Ordinance No. 17-18 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 17- ,
AN ORDINANCE ADDING CHAPTER 3.85 TO THE TIGARD MUNICIPAL CODE TO
ESTABLISH A 2.5 PERCENT TAX ON TRANSIENT LODGING IN THE CITY OF TIGARD
WHEREAS, ORS 320.350 allows local governments to establish transient lodging taxes and
provides for the use of revenues; and
WHEREAS, the Tigard City Council wishes to amend the Municipal Code to adopt a new Chapter
3.85 to impose a transient lodging tax of 2.5 percent in the City; and
WHEREAS, the Tigard City Council wishes to dedicate the revenues from the transient lodging tax
to uses allowed under state law.
NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: The Tigard Municipal Code is amended to add a new Chapter 3.85,Local Transient
Lodging Tax,as provided in Exhibit A.
SECTION 2: The sections, subsections, paragraphs and clauses of this ordinance are
severable. The invalidity of one section, subsection,paragraph, or clause shall not
affect the validity of the remaining sections, subsections,paragraphs and clauses.
SECTION 3: This ordinance shall be effective September 1,2017.
PASSED: By 14'1241,140144-4— vote of all council members present after being read by
number and title only,this_C day of ,2017.
Carol A. Krager,City RecordeV
J-L
APPROVED: By Tigard City Council this g day of '2017.
I LA Lt "'
John L. ook,Mayor
Approved as to form:
City AtVrn
SII' 1-7-
Date
Ordinance No. 17 - g
Exhibit A
TIGARD MUNICIPAL CODE
Chapter 3.85 LOCAL TRANSIENT of the Finance Department or their designee.
LODGING TAX
5. "Lodging" means "Transient
Sections: Lodging" as defined by ORS 320.300, except that
"Lodging" shall not include dwelling units at
3.85.010 Purpose nonprofit facilities, dormitory rooms used for
3.85.020 Definitions educational purposes, camping sites, and
3.85.030 Tax Imposed recreational vehicle sites.
3.85.040 Collection
3.85.050 Provider's Duties 6. "Occupancy" means the use or
3.85.060 Exemptions possession, or the right to use or possession, for
3.85.070 Registry lodging purposes, of any space, or portion thereof,
3.85.080 Returns in Lodging.
3.85.090 Penalties and Interest; Lien
3.85.100 Deficiencies 7. "Occupant" means a person who uses
3.85.110 Redetermination or possesses, or who has the right to use or possess
3.85.120 Security any space,or portion thereof, in a Lodging.
3.85.130 Refunds
3.85.140 Expenditure of Funds 8. "Rent" means the consideration
3.85.150 Collection Fee charged, whether or not received by the Transient
3.85.160 Administration Lodging Provider, for the occupancy of space in
3.85.170 Notice Lodging, whether or not valued in money, without
3.85.180 Appeals any deduction.
3.85.190 Violations and Penalty
3.85.200 Intergovernmental Agreement 9. "Tax" or "Taxes" means either the
Tax payable by the Occupant or the aggregate
3.85.010 Purpose amount of Taxes due from a Provider during the
period for which the Provider is required to report
The purpose of this chapter is to impose a collections.
tax upon the Transient Lodging by any Occupant
in the City of Tigard. 10. "Transient Lodging Provider" or
"Provider" means the person who is the proprietor
3.85.020 Definitions of a Lodging in any capacity. Where management
functions are performed through an intermediary
As used in this ordinance, unless the context other than an employee, the intermediary who
requires otherwise: shall have the same duties and liabilities as the
proprietor shall be the Provider. Compliance with
1. "City" means the City of Tigard, the provisions of this Chapter by either the
Oregon. proprietor or the intermediary shall be considered
2. "City Council" means the City
to be compliance by both.
