(a) A business operator that operates a hotel in the city may deduct from the business tax it owes for a quarter for the business of operating the hotel an amount equal to the total transient occupancy tax collected and remitted to the city in the same quarter of the previous fiscal year from transients staying at the hotel.
(b) The business operator of a business that has discretion to determine the location of the place of sale, place of use, or principal place of negotiation for sales or use tax purposes and which exercises that discretion and designates the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes which results in the city receiving sales or use tax revenues that it would not otherwise have received, but for the business’s exercise of its discretion to designate the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes (“discretionary sales or use tax”) may deduct from the business tax it owes for a quarter an amount equal to one half of the total sales tax or use tax received by the city from the discretionary sales or use tax of that business in the same quarter of the previous fiscal year. This offset can offset up to, but no more than, 75% of the business’s quarterly business tax. If any of the sales or use tax that served as a basis of an offset from business tax is subsequently reallocated to another jurisdiction, the business operator shall reimburse the city for the amount of the offset. This reimbursement shall include all offsets within the five (5) years preceding the date that a determination or decision is made to reallocate sales or use tax, including the entirety of any quarter that falls partially within this five- year period. The city and a business operator may enter into an agreement implementing this section.
(c) A business operator of a business that has rights to property due to property ownership, a ground lease, or a lease that permits subleasing, and that is offering that property for sale or rent, may deduct from the business tax owed for the business an amount equal to the business tax associated with the square footage being offered for sale or rent, provided that the area to be sold or rented is completely vacant and available for immediate occupancy.
(d) A business claiming an offset under this section must claim the offset with its tax filing for the quarter for which the offset is claimed.
(1) If the information necessary for a business to claim an offset is not available, the business may defer claiming an offset for up to one year or for another period of time set by written agreement with the city.
(2) The tax administrator may require a business claiming an offset to submit additional information to support the claim of the offset. The request for additional information must be made in writing and the information must be provided within thirty (30) days.
(3) If the tax administrator determines that an offset claimed by a business is incorrect, the tax administrator may make an initial determination of the amount, if any, of the offset and the amount of tax due under subdivision (a) of Section 2.37.150.
(Ord. 5581 § 1 (part), 2022: Ord. 5607 § 4, 2024)