Broken Arrow City Council
Meeting of: 12-19-2017
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion and possible approval of Resolution No. 1072, a Resolution of Necessity to file a Small Claims action against Deep, LLC dba Luxury Inn & Suites, 1401 N. Elm Place, Broken Arrow, Oklahoma 74012 for failure to report and pay Hotel Occupancy Tax owing for the period of December 2015 through November 2017
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Background:
According to the Broken Arrow Code Sec. 22-112 there is levied an excise tax of four percent (4%) upon the gross proceeds or gross receipts derived from all rent for every occupancy of a room or rooms in a hotel in this city. The hotel operator is responsible for tax collections. The hotel operator is also required to file with the city manager, a report of occupancy, and of rents, and of the taxes payable thereon for each month. The return is to be filed within the first 15 days after the end of each month.
DEEP, LLC, is the owner of and is doing business as the Luxury Inn and Suites, a hotel located at 1401 N. Elm Place, Broken Arrow, Oklahoma. DEEP, LLC is managed by Mon Tu Patel. DEEP, LLC has failed to file any returns for taxes collected and due for the period of December 2015 through December 2017. DEEP, LLC has also failed to pay any hotel occupancy tax during that period of time. In July 2017, the Legal Department sent Mr. Patel a demand letter to report and pay all outstanding occupancy tax owed. Mr. Patel paid the City $7,500.00 in estimated occupancy taxes in good faith until he could provide updated reports. Since that time the City has written Mr. Patel requesting that these occupancy tax reports be filed immediately and he has failed to comply.
At this time the best course of action to collect the taxes may be for the City to file a Small Claims Action against DEEP, LLC for the arrearage in taxes of approximately $4,989.68 for the period of December 2015 through November 2017.
Cost: Filing fees and Costs
Prepared By: Beth Anne Childs, City Attorney
Reviewed By: Assistant City Manager-Administration
Finance Department
Approved By: Michael L. Spurgeon, City Manager
Attachments: Resolution No. 1072
Recommendation: Approve Resolution No. 1072 and authorize its execution.