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Memo - Local Lodging Tax Update C" ADMINISTRATIVE SERVICES DEP ARTMENT MEMORANDUM To: FROM: DATE: SUBJECT: Honorable Mayor and Members of the City Council Steve Stahmer, Assistant to the City Manager August 24, 2001 Local Lodging Tax Update As discussed in a previous Council work session on May 28,2001 ,Minnesota Statutes 469.190 authorizes cities to impose, by ordinance, a lodging tax of up to 30/0 on the gross lodging receipts of hotels, motels, rooming houses, tourist courts and resorts. The tax does not apply to accommodations rented for 30 days or more. Most cities that have implemented the tax have imposed the full 30/0. Ninety-five percent of the tax revenues collected must be used to fund a tourism and/or convention bureau for the purposes of marketing and promoting the City as a center for tourism or conventions. The remaining 50/0 may be retained by the City to defray the costs of administering the tax. In order to impose the lodging tax, the City will need to create a Tourism Bureau and/or appoint a Tourism Director that would be funded by the tax. It is assumed that those duties could be absorbed into an existing City department/position. The bureau/department would actively market and promote the City as a center for tourism and/or conventions. The sample ordinance being presented to the Council is based in large part on the ordinances of Roseville, Coon Rapids and Rochester. Language has been borrowed from each of these ordinances and modified in an attempt to best suit the City of Hopkins. (See Sample Lodging Tax). Local Lodaina Industry and Estimated Revenue Impact Currently, only one lodging house operates within the City of Hopkins. Currently, Hopkins House is a 120-room hotel located at 1501 Highway 7 in Hopkins. Unless and until additional hotels/motels locate within the City, lodging receipts from the Hopkins House would be the only source of revenue under this tax - assuming the Hopkins House continues operations. Currently, discussions between Hopkins House and City Economic Development staff indicate that the hotel may be closed entirely to make way for a new retail development. If this occurs, there will be no lodging houses within the City of Hopkins and therefore no tax revenue would be collected unless and until a new hotel locates in Hopkins. Alternative plans for Hopkins House include a renovation that will result in the number of rooms available for lodging being reduced to 94. It is unknown at this time what course of action, if any, will be taken by Hopkins House or when that action might occur. While, the Hopkins House and any new hotels or motels that open for business within Hopkins would be equally subject to the tax, the uncertainty surrounding the future of the Hopkins House makes tax revenue estimation difficult. 1 8/24/2001 An informational letter, describing the lodging tax and indicating that Hopkins may impose such a tax, has been sent to the Hopkins House. No response has been received to date. (See letter to John Klinkhammer, CEO of National Lodging Companies dated August 6, 2001) Because of the limited number of hotels/motels within the City and because of the administrative costs involved in collecting the tax, it is recommended that the full 30/0 tax be imposed if implemented. Leaal/Administative Issues As written in the statute (M.S. 469.190), ninety-five percent of the tax revenues collected must be used to fund a tourism and/or convention bureau for the purposes of marketing and promoting the City as a center for tourism or conventions. The remaining 50/0 may be retained by the City to defray the costs of administering the tax. A current employee in an existing City position could be named the City Tourism Director. Tax proceeds would be used to fund marketing efforts and/or to pay all or a portion of that tourism director's salary. Of the 20 cities contacted, Fergus Falls was the only city that maintains a tourism bureau as part of the city itself. The Fergus Falls Convention and Visitors Bureau (CVB) was established as part of the city. A CVB Board was also established. The board of directors consists of seven people - representing the city council, the lodging industry, the local restaurant industry, the local chamber and the community at large. The salary of a single staff position, the CVB Executive Director, is paid through the lodging tax special revenue fund. The fund also supports the general marketing, advertising and promotion of the city as well as the Executive Director's attendance at sport and travel expos designed to promote the city as a place for conventions and meetings. All other cities that have been contacted have either created a separately incorporated tourism bureau or have partnered with their local chambers of commerce to carry out marketing efforts that are funded by lodging tax revenues. Maior Elements of the Sample Proposed Lodaina Tax Ordinance (as currentlv written): 1. The ordinance imposes a 30/0 tax on the gross receipts for lodging at hotels, motels, rooming houses, tourist courts, and resorts within the City of Hopkins. 