(A) (1) A tax is imposed upon persons engaged in the business of renting, leasing or letting rooms in a hotel at the rate of 5% of the gross rental receipts from such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel. From the 5% tax collected, 1.5% of the gross rental receipts shall be repaid to the operator (“the rebate”), for advertising to promote overnight stays in Grayville. Subject to the provisions of § 37.23(B) and (C) providing for the filing of hotel tax returns on a quarterly or annual basis, the rebate will be paid to the operator on a monthly basis, in the following manner:
(2) Promptly at the end of each calendar month, each operator shall deliver to the city a check for the hotel tax generated during the preceding month, and the city agrees to pay to the operator the monthly rebate not later than the tenth day of each month with respect to the tax generated at the hotel during the prior month. All tax payments by the operator shall otherwise be in accordance with the provisions of § 37.23.
(B) No funds received pursuant to this chapter shall be used to advertise for or otherwise promote new competition in the hotel business.
(C) However, such tax is not imposed upon the privilege of engaging in any business in interstate commerce or otherwise, which business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this state.
(D) Persons subject to the tax imposed by this chapter may reimburse themselves for their tax liability under this chapter by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with any tax imposed by the county or state.
(E) If any hotel operator collects an amount (however designated) which purports to reimburse such operator for hotel operators’ occupation tax liability measured by receipts which are not subject to hotel operators’ occupation tax, or if any hotel operator, in collecting an amount (however designated) which purports to reimburse such operator for hotel operators’ occupation tax liability measured by receipts which are subject to tax under this chapter, collects more from the customer than the operators’ hotel operators’ occupation tax liability in the transaction is, the customer shall have a legal right to claim a refund of such amount from such operator. However, if such amount is not refunded to the customer for any reason, the hotel operator is liable to pay such amount to the city.
(Ord. 478, passed 4-16-90; Am. Ord. 820, passed 4-25-16)