Appendix 6507. Reporting and remitting requirements upon transfer or cessation of business.

(a)

An operator who is transferring, selling, or terminating its business shall notify the tax administrator in writing at least thirty (30) days in advance of the date of transfer, sale, or termination. If the decision to sell, transfer, or terminate the business is made fewer than thirty (30) days before the transfer, sale, or termination occurs, the operator shall notify the tax administrator immediately upon making that decision and in no event later than the date of transfer, sale, or termination. The operator shall at the same time notify in writing any purchaser or transferee of its hotel of the purchaser's or transferee's potential responsibility for unpaid collected taxes if any, as set forth in this article and in Revenue and Taxation Code Section 7283.5.

(b)

Upon cessation of business, whether by sale, transfer, termination, an operator shall, on or before the same day of the next month following the cessation of business, or on the last day of that month if no corresponding day exists, make a return to the tax administrator on approved forms of the total taxable rents charged, the amount of tax collected for the reporting period ending on the cessation date, remittances made if any, and the balance of the tax due. The balance of tax due if any shall be remitted to the tax administrator at the time the final return is filed. After filing the final return and remitting the balance due, the operator shall make its records of account available for a closeout audit by the tax administrator or his or her designee. Returns filed and taxes remitted and actually received by the tax administrator on or before the same day of the next month following cessation of business, or on the last day of that month of no corresponding day exists, shall be timely filed and remitted; otherwise, the taxes are delinquent and subject to the penalties imposed by this article.

(c)

Any person purchasing an ongoing hotel business may apply to the tax administrator for a tax clearance certificate showing the tax due, if any, from the selling operator as of a date specified in the tax clearance certificate request. For purposes of this section, successive hotel businesses conducted without substantial interruption at the same hotel shall constitute an ongoing hotel business.

(1)

The issuance and effect of such certificates shall be as set forth in Revenue and Taxation Code Section 7283.5.

(2)

Before requesting records and conducting the audit permitted by subdivision (b) of Revenue and Taxation Code Section 7283.5, the tax administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base an estimate of the tax due. The tax administrator shall notify the selling operator of this estimate when requesting records for audit. If the selling operator fails to provide records in response to the request within thirty (30) days after the serving or mailing of the estimate and record request, the tax administrator may issue a tax certificate in the amount of the estimate.

(3)

By resolution, the city may set an administrative fee for issuance of any such certificate.

(Ord. No. 05-332, § 4, 6-8-2005)