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Mount Shasta pursues enforcement after hotel stops remitting transient occupancy taxes since June
Summary
Council heard an update that a local lodging business has not remitted transient occupancy taxes since June; the city’s attorney sent a demand letter, the district attorney’s office is investigating and a civil suit has been filed. Staff said the city may pursue a receiver or business license revocation hearing.
City staff reported that a local lodging business — referred to in the meeting as the Loge — has not remitted transient occupancy tax (TOT) payments to Mount Shasta since June. Council members were briefed on enforcement steps the city has taken, including letters from the city attorney, contact with the district attorney’s office and a civil filing.
The city drafted and sent a demand letter that City Attorney John Kenny delivered to the property. After the deadline passed with no remediation, staff notified the District Attorney’s Office; an investigator from the DA’s office has contacted city staff and indicated the matter is being taken seriously. Separately, the city’s outside counsel has filed a civil suit on the city’s behalf, according to staff.
Staff said the city is exploring additional remedies, including appointment of a receiver to secure assets to satisfy unpaid TOT and scheduling a city council hearing that could lead to revocation of the business license should the operator fail to resolve the delinquency. Staff noted that hoteliers hold TOT in trust for the city and failure to remit these funds raises fiduciary concerns.
No enforcement hearing or revocation vote occurred during the meeting; council directed staff to continue legal steps and report back on developments.
