ORD 291 ORDINANCE NO. 291
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE BY
ADDING CHAPTER 3 . 40 TO ESTABLISH A GOLF TAX
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES
ORDAIN AS FOLLOWS:
Section 1: FINDINGS
The City Council hereby finds and declares
that for the reasons discussed below, golf courses, both existing
and proposed, in the City of Rancho Palos Verdes create and will
continue to create unique burdens on City services which are not
caused by other recreational uses.
Because every golf course and each course location is
unique, a quality golf course in a community is a magnet that
draws persons from outside the City, including from other parts
of the world, solely for the purpose of playing golf on a
particular course. This fact distinguishes the game of golf from
other sports or recreational activities in the City such as, for
example, tennis or bowling, which are played in facilities that
are substantially similar regardless of where the facility is
located. Facilities for these latter activities are patronized
by persons primarily for reasons of convenience, rather than for
the unique attributes or location of a particular set of tennis
courts or a bowling alley. On the other hand, it is the
distinctive location and characteristics of golf courses that
cause patrons to choose a particular course.
The ocean views and mild climate in the City of Rancho
Palos Verdes will continue to make the City a desirable location
in which to build golf courses and play golf in future years. In
fact, more than 120, 000 rounds of golf were played on the Los
Verdes golf course in the City in fiscal year 1991-92 . Because
the population of the City in that same year was approximately
41, 000, it is reasonable to conclude that the majority of those
rounds of golf were played by persons who reside outside the
City. This tremendous influx of persons from outside the City to
enjoy the opportunity of playing golf in the City can be expected
to increase in future years, especially if new golf courses are
I/ constructed in the City.
The City's streets and services make it possible for
golfers to enjoy the opportunity of playing golf in the City.
The sheer numbers of golf rounds played result in thousands of
extra vehicles traversing City streets each year. Golfers also
impose an increased burden on City police, fire, and public works
services. Despite these impacts on City services, most golfers
L:\voll\cwl\GOLFTAX.2
are from outside the City, do not patronize the City's businesses
and currently make no meaningful contribution to the City' s
revenue base.
Furthermore, rounds of golf played in the City generate
no significant sales tax revenue and the current golf course is
exempt from paying property taxes. Rounds of golf played in the
I/
City thus create burdens that are not caused by other sporting
activities and for which the City receives no fee or
compensation.
Therefore, the City Council of the City of Rancho Palos
Verdes hereby finds and declares that the unique burdens upon the
City of Rancho Palos Verdes created by the existence of a golf
course or courses in the City justify the imposition of a general
tax on each round of golf which is played at any golf course
within the boundaries of the City.
Section 2 : Title 3 of the Rancho Palos Verdes Municipal
Code is hereby amended by adding Chapter 3 . 40 thereto to read as
follows:
Chapter 3. 40
GOLF TAX
Sections:
3 . 40. 010 Title.
3 . 40. 020 Definitions.
3 . 40 . 030 Tax imposed.
3 . 40 . 040 Tax Collection.
3 . 40 . 050 Reporting and remitting.
3 . 40. 060 Failure to Remit Tax.
3 . 40 . 070 Failure to collect and report tax--Determination
of tax by tax administrator.
3 . 40. 080 Appeal.
3 . 40. 090 Records.
3 . 40 . 100 Refunds.
3 . 40. 110 Actions to collect.
3 . 40. 120 Penalty for violation.
3 . 40. 130 Exemptions.
3 . 40 . 140 Legislative Review.
3 . 40 . 150 Severability.
3 . 40 . 010 Title. This chapter shall be known as the Uniform
Golf Tax Ordinance of the City.
I/
3 . 40. 020 Definitions. Except where the context otherwise
requires, the definitions given in this section govern the
construction of this chapter:
ORDINANCE NO. 291
L: \voll\cwl\GOLFTAX.2 PAGE 2
A. "Golf Course" means any large course having a series of
holes spaced considerably apart designed for the playing of the
game of golf. For the purpose of this chapter, a golf course
includes a driving range.
I/ B. "Golf Fees" means the consideration charged, whether or
not received, for the use of a golf course or driving range,
whether to be received in money, or in any other form including,
without limitation, services, credits, goods, or labor of any
kind or nature, without any deduction therefrom.
C. "Operator" means the person who is proprietor of the
golf course, whether in the capacity of owner, lessee, sub-
lessee, mortgagee in possession, licensee, or any other capacity.
