§ 6.6-1.

CERTIFICATE OF AUTHORITY FOR THIRD-PARTY TAXES

a.

These additional provisions shall apply to operators under the Tax on Transient Occupancy of Hotel Rooms (hereinafter, “Hotel Tax”) (Article 7), the Tax on Occupancy of Parking Space in Parking Stations (hereinafter “Parking Tax”) (Article 9), the Utility Users Tax (Article 10) and the Access Line Tax (Article 10B).

b.

Every operator who is required to collect or remit any third-party tax must possess a valid certificate of authority issued by the Tax Collector.

c.

The application for a certificate of authority shall be on a form provided by the Tax Collector and shall set forth the name under which the person transacts or intends to transact business, the location of each of the person’s places of business in the City, and such other information as the Tax Collector may require. The application shall be signed by the owner if a sole proprietor, by a member or partner, in the case of an association, or by an executive officer or some person specifically authorized by the corporation to sign the application in the case of a corporation. No person shall operate a business for which a certificate of authority is required under subsection (b) unless and until the Tax Collector has issued that person a certificate of authority. The holder of a certificate of authority must promptly notify the Tax Collector of any changes to the information stated in the certificate of authority application.

d.

Except as provided in subsections (f), (g), (h), (l), and (m) below, the Tax Collector, within 45 days after the application is complete, shall issue a separate certificate of authority to the operator to collect third-party taxes from customers for each location at which the operator is required to collect such taxes. The certificate will expire on a date certain set by the Tax Collector. The operator must apply for renewal of the certificate, before it expires, if the operator intends to continue to engage in business in the City. Except as provided in subsections (f), (g), (h), (j), (l), and (m), the Tax Collector may issue successive, one-year renewals of an operator’s certificate. Each certificate shall state the location of the place of business to which it applies and shall be prominently displayed at such location in plain view of all customers. Certificates of authority may not be assigned or transferred. The operator shall immediately surrender to the Tax Collector the certificate for that location upon the operator’s cessation of business at that location or upon the sale or transfer of the business.

e.

The holder of a certificate of authority to collect parking taxes under Article 9 shall remain presumptively liable for the collection of parking taxes at the location named in the certificate, and for the reporting and remittance of such taxes to the Tax Collector, unless and until the holder of the certificate both

1.

notifies the Tax Collector in writing that the holder has ceased to conduct a parking business at such location, and

2.

surrenders the certificate for that location to the Tax Collector.

f.

(1) The Tax Collector may refuse to issue the certificate where, within the 45-day period referred to in subsection (d) above, the Tax Collector determines that the operator, or any signatory to the application, or any person holding a 10 percent or greater legal or beneficial interest in said operator (“10% owner”) is not in compliance with any provision of the Business and Tax Regulations Code, including but not limited to any failure to timely collect, report, pay, or remit any tax imposed by this Code, or where any such person is not in compliance with any provision of Sections 1215 through 1223 inclusive of Article 17 of the Police Code.

2.

Solely for purposes of determining under this Section whether any such operator, signatory or 10% owner is not in compliance with such Articles, the Tax Collector may disregard any corporation or association owned or controlled, directly or indirectly, by any such operator, signatory or 10% owner and consider such corporation or association’s operations and liabilities as conducted by or as owned by any one or more of such corporation or association’s officers, directors, partners, members or owners. For purposes of this Section, (A) the term “owned” means ownership of 50 percent or more of the outstanding ownership interests in such corporation or association, and (B) the term “controlled” includes any kind of control, whether direct or indirect, whether legally enforceable, and however exercisable or exercised over such corporation or association. A presumption of control arises if the operator, signatory or 10% owner is (or was) an officer, director, partner or member of such corporation or association.

g.

