HomeMy WebLinkAboutOrdinance 20486-11-2012ORDINANCE NO. 20486-11-2012
AN ORDINANCE AMENDING VARIOUS PROVISIONS OF
CHAPTER THIRTY-TWO, ARTICLE 11 OF THE FORT WORTH
CITY CODE, "HOTEL OCCUPANCY TAX," TO PROVIDE FOR
MONTHLY REPORTING AND REMITTANCE OF COLLECTED
TAXES, ESTABLISH A DELINQUENCY DATE, AND PROVIDE
FOR PENALTIES AND INTEREST; PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY
CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR
PUBLICATION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, state law authorizes cities to adopt ordinances imposing municipal
hotel occupancy taxes; and
WHEREAS, the City has adopted such ordinances, which are codified as Article
11 of Chapter 32 of the Code of the City of Fort Worth and under which hotel operators
are required to collect such taxes and to periodically remit to the City funds that have
been collected along with reports providing hotel occupancy, tax collection, and tax
exemption data; and
WHEREAS, the remittance and reporting schedule currently provided for under
the City Code does not align with the remittance and reporting schedule that applies to
the state hotel occupancy taxes that operators are also required to collect; and
WHEREAS, staff has recommended amending the City Code to align the City's
deadlines with those applicable to the state taxes in an effort to reduce confusion and
increase efficiency for both hotel operators and City staff-, and
WHEREAS, staff has proposed revising the City Code to provide a definitive
delinquency date at which point late penalties will attach, to impose a collection penalty
for older cases that require judicial collection efforts, and to require payment of interest
for taxes that are not tirnely remitted, all of which are anticipated to reduce the incidence
Ordinance No. 20486-11-2012
Page I of 7
of delinquency and to allow the City to more fully recover the costs that are incurred
when hotel operators fail to meet their legal responsibilities with respect to the City taxes
that they have collected; and
WHEREAS, the Fort Worth City Council finds it advisable to revise the City
Code in accordance with staffs recommendations.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS, AS FOLLOWS:
SECTION 1.
That Section 32 -16, "Definitions," of the Code of the City of Fort Worth, Texas, is hereby
amended to revise the definition of the term "Consideration," to add definitions for the
terms "Due date" and "Monthly reporting," and to delete the definition of the term
"Quarterly period." Section 32 -16 shall read in pertinent part as follows:
The following words, terms or phrases are, for the purpose of this article, except
where the context clearly indicates a different meaning, defined as follows:
Business day shall mean a day on which City of Fort Worth main offices are open
for business and shall not include Saturdays, Sundays, City of Fort Worth
Holidays, or other- days on which City offices have been declared closed for
business.
Consideration shall mean the total price of, or total value received for, the right to
use a room, sleeping room, sleeping space, bed or dormitory space, or other
facilities in such hotel and shall not include the price or value of any food served
or personal services rendered to the occupant not related to cleaning and readying
such room or space for occupancy, and shall not include any tax assessed for
occupancy thereof by any other governmental agency.
Due, date shall mean the first business day following the end of the monthly
collection/reporting period.
Monthly Collection /Reporting period shall mean the regular calendar months of
the year. The last day of each month marks the end of the monthly
collection /reporting period.
Ordinance No. 20486 -11 -2012
Page 2 of 7
All portions of Section 32-16, "Definitions," not specifically amended shall remain in
effect.
SECTION 2.
That Section 32-18, "Collection," of the Code of the City of Fort Worth, Texas, is hereby
retitled as "Collection; when due; remittance; delinquency; interest" and amended to re-
designate existing language as subsection (a) and to add new subsections (b), (c), and (d),
which impose a due date for remittance of collected taxes, establish the criteria for
determining when delinquency occurs, impose a penalty, and require payment of interest
on unremitted amounts. Section 32-18 shall read as follows:
Sec. 32-18. Collection; when due; remittance; delinquency; interest.
(a) Every person owning, operating, managing or controlling any hotel shall
collect the tax imposed in section 32-17 of this article for the city and remit
the same to the tax assessor - collector on or before the due date, and at the
same time file the report required by Section 32-19 herein.
(b) A delinquency occurs if, by the 25th day of the month after the end of the
monthly collection/reporting period, (i) the tax is not remitted or postmarked
or (ii) the report is not filed or postmarked. If the 25th day of the month does
not fall on a business day, then the next business day shall be the date by
which the tax must be remitted or postmarked and the report must be filed or
postmarked.
