(A) Pursuant to Cal. Rev. & Tax. Code § 7283.5, and as that section may from time to time be amended, a purchaser, transferee, or other person attempting to obtain ownership of a transient occupancy facility, may submit a written request to the city that the Tax Collector issue a tax clearance certificate stating the amount of tax and any accrued penalties and interest due and owing, if any.
(B) The Tax Collector must, within 90 days after receiving the written request for a tax clearance certificate, issue the tax clearance certificate or may conduct an audit of the subject transient occupancy facility. Any such audit must be completed within 90 days after the date the records of the subject transient occupancy facility were made available to the Tax Collector and a tax clearance certificate issued within 30 days after the audit is complete.
(C) If, following an audit, the Tax Collector determines that the current operator's records are insufficient to assess the amount of tax due and owing, the Tax Collector must, within 30 days after making that determination, notify the prospective purchaser, transferee or other person that a tax clearance certificate cannot be issued.
(D) If the Tax Collector does not comply with the request for a tax clearance certificate, the purchaser, transferee or other person that obtains ownership of the transient occupancy facility is not liable for any transient occupancy tax obligation incurred before the date of the purchase or transfer of the property.
(E) The tax clearance certificate must state the following:
(1) The amount of tax, interest and penalties then due an owing;
(2) The period of time for which the tax clearance certificate is valid; and
(3) That the purchaser, transferee, or other person may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate.
(F) Any purchaser, transferee, or other person who does not obtain a tax clearance certificate under this section, or who obtains a tax clearance certificate that indicates that tax is due and owing and fails to withhold, for the benefit of the county, sufficient funds in the escrow account for the purchase of the property to satisfy the transient tax liability, is liable for the amount of tax due and owing.
(Ord. 1175, passed 7-16-07)