Where the operator performs his/her functions through a managing
agent of any type or character other than an employee, the
managing agent shall also be deemed an operator for the purpose
of this chapter and shall have the same duties and liabilities as
the principal. Compliance with the provisions of this chapter by
either the principal or the managing agent shall, however, be
considered compliance by both.
D. "Person" means any individual, firm, partnership, joint
venture, association, social club, fraternal organization, joint
stock company, corporation, estate, trust, business trust,
receiver, trustee, syndicate, or any other group or combination
acting as a unit.
E. "Tax Administrator" means the Director of Finance of
the City or other person designated by the City Manager.
F. "User" means any person who exercises use of or is
entitled to use a golf course by reason of concession, permit,
right of access, membership, license or other agreement.
3 . 40 . 030 Tax imposed. For the opportunity of playing golf
in the City, each user is subject to and shall pay a tax in the
amount of ten percent (10%) of the golf fees charged by the
operator. The tax constitutes a debt owed by the user to the
City which is extinguished only by payment to the operator or the
City.
3 . 40 . 040 Tax Collection. Each operator shall collect the
tax imposed by this chapter to the same extent and at the same
I/ time as the golf fees are collected from every user. The amount
of tax shall be separately stated from the amount of the golf
fees charged, and each user shall receive a receipt for payment
from the operator. If the golf fees are paid in installments, a
proportionate share of the tax shall be paid with each
installment; any unpaid tax shall be due upon the user' s ceasing
use of the golf course. If golf fees are paid as part of any
ORDINANCE NO. 291
L:\voll\cwl\GOLFTAX.2 PAGE 3
membership fee or dues, the operator shall collect a tax on an
amount thereof that is fairly allocable to the golf fees for the
number of rounds the person paying such membership fee or dues is
entitled to play under the terms of the membership, or the
average number of rounds played by persons paying such membership
fees or dues, whichever is greater.
3 . 40 . 050 Reporting and remitting. Each operator shall, on
or before the twentieth day of the month following the close of
I/
the prior calendar month, make a return to the tax administrator,
on forms provided by the tax administrator, of the total golf
fees charged and received and the amount of the tax collected.
At the time the return is filed, the full amount of the tax
collected shall be remitted to the tax administrator. The tax
administrator may establish shorter reporting periods for any
operator if the tax administrator deems it necessary in order to
insure collection of the tax, and the tax administrator may
require additional information in the return. Returns and
payments are due immediately upon cessation of business for any
reason. All taxes collected by operators pursuant to this
chapter shall be held in trust for the account of the city until
payment thereof is made to the tax administrator.
3 . 40 . 060 Failure to Remit Tax.
A. Original Delinquency. Any operator who fails to remit
any tax impolsed by this chapter within the time required shall
pay a penalty of ten percent of the amount of the tax in addition
to the amount of the tax.
B. Continued Delinquency. Any operator who fails to remit
any delinquent remittance within thirty days following the date
on which the remittance first became delinquent shall pay a
second delinquency penalty of ten percent of the amount of the
tax in addition to the amount of the tax and the ten percent
penalty first imposed.
C. Fraud. If the tax administrator determines that the
nonpayment of any remittance due under this chapter is due to
fraud, a penalty of twenty-five percent of the amount of the tax
shall be added thereto in addition to the penalties stated in
subsections A and B of this section.
D. Interest. In addition to the penalties imposed, any
operator who fails to remit any tax imposed by this chapter shall
pay interest at the rate of one and one-half percent per month or
fraction thereof on the amount of the tax, exclusive of
penalties, from the date on which the remittance first became
I/
delinquent until paid.
ORDINANCE NO. 291
L:\voll\cwl\GOLFTAX.2 PAGE 4
E. Penalties Merged With Tax. Every penalty imposed and
such interest as accrues under the provisions of this section
shall become a part of the tax which is required to be paid.
3 . 40 . 070 Failure to collect and report tax--Determination
I/ of tax by tax administrator.
A. If any operator fails or refuses to collect the tax and
to make, within the time provided in this chapter, any report and
remittance of the tax or any portion thereof required by this
chapter, the tax administrator shall proceed in such manner as he
or she may deem best to obtain facts and information on which to
base his or her estimate of the tax due.
