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5495FOLLOWS: ORDINANCE NO. 5495 AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 2.12.010 OF CHAPTER 2.12 OF TITLE 2 OF THE ANAHEIM MUNICIPAL CODE RELATING TO TRANSIENT OCCUPANCY TAXES THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS SECTION 1. That Section 2.12.010 of Chapter 2.12 of Title 2 of the Anaheim Municipal Code be, and the same is hereby, amended its entirety to read as follows: 112.12.010 TRANSIENT OCCUPANCY TAB IMPOSED. .010 For the privilege of occupancy of space in any hotel, each transient is subject to and shall pay a tax in the amount of fifteen percent (15%) of the rent. .020 Notwithstanding subsection .010 above, where an operator has entered into a binding written contract with any party (the 'rate contract') which rate contract (i) was entered into by all parties thereto and was in full force and effect prior to October 4, 1994, (ii) agreed to provide occupancy in a hotel to transients, on whose behalf such parties have contracted, at an agreed upon rate or price specified in said rate contract (the 'contract price') which contract price expressly included applicable taxes imposed pursuant to this chapter, and (iii) said tax which was expressly included in said rate contract did not exceed the applicable tax in effect pursuant to this chapter on October 4, 1994, the following provision shall apply with regard to the amount of tax imposed pursuant to this chapter upon any transient for the privilege of occupancy in any hotel under the terms of such rate contract for the period commencing on July 1, 1995 and ending on the last date of occupancy pursuant to the terms of said rate contract, or March 31, 1996, whichever occurs earlier: For the privilege of occupancy of space in a hotel, each transient is subject to and shall pay a tax in the amount of thirteen percent (13%) of the rent. .030 Notwithstanding subsection .010 above, where any travel company, travel broker, travel agent or other person or entity (the 'Agent') has entered into a binding written contract with any operator (the 'agency contract'), which agency contract was entered into by all 1 li parties thereto and was in full force and effect prior to October 4, 1994, and which agency contract provides that occupancy in such operator's hotel (the 'Hotel') shall be provided to transients on whose behalf the Agent and the operator have contracted at a fixed rate (the 'fixed rate') (regardless of whether said fixed rate includes or excludes taxes imposed pursuant to this chapter and regardless of whether said agency contract provides that such taxes are subject to increase, adjustment or change), and where, based upon such agency contract and prior to October 4, 1994, the Agent either (i) entered into a binding written contract with any transient, any agent of any transient, or any other person or entity (the 'tour contract'), agreeing to provide or arrange to provide occupancy in such Hotel to any transient at a fixed price which included any taxes imposed pursuant to this chapter and which fixed price is collected by the Agent and forwarded in whole or part to the operator as rent, or (ii) advertised to the general public that such Agent would provide or arrange to provide occupancy in such Hotel at a fixed price which included any taxes imposed pursuant to this chapter (the 'advertised contract') and which fixed price was collected by the Agent and forwarded in whole or part to the operator as rent, then the following provision shall apply with regard to the amount of tax imposed pursuant to this chapter upon any such rent received by the operator from such Agent for the privilege of occupancy in such Hotel by any transient (on whose behalf the Agent and the operator have contracted) for the occupancy period commencing July 1, 1995 and ending on the last date of occupancy pursuant to the terms of said tour contract or advertising contract, or at midnight on March 31, 1996, whichever occurs earlier: For the privilege of occupancy of space in a hotel, each transient is subject to and shall pay a tax in the amount of thirteen percent (13%) of the rent. .040 The provisions of subsections .020 and .030 above shall only be applicable as to any rate contract, agency contract, tour contract or advertised contract which is determined by the License Collector to meet the criteria set forth in either subsection .020 or .030 above (the "qualifying contract"). No contract shall be deemed a qualifying contract except in accordance with the following procedure: .0401 Any operator or Agent seeking a determination that a rate contract, agency contract, tour contract or advertised contract constitutes a qualifying contract for purposes of this Section shall file such contract (including all supplemental information as may be necessary for such determination) in the office of the 2 License Collector on or before 5:00 p.m. on June 15, 1995 (the 'filing deadline'). Filing may be by personal delivery, delivery service, or by U.S. Postal Service provided, however, that such contract(s) must physically be received in the office of the License Collector on or before the filing deadline. Postmarks and other notations of time of delivery into the care or custody of a delivery service shall not be accepted as the time or date of receipt by the License Collector. Any contract not received in the office of the License Collector prior to the filing deadline shall not be deemed a