HomeMy WebLinkAbout2021-03-16; City Council; Resolution 2021-057RESOLUTION NO. 2021-057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE TRANSIENT OCCUPANCY REVIEW REPORT
AND ESTABLISHING INVOICING AND INTEREST ASSESSMENT DATES UNDER
CARLSBAD MUNICIPAL CODE SECTIONS 3.12.080(C) AND 3.12.080(E)
WHEREAS, Carlsbad Municipal Code Chapter 3.12—Transient Occupancy Tax generally requires
hotel operators to collect a 10% tax on non-exempt transient occupancies, remit the tax to the city
each month, and file a transient occupancy tax return each quarter; and
WHEREAS, the City Council included a transient occupancy tax review in its 2020-2021 internal
audit plan; and
WHEREAS, as a result of the transient occupancy tax review, some hotel operators were found
to be deficient in their returns or remittances or both; and
WHEREAS, when a deficiency is determined following an audit, Carlsbad Municipal Code Section
3.12.080(C) requires the tax administrator to immediately invoice hotel operators for the net deficiency
plus a penalty of 10% of the net deficiency and, if the hotel operators do not pay the deficient amount
and penalties within 14 days of the invoice date, the hotel operators are subject to an additional
penalty of 1% of the net deficiency per day, not to exceed 10%; and
WHEREAS, Carlsbad Municipal Code Section 3.12.080(E) requires that, in addition to the
imposed penalties, hotel operators who fail to remit taxes must pay interest at the rate of one and one-
half percent per month, or fraction of a month, on the amount of the tax, exclusive of penalties, from
the date on which the remittance first became delinquent until paid; and
WHEREAS, to prevent hotel operators from being subject to undue penalties and interest
pending the City Council's receipt and approval of the transient occupancy tax review report, the City
Council desires the tax administrator to invoice hotel operators for any net audit deficiencies and
penalties under Carlsbad Municipal Code Section 3.12.080(C) as of the date the City Council's approves
the transient occupancy review report and to assess interest under Carlsbad Municipal Code Section
3.12.080(E) as of the completion date of each hotel operator's transient occupancy tax review.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.The above recitations are true and correct.
2.The transient occupancy review report is approved.
March 16, 2021 Item #7 Page 3 of 31
3.The tax administrator is directed to invoice hotel operators for any net audit deficiencies
and penalties under Carlsbad Municipal Code Section 3.12.080(C) as of the date of this
resolution and to assess interest under Carlsbad Municipal Code Section 3.12.080(E) as
of the completion date of each hotel operator's transient occupancy tax review.
4.Hotel operators who do not pay the invoices and interest assessments within the time
periods specified in Carlsbad Municipal Code Chapter 3.12 will be subject to any
additional penalties, interest, and remedies provided for in the chapter.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 16th day of March, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
Pr\Acy-v-\
BARBARA ENGLESON, City Clerk
(SEAL)
March 16, 2021 Item #7 Page 4 of 31