(a) If a person who is liable for the payment of an amount under this article is the owner of the hotel and sells the hotel, the successor to the seller or the seller's assignee or purchaser shall withhold an amount of the purchase price sufficient to pay the amount due until the seller provides a receipt from the CVB director or his/her designee showing that the amount has been paid or a certificate stating that no amount is due. If the seller does not provide said receipt or certificate to the purchaser within ten days from the date the hotel is sold to the purchaser, then the purchaser shall, within five days after the expiration of said ten-day period, request in writing by certified mail, return receipt requested, the certificate or statement referred to in subsection (c) of this section. If tax is due the purchaser shall pay said tax to the CVB director or his/her designee within five days of receipt from the CVB director of a statement of the amount of tax required to be paid before a certificate of no tax due may be issued (this liability of the purchaser shall be limited in accordance with subsection (b) of this section).
(b) The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price.
(c) The purchaser of a hotel may request that the CVB director or his/her designee issue a certificate stating that no taxes are due or issue a statement of the amount required to be paid before a certificate may be issued. The CVB director or his/her designee shall issue the certificate or statement within 60 days after receiving the written request by certified mail, return receipt requested or within 60 days after the day on which the records of the former owner of the premises are made available for audit, whichever period expires later, but in either event the CVB director or his/her designee shall issue the certificate or statement within one year after the date of receiving the request.
(d) If the CVB director or his/her designee fails to mail the certificate or statement by certified mail, return receipt requested, within one year after the purchaser's written request is received as specified in subsection (c) of this section, the purchaser is released from the obligation to withhold the amount of the purchase price specified in this section or pay the amount due.
(e) The period of limitation during which the CVB director or his/her designee may assess tax against the purchaser under this section is four years from the date when the former owner of the hotel sells the hotel or when a determination is made against the former owner, whichever event occurs later. At any time within three years after a deficiency determination against the purchaser has become due and payable the city attorney may bring an action in a court of competent jurisdiction in the name of the city to collect the delinquent amounts together with penalties and interest.
(f) The provisions of this section are similar to the provisions in Texas Tax Code § 156.204 relating to collection of the state hotel tax from a purchaser of a hotel.
(Prior Code, § 7-13; Ord. of 4-8-1986; Ord. No. 010-2021, § 3, 3-9-2021)