WHEREAS, the council set a hearing date on the appeal of the revocation of business license number 07000966 for January 17, 2023, by passing Resolution 2022-312; and
WHEREAS, the council has held the hearing on the appeal of the determination regarding delinquent Transient Occupancy and Tourism Tax Assessment by hearing and considering sworn testimony from all parties wishing to be heard and receiving and considering all evidence lawfully admitted before it.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The council finds that the appeal brought by The Motel Operator, Shri Guri Hari, LLC, Shri Mahant, LLC, and Marie Parunjanwala regarding delinquent Transient Occupancy and Tourism Tax Assessment is (choose one): APPROVED/SUSTAINED, or DENIED/OVERRULED.
Section 2. City Staff for the City of Fairfield are authorized to do all things proper and necessary consistent with the findings of this resolution.
Section 3. A copy of this resolution shall be served on the hotel operator by serving it personally or depositing it in the post office in the city, postage prepaid, addressed to such person at the address appearing on the Grand Deed or application within 10 business days of this hearing. The City Clerk is directed to keep a copy of the proof of service.
PASSED AND ADOPTED this 15th day of August, 2023, by the following vote:
AYES: COUNCILMEMBERS: MOY/BERTANI/CARR/PANDURO/TONNESEN/VACCARO/WILLIAMS
NOES: COUNCILMEMBERS: _____________________________________________
ABSENT: COUNCILMEMBERS: _____________________________________________
ABSTAIN: COUNCILMEMBERS: _____________________________________________
MAYOR
ATTEST:
____________________________
CITY CLERK
Packet Page 843 of 860Attachment 1 Page 2 of 2
FINANCE DEPARTMENT
January 25, 2023
Super 8
2170 North Texas Street
Fairfield, CA 94533‐3204
Re: Delinquent Transient Occupancy Tax
Dear Hotel Operator:
This correspondence is to request immediate payment of your delinquent Transient Occupancy Tax and Tourism Assessment (TOT) and to inform you of your rights to a hearing on the total estimated assessment amount, as provided below.
The City of Fairfield has not received your tax filings and payment of its TOT since quarter two of 2018.
On November 29, 2022 the City notified you that it had not received your TOT filings and payments and that, to avoid additional penalties and interest, immediate filing and payment is required.
Pursuant to Chapter 18, Article III, Section 18.17 of the Fairfield Municipal Code, hotel operators are required to file and pay Transient Occupancy Tax every quarter. The total estimated assessment amount for your unpaid quarters, including quarters three and four of 2018, and quarters one through four of 2019, 2020, 2021 and 2022, is six hundred eighty six thousand five hundred forty‐two dollars and ninety‐ eight cents ($686,542.98).
You may, within 10 days from the receipt of this notice, submit a request for a hearing on the assessed amount in writing to the contact listed below. If a hearing request is not received by the City within the prescribed time, all delinquent tax, interest and penalties shall become final and conclusive and immediately due and payable. If such amounts are not paid within 10 days thereafter, the City intends to record a lien on your property for the total assessment amount.
In order to avoid a lien recorded on your property, submit payment immediately or request a hearing.
Please note: New owners are responsible for any and all unpaid TO Tax.
Packet Page 844 of 860Attachment 2 Page 1 of 4
Enclosed you will find a report of estimated delinquent TOT amounts as well as the tax filing form. If you need assistance, feel free to contact me at the number below.
Sincerely,
Prat Uprety
Management Analyst
Phone 707‐428‐7492
[email protected]
CD:pu
cc: John Furtado
Pinnacle Bank, Bryan Lebsack
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Member of the Bar: Uniled Slates Supreme Court United States Court of Appeals for Third Circuit United States Court of Appeals for Fourth Circuit United States Court of Appeals for Fifth Circuit United States Court of Appeals for Sixth Circuit United States Court of Appeals for Eighth Circuit United States Court of Appeals for Ninth Circuit United States Court of Appeals for Tenth Circuit United States Tax Court. Master of Law in Taxation LAW OFFICES FRANK A. WEISER
3460 Wilshire Boulevard, Suite 1212
Los Angeles, California 90010
Telephone: (213) 384-6964
Fax: (213) 383-7368
January 31, 2023
BY FEDERAL EXPRESS - BY OVERNIGHT
DELIVERY AND E-MAIL
AND PERSONAL DELIVERY
Prat Uprety
Management Analyst
City of Fairfield
1000 Webster Street
Fairfield, CA 94533-4836
E-Mail: pupr ty@fairfi - Id.ca.gov
Dear Mr. Uprety:
Re: Super 8 Motel located at 2170 North Texas
Street, Fairfield, CA 94533-3204/My Client:
Present Operator of the Super 8 Motel: Shri
Guru Hari, LLC
Refer To File No.