B. As soon as the tax administrator procures such facts and
information as he or she is able to obtain upon which to base the
assessment of any tax imposed by this chapter and payable by any
operator who has failed or refused to collect the same and to
make such report and remittance, the tax administrator shall
proceed to determine and assess against such operator the tax,
interest and penalties provided for by this chapter. When such a
determination is made, the tax administrator shall give a notice
of the amount so assessed by personal service to the operator or
the operator's representative, or by depositing it in the United
States mail, postage pre-paid, addressed to the operator so
assessed at his last known place of address. Such operator may
within ten days after the service or mailing of such notice make
application in writing to the tax administrator for a hearing on
the amount assessed. If application by the operator for a
hearing is not made within the time prescribed, the tax, interest
and penalties, if any, determined by the tax administrator shall
become final and conclusive and immediately due and payable. If
such application is timely made, the tax administrator shall give
not less than five days written notice, in the manner prescribed
in this section, to the operator of the time and place fixed for
a hearing. At such hearing, the operator may appear and offer
evidence why such specified tax, interest and penalties should
not be so fixed. After such hearing, the tax administrator shall
determine the proper tax to be remitted and shall thereafter give
written notice to the person in the manner prescribed in this
section of such determination and the amount of such tax,
interest and penalties so determined. The amount determined to
be due shall thereupon be due and payable.
3 . 40. 080 Appeal. Any operator aggrieved by any decision of
the tax administrator made at or following such a hearing with
respect to the amount of such tax, interest and penalties, if
any, may appeal to the City Council by filing a notice of appeal
with the city clerk within fifteen days after the serving or
mailing of notice of a determination by the Tax Administrator of
the tax which is due. The City Council shall set a time and
ORDINANCE NO. 291
L:\voll\cwl\GOLFTAX.2 PAGE 5
place for hearing such appeal, and the City Clerk shall give
notice of the time and place of such hearing in writing to such
operator at his/her last known place of address. The findings of
the City Council shall be final and conclusive and notice thereof
shall be served upon the appellant in the manner prescribed in
Section 3 . 40. 070 for service of notice of hearing. Any amount
found to be due, together with interest at the rate prescribed in
Section 3 . 40. 060 from the date such tax accrued and penalty,
shall be immediately due and payable upon the service of notice.
I/
3 . 40. 090 Records. It shall be the duty of every operator
required by this chapter to collect and pay to the City any tax
imposed by this chapter, to keep and preserve, for a period of
three years from the date of payment to the City, all records as
may be necessary to determine the amount of such tax as the
operator may have been responsible for the collection of and
payment to the City, which records the tax administrator shall
have the right to inspect at all reasonable times. If any
operator fails to maintain such records, the tax administrator
shall make a determination of the amount of tax due using such
information and criteria as the tax administrator deems to be
reasonable and relevant.
3 . 40 . 100 Refunds.
A. Whenever the amount of any tax, interest or penalty has
been overpaid or paid more than once or has been erroneously or
illegally collected or received by the City under this chapter it
may be refunded as provided in subsections B and C of this
section provided a claim in writing therefor, stating under
penalty of perjury the specific grounds upon which the claim is
founded, is filed with the tax administrator within three years
of the date of payment. The claim shall be on a form or forms
furnished by the tax administrator.
B. An operator may claim a refund, or take as a credit
against taxes due and not yet remitted, the amount overpaid, paid
more than once or erroneously or illegally collected or received
when it is established in a manner prescribed by the tax
administrator that the person from whom the tax has been
collected was not a user; provided, however, that neither a
refund nor a credit shall be allowed unless the amount of the tax
so collected has either been refunded to the user or credited to
any golf fees subsequently payable by the user to the operator.
C. A user may obtain a refund of taxes overpaid or paid
more than once or erroneously or illegally collected or received
by the City by filing a claim in the manner provided in
I/
subsection A of this section, but only when the tax was paid by
the user directly to the tax administrator, or when the user
having paid the tax to the operator, establishes to the
ORDINANCE NO. 291
L:\voll\cwl\GOLFTAX.2 PAGE 6
satisfaction of the tax administrator that the user has been
unable to obtain a refund from the operator who collected the
tax.
D. No refund shall be paid under the provisions of this
I/ section unless the claimant establishes his right thereto by
written records and/or other evidence to the satisfaction of the
tax administrator.
3 . 40. 110 Actions to collect. Any tax required to be paid
by any user under the provisions of this chapter shall be deemed
a debt owed by the user to the City. Any tax collected by an
operator which has not been paid to the City shall be deemed a
debt owed by the operator to the City. The amount of any tax the
operator refuses or fails to collect, and which has been assessed
against the operator pursuant to Section 3 . 40. 070 shall be deemed
a debt owed by the operator to the City. Any person owing money
to the City under any provision of this chapter shall be liable
for the amount of tax owed, plus interest and penalty, if any, in
a civil action brought in the name of the City for the recovery
of such amount.