Council of the City of Tigard, Oregon. 3.85.030 Tax Imposed
3. "Finance Department" means the For the privilege of Occupancy in any
Finance Department of the City. Lodging, each Occupant shall pay a Tax in the
4. "Finance Director"means the Director amount of two and a half percent (2.5%) of the
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Rent charged by the Transient Lodging Provider. be assumed or absorbed by the Provider, or that it
The Tax constitutes a debt owed by the Occupant will not be added to the Rent, or that, when added,
to the City,which is extinguished only by payment any part will be refunded.
to the Transient Lodging Provider at the time the
Rent is paid. The Transient Lodging Provider 3.85.060 Exemptions
shall enter the Tax on the Provider's records when
the Rent is collected. If the Rent is paid in No Tax imposed by this Chapter shall be
installments, a proportionate share of the Tax shall imposed upon dwelling units described in ORS
be paid by the Occupant to the Provider with each 320.308.
installment. If for any reason the Tax due is not
paid to the Provider, the Finance Director may 3.85.070 Registry
require that the Tax be paid directly to the City.
The tax must be computed on the total retail price, 1. Every person engaging or about to
including all charges other than taxes, paid by a engage in business as a Transient Lodging
person for occupancy of the Transient Lodging. Provider in this City shall register with the City on
a form provided by the Finance Department.
3.85.040 Collection Providers starting business must register within 30
calendar days after commencing business. The
1. Except when Occupants or Lodgings privilege of registration after the date of
are exempt under this Chapter, every Transient imposition of the Tax shall not relieve any person
Lodging Provider renting Occupancy in a Lodging from the obligation of payment or collection of
in the City shall collect a Tax from the Occupant. Tax regardless of registration. Registration forms
The Tax collected or accrued by the Provider shall require the name under which a Provider
constitutes a debt owing by the Provider to the transacts or intends to transact business, the
City. location of the place of business, and other similar
additional information required by the Finance
2. In cases of credit or deferred payment Department to facilitate the collection of the Tax.
of rent, the payment of the Tax to the Provider The registration shall be signed or electronically
may be deferred until the Rent is paid, and the submitted by the Provider.
Provider shall not be liable for the Tax until the
credit is paid or the deferred payment is made. 2. The Finance Department shall, within
fifteen business days after registration, issue
3. The Finance Director shall enforce without charge a certificate of authority to each
this Chapter and the City may adopt policies, Provider to collect the Tax from the Occupant,
rules, and regulations consistent with this Chapter together with a duplicate thereof for each
as necessary to aid in the enforcement. additional place of business of each Provider.
Certificates shall be non-assignable and
3.85.050 Provider's Duties nontransferable and shall be surrendered
immediately to the Finance Department upon the
Each Transient Lodging Provider shall cessation of business at the location named, or
collect the Tax imposed by this Chapter on an upon the business sale or transfer. Each certificate
Occupant. The amount of the Tax shall be and duplicate shall state the place of business to
separately stated upon the Provider's records and which it is applicable and shall be prominently
on any receipt for the Rent rendered by the displayed.
Provider to the Occupant. No Provider shall
advertise that the Tax or any part of the Tax will 3. The certificate shall state, at
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minimum,the following: a. The total rentals upon which the
Tax is collected or otherwise due,
a. The name of the Provider,
b. Gross receipts of the Provider
b. The address of the Lodging, for the period,
C. The date upon which the C. The amount of Rents exempt, if
certificate was issued, and any, and
d. This statement: "This Transient d. An explanation in detail of any
Lodging Registration Certificate signifies that the discrepancies.
person named has fulfilled the requirements of the
Transient Lodgings Tax Chapter of the Tigard 3. The Provider or his/her designee shall
Municipal Code for the purpose of collecting and deliver the monthly Tax payment and return to the
remitting the Lodgings Tax. This certificate does Finance Department at its office either by personal
not authorize any person to conduct any unlawful delivery, via a website portal, or by United States
business or to conduct any lawful business in an Mail. If the return and Taxes are mailed, the
unlawful manner, or to operate a Lodging without postmark shall be considered the date of delivery
strictly complying with all local applicable laws, for determining delinquency.