I represent Shri Guru Hari, LLC ("SGH") the present licensed operator of the Supoer 8 Motel located at 2170 North Texas Street, Fairfield, CA 94533-3204 ("Motel"). My client is in receipt of your letter dated January 25, 2023 demanding an alleged past due transient occupancy tax ("TOT") amount of $686,542.38 for the tax years 2019 to 2022.
My client requests an immediate appeal of the assessment. I am informed that the present owner, Pinnacle Bank ("Pinnacle"), is also requesting to join in his appeal and request an appeal on its behalf. The grounds for the appeal,which is not exhaustive are as follows:
First, the TOT imposed by the City of Fairfield does not "run" with the land as a conditional use permit but is an individualized obligation on the owner and operator of a motel to collect the tax from the occupant who is being tax for such occupancy by the City.
Packet Page 848 of 860Attachment 3 Page 1 of 3
Prat Uprety
Management Analyst
City of Fairfield
1000 Webster Street
Fairfield, CA 94533-4836
E;-Mail: [email protected]
Re: Super 8 Motel located at 2170 North Texas
Street, Fairfield, CA 94533-3204/My Client:
Present Operator of the Super 8 Motel: Shri
Guru Hari, LLC
January 31, 2023
(By Federal Express -Overnight Delivery,
E-Mail and Personal Delivery)
Pinnacle took ownership and possession of the motel by a non-judicial foreclosure for the previous owner and operator of the motel, Shrinika Investments LLC ("SI"), in December of 2022 and authorized SGH to operate the motel.
The owners of SGH have, and have never had any legal or beneficial relationship with SI, its owners Bhavesh and Reena Patel, or the motel until the foreclosure sale by Pinnacle.
Thus, my client and Pinnacle who were in no way involved in the ownership and operation of the motel prior to December of 2022, cannot as a matter oflaw be held responsible for a TOT they were not required by law to collect.
Imposition of the past TOT on my client and Pinnacle would violate, among other constitutional grounds, the procedural and substantive due process clause of the Fourteenth Amendment of the United States Constitution , the Fifth Amendment Takings Clause of the United States Constitution, the Equal Protection Clause of the Fourteenth Amendment of the United States Constitution, in addition to parallel provisions of the California Constitution.
I have practiced extensively in the state and federal courts and the United States Court of Appeals for the Ninth Circuit primarily specializing in civil rights cases and the TOT on behalf of Asian-Indian motel owners and operators.
Some of my published cases are City of Los Angeles Pat I, (2015) 576 U.S. 409 (affirming in a 5-4 decision the Ninth Circuit's en bane decision facially invalidating on Fourth Amendment grounds a motel search ordinance that authorized law enforcement to search motel registers on demand without consent or a warrant) (Patel v ity of Lo Angeles (9th Cir. 2013) (en bane) 738 F.3d 1058); Herrera v City of Palmdale, (9th Cir. 2019) 918 F. 3d 1037 ; Patel y City Packet Page 849 of 860Attachment 3 Page 2 of 3
Prat Uprety
Management Analyst
City of Fairfield
1000 Webster Street
Fairfield, CA 94533-4836
fE-Mail: [email protected]
Re: Super 8 Motel located at 2170 North Texas Street, Fairfield, CA 94533-3204/My Client:
Present Operator of the Super 8 Motel: Shri
Guru Hari, LLC
January 31, 2023
(By Federal Express -Overnight Delivery,
E-Mail and Personal Delivery)
of Montclair, (9th Cir. 2015) 798 F.3d 895; Patel v ity of San Bernardino (9th Cir. 2002) 310 F.3d 1134; Patel v Penman (9th Cir. 1996) 103 F.3d 868; and more recently Hotop v City of an Jo.e (9th Cir. 2020) 982 F.3d 710; and multiple California court of appeal opinions, including City of San Bernardino�Hot I/Motel A ociation v City of an Bernardino, (1997) 9 Cal.App.4th 23 7 .
. I trust that you will provide my client and Pinnacle the required appeal hearing and that my client will not be required to file a federal civil rights lawsuit under 42 U.S.C. Section 1983 against you and the City to enforce their civil rights.
If you need to speak to me directly, I can be reached by e-mail at maim [email protected] or at (213) 399-7806
cc: John Furtado,
Pinnacle Bank
Shri Guru Hari, LLC
FAW:aw
Sincerely
�o Q��
Frank A. Weiser
Attorney at Law
Packet Page 850 of 860Attachment 3 Page 3 of 3
Business (DBA):
Business Location:
Corporate or
Owner Name (s):
BUSINESS LICENSE NO.
