HomeMy WebLinkAboutORD 08 (2006)ORDINANCE NO. 08 (2006)
AN ORDINANCE OF THE CITY OF DIAMOND BAR
AMENDING PROCEDURAL PROVISIONS OF THE
DIAMOND BAR TRANSIENT OCCUPANCY TAX
ORDINANCE AND AMENDING TITLE 3, CHAPTER 3.16
OF THE DIAMOND BAR MUNICIPAL CODE
The City Council of the City of Diamond Bar does hereby ordain as follows:
Section 1. Section 3.16.070 of Title 3, Chapter 3.16 of the Diamond Bar Municipal
Code is amended to read:
"Every operator liable for the collection and payment to the city of any
tax imposed by this chapter shall keep and preserve, for not less than four
years, all records which may be necessary to determine the amount of
such tax for the collection of, and payment of, to the city he may be or may
become liable. The tax collector may inspect these records at any
reasonable time. The operator shall make such records available at any
reasonable time requested by the tax collector."
Section 2. Section 3.16.355 is added to Title 3, Chapter 3.16 of the Diamond Bar
Municipal Code to read:
Sec:. 3.16.355. Change of Ownership --Tax Clearance Certificate.
A. Pursuant to Revenue and Taxation Code Section 7283.5, and as that
section may from time to time be amended, a purchaser, transferee, or
other person attempting to obtain ownership of a transient occupancy
facility, may request in writing from the tax collector the issuance of a
tax clearance certificate stating the amount of tax and any accrued
penalties and interest due and owing, if any.
B. The tax collector shall, within ninety days of the receipt of the written
request for a tax clearance certificate issue the tax clearance
certificate, or may conduct an audit of the subject transient occupancy
Facility. Any such audit must be completed within ninety days after the
date the records of the subject transient occupancy facility have been
made available to the tai: collector and a tax clearance certificate
issued within thirty days of the completion of the audit.
C. If following an audit the tax collector determines that the current
operator's records are insufficient to assess the amount of tax due and
owing, the tax collector shall, within thirty days of making that
determination, notify the prospective purchaser, transferee or other
person that a tax clearance certificate will not be issued.
D. If the tax collector does not comply with the request for a tax
clearance certificate, the purchaser, transferee or other person that
obtains ownership of the transient occupancy facility shall not be liable
for any transient occupancy tax obligation incurred prior to the date of
the purchase or transfer of the property.
E. The tax clearance certificate shall state the following:
1. The amount of tax, interest and penalties then due an owing;
2. The period of time for which the tax clearance certificate is valid;
and
3. That the purchaser, transferee, or other person may rely upon the
tax clearance certificate as conclusive evidence of the tax liability
associated with the property as of the date specified on the certificate.
E. Any purchaser, transferee, or other person who does not obtain a tax
clearance certificate under this section, or who obtains a tax clearance
certificate that indicates that tax is due and owing and fails to withhold,
for the benefit of the county, sufficient funds in the escrow account for
the purchase of the property to satisfy the transient tax liability, shall be
held liable for the amount of tax due and owing.
PASSED, APPROVED AND ADOPTED this 17thday of October , 2006.
Mayor
I, Tommye Cribbins, City Clerk of the City of Diamond Bar, California do hereby
certify that the foregoing Ordinance was introduced at a regular meeting of the City
and was
Council of the City of Diamond Bar held on the 3rd day of October
finally passed at a regular meeting of the City Council of the City of Diamond Bar held
on the 17th day of October , 2006, by the following vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: MPT/zirbes
ABSTAIN: COUNCIL MEMBERS: None
Tommy Cribbins, City Clerk
City of Diamond Bar