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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 19, 2008 <br />Action Age~~la <br />Item No. <br />SUBJECT: Request to Waive Occupational License Tax Penalties <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Letter of Request from William E. Wisen Gary Humphreys, 245-2453 <br />Room Occupancy Tax Law <br />PURPOSE: To present a request from William Wisen, owner of the Best Western Skyland Inn, <br />to forgive statutory penalties assessed for failure to file Room Occupancy Tax Reports and <br />remit room occupancy tax collected when due. <br />BACKGROUND: Hotels and motels in Orange County are required to collect room occupancy <br />tax levied by the County from the renter. The establishments are required to file a report and <br />remit taxes collected monthly by the 15th of the following month. The Skyland Inn filed the <br />Room Occupancy Tax Report for November 2006, but failed to remit the tax collected. The <br />Motel continued to file reports each month through December 15, 2007 and, during that time, <br />made six payments of varying amounts that were less than the amount due. Beginning <br />December 15, 2007, no further reports were filed and no further taxes were remitted. During <br />that time, Finance staff had contacted the owners of the Skyland Inn several times by phone <br />about the unpaid taxes. Staff also sent a letter to Mr. Wisen in January 2008 requesting that all <br />taxes due be remitted and that past due reports be filed. The Skyland Inn submitted information <br />in April showing that $9,064.37 in room occupancy taxes had not been remitted to the County. <br />The Wisens had obtained a check for $11,152.47 related to property taxes for Skyland Inn and <br />deposited it with Revenue Collector on March 4, 2008. These funds were being held on account <br />to be applied on future property taxes. The Revenue Collector became aware of the Room <br />Occupancy Tax owed by the Skyland Inn and contacted Financial Services in April. Finance <br />staff met with the Mr. and Mrs. Wisen and the Revenue Collector on May 6, 2008. It was <br />agreed to have the unremitted taxes due deducted from the amount on deposit with the <br />Revenue Collector and all past due reports filed. The Wisens were informed of the penalties in <br />the law for failure to file reports and remit taxes collected. Staff agreed to review options <br />regarding the penalties. <br />Staff consulted with the Assistant County Attorney concerning the penalties. A letter was sent to <br />Mr. Wisen notifying him that there were penalties due totaling $5,679.76 for failure to report and <br />