CITY OF COON RAPIDS, MINNESOTA
CHAPTER 2-1000
LODGING TAX

2-1001 Purpose. The City of Coon Rapids finds that the promotion of the City as a tourist and convention center would benefit the economy and recognition of the City. The City further finds that the creation of a tax on lodging at hotels, motels, rooming houses, tourist courts and resorts for the purpose of providing funding for a convention and visitor’s bureau to promote the City’s tourism and convention industry is in the best interest of the City and its citizens.

2-1002 Definitions. Except as may otherwise be provided or clearly implied by context, the following terms, as used in this Chapter, shall have the meanings given to them:

(1) City. The City of Coon Rapids.
(2) Finance Director. The individual designated by the City Manager to fulfill the duties of the City’s Director of Finance or that individual’s designee.
(3) Lodging Facility. A hotel, motel, rooming house, tourist court, or resort, as those terms are commonly understood, where accommodations are furnished for consideration, other than the renting or leasing of such accommodations for a continuous period of thirty days or more. The furnishing of rooms by any legally constituted religious, educational, or non-profit organization shall not constitute lodging for the purposes of this Chapter.
(4) Operator. The person who is the proprietor of the Lodging Facility, whether in the capacity of owner, lessee, sub-lessee, licensee, or any officer, agent, or employee of such person.
(5) Person. Any individual, corporation, partnership, association, limited liability company or partnership, 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, partnership, association, limited liability company or partnership, or any other combination of individuals shall mean the officers or partners thereof as the case may be.

2-1003 Imposition of Tax.

(1) Pursuant to authority granted under Minnesota Statutes, Section 469.190, there is hereby imposed a tax in the amount of 3% on the gross receipts from the furnishing for consideration of accommodations at any Lodging Facility in the City.
(2) The tax imposed herein shall be paid by the individual occupying the accommodations through the Operator of the Lodging Facility at the time the charge for such accommodations is paid. Said tax constitutes a debt owed to the City by the Operator which is extinguished only upon payment of the tax to the City.

2-1004 Collection.

(1) Operator’s Duties. Each Operator shall collect the tax imposed under this Chapter at the time the rent charge for the accommodation is paid. The amount of the tax shall be separately stated from the rent so charged. The Person paying the tax shall receive a receipt of payment from the Operator.
(2) Reports. On or before the 25th day of each month, each Operator shall submit to the Finance Director a report of the rental activities in the preceding calendar month. In the event the 25th day of any month falls on a Saturday, Sunday or legal holiday, the report shall be due on the next succeeding City business day. The reports shall be on forms provided by the City and shall contain, at a minimum, the following:

(a) Name, address, telephone number of the Lodging Facility.
(b) Reporting period covered by the report.
(c) Total gross amount of accommodation charges collected during the reporting period.
(d) The amount of lodging tax required to be collected and due during the reporting period.
(e) Name, date of birth, and signature of the Operator or the Operator’s agent submitting the report and the address and telephone number of the Operator or agent if different from the Lodging Facility.
(f) The total amount of any uncollectible accommodation rental charges.
(g) Such other information as the City from time to time may, in its discretion, require.

(3) Payment of Tax. Payment of the tax for the preceding calendar month shall be submitted by each Operator to the City with the report provided for that reporting period.
(4) Alternative Accounting. Upon written notice to the Finance Director, an Operator may, at the Operator’s option adopt any four week accounting period other than a calendar month. Submission of the required reports and tax payments shall not be later than 25 days after the end of any such reporting period unless the 25th day falls on a Saturday, Sunday, or legal holiday in which case the report and payment shall be submitted no later than the next succeeding City business day.
(5) Uncollectible Charges. The Operator may off-set against the tax due in any reporting period the amount of any taxes imposed under this Chapter previously paid as a result of any transaction which becomes uncollectible during such reporting period, but only in proportion to the portion of such amount which becomes uncollectible.
(6) Examination of Reports. After a report is filed, the Finance Director may make any reasonable examination of the records and accounts of the Lodging Facility for which the report is made which the Finance Director deems necessary for determining the correctness of that report. The tax computed on the basis of such an examination shall be the tax paid. If the tax due is found to be greater than the tax paid, the operator submitting the report shall remit the difference to the City within ten days after receipt of written notice. Such notice shall be given personally or sent by certified mail to the address shown on the report. If the tax paid is greater than the tax found to be due, the excess paid shall be refunded to the operator at the address shown on the report. Any Operator aggrieved by the decision of the Finance Director request a hearing by the City Council in the manner provided by Section 2-1007.