3/7/2023
Description:
12/31/2023
BUSINESS LICENSE TAX CERTIFICATE
Hotel/Motel
102
2023
Quality Inn Fairfield
2170 N TEXAS ST
FAIRFIELD, CA 94533-3204
2170 N TEXAS ST
FAIRFIELD, CA 94533-3204
Shri Mahant LLC
Marie Parujanwala
Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to:
https://www.dca.ca.gov/publications/
Corporate Name:Shri Mahant LLC
Business Type:
Expiration Date:
Issued Date:
23000371
● The City of Fairfield Municipal Code Chapter 10B requires all businesses to pay a business license tax ● All businesses are required to comply with City Codes ● This license is issued without verification and is not transferable ● This licensee may be subject to additional licenses or permits by County, State, and/or Federal governments ● Display this license at your place of business in a conspicuous place/be ready to furnish at will if an itinerant merchant City of Fairfield | Community Development | 1000 Webster St, Fairfield, CA 94533 | 707.428.7509 | [email protected] Mailing Address:
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FINANCE DEPARTMENT
April 12, 2023
Law Office of Frank A. Weiser
3460 Wilshire Boulevard, Suite 1212
Los Angeles, California 90010
Re: Administrative Hearing Determination Regarding Delinquent Transient Occupancy and Tourism Tax Assessment
Dear Frank A. Weiser:
On January 31, 2023, you submitted to the City of Fairfield (“City”) on behalf of your client, Shri Guru Hari, LLC, the current hotel operator of the Super 8 Motel, located at 2170 North Texas Street, Fairfield CA 94533‐3202 (“Hotel”), a request for an administrative hearing on the full amount of the City’s assessment of delinquent transient occupancy and tourism tax (“TOT”) in the amount of six hundred eighty six thousand five hundred forty‐two dollars and ninety‐eight cents ($686,542.98). The City provided your client notice of said assessment in a correspondence dated January 25, 2023. Your hearing regarding the same was held on March 14, 2023.
At the hearing you presented evidence of the Hotel’s current and up‐to‐date business license and a Grant Deed dated March 1, 2023, granting the full real property interest of the Hotel property to your client. No other evidence was presented at the hearing.
The City Finance Director, acting in their delegated capacity as the City Tax Administrator, conducted a review and verification of the information and documentation provided on behalf of your client. It is hereby determined that your request for relief of the total tax assessment amount is denied and the proper tax to be remitted remains in the full amount of $686,542.98.
Your appeal contended that your client has no financial rapport with the prior Hotel owner(s), was unaware of the outstanding TOT amount, and is not responsible for such delinquent amounts. Pursuant to Chapter 18, Article III, Section 18.17.1(c) and (d) of the Fairfield Municipal Code, any person purchasing an ongoing Hotel business may apply to the Tax Administrator for a tax clearance certificate showing the tax due, if any, from the selling operator. If an operator who is liable for delinquent taxes or penalties under this article sells its business, its successor shall withhold a sufficient portion of the purchase price to satisfy the delinquency. If the seller does not present such receipt or notice within thirty (30) days after Packet Page 856 of 860Attachment 6 Page 1 of 2
the successor commences business, the successor shall deposit the withheld amount with the Tax Administrator. If the successor fails to withhold a portion of the purchase price as required, the successor shall be liable to the City for payment of the amount the successor was required to withhold.
If you wish to appeal the above determination to the City Council, you may, within fifteen (15) days of the serving or mailing of this determination, file a notice of appeal with the City Clerk at the below address.
City Clerk
1000 Webster Street,
4th Floor,
Fairfield, CA
[email protected]
Sincerely,
John Furtado
Finance Director
707‐428‐7629
[email protected]
Cc: Hotel Operator of Quality Inn (formerly Super 8 Motel)
Packet Page 857 of 860Attachment 6 Page 2 of 2
Member of the Bar:
United States Supreme Coun
Uniled States Coun ofAppcals for Third Circuit
United States Coun ofAppeals for Fourth Circuit
United States Court ofAppeals for Fiflh Circuit
United States Court ofAppeals for Sixth Circuit
Uniled States Court ofAppcals for Eighth Circuit
Unired States Courr of Appeals for Ninth Circuit
Unilcd States Courr ofAppeals forTenth Circuit
Uniled States Tax Courr.
Master of Law in Tuadon
LAW OFFICES
FRANK A. WEISER
3460 Wilshire Boulevard, Suite 1212
Los Angeles, California 90010
Telephone: (213) 384-6964
Fax: (213) 383-7368
April24,2023
Refer To File No.
BY PERSONAL DELIVERY AND FEDERAL EXPRESS.