qualifying contract under this Section nor be further considered or reviewed by the License Collector under the procedure set forth in this subsection .040. Any tour contract or advertised contract so filed must be accompanied by the agency contract upon which it is based as provided in subsection .030 above. Any advertised contract so filed must include all public advertisements upon which Agent's claim is based, together with satisfactory proof that such advertisements were publicly advertised prior to October 4, 1994. .0402 Upon timely receipt of any contract pursuant to paragraph .0401 above, the License Collector shall send the operator or Agent submitting such contract a written acknowledgment of receipt thereof within five (5) calendar days following the date of receipt of such contract. .0403 Any contract received in the office of the License Collector after the filing deadline shall be rejected for filing and returned to the sender with an explanation that such contract were received after the filing deadline and therefore cannot be further considered as qualifying contracts. .0404 The License Collector shall determine whether a timely filed contract constitutes a qualifying contract pursuant to subsection .020 or .030 above and shall notify the filer of such determination within 45 days following the date such contract is filed. Such notice shall be by personal service, facsimile transmission or first-class U.S. Mail. The date of notice shall be the date of such personal service or transmission or the date of deposit in the course of transmission with the U.S. Postal Service, whichever is applicable. Failure of the License Collector to provide notice of such determination within the time provided in this paragraph .0404 shall be deemed notice to the filer, as of the 46th day following the date of filing of said contract, that such contract is not a qualifying contract. 3 i .0405 In the event of a determination that any timely filed contract does not constitute a qualifying contract for purposes of subsection .020 or .030 above, the operator or Agency so notified shall have thirty (30) calendar days from the date of notice to contest such determination and to file additional documentation in support thereof. The License Collector shall review any such additional documentation timely filed and shall make a final determination within fifteen (15) days following the receipt of such documentation. Notice of such final determination shall be given in the same manner as provided in paragraph .0404 above. .0406 Failure of any person or entity to receive any notice required by the License Collector pursuant to any provision of this Section shall not affect the validity of any decision of the License Collector under this Section. The decision of the License Collector shall be final and conclusive. .050 The License Collector shall issue forms and any additional regulations deemed necessary to implement the provisions of this section." SECTION 2. OPERATIVE DATE. This ordinance shall become operative on the effective date hereof except that the tax rate set forth in subsection .010 of Section 2.12.010 of Section 1 of this Ordinance shall become operative at 12:01 a.m. on July 1, 1995. SECTION 3. REPEAL OF PRIOR ORDINANCE. Ordinance No. 5457 is hereby repealed. SECTION 4. SEVERABILITY. The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence or word of this ordinance, hereby adopted, be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid. SECTION 5. SAVINGS CLAUSE. Neither the adoption of this ordinance nor the repeal or amendment hereby of any prior ordinance or prior provision of Section 2.12.010 of the Anaheim Municipal Code or any prior subsection thereof (collectively referred to as the "Prior Ordinances"), shall in any manner affect the prosecution for any 4 li violation(s) of the Prior Ordinances, which violations were committed prior to the operative date of this ordinance, nor be construed as a waiver of any tax, penalty or interest due and owing pursuant to the Prior Ordinances but remaining unpaid, in whole or part, on the operative date of this ordinance, nor affect the legal obligations of any person or entity to pay, or the legal rights of the City to receive, such unpaid amounts. The provisions of this ordinance, insofar as they are substantially the same as ordinance provisions previously adopted by the City relating to the same subject matter, shall be construed as restatements and continuations, and not as new enactments. THE FOREGOING ORDINANCE is approved and adopted by the City Council of the City of Anaheim this 9th day of May , 1995. MAY09 OF THE CI OF HEIM ATTEST: CITY CLERK OF THE CITY OF ANAHEIM 11704.2\JWHITE\April 26, 1995 5 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Ordinance No. 5495 was introduced at a regular meeting of the City Council of the City of Anaheim, held on the 2nd day of May, 1995, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 9th day of May, 1995, by the following vote of the members thereof: AYES: MAYOR/COUNCIL: Tait, Lopez, Zemel, Feldhaus, Daly NOES: MAYOR/COUNCIL: None ABSENT: MAYOR/COUNCIL: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5495 on the 9th day of May, 1995. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 9th day of May, 1995. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Ordinance No. 5495 and was published once in the North Orange County News on the 18th day of May, 1995. CITY CLERK OF THE CITY OF ANAHEIM