2. Ninety-five percent (950/0) of the proceeds from the tax must be used to fund lIa local convention or tourism bureau for the purpose of marketing or promoting the city or town as a tourist or convention center." (M.S. 469.190) 3. The tax applies only to transient lodging (a stay of fewer than 30 days). The tax does not apply to lodging for a continuous period of 30 days or more to the same lodger. 4. The City Finance Director will administer and enforce the assessment and collection the lodging tax. 5. Lodging house operators will be required to file a monthly return and remit payment within 25 days of the end of each month. 2 8/24/2001 6. A penalty of 100/0 will be added to delinquent payments (those payments not received within 25 days after the end of the month for which they are due). If delinquency extends beyond 30 days after payment is due, the estimated tax payment plus all interest and penalties will be added to the establishment's property taxes, or, alternatively, the City Attorney may take appropriate action. 7. An owner/operator will be guilty of a misdemeanor for any of the following reasons: a. Willfully failing to make a required return; b. Failing to pay the tax after written demand for payment; c. Failing to remit the taxes collected or any penalty or interest imposed after written demand for such payment; d. Refusing to permit the City to examine the books, records and papers under his or her control; and e. Willfully making any incomplete, false or fraudulent return. Questions and Next Steps Questions to consider: 1. Does the council wish to pursue implementation of a local lodging tax? 2. What, specifically, would the tax revenue be used for? What are the goals to be achieved by implementing the tax? Possibilities include: a. Paying all or part of the salary of a City Tourism Director (a current employee). b. Marketing and promoting the City (as a whole) as a tourist destination. c. Promoting the City as a convention center. d. Promoting private businesses, tourist destinations and/or convention facilities. e. A combination of the above goals and objectives. f. Other means of marketing/promoting the City as a tourism/convention center. Steps toward researchina and implementina the lodaina tax: 1. An informational letter, describing the issue and indicating that Hopkins may impose a lodging tax, has been sent to the Hopkins House. No response has been received to date. (See letter to John Klinkhammer, CEO of National Lodging Companies) 2. Staff has researched the composition of tourism and convention bureaus that have been established by other Minnesota cities that collect a lodging tax. (See Lodging Taxes and Tourism/Convention Bureaus in Other Minnesota Cities) 3. Determine the necessary and desirable composition and responsibilities of the Hopkins tourism/convention bureau or department, if created. Name a City Tourism Director. 4. Continue to research legal issues. 5. Develop draft and final ordinances. 6. First and second readings of the ordinance. 7. Adoption of ordinance. 8. Publish ordinance. 3 8/24/2001 . City oj%pkins 1010 :First Street South · !J{op/(jns,!Af!:AL 55343~7573 . Phone: 952-935-8474 · :Fa~: 952-935-1834 Web atfaress: www./iop/(jnsmn.com Steven J. Stahmer (952) 939-1351 sstahmer@hopkinsnm.com August 6, 2001 John H. Klinkhammer, CEO National Lodging Companies, Inc. 11800 Single Tree Lane, Suite 305 Eden Prairie, MN 55344 Dear Mr. Klinkhammer: Recent public discussions have indicated a great desire to strengthen efforts to support and market local attractions and to promote the City of Hopkins as a center for tourism and conventions. Council members, residents and business owners alike have voiced their support for activities designed to attract visitors to the City of Hopkins. A primary goal of marketing Hopkins as a travel destination is to sustain and increase tourism revenues for local businesses, thereby fostering the local economy while maintaining a high quality of life for residents. To this end, the City of Hopkins is currently considering the implementation of a local lodging tax to be applied to the gross receipts for lodging within the City. If implemented, proceeds from the tax would be used to help fund the marketing and promotional efforts currently conducted by the City as well as to finance new and expanded tourism-generating activities. For years, Minnesota cities have used local lodging tax proceeds to effectively stimulate tourism within their communities. The intent of this inquiry is to realize that same benefit for the City of Hopkins. The Hopkins Center for the Arts, the City's unique Central Business District and the annual Hopkins Raspberry Festival represent the types of marketing opportunities that can be pursued using lodging tax proceeds. Promotion of such facilities and events is key to increasing tourism-generated revenues for Hopkins businesses. The tax, if implemented, would be a maximum of three percent to be added to the price of lodging and would be collected from guests at the time ofpayroent. Lodging house operators would submit a monthly return, including payment of collected tax revenue, to the City of Hopkins using a tax return form provided by the City. The City sees the collection and. use of a local lodging tax as an excellent opportunity to attract new customers to local businesses like Hopkins House without significantly impacting the price of local hotel accommodations. We look forward to working with you as we continue to explore the possibility of implementing this program. We would also ask for your recommendations as to how the City and Hopkins House can work together on this matter. I will be more than happy to meet with you to discuss the issue further if you so choose. Please feel free to contact me at (952) 939-1351 or email meatsstahmer@hopkinsmn.com. Thank you. Sincerely, ~.