GUARANTEED OVERNIGHT DELIVERY AND E.MAIL
Karen L. Rees
City Clerk
City of Fairfield
1000 Webster Street,4th Floor
Fairfield, CA94533
E-Mai I : city clerl@fairfi eld. ca. gov
Re: Appeal of City of Fairfield Administrative
Hearing Determination Regarding Delinquent
Transient Occupancy and Tourism Tax
Assessment/Super 8 Motel located at2l70
North Texas Street, Fairfield, CA94533-323021
My Clients: Shri Guru Hari, LLC and Shri Mahant,
LLC and Marie Parunjanwala
Dear Ms. Rees:
I represent the owners and operators of the Super 8 Motel located at2l70 Nonh Texas Street, Fairfield, CA94533-32302 ("Motel"). My clients are in receipt of the April l2,2023letter from John Furtado, Finance Director, denying my client's appeal for relief from the transient occupancy tax ("TOT") assessment of $686,542-98.
My clients request an immediate appeal to the City Council or whatever administrative board has jurisdiction over the matter. The grounds for appeal are as follows:
As I explained at the appeal hearing before Mr. Furtado, my clients are not subject to the City of Fairfield's Municipal Code Sections 18.17.(l)(c) and (d) as the motel was purchased by Packet Page 858 of 860Attachment 7 Page 1 of 3
City Clerk
City of Fairfield
1000 Webster Street,4th Floor
Fairfield, CA94533
E-Mai I : city clerl@fairfi el d. ca. gov
Re: Appeal of City of Fairfield Administrative
Hearing Determination Regarding Delinquent
Transient Occupancy and Tourism Tax
Assessment/Super 8 Motel located at2l70
North Texas Street, Fairfield, CA94533-323021
My Clients: Shri Guru Hari, LLC and Shri Mahant,
LLC and Marie Parunjanwala
Aprrl24,2023
(By Personal Delivery, Federal Express - Guaranteed Overrnight Delivery and E-Mail)
way of an involuntary foreclosure of the previous owners and licensees.
At best, the ordinance in question is ambiguous as to whether it covers a case of an involuntary foreclosure such as this.
An ambiguity in a tax statute will generally be resolved in favor of the taxpayer. See Microsoft Corp. v Franchise Tax Board,39 Cal.4th 750, 759; Agnew v State Board of Equalization.( I 999) 2l Cal.4th 3 I 0, 330.
Further, the ordinance is in violation of the Califomia Supreme Court's holding in In re Transient Occupancy Tax Cases (2016) 2 Cal5th l3l . It is axiomatic under this precedent that a non-operator of a hotel or motel cannot be held liable for third party TOT assessments.
The decision further violates the Fifth Amendment Takings Clause, and the Due Process and Equal Protection Clauses of the United States Constitution.
Further grounds for appeal are as follows:
The City's TOT ordinance establishes various financial sanctions to encourage motel operators to tender tax payments before any resolution of any dispute over the tax's validity.
The U.S. Supreme Court has held that this type of taxing scheme does not provide a meaningful opportunity for predeprivation relief. See McKesson, supra, 496 U.S. at 37 ("Since Florida has established various financial sanctions and summary remedies to encourage liquor distributors to tender tax payments before resolution of any dispute over the tax's validity, the State does not provide a meaningful opportunity for predeprivation relief.").
Packet Page 859 of 860Attachment 7 Page 2 of 3
1000 Webster Street,4th Floor
Fairfield, CA94533
E-lvlail : city clerl@fairfi eld. ca. gov
Re: Appeal of City of Fairfield Administrative
Hearing Determination Regarding Delinquent
Transient Occupancy and Tourism Tax
Assessment/Super 8 Motel located at2l70
North Texas Street, Fairfield, CA94533-323021
My Clients: Shri Guru Hari, LLC and Shri Mahant,
LLC and Marie Parunjanwala
April24,2023
(By Personal Delivery, Federal Express - Guaranteed Overrnight Delivery and E-Mail)
The City's TOT ordinance does not provide a hotel operator the ability to seek a refund after payment of an illegal tax that he has either paid without colle,:ting the same from the transient or has been assessed by the City.
In other words, if the hotel operator has not collected the tax from the occupant, but has paid the tax out of his own pocket in protest because he has been personally assessed by the City, he cannot seek a post-payment refund for himself because the "amount of the tax so collected [cannot] either [be] refunded to the transient or credited to rent subsequently payable to the operator by the ffansient."
This ordinance does not provide a "clear and certain" post-deprivation remedial scheme to satisfu due process.
To avoid any mistake as before in contacting me also, please e-mail me at [email protected] as to any correspondence regarding this matter and my clients request that you notifu them also as to the appeal hearing dates.
If you need to speak to me directly, as I can be reached at at (213) 399-7806 Sincerely,
-\-{- Cu.rU*--
Frank A. Weiser
Attorney atLaw
cc: John Furtado, Finance Director
(By E-Mail at [email protected])
Clients
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