
distributed to the operator by the Finance Director. Such reports will contain, at a minimum:
A. The amount of room rentals collected.
B. The amount of tax required to be collected and due for the period.
C. The signature of the operator or that of the agent if the operator has not made the
report.
D. The period the return covers.
E. The amount of room rentals uncollectible.
F. Such additional information as the City Council, in its discretion, from time to time
requires.
Subd. 3: Payment to the City. Payment of the tax will be submitted by the operator to
the City along with the required reports. Payment will cover the tax due for the preceding
calendar month, or any alternative four-week accounting period, whichever the case will be, and
such payment will be made no later than 25 days after the end of such calendar or alternative
accounting month.
Subd. 4: Examination of Return. After a return is filed, the Finance Director may make
any examination of the records and accounts of the person making the return which he deems
necessary for determining its correctness. The tax computed on the basis of such examination
will be the tax to be paid. If the tax due is found to be greater than that paid, such excess will be
paid within ten days after receipt of notice. Such notice will be given either personally or sent
by registered mail to the address listed on the return. If the tax paid is greater than the tax
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found to be due, the excess paid will be refunded to the operator at the address listed on the
return.
Section 610.07: PENALTIES.
Subd. 1. Original Deficiency. Any operator failing to make payment within the 25-day
period specified in sub-section 610.06, Subdivision 3, of this Code will be required to pay a
penalty of five percent (5%) of the tax amount remaining unpaid. The amount of said tax not
timely paid, together with said penalty, will bear interest at the rate of seven percent (7%) per
annum from the time such tax should have been paid until paid. Any interest and penalty will
be added to the tax and be collected as a part thereof.
Subd. 2. Continuing Deficiency. If payment of the tax and the five percent (5%)penalty
imposed under subdivision 1 of this section is not paid within 30 days of the date the tax is due
as specified in sub-section 610.06, Subdivision 3, of this Code, an additional ten percent (10%)
penalty will be imposed upon the amount of tax due plus the original deficiency penalty of
five percent (5%). If the delinquency continues beyond 30 days after the tax is due as
specified in sub-section 610.06, Subdivision 3, of this Code, the City Attorney may commence
such action necessary to collect the tax and penalties due.
Subd. 3. Abatement of Penalties. The Administrator will have the power to abate
penalties when, in his opinion, the enforcement would be unjust and inequitable. All requests
for abatement of penalties will be in writing and will set forth the reasons for the failure to
file the return and pay the tax timely. The Administrator will report all penalty abatements to the
City Council at the next regular City Council meeting.
Section 610.08: TAX DETERMINED BY THE CITY COUNCIL.
Subd. 1: If the operator refuses to collect the tax imposed or fails to make the required
reports, the Finance Director will obtain facts and information and make an estimate of the
amount of tax due and report to the City Council for approval. After approval by the City
Council, the Finance Director will give the operator a statement of the tax due to his estimate
and give notice personally or through registered mail to such operator of the amount due.
Depending upon the time periods as specified in Section 610.07 of this Code, the amount of
tax estimated will include the applicable penalties and interest. Payments will be made
within ten days after receipt of notice. For the purpose of carrying out the provisions of
this section, the Finance Director will have the right of access to the books and records of the
operator.
Subd. 2. The operator will have ten days after receipt of notice to make a written
application for a hearing on the assessed tax to the Finance Director. If no request is made
during this ten day period, the amount specified in the statement of the Finance Director,
including penalties and interest, becomes final and payable within ten days.
Subd. 3. If a hearing is properly requested, the running of the time periods described in
Section 610.06 of this Code are automatically stayed. Notice of the hearing will be given to
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the operator at least ten days in advance. All hearings are to be held before the City Council.
The Council may then determine the amount due, when it will be paid, and whether or not the
penalty time period under Section 610.07 of this Code will resume running until payment.
Once the amount due becomes fixed under either Subdivision 1, 2, or 3, of this section, any
further steps necessary to ensure collection may be taken by the City Attorney.
Section 610.09: ADMINISTRATION. The City Administrator shall have responsibility
for enforcement and administration of this Ordinance.
Section 610.10: DEPOSIT IN SPECIAL PURPOSE FUND. All revenues collected
pursuant to Section 610 will be deposited in a special purpose fund, hereby established, to be
known as the "Hotel-Motel Tax Fund."
Section 610.11: DISTRIBUTION. Distribution of all revenues collected pursuant to this
Ordinance will be in accordance with the percentages established in Section 610.04 shall be
under budget approved annually by the St. Joseph Economic Development Authority and will be
used for the purpose of the advancement of the City of St. Joseph as a tourist and convention
center. The City may retain a sum not to exceed the actual amount of its costs incurred in the
collection and administration of this tax.
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