including but not limited to those requiring a
permit from any board, commission, department or 4. At any time before the due date, the
office of the City. This certificate does not Finance Director may, for good cause, extend the
constitute a permit." due date for making any return and/or payment of
Tax for up to thirty days after the date the Tax
3.85.080 Returns would have become due but for the extension.
Further extensions must be approved by the City
1. The Tax imposed by this Chapter shall Manager. A Provider who is granted an extension
be paid by the Occupant to the Transient Lodging shall pay a fee of three percent (3%) per month of
Provider when the Occupant pays Rent to the the unpaid tax without proration for a fraction of a
Provider. All Transient Lodging Taxes collected month.
by a Provider are due and payable to the Finance
Department, on a monthly basis, on or before the 5. If the Finance Director deems it
tenth day of the month for the preceding month. necessary, in order to ensure payment or to
facilitate collection by the City of the amount of
2. Providers shall file, with the monthly Taxes in any individual case, the Finance Director
Tax payment, or, if there is no Tax payment due may require that payment of the Taxes be made in
for a given month, at the time the Tax payment other than monthly periods.
would have been due, a return for that month's
Tax collections. The return shall be filed with the 3.85.090 Penalties and Interest; Lien
Finance Department and shall be on a form
prescribed by the Finance Department. The return 1. A penalty will be imposed on a
shall reflect the amount of Tax collected or Provider who mails, hand delivers, or submits
otherwise due for the period for which the return is online the return and the Tax payment after the
filed. At the discretion of the Finance Director, it due date. The penalty is ten percent (10%) of the
may also reflect: unpaid tax. If the Provider files and/or pays more
than thirty days after the due date, an additional
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fifteen percent (15%) penalty of the unpaid tax the Finance Director may offset overpayments, if
will be added to the balance of the unpaid tax. In any, which may have been previously made for a
addition to the penalties imposed, any Provider period or periods against any deficiency for a
who fails to remit any tax imposed by this subsequent period or periods, or against penalties
chapter shall pay interest at the rate of one and interest on the deficiency.
percent (1%) per month or fraction thereof
without proration for portions of a month, on the 3. Once a deficiency determination is
amount of the tax due, exclusive of penalties, made, the Finance Director shall serve a written
from the date on which the remittance first deficiency notice on the Provider (or Occupant, in
becomes delinquent until paid. the case of a request for a refund). The notice may
be given personally or sent by United States mail.
2. If the Finance Director determines that If sent by mail, the notice shall be addressed to the
the nonpayment of any remittance due under this Provider at his/her address as it appears on the
Chapter is due to fraud or intent to evade the records of the City or as the City can best
provisions of this Chapter, a penalty of twenty-five determine.
percent (25%) of the amount of the Tax shall be
added, in addition to the penalties and interest 4. Any deficiency is due and payable
above. thirty (30) days after the Finance Director serves
the written deficiency notice. If not paid by the
3. Every penalty imposed and such thirtieth day after service of a deficiency notice,
interest as accrues under the provisions of this the amount shall be delinquent and penalties and
Section 3.85.090 shall be merged with and become interest shall be applied as established in this
a part of the tax herein required to be paid. Chapter.
4. Any tax collected by the Provider but 5. The Provider(or Occupant, in the case
not remitted to the Finance Director in the time of a request for a refund) may petition for a
required under this chapter shall constitute a lien redetermination provided that the petition is filed
on the Lodging. The Finance Director, or within fifteen (15) days of service of the
designee, may record a lien in the county lien deficiency notice. Nothing prohibits the Finance
record against the Lodging and any real property Director from extending the time for petition
owned by the Provider or intermediary as to any beyond fifteen(15)days at his/her discretion.
delinquent remittances by the Provider or
intermediary. 6. Except as provided in this Chapter,
every deficiency determination shall be made and
3.85.100 Deficiencies notice mailed within three (3) years after a return
was originally filed or subsequently amended,
1. If the Finance Director determines that whichever period expires later. In the case of the
a return is incorrect, the Finance Director may filing of a false or fraudulent return with the intent
compute and determine or estimate the amount to evade this Chapter, a failure to file a required
required to be paid based on the facts contained in return, or a willful refusal to collect and remit the
the return or returns or any other information Tax, a deficiency determination may be made, or a
within the Finance Director's possession. One or proceeding for the collection of the deficiency
more deficiency determinations may be made on may be commenced at any time.
the amounts due for one or more periods.