2-1005 Refunds.

(1) Any Operator may file a claim for a refund of taxes paid in any reporting period that exceed the amount actually due for that period. Such claim shall be in writing directed to the Finance Director and must be received by the Finance Director no later than one (1) year following the payment of the contested taxes.
(2) Upon receipt of such claim, the Finance Director shall determine the validity of the claim. The Finance Director may approve the claim, deny the claim, or make such other reasonable determination regarding the claim. The City shall refund any excess payments as determined by the Finance Director. If no excess payments are found, the Finance Director shall so notify the Operator in writing. Any Operator who disagrees with the determination of the Finance Director may request a hearing before the City Council in accordance with 2-1007.

2-1006 Penalties.

(1) Any taxes not paid within 25 days following the close of a reporting period shall be subject to a penalty of ten percent (10%).
(2) If an Operator does not include the penalty with a late payment of the tax, the Finance Director shall notify the Operator in writing, served either personally or by certified mail, of the amount of penalty due. If the Operator fails to pay the penalty within ten days of that notice, the Finance Director may proceed to collect the penalty in the same manner as provided herein for the collection of unpaid taxes.
(3) If an Operator refuses or fails to pay the tax imposed by this Chapter, including any penalties, within thirty days following the close of the reporting period for which the tax is due, the Finance Director shall determine an estimate of the tax due. For the purposes of making such estimates, the Operator shall grant the Finance Director access to all relevant books and records relating to the Lodging Facility. The Finance Director shall notify the Operator personally or by certified mail of the amount due. Full payment of the amount determined by the Finance Director shall be made within ten days of said notice.
(4) If an operator fails to pay a tax and/or penalty imposed hereunder within ten days of receipt of notice from the Finance Director, the tax and/or penalty shall be specially assesses against the property in the same manner as a special assessment for unpaid utility charges.
(5) As an alternative to a special assessment, the City Attorney shall have the express authority to commence any legal action or actions to collect the tax and/or penalty due and, in addition, all costs of such collection including, but not limited to, reasonable attorney’s fees.
(6) An Operator, aggrieved by the actions of the Finance Director pursuant to this Section may request a hearing before the City Council as provided in Section 2-1007. If a hearing properly requested, the collection of the tax or penalty in any manner shall be stayed pending the outcome of the hearing and any appeals appropriately taken therefrom.
 

2-1007 Council Hearing.

(1) An Operator aggrieved by any determination by the Finance Director may request a hearing before the City Council.
(2) A request for a hearing shall be in writing and shall set forth the basis for such request. The request shall be received by the Finance Director not more than ten days following receipt by the Operator of the notice giving rise to the request. If no request for a hearing is received within the ten days, the determination of the Finance Director shall be final.
(3) Upon receipt of a proper and timely request, a hearing shall be conducted at the next regular City Council meeting that is not held less than fifteen days after receipt of the request. The Operator shall receive written notice of the day, time and place of the hearing at least ten days in advance of the hearing date.
(4) The hearing shall be limited to the issues contained in the Operator’s request.
(5) The City Council may affirm, deny, or modify the determination of the Finance Director.

2-1008 Violations. In addition to any other penalties that may be provided by this Chapter, any willful violation of any provision of this Chapter, or the failure to tender a required report or the tendering of a false report constitutes a misdemeanor.

2-1009 Separate Fund. All revenue collect by the City pursuant to this Chapter shall be deposited in a separate fund created for such purpose until appropriately distributed in accordance with Section 2-1010.

2-1010 Distribution.
 

(1) 95% of the gross proceeds from the tax collected pursuant to this Chapter shall be used toward funding a local convention and tourism bureau for the purpose of marketing and promoting the City as a tourist and convention center.
(2) The City shall retain up to 5% of the gross proceeds which may be transferred to the City’s General Fund to defray the costs of administering and enforcing this Chapter.

2-1011 Severability. If any section or other provision of this Chapter is found to be unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not serve as an invalidation or affect the validity and enforceability of any other section or provision of this Chapter.

2-1012 Effective Date. The effective date of this Chapter shall be April 1, 1998 and the tax imposed pursuant hereto shall be collected on and after that date.