~ Steven J. Stahmer Assistant to the City Manager City of Hopkins Partnering witti Otlie Community to ~ntiante tlie QJtaCity of Life + Inspire + ~tfucate + InvoCve + Communuate + Lodging Tax Implementation Options: Options for the use of Tax Proceeds and for Establishing a City Tourism Director/Tourism Bureau Option 1: Current Employee Designated as Tourism Director One or more current City employees would be named Tourism Director/Co-Directors. The Director(s) would be responsible for marketing and promoting the City as a center for tourism and/or conventions. Use of tax proceeds: · Lodging tax revenues could be used to increase the amount of marketing currently conducted by the City. New and expanded promotional activities could be undertaken in addition to continuing current marketing activities. · All or a portion of the Director's salary could be paid with lodging tax revenues - thereby freeing up other City funds for alternative uses (i.e., tax revenue would help maintain those activities currently funded by the City from other sources). Possible candidates for the position of Tourism Director/Co-Director include Bobbie Hartfiel, Susan Hanna-Bibus, and Jay Strachota. · Bobbie Hartfiel's current duties involve marketing and promoting the City and its activities and attractions. According to Ms. Hartfiel, most of the marketing that she does is targeted toward Hopkins residents and the local business community ("Other than a few special occasions or events, we do not market outside of Hopkins."). She estimates that approximately 50% of her time is spent marketing the City to residents and local businesses. Ms. Hartfiel indicated that it may be possible for her to take on additional tasks related to marketing and promoting the City as a center for tourism and conventions, but she would need to know specific goals, objectives, duties and tasks before making a final determination as to whether or not she would have the time to devote to those efforts. · Susan Hanna-Bibus currently coordinates metro-area marketing for the Hopkins Center for the Arts. She estimates her marketing activities take approximately 10% of her time. It is Ms. Hanna-Bibus' opinion that, if the position of Tourism Director were charged with marketing the City as a whole, Bobbi Hartfiel would be the best and most appropriate person to handle the responsibilities. If the position were to focus strictly on promoting the HCA, then Ms. Hanna-Bibus feels that she would be the appropriate person to take on those duties. Ms. Hanna- Bibus also stated that she would most likely not have the time to engage in citywide marketing efforts or to administer a tourism fund. According to statute, lodging tax revenues must be used for marketing and promotion of 1 8/24/2001 the city as a center for tourism arid conventions. The use of lodging tax proceeds solely for the purposes of marketing the Arts Center would be a questionable use of the funds. However, Ms. Hanna-Bibus did indicate that there are opportunities to promote the HCA and its performances and festivals within the larger context of marketing the City as a whole. With regard to the use of lodging tax revenues, such promotion would be a valid use of the funds. Option 2: Creation of a Separate Tourism Bureau · A separately incorporated Tourism Bureau, largely independent of the City, could be established with the primary purpose of marketing and promoting the City and local businesses. This option is not recommended as overhead/salary costs would more than deplete any lodging tax revenue received. 2 8/24/2001 Lodging Taxes and Tourism/Convention Bureaus in Other Minnesota Cities Roseville - Tax revenue is collected by the city and transferred to the Roseville Visitors Association (the city handles all accounting for the Association). The Association is incorporated separately from the city and the board is comprised of members from the city, the community, and hotel operators. Tax revenue is used as general funding for the Association. The Association's primary purpose is "to fill hotel rooms." (Ed Burrell, Treasurer/Finance Director) Coon Rapids - Collected tax revenue goes directly toa Visitor and Convention Center and is used largely to promote local hotels, businesses and attractions to visitors (often teams and spectators attending sporting 'events at the National Sports Center). Local hotels wanted the tax to help promote the city as a tourist/convention destination. (Sharon Legg, Finance Director) Rochester - Tax revenue is collected by the city and goes directly into the city's general fund. From the general fund, a portion of the revenue is allocated to an independent Convention and Visitors Bureau. Last year the tax Yielded approximately $1.9 million dollars, with only $735,000 (39%) going