7. If the Finance Director believes that
2. In making a deficiency determination, the collection of any Tax required to be collected
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and paid to the City will be jeopardized by delay, with the payment provision of this Chapter and has
or if any determination will be jeopardized by paid in full the amount determined to be due under
delay, the Finance Director may make a the decision appealed from.
determination of the Tax or amount of Tax
required to be collected. The Finance Director 3.85.120 Security
will serve a written deficiency notice and demand
for immediate payment on the Provider. The The Finance Director, whenever the Finance
amount shall be immediately due and payable, and Director deems it necessary to ensure compliance
the Provider shall immediately pay such with this Chapter, may require any Provider
determination to the City after service of the subject to this Chapter to deposit with the Finance
notice, provided, however, the Provider may Director security in the form of cash, bond, or
petition, after payment has been made, for a other assets, as the Finance Director determines.
redetermination of the Finance Director's The amount of the security shall be fixed by the
assessment, provided that the petition is filed Finance Director but shall not be greater than five
within fifteen (15) days of service of the times the Provider's estimated average monthly
deficiency notice. tax liability for the period for which the Provider
files returns, determined in such manner as the
3.85.110 Redetermination Finance Director deems proper, or five thousand
dollars, whichever amount is greater. The
1. If a petition for redetermination, amount of security may be increased or decreased
redemption, and refund is filed within the requisite by the Finance Director within the limitation of
time period, the Finance Director shall reconsider this Section.
the determination, and, if the person has so
requested in his/her petition, shall grant the person 3.85.130 Refunds
an oral hearing and shall give him/her fifteen (15)
days' notice of the time and place of the hearing. 1. Whenever the amount of any Tax
The Finance Director may continue the hearing imposed under this Chapter has been paid more
from time to time as necessary. than once or has been erroneously or illegally
collected or received by the Finance Department,
2. The Finance Director may decrease or it may be refunded, provided a verified claim in
increase the amount of the determination as a writing, stating the specific reason upon which the
result of the reconsideration, the hearing, or both, claim is founded, is filed with the Finance Director
and, if an increase is determined, such increase within two (2) years from the date of payment.
shall be payable immediately after the The claim shall be made on forms provided by the
reconsideration or the hearing, as appropriate. Finance Department. If the claim is approved, the
excess amount collected or paid may be refunded
3. The decision of the Finance Director to the Provider from whom it was collected or by
upon a petition for redetermination, redemption, whom it was paid, or the Provider's
and refund becomes final fifteen (15) days after administrators, executors, or assignees.
service of the notice of decision upon the Alternatively, at the discretion of the Finance
petitioner. Director, the refund may be credited toward any
amounts then due and payable from the Provider
4. No petition for redetermination, from whom it was collected or by whom it was
redemption, or refund or other appeal shall be paid, and the balance, if any, may be refunded to
accepted and no petition is effective for any the Provider or the Provider's administrators,
purpose unless the Provider has first complied executors, or assignees.
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2. Whenever the Tax required by this 3. A formal audit of all of the Providers'
Chapter has been collected by the Provider and it records may be conducted at the discretion of the
is later determined that the Occupant has occupied Finance Director. If, under this formal audit, it is
the occupancy for a period exceeding thirty (30) determined that any Provider has underpaid the
days without interruption, the Provider shall Taxes due by 3% or more, the Provider shall pay
refund to the Occupant the Tax previously his/her prorated portion of the total audit fee.
collected by the Provider from the Occupant. If Should the Finance Director, in his/her sole
the Provider has remitted the Tax prior to refund discretion, conduct or cause to be conducted
or credit to the Occupant, the Provider shall be individual audits in addition to the audit
entitled to a corresponding refund under this anticipated above, and should that individual audit
Section. The Provider shall account for all determine that the audited Provider has underpaid
collections and refunds under this subsection to the Taxes due by 3% or more, the Provider shall
the Finance Department. pay the total individual audit fee.
