HomeMy WebLinkAbout15- City Clerk r Ll
C*Y OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: Rachel Clark Subject: Appeal filed by Stephen Post regarding
Penalty assessment of $1,352.94 imposed
Dept: City Clerk ��I �� on Super 8 Motel for delinquent payment
of Transient Occupancy Tax.
Date: November 26, 1996
Synopsis of Previous Council action:
7/19/82 Ordinance MC-191 amended Chapter 3.52 relating to Transient Occupancy Tax
(TOT) , changed the reporting period .for TOT from a quarterly to a monthly
period and changed the penalty provisions for delinquent payment.
_ 96 "_ J.Z
Recommended motion:
That the Mayor and Common Council deny the appeal filed by Stephen Post,
Assistant Controller, on behalf of the Super 8 Motel, 294 E. 1lospitality
Ln. , San Bernardino, for penalty assessment of $1,352.94, representing
delinquent payment of Transient Occupancy Tax.
Signature
Contact person: Roger Davis, Buisness Registration TnspPrtoBhone: _(909)4R4-501 5
Supporting data attached: Staff Report with attachments Ward: Third
FUNDING REQUIREMENTS: Amount: -0-
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
75-0262 Agenda Item No /�
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
MAYOR AND COMMON COUNCIL MEETING OF December 16, 1996
BACKGROUND
10/25/96 Transient Occupancy Tax (TOT) for the month of September
1996 due in City Clerk's Office per SBMC 3 .52 . 070.
10/31/96 Non-receipt of TOT from Super 8 Lodge, 294 East
Hospitality Lane, reported by account clerk Regina Elliot
to Business Registration Inspector Roger Davis.
10/31/96 Inspector Roger Davis notified the bookkeeper for Super
8 Lodge, Ann Marie Long, that the TOT had not been
received, and penalties are due.
11/04/96 TOT was received without penalties included. TOT was
returned by letter signed by Inspector Davis to Super 8
Lodge for payment of 25% penalty not later than November
25, 1996, in accordance with SBMC 3 .52 . 080 and preprinted
instructions on Transient Occupancy Tax Return form.
11/12/96 Phone call received by Inspector Davis from Mr. Stephen
Post, Assistant Controller, The Famous Host (Super 8
Lodge) , objecting to the 25% penalty imposed. Inspector
Davis informed Mr. Post that the penalty is set by
ordinance passed by the Mayor and Common Council, and he
will not waive the penalty.
11/18/96 Letter submitted by Mr. Stephen Post, Assistant
Controller, The Famous Host (Super 8 Lodge) to the Mayor
and Common Council appealing the 25% penalty imposed.
11/20/96 Mr. Post's letter received by City Clerk Rachel Clerk
from Mayor Tom Minor for review.
11/25/96 Mr. Post informed by letter from City Clerk Rachel Clark
that his appeal will be heard by the Mayor and Common
Council at 10: 00 a.m. , Monday, December 16, 1996.
APPELLANT 'S STATED GROUNDS OF APPEAL
1. Mr. Post claims he has never been late paying TOT since the
motel opened in March 1982 and has collected "tens of
thousands of dollars in room taxes" for the City.
2 . Mr. Post asserts that the San Bernardino motel market is among
the most depressed in the state; therefore, the penalty is
especially burdensome.
75-0264
3 . Mr. Post states that the TOT was not submitted on time "owing
to a clerical error. "
APPELLANT'S ACTIONS SOUGHT FROM MAYOR/COMMON COUNCIL
Mr. Post requests that the $1, 352 .94 penalty be dropped.
STAFF ANALYSIS
A review of the payment history for the Super 8 Lodge since January
1996 indicates that the Transient Occupancy Tax payment has been
received late three times (May, June, and July) prior to this
latest incident. Since this tax is paid directly by the citizens
who rent the motel rooms, we must be especially vigilant in
preventing misuse of these monies. The Transient Occupancy Tax
Return form clearly states the penalties imposed for late payment
at the top of the form that Mr. Post's business has been submitting
since 1982 . The penalties are meant to serve as a deterrent for
late submission in order to prevent the misuse of these revenues.
A courtesy telephone call was made by Inspector Davis to the Super
8 Lodge on October 31, 1996, informing them of non-receipt of the
payment and reminding them of the imposition of the penalty. The
payment was received late on November 4, 1996, and the penalty was
not included. The payment and the Transient Occupancy Tax Return
form was returned to the Super 8 Lodge by Inspector Davis with a
letter of explanation and request for payment of the penalty on the
same day it was received, November 4, 1996, requesting payment in
full by November 25, 1996.
