Title
Consider the Appeal of the Pebble Beach Company’s Request for Refund of $130,287.67 in Assessed Penalties for Delinquent Transient Occupancy Tax Remittances.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors Deny the appeal of the Pebble Beach Company’s request for refund of $130,287.67 in assessed penalties for delinquent Transient Occupancy Tax remittances.
SUMMARY:
The Tax Collector is charged with the duty of enforcing the County of Monterey Uniform Transient Occupancy Tax (TOT) Ordinance. The ordinance states in part that the Tax Collector shall assess penalties and interest to operators whenever reports or remittances are delinquent and shall enforce collections (Ord. 5.40.065). Transient Occupancy Taxes for the third quarter of 2011-12 were due on March 31, and became delinquent on April 30. The Pebble Beach Company failed to remit the required quarterly reports and payments ($1,302,876.63) for both the Inn at Spanish Bay and The Lodge at Pebble Beach. Only after being contacted by County Tax Collector staff, was overdue payment made, on May 8. The tax payment was followed with a request by Pebble Beach that the applicable penalty be waived. After consideration of the facts presented by Pebble Beach, and prior to the payment of the penalty, the Tax Collector denied the penalty waiver request. Pursuant to Section 5.40.130 of the TOT ordinance, the Pebble Beach Company may appeal the decision of the Tax Collector to the Board of Supervisors. It is recommended that the appeal be denied.
DISCUSSION:
State statute permits a local entity to impose a Transient Occupancy Tax to be collected on behalf of the entity by local operators of hotels/motels/resorts from occupants of those establishments for the privilege of occupying temporary lodging (Revenue and Taxation Code section 7280). Transient Occupancy Taxes are then remitted by operators on a quarterly basis to the Tax Collector. Pursuant to the Ordinance, originally ena...
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