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Mount Shasta pursues legal action as Loews hotel falls behind on transient-occupancy tax payments
Summary
City attorneys have notified the District Attorney and filed a civil suit seeking back-transient-occupancy-tax (TOT) payments from Loews; possible remedies discussed include receivership and business-license revocation hearings.
Mount Shasta city staff said Jan. 27 they have escalated collection efforts after a local Loews hotel failed to pay transient-occupancy tax (TOT) receipts since June.
City attorney John Kenny and staff have drafted a letter and notified the Siskiyou County District Attorney’s office; the DA’s office opened an inquiry and an investigator called the city the next day, officials said. The city also reported that its outside counsel filed a civil suit on the city’s behalf and that the city is considering appointing a receiver to secure assets if necessary.
Staff explained that hoteliers hold TOT collections in trust for the city and that delinquent remittance may be treated as a failure to remit government funds. Councilmembers noted the city may hold a public hearing to allow the hotel to respond before proceeding with a business-license revocation process; the hotel’s business license renewal is scheduled for June.
City officials said the DA is investigating and the civil case is active; no settlement or repayment amount was announced at the meeting.
