ARTICLE 4 HOTEL/MOTEL AND TRANSIENT OCCUPANCY RENTAL UNIT TAX

SECTION:

23A-4-1: Definitions

23A-4-2: Tax Imposed

23A-4-3: Duty To Collect Tax From User

23A-4-4: Books And Records

23A-4-5: Transmittal Of Tax Revenue

23A-4-6: Collection

23A-4-7: Proceeds To Be Paid To Village’s Chief Financial Officer

23A-4-8: Penalty

23A-4-1: DEFINITIONS:

For the purpose of this article, whenever any of the following words, terms or definitions are used herein, they shall have the meanings ascribed to them in this section:

 

GROSS RENTAL OR LEASING CHARGE:	The gross amount of consideration for the use or privilege of using hotel/motel accommodations and transient occupancy rental units in the Village, valued in money, whether received in money or otherwise, including cash, credits, property, and services determined without any deduction for costs or expenses whatsoever. The term “gross rental or leasing charge” includes any and all charges that the lessee or tenant pays incidental to obtaining the use or privilege of using hotel/motel accommodations and transient occupancy rental units, including but not limited to any and all related markups, service fees, convenience fees, facilitation fees, cancellation fees, late departure fees, and other such charges, regardless of terminology. The term “gross rental or leasing charge” does not include charges that are added to the charge or fee on account of the tax imposed by this article or on account of any other tax imposed on the charge or fee. The term “gross rental or leasing charge” shall exclude separately stated optional charges not for the use or privilege of using hotel accommodations. The fact that the lessee or tenant could have avoided the charge by obtaining the use or privilege from or through a different owner, manager, or operator, pursuant to different terms, or through a course of performance that would have avoided the obligation to pay the charge, does not make the charge “optional.”
HOTEL/MOTEL:	Every building or structure within the Village kept, used, maintained as or advertised and held out to the public to be a place where lodging or lodging and food or other accommodations are offered for consideration to guests including "bed and breakfast" establishments. Accommodations within said buildings or structures which are leased to the same occupant for a period of more than thirty (30) consecutive days shall be exempt from the tax provisions of this article.
OWNER:	Any person having an ownership interest in or conducting the operation of a hotel/motel room or transient occupancy rental unit or receiving consideration for the rental of such hotel/motel room or transient occupancy rental unit.
PERSON:	Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, copartnership, joint venture, club, company, business trust, domestic or foreign corporation, association, syndicate, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to associations shall mean the owners or part owners thereof, and as applied to corporations, the officers thereof.
TRANSIENT OCCUPANCY RENTAL UNIT:	A dwelling unit or a habitable unit that is offered for rent, lease or hire that is rented, leased or hired for which an owner receives consideration from a person for a period of thirty (30) days or less and that person has the right to use, occupy or possess the dwelling unit or habitable unit for said period. (Ord. 16-109, 9-16-2016, eff. 11-1-2016; amd. Ord. 24-108, 2-20-2024)

 

23A-4-2: TAX IMPOSED:

   A.   A tax is hereby levied and imposed upon the use and privilege of renting, leasing or letting of a hotel/motel room or transient occupancy rental unit in the Village at a rate of four percent (4%) of the gross rental or leasing charge. The ultimate incidence and/or liability for payment of said tax shall be in addition to any and all other taxes.

   B.   In addition to the tax imposed under subsection A of this section, a surcharge is imposed and shall immediately accrue and be collected upon the rental or lease of any transient occupancy rental unit in the Village at the rate of three and one-half percent (3.5%) of the gross rental or leasing charge. The purpose of this surcharge is to fund the activities of the Housing Trust Fund established pursuant to section 12-7-3 of this Code. The surcharge is a part of the tax imposed by this article, and all references to the tax shall be deemed to include the surcharge. (Ord. 16-109, 9-16-2016, eff. 11-1-2016; amd. Ord. 24-108, 2-20-2024)

23A-4-3: DUTY TO COLLECT TAX FROM USER:

The owner and operator of each hotel/motel or transient occupancy rental unit and the person who operates said hotel/motel or transient occupancy rental unit shall bear jointly and severally the duty to act as trustee for and account of the Village and to collect the tax from each user, lessee or tenant of rooms in such hotel/motel or transient occupancy rental unit and to pay over to the Village Finance Director the tax under procedures prescribed by the Village Finance Director or as otherwise set forth in this article; provided, however, that the person collecting the tax as trustee for and account of the Village, may retain two percent (2%) of the tax due as compensation for services rendered in the collection and payment of such tax. Every person required to collect the tax levied by ordinance shall secure said tax from the user, lessee or tenant of a room or rooms at the time that such person collects the price, charge or rent to which it applies. (Ord. 16-109, 9-16-2016, eff. 11-1-2016)

23A-4-4: BOOKS AND RECORDS:

The Finance Director, or the Director's authorized representative, may enter the premises of any hotel/motel or transient occupancy rental unit for inspection and examination of records in order to effectuate the proper administration of this chapter, and to assure the enforcement of the collection of the tax imposed. It shall be unlawful for any person to prevent, hinder, or interfere with the Finance Director or the Director's authorized representative in the discharge of the Director's duties in the performance of this chapter. It shall be the duty of every owner to keep accurate and complete books and records to which the Finance Director, or the Director's authorized representative, shall at all times have full access, which records shall include a daily sheet showing the number of hotel/motel rooms or transient occupancy rental units rented during the twenty four (24) hour period, including multiple rentals of the same hotel/motel room or transient occupancy rental unit where such shall occur and the actual hotel/motel or transient occupancy rental unit tax receipts collected for the date in question. (Ord. 16-109, 9-16-2016, eff. 11-1-2016)