ORDINANCE 06-95
AN ORDINANCE OF THE CITY OF LAKELAND; LEVYING A HOTEL/MOTEL OCCUPANCY TAX

BE IT ORDAINED BY THE CITY OF LAKELAND, TENNESSEE as follows:

SECTION 1. DEFINITIONS. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Consideration means the consideration charged, whether or not received, for occupancy in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property and services of any kind or nature, without any deduction there from whatsoever. Nothing in this definition shall be construed to imply that consideration is charged when the space provided to the person is complimentary from the operator and no consideration is charged to or received from any person.

City Manager means the city manager of the city.

Hotel means any structure or space, or any portion thereof, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist camp, tourist court, tourist cabin, motel or any place in which rooms, lodgings or accommodations are furnished to transients for a consideration.

Occupancy means the use or possession, or the right to the use or possession, of any room, lodgings or accommodations in any hotel.

Operator means the person operating the hotel whether as owner, lessee or otherwise.

Person means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

Transient means any person who exercises occupancy or is entitled to occupancy for any rooms, lodgings or accommodation in a hotel for a period of less than 30 continuous days.

SECTION 2. LEVY OF OCCUPANCY TAX.

The city hereby levies a privilege tax upon the privilege of occupancy in a hotel of each transient in an amount of five percent of the rate charged by the operator. Such tax is a privilege tax upon the transient occupying such room and is to be collected as provided in this ordinance.

SECTION 3. COLLECTION BY OPERATOR; INCLUSION IN RATE.

(a) Such tax shall be added by each and every operator to each invoice prepared by the operator for the occupancy of the hotel and given directly or transmitted to the transient for the occupancy of the operator's hotel. Such tax shall be collected by such operator from the transient and remitted to the city.

(b) When a person has maintained occupancy for 30 continuous days, that person shall receive from the operator a refund or credit for the tax previously collected from or charged to him, and the operator shall receive credit for the amount of such tax if previously paid or reported to the city.
SECTION 4. REMITTANCE OF TAX BY OPERATOR.

(a) The tax levied shall be remitted to the city manager or his designee by all operators who lease, rent or charge for rooms or spaces in hotels within the city, and the city manager is charged with the duty of collection thereof. Such tax shall be remitted to such officer not later than the 20th day of each month for the preceding month. The operator is hereby required to collect the tax from the transient at the time of the presentation of the invoice for occupancy whether prior to occupancy or after occupancy as may be the custom of the operator, and if credit is granted by the operator to the transient, then the obligation to the city for such tax shall be that of the operator.

(b) For the purpose of compensating the operator in accounting for and remitting the tax authorized and levied pursuant hereto and the related ordinances of the city, the operator shall be allowed two percent of the amount of the tax due and accounted for and remitted to the city in the form of a deduction in submitting his report and paying the amount due by such operator, provided the amount due was not delinquent at the time of payment.
Section 5. COLLECTION OF TAX BY CITY.

(a) The city manager shall be responsible for the collection of such tax and shall place the proceeds of such tax in the general funds account of the city. A monthly tax return shall be filed under oath with the city manager by the operator, with such number of copies thereof as the city manager may reasonably require for the collection of such tax. The report of the operator shall include such facts and information as may be deemed reasonable for the verification of the tax due. The form of such report shall be developed by the city manager and approved by the Board of Commissioners prior to use. The city manager shall cause an audit of each operator in the city at least once per year and shall report on the audits made to the board of commissioners.
(b) The city manager is hereby authorized to adopt reasonable rules and regulations for the implementation of the provisions of this ordinance.
SECTION 6. DISCLOSURE OF TAX.

No operator of a hotel 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 operator or that it will not be added to the rent, or that if added, any part will be refunded.
SECTION 7. FAILURE OF OPERATOR TO COLLECT TAX.

Taxes collected by an operator which are not remitted to the city manager on or before the due dates shall be delinquent. An operator shall be liable for interest on such delinquent taxes from the due date at the rate of 12 percent per annum, and, in addition, a penalty of one percent for each month or fraction thereof such taxes are delinquent. Such interest and penalty shall become a part of the tax herein required to be remitted. Each occurrence of willful failure or refusal of an operator to collector remit the tax or the willful refusal of a transient to pay the tax imposed is hereby declared to be unlawful and shall be punishable by a civil penalty not in excess of $50.00. In addition, it is unlawful for any operator to knowingly file a false tax return, and a violation shall be punishable by a civil penalty of not more than $50.00.
SECTION 8. RULES AND REGULATIONS; REPORTS; RECORDS.

(a) It is the duty of every operator liable for the collection and payment to the city of any tax imposed under the authority of this article to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax for which he may have been liable for the collection of and payment to the city, which records the city manager, his designee or any accounting firm or accountant employed by the city, shall have the right to inspect at all reasonable times.

(b) The city manager, in administering and enforcing the provisions of this article, shall have as additional powers those powers and duties with respect to collecting taxes as provided in T.C.A. § 67-1-101 et seq. or otherwise provided by law for county clerks and/or municipal officers.

(c) Upon any claim of illegal assessment and collection, the taxpayer shall have the remedies provided in T.C.A. § 67-9-101 et seq., it being the intent of this ordinances that the provisions of law which apply to the recovery of state taxes illegally assessed and collected also apply to taxes illegally assessed and collected under the authority of this article. The city manager shall also possess those powers and duties as provided in T.C.A. § 67-1-707 for county clerks with respect to the adjustments and refunds of such tax.
(d) With respect to the adjustment and settlement with taxpayers, all errors of taxes collected by the city manager under the authority of this article shall be refunded by the city.

(e) Notice of any tax paid under protest shall be given to the city manager, and suit may be brought for recovery of such tax against the city manager of the city in his official capacity.
SECTION 9. ALLOCATION OF FUNDS.

The proceeds of the tax authorized by this article shall be allocated to such funds as the board of commissioner shall from time to time direct.


SECTION 10. That this ordinance shall take effect from and after its passage, approval, and publication as required by law.

PRESENTED AND GIVEN FIRST READING on August 03, 2006, at a regular meeting of the Board of Commissioners of the City of Lakeland, Tennessee; and GIVEN SECOND/FINAL READING, passed and adopted September 07, 2006, by a two-thirds (2/3) vote, being 4 ayes and 1 nays, at a regular meeting of the Board of Commissioners of the City of Lakeland, Tennessee.

Signed in authentication of its passage this the _________day of __________, 2006



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Scott Carmichael, Mayor

ATTEST:



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Sontidra Franklin, City Recorder