Further, if any person subject to this Section violates any provision of the Business and Tax Regulations Code, or a rule or regulation promulgated by the Tax Collector, including but not limited to any failure to timely collect, report, pay, or remit any tax imposed by this Code, failure to maintain accurate registration information, failure to sign any return or pay any tax when due, or failure to timely respond to any request for information, order for records or subpoena, or for failure to comply with the requirements of Article 22 of the Business and Tax Regulations Code or any provision of Sections 1215 through 1223 inclusive of Article 17 of the Police Code, the Tax Collector may, after serving the person with written notice of his or her determination in the manner provided in Section 6.11-2 and an opportunity to be heard pursuant to the notice and review provisions of Section 6.13-1 et seq., refuse to issue that person a new certificate of authority or may revoke or suspend that person’s certificate of authority. The Tax Collector may refuse to issue that person a new certificate of authority or to withdraw the suspension of an existing certificate until the person, signatory to the application for the certificate revoked or suspended, signatory to the application for a new certificate or withdrawal of the suspension, and all 10% owners have complied with the provisions of the Business and Tax Regulations Code and corrected the original violation to the satisfaction of the Tax Collector. For any person applying for or holding a certificate of authority to collect parking taxes, the Tax Collector shall promptly notify the Chief of Police in writing that it has revoked a person’s certificate of authority, refused to issue a new certificate of authority, suspended an existing certificate of authority or determined that the person is not in compliance with the Business and Tax Regulations Code. The Tax Collector shall in writing request that the Chief of Police refuse to issue a commercial parking permit to the person or suspend or revoke the person’s existing commercial parking permit and immediately close the business, pursuant to Sec. 1215.3(b) of the Police Code.

h.

(1) Before any certificate of authority shall be issued to any applicant to engage in the business of renting parking space in a parking station in this City the applicant shall file with the Tax Collector a bond naming the City as exclusive beneficiary at all times the applicant engages in such business. The applicant shall maintain the bond in the following amounts for as long as the business continues:



Annual gross receipts for parking station

Bond amount

Less than $100,000.00

$20,000

$100,000.00 to $250,000.00

$50,000

$250,000.01 to $500,000.00

$100,000

$500,000.01 to $750,000.00

$150,000

$750,000.01 to $1,000,000.00

$200,000

$1,000,000.01 to $1,250,000.00

$250,000

$1,250,000.01 to $1,500,000.00

$300,000

$1,500,000.01 to $1,750,000.00

$350,000

$1,750,000.01 to $2,000,000.00

$400,000

$2,000,000.01 to $2,250,000.00

$450,000

$2,250,000.01 to $2,500,000.00

$500,000

$2,500,000.01 to $2,750,000.00

$550,000

$2,750,000.01 to $3,000,000.00

$600,000

$3,000,000.01 to $3,250,000.00

$650,000

$3,250,000.01 to $3,500,000.00

$700,000

$3,500,000.01 to $3,750,000.00

$750,000

$3,750,000.01 to $4,000,000.00

$800,000

$4,000,000.01 and greater

$800,000

2.

This bond requirement does not apply to an applicant that is a governmental entity.

3.

The Tax Collector may, in his or her discretion, independently establish the annual gross receipts for a parking station and set the bond amount pursuant to the schedule above, based on that determination. If, at the end of any calendar year, the gross receipts for a parking station have increased such that a larger bond amount would be required under the above schedule, the operator shall obtain a new bond in the increased amount by the following April 1. If at the end of any calendar year the gross receipts for the parking station have decreased, the operator may apply to the Tax Collector for a reduction of the bond amount.

i.

Upon application by the operator, the Tax Collector may, in his or her discretion, set the bond amount for a parking station at the following levels, provided the operator meets the following qualifications:  (1) the operator has maintained a valid certificate of authority, including a bond for all locations, for the 3 years immediately preceding the date of the application; (2) the Tax Collector has not issued a deficiency determination against the operator for any business location for the 3 years immediately preceding the date of the application; and (3) the Tax Collector determines that it is in the best interest of the City. The reduced bond amount is applicable during the calendar year that it is approved. The Tax Collector may, in his or her discretion, approve renewal of the bond at the lower amount from year to year. If after approving an application for a reduced bond amount, the Tax Collector issues a deficiency determination against the operator for any business location, or the operator fails to obtain a Certificate of Authority for any business location, the approval may be rescinded and the higher bond amount provided under subsection (h) may be required.



