(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
LODGING. The furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more.
OPERATOR. A person who provides lodging to others, or any officer, agent, or employee of such person.
(B) Imposition of tax. There is hereby imposed a tax of 3% on the gross receipts from the furnishing for consideration of lodging.
(C) Collection. Each operator shall collect the tax imposed by this section at the time the rent is paid. The tax collections shall be held in trust by the operator for the city. The amount of tax shall be separately stated from the rent charged for the lodging.
(D) Payment and returns.
(1) Time and form of payment.
(a) The taxes imposed by this section shall be paid by the operator to the city no later than 15 days after the end of the month in which the taxes were collected. At the time of payment, the operator shall submit a return upon such forms and containing such information as the city may require.
(b) The return shall contain the following minimum information:
1. The total amount of rent collected for lodging during the period covered by the return;
2. The amount of tax required to be collected and due for the period;
3. The signature of the person filing the return or that of his or her agent duly authorized in writing;
4. The period covered by the return; and
5. The amount of uncollectible rental charges subject to the lodging tax.
(2) Offset of taxes. The operator may offset against the taxes payable with respect to any reporting period, the amount of taxes imposed by this section previously paid as a result of any transaction the consideration for which became uncollectible during such reporting period, but only in proportion to the portion of such consideration which became uncollectible.
(E) Examination of return, adjustments, notices, and demands.
(1) After a return is filed, the city shall examine it and make any investigation or examination of the records and accounts of the person making the return deemed necessary for determining its correctness. The tax computed on the basis of such examination shall be the tax to be paid. If the tax due is found to be greater than that paid, such excess shall be paid to the city within ten days after receipt of a notice thereof given either personally or sent by registered mail to the address shown on the return.
(2) If the tax paid is greater than the tax found to be due, the excess shall be refunded to the person who paid the tax to the city within ten days after determination of such refund.
(F) Refunds.
(1) Any person may apply to the city for a refund of taxes paid for a prescribed period in excess of the amount legally due for that period; provided, that no application for refund shall be considered unless filed within one year after such tax was paid, or within one year from the filing of the return, whichever period is the longer.
(2) The city shall examine the claim and make and file written findings thereon denying such person at the address stated upon the return. If such claim is allowed in whole or in part, the city shall credit the amount of the allowance against any taxes due under this section from the claimant and the balance of said allowance, if any, shall be paid by the city to the claimant.
(G) Failure to file a return.
(1) (a) If any operator required by this section to file a return shall fail to do so within the time prescribed, or shall make, willfully or otherwise, an incorrect, false, or fraudulent return within five days of receipt of such written notice and shall at the same time pay the tax due on the basis thereof.
(b) If such person shall fail to file such return or corrected return, the city shall make a return or corrected return for such person from such knowledge and information as the city can obtain, and assess a tax on the basis thereof, which tax (less any payments theretofore made on account of the tax for the taxable period covered by such return) shall be paid within five days of the receipt of written notice and demand for such payment.
(2) (a) Any such return or assessment made by the city shall be prima facie correct and valid, and such person shall have the burden of establishing its incorrectness or invalidity in any action or proceeding in respect thereto.
(b) If any portion of a tax imposed by this section, including penalties thereon, is not paid within 30 days after it is required to be paid, the City Attorney may institute such legal action as may be necessary to recover the amount due, plus interest, penalties, the costs, and disbursements of any action. Upon a showing of good cause, the city may grant an operator one 30-day extension of time within which to file a return and make payment of taxes as required by this section; provided, that interest during such period of extension shall be added to the taxes due at the rate of 10% per annum.
(H) Penalties assessed. If any tax imposed by this section is not paid within the time therein specified for the payment, or any extension thereof, there shall be added thereto a specific penalty equal to 10% of the amount remaining unpaid. The amount of tax not timely paid, together with any penalty provided by this section, shall bear interest at the rate of 10% per annum from the time such tax should have been paid until paid. Any interest and penalty shall be added to the tax and be collected as a part thereof.
(I) Violations. It is unlawful for any person to willfully fail to make a return required by this section, or to fail to pay the tax after written demand for payment, or to fail to remit the taxes collected or any penalty or interest imposed by this section after written demand for such payment, or to refuse to permit the city to examine books, records, and papers under his or her control, or to willfully make any incomplete, false, or fraudulent return.
(J) Use of proceeds. Ninety-five percent of the proceeds obtained from the collection of taxes pursuant to this section shall be used in accordance with M.S. § 469.190, as it may be amended from time to time, to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center.
(K) Appeals.
(1) (a) Any operator aggrieved by any notice, order, or determination made by the city under this section may file a petition for review of such notice, order, or determination detailing the operator’s reasons for contesting the notice, order or determination. The petition shall contain the name of the petitioner, the petitioner’s address and the location of the lodging subject to the order, notice, or determination.
(b) The petition for review shall be filed with the City Administrator within ten days after the notice, order, or determination for which review is sought has been mailed or served upon the person requesting review. Upon receipt of the petition the City Administrator, or the Administrator’s designee, shall set a date for a hearing and give the petitioner at least five days’ prior written notice of the date, time, and place of the hearing.
(2) (a) At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order, or determination should be modified or withdrawn. The petitioner may be represented by counsel of petitioner’s choosing at petitioner’s own expense.
(b) The hearing shall be conducted by the City Administrator or the Administrator’s designee, provided, only that the person conducting the hearing shall not have participated in the drafting of the order, notice, or determination for which review is sought. The person conducting the hearing shall make written findings of fact and conclusions based upon the applicable provisions of this section and the evidence presented.
(3) (a) The person conducting the hearing may affirm, reverse, or modify the notice, order, or determination made by the city. Any decision rendered by the City Administrator pursuant to this division (K) may be appealed to the Council.
(b) A petitioner seeking to appeal a decision must file a written notice of appeal with the City Administrator within ten days after the decision has been mailed to the petitioner. The matter will thereupon be placed on the Council agenda as soon as is practical. The Council shall then review the findings of fact and conclusions to determine whether they were correct.
(c) Upon a determination by the Council that the findings and conclusions were incorrect, the Council may modify, reverse, or affirm the decision of the City Administrator or his or her designee upon the same standards as set forth in this section.
(2006 Code, Ch. 13) (Ord. 113, 3rd Series, passed 11-6-1997; Ord. 145, 3rd Series, passed 6-21-2002)