to the Convention and Tourism Bureau. The City oh Rochester is considering moving some of the money from the general fund to help support their Civic Center. (Bruce Atkinson, Assistant Finance Director) Because Rochester imposed the tax prior to 1972, the city does not need to comply with the enabling state statute which states that 95% of collected revenue must be used to fund a local convention or tourism bureau. Hopkins, however, would have to comply with this statute. Eagan - As with the other cities, hotel operators submit a lodging tax return form and remit the required tax each month. The tax must be paid to the city within 25 days after the end of the month in which the taxes were collected by the operator. Ninety-five percent of tax proceeds go directly to a Convention and Visitors Bureau operated by the Northern Dakota County Chamber of Commerce. The city retains the remaining five percent to cover administrative costs. (Tom Pepper, Acting Finance Director) Maple Grove - The city collects all lodging tax proceeds and sends a check to the North Metro Convention Bureau each month. Ninety-five percent of tax revenue goes to the Bureau with the city retaining five percent to cover administrative costs. (Fred Christiansen, Finance Director) Anoka - Anoka first implemented the lodging tax two years ago. Ninety-five percent of collected tax revenue goes to the North Metro Convention Bureau (as with 1 8/24/2001 Maple Grove) with the city retaining five percent to cover administrative costs. The Bureau gives back $1000 per year to the city to sponsor a local event (currently the River Festival). Anoka hotel operators support the tax now that the collection process has been streamlined. The operators were initially unhappy with additional forms and reporting requirements. (Jim Knutson, Finance Director) .Fergus Falls - The Fergus Falls Convention and Visitors Bureau (CVB) was established as part of the city. A CVB Board was also established. The board of directors consists of seven people - representing the city council, the lodging industry, the local restaurant industry, the local chamber and the community at large. The salary of a single staff position, the CVB Executive Director, is paid through the lodging tax special revenue fund. The fund also supports the general marketing, advertising and promotion of the city as well as the Executive Director's attendance at sport and travel expos designed to promote the city as a place for conventions and meetings. (Judy Stringer, Fergus Falls Convention and Visitors Bureau, Executive Director) . Detroit Lakes - Ninety- five percent of lodging tax revenues are placed in a special revenue fund with the remaining five percent going toward administrative costs. For the first two years following imposition of the lodging tax, Detroit Lakes maintained a half-time city . staff person to carry out marketing and promotion activities funded by lodging tax revenues. At that time, the lodging tax was used both to fund those marketing activities and to pay for that employee's salary. After approximately two years, the employee left the city for a new position. At that same time, the local chamber of commerce approached the city about sharing the costs of a joint employee between the chamber and the city. The city now shares an employee with the chamber with the city and the chamber each paying half of the employee's salary (approximately $21,000). In turn, the shared employee spends 50% of her time specifically marketing the city of Detroit Lakes. In addition to paying for half of the marketing employee's salary, the city is responsible for paying all bills related to the marketing activities that she undertakes (the employee submits bills to the city which the city then pays - e.g. advertising bills). This is done in place of simply turning lodging tax revenues directly over to the chamber. Such an arrangement gives the city greater control over marketing and promotional activities. A tourism! convention board, appointed by the mayor, decides what activities will be undertaken and gives direction to the shared city/chamber employee. While, city-owned centers and facilities are not funded directly with lodging tax proceeds, the board does sponsor local events and festivals. In general, the board tends to sponsor new events/festivals with the expectation that the events will become largely self-supporting and will not require lodging tax support into the future. 2 8/24/2001 Detroit Lakes did investigate the question of whether or not an existing city department/employee could act as a tourism bureau/director (as Detroit Lakes did initially). The interpretation at which Detroit Lakes arrived was that this would be acceptable as long as the lodging tax proceeds are used to support marketing and promotion of the city and to help "fill hotel rooms". Supporting marketing and promotion would include paying the salary of a tourism/marketing director. (Lou Guzek, Financial Officer) In addition to the cities detailed above, the following cities have partnered with their local chambers of commerce, or other similar organizations, to perform marketing activities. Under these agreements, most of the cities retain 5% of collected lodging tax revenues and turn