3 . 40 . 120 Penalty for violation.
A. Any person violating any of the provisions of this
chapter shall be guilty of a misdemeanor and shall be punishable
therefor by a fine of not more than one thousand dollars or by
imprisonment in the county jail for a period of not more than six
months or by both such fine and imprisonment.
B. Any operator or other person who fails or refuses to
furnish any return required to be made by this chapter, or who
fails or refuses to furnish a supplemental return or other data
required by the tax administrator, or who renders a false or
fraudulent return or claim, is guilty of a misdemeanor, and is
punishable as set forth in subsection A of this section. Any
person required to make, render, sign or verify any report or
claim who makes any false or fraudulent report or claim with
intent to defeat or evade the determination of any amount due
required by this chapter to be made, is guilty of a misdemeanor
and is punishable as set forth in subsection A of this
section.
3 . 40 . 130 Exemptions.
I/ A. No tax shall be imposed upon any person as to whom it
is beyond the power of the City to impose the tax provided in
this chapter.
B. No tax shall be imposed upon any user of a golf course
owned and/or operated by a governmental entity.
ORDINANCE NO. 291
L:\voll\cwi\GoLFTAx.2 PAGE 7
3 . 40 . 140 . Legislative Review. Beginning in January, 1996,
and every four years thereafter, the City Manager shall submit
for consideration by the City Council an analysis of the revenues
derived from the taxes imposed by this chapter. Based on the
needs of the City, the City Council shall determine if any
modifications to the rate is necessary or if the tax imposed by
this chapter should be repealed. Said review shall be completed
by the City Council prior to the adoption of the budget being
I/
prepared for the next fiscal year. This Chapter shall be
repealed if the City Council does not conduct the review required
by this Section 3 . 40. 140.
3 . 40. 150 Severability. If any section, subsection,
subdivision, paragraph, sentence, clause or phrase of this
chapter or any part thereof is for any reason held to be
unconstitutional or otherwise invalid, such decision shall not
affect the validity of the remaining portions of this chapter or
any part thereof. The City Council declares that it would have
passed each section, subsection, subdivision, paragraph,
sentence, clause or phrase thereof, irrespective of the fact that
any one or more sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases is declared invalid or
unconstitutional.
PASSED, APPROVED AND ADOPTED this 5TH day of October, 1993 .
CP(Th
MAYOR
ATTEST: .�
el i / / 41/
i
CITY CLERK
I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes
do hereby certify that the whole number of members of the City
Council of said City is four; that the foregoing Ordinance, being
Ordinance No. 291, passed first reading on September 21, 1993 ,
was duly and regularly adopted by the City Council of said City
at a regular meeting thereof held on October 5, 1993 , and that
the same was passed and adopted by the following roll call vote:
AYES: KUYKENDALL, McTAGGART, AND MAYOR BROOKS
NOES: BACHARACH
ABSENT: NONE
I/
ABSTAIN: NONE 0 , , i
CITY CLERK, ' ITY OF RANCHO PALOS •ERDES
ORDINANCE NO. 291
L:\voll\cwl\GOLFTAX.2 PAGE 8
'6
•
ORDINANCE NO. 291
lirl !!!11
RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES
The undersigned, being first duly sworn, deposes and
says:
That at all times herein mentioned, she was and now is
the appointed City Clerk of the City of Rancho Palos Verdes;
That on October 8, 1993 she caused to be
posted the following document entitled:
AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE BY ADDING
CHAPTER 3. 40 TO ESTABLISH A GOLF TAX
a copy of which is attached hereto, in the following
locations:
City Hall Los Angeles County Fire Station
30940 Hawthorne Blvd. Miraleste Station
Rancho Palos Verdes 4000 Miraleste Plaza
Rancho Palos Verdes
U. S. Post Office
28649 S. Western Ave. Ladera Linda Community Center
Rancho Palos Verdes 32201 Forrestal Drive
Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd. Rancho Palos Verdes Park
Rancho Palos Verdes 30359 Hawthorne Blvd. ,
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a
true and correct affidavit of posting . )0
' A I / A. ,/ ' / /
ill r . .._ ..■...m -A. ....■ -A&
/ CITY CLERK
30940 HAWTHORNE BOULEVARD / RANCHO PALOS VERDES, CA 90274-5391 / (213) 377-0360