Patel

I. Introduction

Appellants are the operators of nine hotels in the City of Santa Cruz (City). Appellants challenge the superior court’s orders directing them to comply with subpoenas issued by City pursuant to Government Code section 37104 et seq., requiring the production of records necessary for a tax compliance audit. The tax in question is City’s transient occupancy tax, a 10 percent tax upon stays of 30 days or less at hotels, motels, and like accommodations within the City. (Santa Cruz Mun. Code, § 3.28.010 et seq. (SCMC).) Appellants contend that they should not be required to produce the records because the ordinance is unconstitutional and because the subpoenas are invalid. We reject the arguments and affirm the orders.

II. Factual and Procedural Background

City enacted the Uniform Transient Occupancy Tax Ordinance (Ordinance) in 1984. Pursuant to the Ordinance, the hotel operator collects the tax from the hotel guest and remits the tax to City. On or about February 1, 2006, City’s finance director notified hotel operators that City would be conducting an audit to determine the operators’ compliance with the Ordinance. Such audits are permitted by SCMC section…