(c) A late penalty equal to fifteen (15) percent of the total tax owed shall be
assessed if the person fails to remit the tax or have it postmarked and/or file
the report or have it postmarked by the 25th day of the month following the
end of the monthly collection reporting period. If the 25th day of the month
does not fall on a business day, then the next business day shall be the date by
which the tax must be remitted or postmarked and the report must be filed or
postmarked. A late penalty shall be in addition to any criminal penalties
imposed for a violation of this article.
(d) Delinquent taxes shall accrue interest in the amount of 10 percent (10%) per
annum, each month the taxes are not remitted when due.
SECTION 3.
That Section 32-19, "Quarterly reports," of the Code of the City of Fort Worth, Texas, is
hereby retitled "Monthly reports" and amended to require monthly submission of data
regarding tax collection and remittance of collected amounts. Section 32-19 shall read as
follows:
Ordinance No. 20486-11-2012
Page 3 of 7
See. 32-19. Monthly reports.
On the first day of the calendar month following each monthly
collection/reporting period, every person required in section 32-18 to collect the
tax imposed in this article shall file a report with the tax assessor - collector
showing the consideration paid for all room occupancies in the preceding month,
the amount of the tax collected on such occupancies, and any other information
the tax assessor - collector may reasonably require. Such person shall remit the tax
due on such occupancies at the time of filing such report.
SECTION 4.
That Section 32-20, "Rules and regulations; inspection of records," of the Code of the
City of Fort Worth, 'Texas, is hereby amended to clarify that records substantiating
remitted taxes and related reports must be available for review within the City. Section
32-20 shall read as follows:
The tax assessor - collector shall have the power to make such rules and regulations
as are necessary to effectively collect the tax levied in this article and shall, upon
reasonable notice, have access, at a location within the corporate limits of the City
of Fort Worth, to books and records necessary to enable the tax assessor- collector
to determine the correctness of any report filed as required by this article and the
amount of taxes due under the provisions of this article.
SECTION 5.
That Section 32 -21, "Criminal penalties," of the Code of the City of Fort Worth, Texas, is
hereby amended to replace the term "pay" with the term "remit" in order to clarify that
funds being submitted constitute tax dollars collected on behalf of the City rather than
payment of funds otherwise belonging to hotel and motel operators. Section 32-21 shall
read as follows:
If any person shall fall to collect the tax imposed in. this article, or shall fail to file
a report as required in this article, or shall fail to remit to the tax assessor - collector
the tax as imposed in this article when such report or remittance is due, or shall
file a false report, then such person shall be deemed guilty of a misdemeanor and,
upon conviction, shall be punished as provided in section 1-6 of this Code.
SECTION 6.
That Section 32-21.1, "Civil collection procedures," of the Code of the City of Fort
Worth, Texas, is hereby amended to provide for automatic referral of certain
delinquencies for Judicial collection efforts, to adopt state law standards regarding the
recovery of certain audit costs, and to require payment of an additional penalty to offset
costs associated with collection efforts. Section 32-21.1 shall read as follows:
Ordinance No. 20486-11-2012
Page 4 of 7
The assessor - collector shall refer any hotel occupancy tax account that has a
balance that is more than ninety (90) days past due to the city attorney, or other
attorney acting for the city, to institute collection proceedings. The City attorney,
or other attorney acting for the city, shall be authorized by this ordinance to file
suit to enjoin the hotel owner, operator, manager, and other persons in control
from operating any hotel in the city of Fort Worth until the tax is remitted in full
and /or the report is filed, as applicable, as provided in the court's order. In the
event collection proceedings are instituted under this provision, in addition to the
amount of any tax and /or penalty owed under this article, the person is liable to
the city for:
(a) the city's reasonable attorney's fees;
(b) the costs of an audit conducted under Section 32 -20, as determined by the city
using a reasonable rate, but only if-
(i) the tax is at least two complete fiscal quarters past due at the time
the audit is conducted; and
(ii) the city has not received a disbursement from the comptroller as
provided by Section 156.2513 of the Texas Tax Code related to the
person's concurrent state tax delinquency described by Section
351.008 of the Texas Tax Code; and
(c) a penalty equal to 15 percent of the total amount of the tax owed if the tax has
not been remitted for at least one complete municipal fiscal quarter after its
due date.
The remedies provided by this section are in addition to other available remedies.
SECTION 7.
That Section 32 -21.2, "Collection procedures on purchase of hotel," of the Code of the
City of Fort Worth, Texas, is hereby amended to replace the term "pay" with the term
"remit" in order to clarify that funds being submitted constitute tax dollars collected on
behalf of the City rather than payment of funds otherwise belonging to hotel and motel
operators. Section 32 -21.2 shall read in pertinent part as follows:
(a) If a person who is liable for the remittance of a tax under this article is the
owner of a hotel and sells the hotel, the successor to the seller or the
seller's assignee shall withhold an amount of the purchase price sufficient
to remit the amount due until the seller provides a receipt by an individual
designated by the city to provide the receipt showing that the amount has
been remitted or to issue a certificate showing that no tax is due.
