HomeMy WebLinkAbout1984-11-06; City Council; 7946; Request Refund Travelodge Transient Tax Penalty' CIT`' )F CARLSBAD — AGENDILL
AB#.. `L9�� I ME; REQUEST FOR REFUND - CARLSBAD TRAVELODGE -
LATG. 11-6-84 I TRANSIENT TAX PENALTY
DEPT. FIN
RECOMMENDED ACTION:
Staff recommends that Council deny the request for refund.
ITEM EXPLANATION:
DEPT. H
CITY A
CITY MGR.-%?---
The owners of the Carlsbad Travelodge have requested that the City Council
consider their request for a refund of one-month's penalty assess on their
second quarter 1984 Transient Occupancy Tax (TOT) payment. Their request,
as described in the attached memo to the Mayor, is based on the fact that
they were out of the country at the time the tax was due. Also, since the
staff had no system which would regularly notify an individual of a
delinquency, they were unaware that the tax was unpaid until some time after
their return. The taxes and penalties were paid on September 21, 1984.
On October 3, 1984 Mr. Chen requested that the City Council consider his
request for a refund of at least one-nonth's penalty, or S341.13. Mr. Chen
maintains that he would have paid the past due taxes immediately had he
been aware that they were delinquent.
The staff has reviewed the request and has recommended that the -request be
denied based on the following:
-The Travelodge has a history of on -time payments indicating that
the owner or operators were aware of the requirements to file on
a timely manner.
-The Muroicipal Code is specific in the penalties to be assessed in
the event of nonpayment.
Although the staff does not believe'a refund is due, we agree that the
collection system can be improved. In an effort to reduce the possibility
of nonpayment of taxes due to unfamiliarity with the law, the staff now
sends a series of letters to the hotel operator as a reminder to file the
necessary tax returns with the City.
FISCAL IMPACT:
The requested refund is $341.13. If approved, it would reduce TOT
revenue by this amount.
EXHIBITS:
1. Memo to Mayor Casler dated October 15, 1984 re: Carlsbad Trevelodge
Transient Tax.
2. Letter to Mayor Gasler from Carlsbad Travelodge dated October 3, 1984.
0-N
OCTOBER 15, 1984
TO: MAYOR CASLER
FROM: Finance Director
CARLSBAD TRAVELODGE TRANSIENT TAX
According to our records the current owners of the Carlsbad
Travelodge assumed responsibility for transient tax payments in
November 1983. Tax payments have been made within the allowed
time period for the fourth quarter 1983 and first quarter 1984.
The transient tax payment for the second quarter 1984 was due on
or before July 31, 1984. This payment was actually made on
September 21, 1984. According to the Carlsbad Municipal Code
(Section 3.12.080) the City must assess a late penalty of 10% for
the first month and another 10% for the second month of
delinquency. The amount due for the Travelodge was computed as
follows:
-Original amount of tax due by July 31, 1984 $3,412.00
-First 10% delinquent penalty (assessed Aug 1, 1984) $ 341.12
-Second 10% delinquent penalty (assessed Sept 1, 1984) $ 341.13
-Interest $ 17.06
Total Amount Due and Paid Sept 21, 1984 $4,112.19
I met with representatives of the Travelodge on the date payment
was made to hear their request for a waiver of the second delinquent
penalty. The owners of the Travelodge had been out of the country
and were unaware that this tax had not been paid.
Unfortunately, the Code allows for no waiver of penalties or
interest assessed due to late filing of transient tax payments.
The only extenuating circumstance would be the absence of the owner
at the time the tax payment became due. In addition the way the
Code is written, staff has no authority to waive any portion of the
tax or penalities.
The owners indicated that they were willing to pay the amount due
but felt that their case should be heard by a higher authority.
The Carlsbad Municipal Code 3.12.100 specifically allows the hotel
operator to appeal to the City Council in the event that th-� amount
of tax assessed by the staff is felt to be unfair or too high. A
copy of this section is attached.
EXHIBIT 1
W
w
:age -2-
Carlsbad Travelodge Transient Tax
October 15, 1984
Based on my reading of the Code it appe
ars that the operator has
the right to request a hearing before the Council and that Council
has the authority -to readjust the fees assessed.
If you would like we will get this drafted up as an agenda bill ;
and put it on the next available regular Meeting, lI
ELLIOTT
JFE : mmt
c: Frank Aleshire
Al Capuchino
WA
7R F OOG.r CARLSBAD CALIFORNIA
3570 PIG PICO. CARLSBAD. CALIFORNIA 9" (714) 72943a3
OCTOBER 3,1984
DEAR HONORABLE MAYOR:
I would like to appear to your Honor for waiving,
the second penalty on the motel room tax which had been
added to the room tax payment. I already made the
payment on Sept. 1984, The motel was called Travelodge
of Carlsbad, now is called Carlsbad Lodge.
The motel room tax was for the period of April 1
through June 30, 1984. Total amount is $3412.88.
The reason for the request is due to my ignorance
of the law PLUS the City do not have the system which
will notify the non -paid citizen to aware of overdue
payment and/plus penalty.
i
t
Your consideration of this matter is very appreciated.
S*Ch
rs,
CC: Mr. James F Elliott
EXHIBIT '2
For Reservations at any Travel odpe World Wide Call 800.255.3050 (Toll Free)
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