City of San Bernardino Hotel/Motel Ass'n v. City of San Bernardino

The City of San Bernardino Hotel/Motel Association (herein Association) brought this action to challenge the validity of a transient occupancy tax adopted by the City of San Bernardino. The trial court found the tax ordinance constitutional and rendered judgment in favor of the defendant city.

The Association appeals, contending that the ordinance is unconstitutional.

The Transient Occupancy Tax

The ordinance imposes a 10 percent tax on transients for the privilege of occupancy in a hotel in San Bernardino. The tax is normally paid to the operator of the hotel at the time the rent is paid. The hotel operator is required to collect the tax at the time rent is paid, and the operator must remit the tax to the city monthly. The operator is subject to penalties for delinquent payment, and violations of any provision of the ordinance are a criminal misdemeanor.

Power to Impose the Tax

The Association first contends that the ordinance is preempted by state law. Specifically, the Association contends: (1) Revenue and Taxation Code section 7280 defines “transient occupant”; (2) the definition of “transient occupant” is a matter of statewide concern as part of a statewide…