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City of Cleveland Codified Ordinances, Chapter #193
PART ONE — ADMINISTRATIVE CODETitle XVII — TaxationChapter 193 — Transient Occupancy TaxComplete to June 30, 2007
CROSS REFERENCES
Authority to impose tax, RC Ch 5739
It is the intent of the City to levy the excise tax of three percent (3%) on transactions by which lodging is or is to be furnished by a hotel to transient guests as referred to and authorized by RC 5739.02(C). Accordingly, this chapter shall be construed to effectuate that purpose and so as to be consistent with any requirement of law, compliance with which is a prerequisite to the validity of the tax intended to be levied hereby.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
As used in this chapter:
(a) "Administrator" means the Commissioner of Assessments and Licenses or his authorized representative.
(b) "Hotel" means every establishment kept, used, maintained, advertised, or held out to the public to be a place where sleeping accommodations are offered for consideration to guests, in which five (5) or more rooms are used for the accommodation of such guests, whether such rooms are in one or several structures.
(c) "Transient guests" means persons occupying a room or rooms for sleeping accommodations for less than thirty (30) consecutive days.
(d) "Vendor" means the person who is the owner or operator of the hotel and who furnishes the lodging.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
(a) There is hereby levied an excise tax of three percent (3%) of the amount paid or to be paid by transient guests on transactions by which lodging is or is to be furnished by a hotel to such transient guests for the purpose of providing revenue with which to meet the needs of the City for financing the costs of operation, maintenance and improvements for the Cleveland Convention Center.
(b) To carry out such purpose, the receipts of such tax shall be deposited to the credit of the Convention Center Fund. Pursuant to annual tax budgets and appropriation measures, receipts of such tax sufficient to pay debt charges on general obligation bonds and notes in anticipation of such bonds issued in 1983 and thereafter for the acquisition or construction of permanent improvements for the Cleveland Convention Center shall be paid to the Sinking Fund, Unvoted Bond and Note Account.
(c) Such tax, which shall be known as the transient occupancy tax, applies and is collectible at the time the lodging is furnished, regardless of the time when the price is paid. The tax shall not apply to transactions by which lodging is furnished to the Federal government, the State or any of its political subdivisions.
(d) For the purpose of the proper administration of this chapter and to prevent the evasion of the tax, it shall be presumed that all lodging furnished by hotels in the City to transient guests is subject to the tax until the contrary is established.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
(a) The transient occupancy tax shall be paid by the transient guest to the vendor. Each vendor shall collect from the transient guest the full and exact amount of the tax payable on each taxable lodging. The tax required to be collected under this chapter shall be deemed to be held in trust by the vendor or the City until paid to the Administrator, as provided in Section 193.07 of this chapter. If for any reason the tax due is not paid to the vendor, the Administrator may require the transient guest to pay such tax directly to the Administrator.
(b) No exemption shall be granted except upon a claim therefor made at the time the lodging is furnished and, under penalty of perjury, upon a form and in the manner prescribed by the Administrator.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
Each vendor shall keep within the City complete and accurate records of lodging furnished, together with a record of the tax collected thereon. Such records shall be open during business hours to the inspection of the Administrator and shall be preserved for a period of three (3) years, unless the Administrator in writing consents to their destruction within that period, or by order requires that they be kept longer.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
(a) The vendor shall state and charge the transient occupancy tax to the transient guest separately from the charge for the lodging and on any record thereof, at the time when the occupancy is arranged or contracted and charged for, and upon every evidence of occupancy or any bill or statement or charge made for occupancy issued or delivered by the vendor.
(b) No vendor shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the vendor, or that it will not be added to the amount charged for the lodging, or that, if added, any part will be refunded except in the manner provided in this chapter.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
(a) Each vendor shall on or before the last day of the month make and file a return for the preceding month, on forms prescribed by the Administrator, showing the receipts from furnishing lodging, the amount of tax due from the vendor to the City for the period covered by the return, and such other information as the Administrator deems necessary for the proper administration of this chapter. All returns shall be signed by the vendor or its authorized agent. The Administrator may extend the time for making and filing returns. Returns shall be filed by delivering or mailing the same to the Administrator together with payment of the full amount of tax shown to be due thereon.
(b) The Administrator may authorize vendors whose tax liability is not such as to merit monthly returns, as determined by the Administrator upon the basis of administrative costs of the City, to make and file returns at less frequent intervals. Such authorization shall be in writing and shall indicate the intervals at which returns are to be filed.
