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(9) <br />EXHIBIT VI <br />CITY OF SANTA ANA GENERAL HOTEL VISITORS' TAXATION OVERVIEW <br />City of Santa Ana <br />Hotel Visitors' Tax Monthly Tax Remittance Procedures <br />I. Monthly Tax Remittance: <br />1. Hotel Visitors' Tax (HVT) is an 11 % tax charged by all hotel operators for any guest stay and <br />remitted to the City on a monthly basis. HVT remittance is due on the last day of every month. <br />2. Monthly remittance tax forms are automatically generated based on the active HVT accounts <br />registered in the HVT database (HVT system). Currently, there are 34 active accounts registered <br />in the HVT system. <br />3. Monthly remittance tax forms are mailed to each hotel operator or designated tax preparer (see <br />attached sample). <br />II. Remitting and Processing Payments: <br />1. Most HVT payments are remitted via check, which is mailed in along with the completed <br />remittance tax form; however, some hotel operators will come in person to remit payment at our <br />cashier station and provide the completed tax form. <br />2. When the monthly remittance tax form is received, the reported revenue figures are verified for <br />accurate reporting and calculation and recorded into the HVT system. The check is processed <br />by Treasury Services remittance processor or can also be processed at the cashier counter with <br />an accompanying billing statement. <br />3. Any discrepancies (overages, shortages, calculation errors, missing/wrong tax remittance form, <br />etc.) will result in a letter to the service provider or tax preparer requesting to resolve the issue. <br />Shortages and calculation errors or late payments that are postmarked after the last day of the <br />month are subject to penalty and interest charges. <br />a. Penalty charges are calculated at 10% of the tax amount owed <br />b. Interest charges are calculated at 1.5% of the tax amount owed per month <br />III. Remittance Tracking: <br />1. The revenues reported on the monthly tax remittance form are recorded into the HVT system. <br />Once the revenue figures have been entered, the HVT system will calculate the fees to verify the <br />information entered is accurate. If the calculations match, the revenue is recorded and a charge <br />for the tax amount due is created. If the revenues do not match, the system will indicate the <br />correct calculations in red. The revenue may still be saved as was reported by the hotel operator <br />or tax preparer, but the charge created will be based on the correct calculations. <br />2. Once the revenues have been recorded, the monthly tax remittance form is scanned into <br />LaserFiche in the Hotel Visitors' Tax folder, then into the corresponding sub -folder for the <br />reporting period being remitted. Each hotel is assigned an account number; the scanned reports <br />are saved into the folder for the corresponding reporting period and sorted by account number. <br />3. A master spreadsheet is also maintained to show the HVT revenue remitted for every month and <br />every hotel. This spreadsheet shows the revenues received for the current fiscal year period, as <br />well as the previous fiscal year period to allow year-to-year comparisons. <br />a. This master spreadsheet is regularly updated and saved in a shared directory (I:\Hotel <br />Visitor's Tax\HVT Monthly Stats) where it can be accessed by authorized staff members <br />in the Tax & Licensing Section. <br />City of Santa Ana RFP No. 23-165 Page 56 of 196 <br />