STAFF RECOMMENDATION
That the Mayor and Common Council deny the appeal and uphold the
City Clerk's 25% penalty in the amount of $1, 352 . 94 for late
submission of the Transient Occupancy Tax Return from the Super 8
Lodge for the month of September 1996 due on October 25, 1996.
e
I
I
s
I
Place
F�nr �e F:,•.c Cr-...._�._ r 4 "' tam
2(''.`*' J `'i REET ji',
ere
814 "95 BUSINESS REGISTRATION DIVISION
CITY CLERK'S OFFICE
P.O. Box 1318
San Bernardino, CA 92402-1318
ATTN-. R. Elliott
330S-0
CITY OF SAN BERNARDINO
TRANSIENT OCCUPANCY TAX RETURN
INSTRUCTIONS FOR FILING TRANSIENT OCCUPANCY TAX RETURN
1. EVEN IF THERE IS NO TAX DUE,a tax return must be 5. RECEIPT:The canceled check becomes the receipt.No
filed with the City Clerk. receipt will be mailed unless a demand for same is made
2. REPORTING PERIOD: Monthly. Payments for the pre- at the time of payment.
ceding month to be made between the 1st and 25th.Delin- �EttWAROj�
quent on the 26th of the month following reporting period. 6. ALL RECORDS SUBSTANTIATING THE RETURN �+
must be retained by the operator for a period of not less
3. PENALTY:If paid within 30 days after delinquent date,a than three years from the date of payment.For allowable > °o
penalty of 254'0 of the amount of tax(line 5)will be added. deductions,please refer to San Bernardino City Munici-
If paid between the 30th and 60th day after delinquent date, Pal Code Chapter 3.52.
a penalty of 509o'of the amount of tax.(line 5)will be added.
No
t
If paid more than 60 days after delinquent date,a penalty of 7. CHANGE OF ADDRESS OR OWNERSHIP MUST BE
10090 of the amount of the tax(line 5)will be added. REPORTED IMMEDIATELY I Y TO THE CITY CLERK.
4. REMITTANCE:Checks should be payable to City of San g. UPON CESSATION OF BUSINESS FOR ANY REA- City Clerk's Office
Bernardino.Checks,drafts,postal notes and money orders SON,RETURNS AND PAYMENTS ARE DUE IMME- P.O.Box 1318
are accepted subject to collection and do not constitute DIATELY. San Bernardino,CA 92402
payment until cleared.The City assumes no responsibility
for loss in transit or delay in deposit. RACHEL CLARK,City Clerk
Account
J Number
Owner's Name PTITT.TP R_ C.RnTFGT014T
Please correct any errors in name
Business Name
SUPER 8 LODGE or address.
NOTE: A return and payment is
Business Address 294 EAST HOSPITALITY LANE due immediately upon cessation
of business.
SAN BERNARDINO CA 92408
No.of Rooms 1,307 Occupancy Rate for this Period 54%
Statement For JAN. C( FEB. C MAR APR. ❑ MAY ❑ JUNE
Month of JULY C AUG. C' SE OCT. ❑ NOV. ❑ DEC.
1 Gross Rent for Occupancy of Rooms $54,117.60
2 Rents Collected on Continuous $
Occupancies of over 30 days —0—
ALLOWABLE DEDUCTIONS
Rent or occupancy by officers or employees of
Federal,State,or Foreign Government Agency,
3 (Attach Completed Exemption Certificates) $ —0-
4 Taxable Rents line 1 minus line 3 $ 54,117.60
5 Tax:10%of line 4 $ 5,411.76
6 Penalty if Applicable:See No.3 of Instructions $
-o- / 3Sz.yy
7 Amount Due: lines 5 to 6 Inclusive ,414.76 76 4, -7
I declare,under penalty of perjury,that to the best of my knowledge Make checks payable to: CITY OF SAN BERNARDINO
and belief the statements herein are correct and true.
Sig
d 4� ICJ
itle BOOKKEEPER Date 10-29-96 Checked by
300 'orth I'D"Street,San Bernardino,California 92418
Phone(909)384.5036
CITY OF SAN BEMIFI&NO
DiuribNriow: wltrr&City Lurk PINK•Customer(Retain fm your teomds.) oFNTPAL WiNnNGSERMGEs
CTCK-2.07 (1-96)
F _$"A�T(fep�dRMIES/CENTRAL CLEARING ACCOUNT 2722 2722
F CITY OF SAN BERNARDINO 00000000000005692 10/31/96
19 093096SB 10/31/96 $5,411.76 $5,411.76 $0.00 $0.00 $5,411.76
$5,411.76 $5,411.76 $0.00 $0.00 $5,411.76
COMMENT
I
FAMOUS HOST COMPANIES BANK of AMERICA 2722
II A.P.GIANNINI BRANCH
�! CENTRAL CLEARING ACCOUNT SAN MATEO,CA 9x402
+! 2030 J STREET 11-35/1210
!I SACRAMENTO,CA 95814
(916)442-9183 DATE
AMOUNT
10/31/96 S5,411.76
PAY Five Thousand Four Hundred Eleven Dollars And 76 Cents
TO THE
ORDER
JI
OF CITY OF SAN BERNARDINO VOID AFTER 90 DAYS
AMOUNTS OVER$10,000.00 REQUIRE TWO SIGNATURES
P.O. BOX 1318
9i SAN BERNARDINO CA 92402
11000272211• 1: L2L0003SEO: 097338,, L4920113
A SECURITY FEATURES INCLUDED.DETAILS ON BACK. 8
CITY OF SAN BERNARDINO
CITY CLERK'S OFFICE
300 NORTH "D" STREET
SAN BERNARDINO, CA 92418 Date: November 4, 1996
We are returning your Transient Occupancy Tax Return form and/or
check, received on this date , for the following reason(s)
Transient Occupancy Tax Return form is not signed.