Annual gross receipts for qualified parking station

Bond amount

Less than $100,000.00

$10,000

$100,000.00 to $250,000.00

$25,000

$250,000.01 to $500,000.00

$50,000

$500,000.01 to $750,000.00

$75,000

$750,000.01 to $1,000,000.00

$100,000

$1,000,000.01 to $1,250,000.00

$125,000

$1,250,000.01 to $1,500,000.00

$150,000

$1,500,000.01 to $1,750,000.00

$175,000

$1,750,000.01 to $2,000,000.00

$200,000

$2,000,000.01 to $2,250,000.00

$225,000

$2,250,000.01 to $2,500,000.00

$250,000

$2,500,000.01 to $2,750,000.00

$275,000

$2,750,000.01 to $3,000,000.00

$300,000

$3,000,000.01 to $3,250,000.00

$325,000

$3,250,000.01 to $3,500,000.00

$350,000

$3,500,000.01 to $3,750,000.00

$375,000

$3,750,000.01 to $4,000,000.00

$400,000

$4,000,000.01 and greater

$400,000

j.

Such bond shall be executed by the applicant as principal, and by a corporation or association which is licensed by the Insurance Commissioner of this State to transact the business of fidelity and surety insurance, as surety. The applicant shall keep the bond in full force and effect for the duration of the certificate of authority and all renewals thereof issued to such applicant. If the bond provides that the term thereof shall be continuous until cancelled, the applicant shall provide the Tax Collector with certification from the surety of the renewal or continuation of the bond:

1.

when applying for renewal of an existing certificate of authority,

2.

when requesting the withdrawal of a suspension of an existing certificate of authority,

3.

when applying for a reduced bond amount pursuant to subsection (i), or

4.

upon written request of the Tax Collector.

k.

The bond shall contain conditions that require the applicant to comply fully with all the provisions of the Business and Tax Regulations Code concerning the collection of third-party taxes from occupants of parking stations and the remittance of such taxes to the Tax Collector. The bond shall be payable to the City in the amount of all unpaid parking taxes on amounts of taxable rents collected by the applicant, together with all administrative collection costs, interest, penalties, and other costs and charges applicable thereto; provided, however, that the aggregate liability of the surety for any and all claims which may arise under such bond shall in no event exceed the face amount of such bond regardless of the amount due and owing to the City. The City may bring an action upon the bond for the recovery of any unpaid parking taxes, administrative collection costs, interest, penalties and other costs and charges at any time prior to the expiration of the period of limitations applicable to the collection of such unpaid taxes by the Tax Collector.

l.

When there is a deficiency determination or jeopardy determination against an operator for third-party taxes, the Tax Collector shall issue the deficiency determination or jeopardy determination against the operator and the operator’s surety. The liability of the surety shall not exceed the face value of the bond(s) in effect during the period for which the deficiency is assessed. The Tax Collector shall provide notice of such deficiency determination or jeopardy determination to the operator and the bond surety. Either an operator or a surety or both may file a petition for redetermination. An operator’s petition for redetermination shall be construed by the Tax Collector as a petition on behalf of both the operator and the surety. The surety may request a hearing before the Tax Collector pursuant to Section 6.13-2. The taxpayer and surety hearings may be consolidated at the discretion of the Tax Collector. Upon the finality of such determination or decision on petition for redetermination, the operator and the surety shall be liable to the Tax Collector in the amount of the determination or decision on petition for redetermination. The surety’s liability shall not exceed the face value of the bond(s) in effect during the period for which the deficiency is assessed. The surety shall be subject to the same requirements as the operator with regard to payment of the tax liability and exhaustion of administrative remedies prior to seeking judicial relief. The Tax Collector may exercise all remedies against the surety that are available to the Tax Collector as to an operator or any other person determined to be liable for a tax.

m.

Before any certificate of authority shall be issued to any applicant to engage in the business of renting parking space in a parking station in this City, the applicant shall comply with Article 22. The applicant shall reimburse the Tax Collector’s costs to inspect the parking station to confirm it complies with Article 22.

History

(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 8-01, File No. 002018, App. 1/26/2001; Ord. 61-01, File No. 002197, App. 4/20/2001; Ord. 177-01, File No. 010826, App. 8/17/2001; Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 5-13 , File No. 121064, App. 1/24/2013, Eff. 2/23/2013; Ord. 206-13 , File No. 130784, App. 10/11/2013, Eff. 11/10/2013; Ord. 271-13, File No. 131031, App. 11/27/2013, Eff. 12/27/2013, Oper. 1/1/2014)

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