6.28 - Local Lodging Tax § 6.28
Section 6.28: Local Lodging Tax
Subdivision 1. Definitions
Unless otherwise expressly stated, wherever used in this Section, the following
terms are defined as follows:
A. Lodging: The furnishing for consideration of Lodging at a hotel, motel,
rooming house, tourist court, or resort, other than the renting or leasing of it
for a continuous period of thirty (30) days or more. The furnishing of rooms
owned by religious, educational or nonprofit organizations for self-sponsored
activities shall not constitute "Lodging" for purposes of this Section.
B. Operator: A person who provides Lodging to others, or any office, agent or
employee of such person.
Subdivision 2. Imposition of Tax
There is hereby imposed a tax of three percent (3%) on the gross receipts from the
furnishing for consideration of Lodging.
Subdivision 3. Collection
Each Operator shall collect the tax imposed by this Section at the time rent is paid.
The tax collections shall be held in trust by the Operator for the City. The amount of
tax shall be separately stated from the rent charged for the Lodging. It shall be
unlawful for any Operator to advertise or hold out or state to the public or any
customer, 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,
it or any part thereof will be refunded. In computing the tax to be collected,
amounts of tax less than one cent ($0.01) shall be considered an additional cent
($0.01).
Subdivision 4. Payment and Returns
The taxes imposed by this Section shall be paid by the Operator to the City not
later than twenty-five (25) days after the end of the month in which the taxes were
collected. At the time of payment, the Operator shall submit a return upon such
forms and containing such information as the City may require. The return shall
contain the following minimum information:
A. The total amount of rent collected for Lodging during the period covered by
the return.
B. The amount of tax required to be collected and due for the period.
C. The signature of the person filing the return or that of his agent duly
authorized in writing.
D. The period covered by the return.
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§ 6.28
E. The amount of uncollectible rental charges subject to the Lodging tax.
The Operator may offset against the taxes payable with respect to any reporting
period, the amount of taxes imposed by this Section previously paid as a result of
any transaction the consideration for which became uncollectible during such
reporting period, but only in proportion to the portion of such consideration which
became uncollectible.
Subdivision 5. Examination of Returns, Adjustments, Notices and
Demands
After a return is filed, the City shall examine it and make any investigation or
examination of the records and accounts of the person making the return deemed
necessary for determining its correctness, including any records or tax returns filed
with the state. The tax computed on the basis of such examination shall be the tax
to be paid. If the tax due is found to be greater than that paid, such excess shall be
paid to the City within ten (10) days after receipt of a notice thereof given either
personally or sent by registered mail to the address shown on the return. If the tax
paid is greater than the tax found to be due, the excess shall be refunded to the
person who paid the tax to the City within ten (10) days after determination of such
refund.
Subdivision 6. Refunds
Any person may apply to the City for a refund of taxes paid for a prescribed period
in excess of the amount legally due for that period, provided that no application for
refund shall be considered unless filed within one (1) year after such tax was paid,
or within one (1) year from the filing of the return, whichever period is the longer.
The City shall examine the claim and make and file written findings thereon denying
or allowing the claim in whole or in part and shall mail a notice thereof by
registered mail to such person at the address stated upon the return. If such claim
is allowed in whole or in part, the City shall credit the amount of the allowance
against any taxes due under this Section from the claimant and the balance of the
allowance, if any, shall be paid by the City to the claimant.
Subdivision 7. Failure to File a Return
If any Operator required by this Section to file a return shall fail to do so within the
time prescribed, or shall make, willfully or otherwise, an incorrect, false, or
fraudulent return, the Operator shall, upon written notice and demand, file such
return or corrected return within five (5) days of receipt of such written notice and
shall at the same time pay any tax due on the basis thereof. If such person shall
fail to file such return or corrected return, the City shall make a return or corrected
return, for such person from such knowledge and information as the City can
obtain, and assess a tax on the basis thereof, which tax (less any payments
theretofore made on account of the tax for the taxable period covered by such
return) shall be paid within five (5) days of the receipt of written notice and
demand for such payment. Any such return or assessment made by the City shall
be prima facie correct and valid, and such person shall have the burden of
establishing its incorrectness or invalidity in any action or proceeding in respect
thereto. If any portion of a tax imposed by this Section, including penalties thereon,
is not paid within thirty (30) days after it is required to be paid, the City may
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§ 6.28
institute such legal action as may be necessary to recover the amount due plus
interest, penalties, the costs and disbursements of any action. Upon a showing of
good cause, the City may grant an Operator one (1) thirty (30) day extension of
time within which to file a return and make payment of taxes as required by this
Section provided that interest during such period of extension shall be added to the
taxes due at the rate of ten percent (10%) per annum.
Subdivision 8. Penalties
If any tax imposed by this Section is not paid within the time therein specified for
the payment, or an extension thereof, there shall be added thereto a specific
penalty equal to ten percent (10%) of the amount remaining unpaid. The amount of
tax not timely paid, together with any penalty provided by this Section, shall bear
interest at the rate of eight percent (8%) per annum from the time such tax should
have been paid until paid. Any interest and penalty shall be added to the tax and be
collected as part thereof.
Subdivision 9. Violations
Any person who shall willfully fail to make a return required by this Section; or who
shall fail to pay the tax after written demand for payment, or who shall fail to remit
the taxes collected or any penalty or interest imposed by this Section after written
demand for such payment or who shall refuse to permit the City to examine the
books, records and papers under his or her control, or who shall willfully make any
incomplete, false or fraudulent return shall be guilty of a misdemeanor.
Subdivision 10. Use of Proceeds
At least ninety-five percent (95%) of the proceeds obtained from the collection of
taxes pursuant to this Section shall be used in accordance with Minnesota Statutes,
Section 469.190 as the same may be amended from time to time to fund a local
convention or tourism bureau for the purpose of marketing and promoting the City
as a tourist or convention center, including any local convention or tourism bureau
under which the City partners with one more or more other cities to jointly market
and promote the City and the partner cities.
Subdivision 11. Appeals
Any Operator directly affected by any notice, order or determination made by the
City under this Section shall have the right to appeal to a hearing officer in an
administrative hearing as provided for in City Code, Section 2.91. The City Council
may establish a fee that must accompany any such appeal under this Section.
Source: Ordinance No. 612, 2nd Series
Effective Date: 9-28-16
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