the remaining 95% over to the chambers for the purposes of marketing and promoting their respective cities. These cities include: . Faribault . Mankato . Worthington . Fridley . Shakopee . Willmar - . Albert Lea - . Hutchinson - . Fountain - . Preston - . Bumsville - . Owatonna - The city created a Convention and Visitors Bureau which contracts with the local chamber to provide marketing and promotion services. The city council must authorize the annual budget. Additionally, in the past the city has kept a small portion of the tax revenue and conducted marketing activities on its own. Annually, this has amounted to only $1000 to $2000 of the approximately $100,000 in yearly tax revenue. This Bureau is largely separate from the local chamber but still "somewhat connected." Revenue goes to Bluff Country Bureau. Revenue goes to Bluff Country Bureau. Revenue goes to an independent bureau separate from both the city and the local chamber The city accepted bids for the provision of marketing services and the local chamber won the contract. 3 8/24/2001 DRAFT 8/24/2001 CITY OF HOPKINS SAMPLE LODGING TAX ORDINANCE 1. DEFINITIONS: As used in this Chapter, the following words and terms shall have meanings given to them by this Section: CITY: The City of Hopkins. FINANCE DIRECTOR: The Finance Director of the City of Hopkins or designated agent. LODGER: The person obtaining lodging from an operator. LODGING: The furnishing for consideration of lodging by a hotel, motel, rooming house, tourist court, or resort, except where such lodging shall be for a continuous period of thirty (30) days or more to the same lodger. OPERATOR: A person who provides lodging to others, or any officer, agent or employee of such person. PERSON: Any individual, corporation, partnership, association, estate, receiver, trustee, executor, administrator, assignee, syndicate or any other combination of individuals. Whenever the term "person" is used in any provision of this Chapter prescribing and imposing a penalty, the term as applied to a corporation, association, or partnership, shall mean the officers, or partners thereof as the case may be. RENT: The total consideration valued in money charged for lodging whether paid in money or otherwise, but shall not include any charges for services rendered in connection with furnishing lodging other than the room charge itself. 2. IMPOSITION OF TAX: There is hereby imposed a tax of three percent (30/0) on the rent charged by an operator for providing lodging to any person. The tax shall be stated and charged separately and shall be collected by the operator from the lodger. The tax collected by the operator shall be a debt owed by the operator to the City and shall be extinguished only by payment to the City. In no case shall the tax imposed by this Section upon an operator exceed the amount of tax which the operator is authorized and required by this Chapter to collect from a lodger. DRAFT 1 Sample Lodging Tax Ordinance DRAFT 8/24/2001 3. COLLECTIONS: Each operator shall collect the tax imposed by this Chapter 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. 4. EXEMPTIONS: An exemption shall be granted to any person as to whom or whose occupancy it is beyond the power of the City to tax. No exemption shall be granted except upon a claim therefor made at the time the rent is collected and such a claim shall be made in writing under penalty of perjury on forms provided by the City. All such claims shall be forwarded to the City when the returns and collections are submitted as required by this Chapter. 5. ADVERTISING NO TAX: 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 party 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). 6. PAYMENTS AND RETURNS: A. The taxes imposed by this Chapter 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 Finance Director with council approval may require. The return shall contain the following minimum information: 1. The total amount of rent collected for lodging during the period covered by the return. 2. The amount of tax required to be collected and due for the period. 3. The signature of the person filing the return or that of an agent duly authorized in writing. 4. The period covered by the return. 5. The amount of uncollectible rental charges subject to the lodging tax. DRAFT 2 Sample Lodging Tax Ordinance DRAFT 8/24/2001 6. A copy of the "Minnesota State Sales and Use Tax Return" submitted by the operator for the period covered by the return. B. The operator may offset against the taxes payable with respect to any reporting period, the amount of taxes imposed by this Chapter 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. 7. EXAMINATION OF RETURN, ADJUSTMENTS, NOTICES AND DEMANDS: The Finance Director may rely upon the "Minnesota State Sales and Use Tax Return" filed by the operator with the State in determining the accuracy of a return filed under this Chapter. However, the Finance Director shall be authorized to make any investigation or examination of the records and accounts of the person making the return, if the Finance Director reasonably determines that such steps are necessary for determining the correctness of the return. 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. 