(c) The purchaser of a hotel may request that the individual designated by the
Ordinance No. 20486 -11 -2012
Page 5 of 7
city to provide a receipt under subsection (a) issue a certificate stating that
no tax is due or issue a statement of the amount required to be remitted
before a certificate may be issued. The individual designated by the
municipality shall issue the certificate or statement not later than the 60th
day after the date that the individual receives the request.
(d) If the individual designated by the city to provide a receipt under
subsection (a) fails to issue the certificate or statement within the period
provided by subsection (c), the purchaser is released from the obligation to
withhold the purchase price or remit the amount due.
All portions of Section 32 -21.2, "Collection procedures on purchase of hotel," not
specifically amended shall remain in effect.
SECTION 8.
This ordinance shall be cumulative of all provisions of ordinances and of the
Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions
of this ordinance are in direct conflict with the provisions of such ordinances and such
Code, in which event conflicting provisions of such ordinances and such Code are hereby
repealed.
SECTION 9.
It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,
paragraphs and sections of this ordinance, since the same would have been enacted by the
City Council without the incorporation in this ordinance of any such unconstitutional
phrase, clause, sentence, paragraph or section.
SECTION 10.
Any person, firm, or corporation who violates, disobeys, omits, neglects or
refuses to comply with or who resists the enforcement of any of the provisions of this
Ordinance No. 20486 -11 -2012
Page 6 of 7
ordinance shall be fined not more than Five Hundred Dollars ($500.00) for each offense.
Each day that a violation exists shall constitute a separate offense.
SECTION 11.
All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to
any and all violations of the provisions of the ordinances amended herein, which have
accrued at the time of the effective date of this ordinance and, as to such accrued
violations and all pending litigation, both civil and criminal, whether pending in court or
not, under such ordinances, same shall not be affected by this ordinance but may be
prosecuted until final disposition by the courts.
SECTION 12.
The City Secretary of the City of Fort Worth, Texas, is hereby directed to publish
the caption, penalty clause and effective date of this ordinance for two (2) days in the
official newspaper of the City of Fort Worth, Texas, as authorized by Section 52.013,
Texas Local Government Code.
SECTION 13.
This ordinance shall take following publication as required by law.
AI'",�QVED TO FORM AND LEGALITY:
Assistant Cit y A � ey
ADOPTED: November 6, 2012
EFFECTIVE: �> � -
Ordinance No. 20486-11-2012
Page 7 of 7
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COUNCIL ACTION: Approved on il/6/2012 - Ordinance No. 20486-11-2012
DATE: Tuesday, November &6.2O12
LOG NAME: 1312HOT
REFERENCE NQ.: G-17725
Adopt Ordinance Amending Article 11, Section 32 of the City Code to Change Hotel Occupancy Tax
Submission from Quarterly to Monthly, Clarify the Language Concerning the Application of Penalties Due
and Add Additional Penalties on Delinquencies Sent for Collection, as Authorized by State Statute (ALL
COUNCIL DISTRICTS)
|\io recommended that the City Council adopt the attached ordinance amending Article U, Section 32nf
the City Code to change Hotel Occupancy Tax submission from quarterly to monthly, clarify the language
concerning the application of penalties due and add additional penalties on delinquencies sent for
DISCUSSION: collection, as authorized by State Statute.
Hotels and motels operating within the City of Fort Worth (City) currently collect the City's and the State's
Hoba|UonupanoyTax(HOT)onmdai|ybmois.UnderaxistingStaha|mwmndCib/Code'toxproceedaare
remitted and reports are filed on a monthly basis for the State and on a quarterly basis for the City.
Approval ofthe attached ordinance would align the City's collection and reporting requirements with those
of the State. Having a single deadline for all reports and remittance is anticipated to provide additional
clarity and efficiency for the hotel/motel industry while also providing more consistent cash Mow for the
City. In addition, adoption of the ordinance would provide additional clarity regarding when delinquency
occurs and a penalty is imposed. The proposed ordinance would also provide additional cost-recovery
mechanisms such as interest on delinquent taxes and imposition of an additional collection penalty and of
audit costs for cases that have been referred for collections and meet specified criteria that align with
State law.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/AccountlCenters
Submitted for City Managger's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fu nd/Accou nt/C enters
SuaanAlanin (8180)
Lena Ellis (8517)
Stephen Vogl (2041)
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