3.85.140 Expenditure of Funds 4. Except as otherwise required by law,
it shall be unlawful for any officer, employee, or
All money collected pursuant to this Chapter agent of the City to divulge, release, or make
shall be the general funds of the City and known in any manner any financial information
may be used in any lawful manner, as submitted or disclosed to the City under the terms
prescribed by state law. of this Chapter. Nothing in this Section shall be
construed to prohibit:
3.85.150 Collection Fee
a. The disclosure to, or the
Every Provider liable for collection and examination of, financial records by City officers,
remittance of the Tax imposed by this Chapter employees, or agents for the purpose of
may withhold five percent(5%) of the net Tax due administering or enforcing the terms of this
to cover expenses in its collection and remittance. Chapter, or collecting Taxes imposed under the
terms of this Chapter;
3.85.160 Administration
b. The disclosure to the taxpayer
1. Every Provider shall keep records of or his/her authorized representative of financial
rentals and accounting books that are sufficient to information, including amounts of Transient
demonstrate compliance with the provisions of this Lodging Taxes,penalties, or interest, after filing of
Chapter. These records shall be retained for three a written request by the taxpayer or his/her
(3)years and six(6)months after they are created. authorized representative and approval of the
request by the Finance Director;
2. The Finance Director may examine,
during normal business hours, the books, papers, C. The disclosure of the names and
and accounting records relating to rentals of any addresses of any person to whom this Chapter
Provider liable for the Tax, after notification to the applies;
Provider, and may investigate the business of the
Provider in order to verify the accuracy of any d. The disclosure of general
return made, or if no return is made by the statistics in a form which would prevent the
Provider, to ascertain and determine the amount identification of financial information regarding
required to be paid. any particular taxpayer's return or application; or
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e. The disclosure of financial 2. At any time within three (3) years
information to the City Attorney or other legal after any Tax required to be collected becomes due
representative of the City to the extent the Finance and payable, at any time within three years after
Director deems disclosure or access necessary for any determination by the Finance Director or City
the performance of the duties of advising or Manager under this Chapter becomes final, or at
representing the Finance Director, the Finance any time within three (3) years after any person
Department, or the City. who is required to do so fails to furnish true and
non-fraudulent information within the time periods
3.85.170 Notice prescribed by this Chapter, the City may
commence and prosecute to final determination in
In case of service by mail of any notice any court of competent jurisdiction an action to
required by this Chapter, the service is complete collect the same.
three days after deposit with the United States Post
Office. 3. A person who violates a provision of
this chapter commits a Class 1 civil infraction.
3.85.180 Appeals Each transient lodging transaction for which
tax, penalty or interest otherwise due is not paid
Any person aggrieved by any decision of the shall be deemed a separate civil infraction. Each
Finance Director may appeal to the City Manager day a person fails to register as a transient lodging
(or his or her designee)by filing a notice of appeal tax collector shall be deemed a separate civil
with the Finance Director within fifteen (15) days infraction.
of the serving of the notice of the Finance
Director's decision. The Finance Director shall 3.85.200 Intergovernmental Agreement
transmit the notice, together with the file of the
appealed matter, to the City Manager, who shall The City Council may enter into an IGA
fix a time and place for hearing the appeal. The with Washington County whereby the County is
City Manager shall give the appellant not less than responsible for the administration, collection,
fifteen (15) days' written notice of the time and distribution, or enforcement of the tax authorized
place for hearing the appeal. The City Manager under this chapter, either in full or in part. The
may continue the hearing from time to time as terms of that agreement shall apply in lieu of and
necessary. shall supersede conflicting provisions of this
chapter but shall not be construed as repealing any
3.85.190 Violations and Penalty provision of this chapter.
1. No Provider or other person required
to do so may fail or refuse to, in the time periods
prescribed by this Chapter, furnish any return
required to be made under this Chapter or furnish
a supplemental return or other data required by the
Finance Director, or make the remittance to the
Finance Director of the amount of the Taxes,
penalties, or interest due. No person may render a
false or fraudulent return under this Chapter. No
person required to make, render, sign, or verify
any report regarding the Tax may make any false
or fraudulent report.
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