8. REFUNDS: Any person may apply to the Finance Director 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 year after such tax was paid, or within one year from the filing of the return, whichever period is the longer. The Finance Director 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 Finance Director shall credit the amount of the allowance against any taxes due under this Chapter from the claimant and the balance of said allowance, if any, shall be paid by the Finance Director to the claimant. 9. FAILURE TO FILE A RETURN: If any operator required by this Chapter 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 DRAFT 3 Sample Lodging Tax Ordinance DRAFT 8/24/2001 tax due on the basis thereof. If sUch person shall fail to file such return or corrected return, the Finance Director shall make a return or corrected return, for such person from such knowledge and information as the Finance Director 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 Finance Director 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. 1 o. PENALTIES: A. Any operator failing to make payment within the 25-day collection period specified in this ordinance shall be required to pay a penalty equal to ten percent (100/0) of the tax due. If the delinquency continues beyond 30 days after the tax is due, said delinquent taxes, plus penalty as hereto provided, shall be estimated by the Finance Director and entered, shown and placed on the tax assessment rolls of the City for the establishment generating the delinquency, or the City Attorney may commence such action necessary to collect the tax and penalties due including all costs of collection - including but not limited to attorney's fees. B. All payments received shall be credited first to penalties and interest, and then to the tax due. 11. ADMINISTRATION OF TAX: The Finance Director shall administer and enforce the assessment and collection of taxes imposed by this Chapter. The Finance Director shall cause to be prepared blank forms for the returns and other documents required by this Chapter and shall distribute the same throughout the City and furnish them on application, but failure to receive or secure them shall not relieve any person from any obligation required of him or her under this Chapter. 12. EXAMINATION OF RECORDS: The Finance Director and those persons acting on behalf of the Finance Director and authorized in writing by the Finance Director, may examine the books, papers and records of any operator in order to verify the accuracy of any return made, or if no return was made, to ascertain the tax as provided in this Chapter. Every such operator is directed and required to give to the Finance Director, or such other authorized agent or employee, the means, facilities and opportunity for such examinations and investigations as are hereby authorized. DRAFT 4 Sample Lodging Tax Ordinance DRAFT 8/24/2001 13. VIOLATIONS: Any person who shall willfully fail to make a return required by this Chapter; 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 Chapter, 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. 14. USE OF PROCEEDS: Ninety-five percent (950/0) of the proceeds obtained from the collection of taxes pursuant to this Chapter shall be used in accordance with Minnesota Statutes section 469.190, as the same may be amended from time to time, to market and promote the City as a tourist or convention center. 15. APPEALS: A. Any operator aggrieved by any notice, order or determination made by the Finance Director under this Chapter may file a petition for review of such notice, order or determination detailing the operator's reasons for contesting the notice, order or determination. The petition shall contain the name of the petitioner, the petitioner's address and the location of the lodging subject to the order, notice or determination. B. The petition for review shall be filed with the City within ten (10) days after the notice, order or determination for which review is sought has been mailed or served upon the person requesting review. C. Upon receipt of the petition, the City Manager, or the Manager's designee, shall set a date for a hearing and give the petitioner at least five (5) days' prior written notice of the date, time and place of the hearing. D. At the hearing, the petitioner shall be given an opportunity to show cause why the notice, order or determination should be modified or withdrawn. The petitioner may be represented by counsel of petitioner's choosing at petitioner's own expense. 16. CONFIDENTIAL INFORMATION: No officer or employee of the City shall divulge or otherwise make known in any manner any particulars disclosed in any return required by this chapter, or any information concerning the affairs of the person making the return acquired from such person's records, officers, or employees while performing an examination or audit, except in DRAFT 5 Sample Lodging Tax Ordinance DRAFT 8/24/2001 connection with a proceeding involving taxes due under this chapter from the person making such return. Nothing herein contained shall be construed to prohibit the director from publishing statistics so classified as not to disclose the identity of particular returns and the contents thereof. DRAFT 6 Sample Lodging Tax Ordinance