Check is not signed.
Payment is not included.
Gross Rent for Occupancy of Rooms must be reported in the
appropriate space.
Completed Exemption Certificates must be attached and the
total amount of exemptions reported in the appropriate
space provided on the form.
XX per SBMC 3 .52 . 080, a 25 % penalty has been assessed and
must be paid.
XX The amount due has not been calculated correctly. The
amount due is $6,764.70 if all other information you
have provided is correct.
Other:
Please return your Transient Occupancy Tax not later than 11/25/96
If you have any questions, please call our office at (909) 384-5015,
7 : 30 a.m. until 5 : 30 p.m. , Monday through Thursday, and 7 : 30 a.m.
until 4 : 30 p.m. every other Friday.
Thank you for your cooperation.
Sincerely,
RO� 2
DAVIS
Business Registration Inspector
Returned Application Form last updated 03/18/96
20.30 J Street
Sacramento.CA 95814
910;4-+^_-9183 DECEIVED--C17-'( CL
Fax 916;-4-42-9 233
X916 AV 20 P3 '.'()9
The Honorable Mayor and Common Council
City of San Bernardino
300 North D Street
San Bernardino, CA 92401
Dear Sirs or Madams;
My company which operates the Super 8 Motel at 294 East Hospitality Lane in San Bernardino
has received notice from your city clerk's office informing us of our late payment of the transient
occupancy tax for September 1996. Due to the delay, the city clerk has assessed us a 25%
penalty.
We are hereby appealing the penalty assessment which amounts to $1,352.94. Since the motel
opened in March of 1982 we have collected ten of thousands of dollars in room taxes and have
never been late paying you. As you are no doubt aware, the San Bernardino motel market is
among the most depressed in the state, so the added penalty is especially burdensome.
Due to our good history of both collection and payment of taxes along with the fact that, owing
to a clerical error, we were just six day late this time, we ask that you drop the penalty charge this
once.
Sincerely
Stephen Post
Assistant Controller
D
NOV 18 1996
If /2.2�r OFFICE OF THE MAYOR
/0; /4. �t TIME:
� 3 � So
O�RNARp�ti
O
SQL C'9 C I T Y O F
O
5an bernardino
R A C H E L C L A R K
C I T Y C L E R K
November 25 , 1996
Mr. Stephen Post
Assistant Controller
The Famous Host
2030 J Street
Sacramento, Ca 95814
Dear Mr. Post :
we have received your letter to the Mayor and Common Council
appealing the penalty assessment of $1, 352 . 94 which has been
levied against the Super 8 Motel at 294 East Hospitality Lane,
San Bernardino, for delinquency in remitting transient occupancy
tax collected for the month of September 1996 .
The appeal is scheduled to be heard on Monday, December 16, at
10 : 00 a .m. , in the Council Chambers of City Hall, 300 North "D"
Street, San Bernardino, CA.
If you have any questions related to your appeal, please feel
free to contact the City Clerk' s Office at (909) 384-5002 .
Sincerely,
Rac el G. Clark
City Clerk
cc : City Attorney
City Administrator
Lee Gagnon, Business Registration Supervisor
Sandra Medina, AOS, City Clerk' s Office
Roger Davis, Business Registration Inspector
P . O . 8 0 X 1 3 1 8 S A N 8 E R N A R D I N 0 , C A 9 2 4 0 2
3 0 0 N O R T H D S T R E E T S A N B E R N A R D I N O
C A L I F O R N I A 9 2 4 1 8 - 0 0 0 1 ( 9 0 9 ) 3 8 4 - 5 0 0 2
( 9 0 9 ) 3 8 4 - 5 1 0 2 F A X - ( 9 0 9 ) 3 8 4 - 5 1 5 8
T D D / T T Y ( 9 0 9 ) 3 8 4 -5 5 4 0