§ 3-3-4. Collection.

A person owning, operating, managing, or controlling a hotel within the City of Midland, Texas, shall collect for the City of Midland, Texas the tax that is imposed hereof in Section 3-3-1.

(A)

Every person required to collect the tax imposed by this Chapter may deduct and withhold from the taxes otherwise due to the City of Midland, Texas, on the quarterly report, as reimbursement for the cost of collecting the tax, one percent of the amount of the tax due as shown on the report.

(B)

If the taxes due under this Chapter are not paid to the City of Midland within the time required or if the person required to file a report fails to file the report when due or files a false report, the person forfeits the claim to reimbursement that could have been taken for the quarterly period for which the taxes are due or the quarterly report is due or for which the quarterly report has been falsified.

(C)

Tax collection on termination of business.

(1)

If a person who is liable for the payment of a tax under this chapter is the owner of a hotel and sells the hotel, the successor to the seller or the seller's assignee shall withhold an amount of the purchase price sufficient to pay the amount due until the seller provides a receipt by a person designated by the municipality to provide the receipt showing that the amount has been paid or a certificate showing that no tax is due.

(2)

The purchaser of a hotel who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price.

(3)

The purchaser of a hotel may request that the City of Midland's Director of Finance issue a certificate stating that no tax is due or issue a statement of the amount required to be paid before a certificate may be issued. The Director of Finance shall issue the certificate or statement not later than the 60th day after the date that the person receives the request.

(4)

If the Director of Finance fails to issue the certificate or statement within the period provided by section 3-3-4(C)(3), the purchaser is released from the obligation to withhold the purchase price or pay the amount due.

(D)

Civil action for collections. The Midland City Attorney or other attorney acting for the City of Midland may bring suit against a person who is required to collect the tax imposed by this chapter and pay the collections over to the City of Midland and who has failed to file a tax report or pay the tax when due to collect the tax not paid or to enjoin the person from operating a hotel in the municipality until the tax is paid or the report filed, as applicable, as provided by the court's order. In addition to the amount of any tax owed under this chapter, the person is liable to the City of Midland for the City of Midland's reasonable attorney's fees and a penalty equal to 15 percent of the total amount of the tax owed, pursuant to section 351.004 of the Tax Code.

(Ord. No. 7837, § 1, 4-13-99)