(c) Each vendor shall file all claims for exemption from tax filed by the transient guests with the vendor during the reporting period with the return.
(d) The Administrator shall treat all returns and payments submitted by vendors as confidential and shall not release them except upon order of a court of competent jurisdiction or to an officer or agent of the United States, the State, the County, or the City, for official use only.
(e) The Administrator, if he deems it necessary in order to insure the payment of the tax imposed by this chapter, may require returns and payments to be made and filed for periods longer or shorter than a month.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
The Administrator shall refund or grant credits to vendors for the amount of tax paid illegally or erroneously or paid on any illegal or erroneous assessment where the vendor has not reimbursed itself from the transient guest. A transient guest may obtain a refund or credit for the amount of taxes paid illegally or erroneously, but only when the tax was paid by the transient guest directly to the Administrator. No refund shall be paid unless the claimant establishes a right thereto by written records showing entitlement thereto and makes a claim filed within three (3) years of the date of payment in the manner and on forms prescribed and furnished by the Administrator, and stating under penalty of perjury, the specific grounds upon which the claim is founded.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
(a) If any vendor fails or refuses to collect the transient occupancy tax or to file a return or remit the tax or any portion thereof, as required by this chapter, the Administrator shall proceed in such manner as he may deem best to obtain information on which to base an assessment of the tax due. When the Administrator has obtained such information as he is able, he shall proceed to determine and assess against such vendor the tax and penalty provided for in this chapter.
(b) In case such determination is made, the Administrator shall serve notice upon the vendor of the amount so assessed, either by personal service or by registered or certified mail. Such vendor may, within ten (10) days after the serving or mailing of such notice, apply in writing to the Administrator for a hearing on the correctness of that amount assessed. If the vendor does not apply within the time prescribed, the tax and penalty determined by the Administrator shall become final and conclusive and immediately due and payable. If the vendor makes timely application, the Administrator shall give the vendor written notice not less than five (5) days in advance in the manner prescribed in this section, to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax and penalty. At any such hearing, the vendor may appear and offer evidence why such specified tax and penalty should not be so fixed.
(c) After such hearing, the Administrator shall determine the proper amount of tax due and shall thereafter give written notice to the vendor in the manner prescribed in this section, of such determination and the amount of such tax and penalty. The amount determined to be due shall be payable after fifteen (15) days.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
Appeals from any ruling or determination of the Administrator with respect to the amount of such tax and penalty shall be made as provided in Charter Section 76-6 and in conformity with ordinances enacted pursuant thereto.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
Any tax required to be paid by a transient guest under the provisions of this chapter shall be deemed a debt owed by the transient guest to the City. Any such tax collected by a vendor and not paid to the City shall be deemed a debt owed by the vendor to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such an amount.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
The tax imposed and collected or required to be collected under the provisions of this chapter and remaining unpaid to the City after the tax becomes due shall bear interest at the rate of one and one-half percent (1.5%) per month or fraction thereof.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
In addition to interest as provided in Section 193.12 hereof, penalties based on the unpaid tax are hereby imposed as follows:
(a) Any vendor who fails to remit any tax imposed by this chapter within thirty (30) days after the date required shall pay, in addition to the tax, a penalty equal to ten percent (10%) of the amount of the tax.
(b) Any vendor who fails to remit any tax imposed by this chapter within sixty (60) days after the date required shall pay, in addition to the tax, a penalty equal to fifteen percent (15%) of the amount of the tax.
(c) Any vendor who fails to remit any tax imposed by this chapter within ninety (90) days required or upon a second delinquency shall pay, in addition to the tax, a penalty equal to twenty percent (20%) of the amount of the tax.
(d) Any vendor who fails to remit any tax imposed by this chapter within one hundred twenty (120) days or more or upon a third or later delinquency shall pay, in addition to the tax, a penalty equal to twenty-five percent (25%) of the amount of the tax.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
The Administrator shall have the power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the transient occupancy tax. A copy of such rules and regulations shall be published in the City Record at least once before they shall become effective. Copies shall be printed and made available in the office of the Administrator.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
Whoever violates any provisions of this chapter shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than six (6) months, or both.
(Ord. No. 252-A-83. Passed 6-15-83, eff. 6-16-83)
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