Duty and liability of operator's successor.
San José Municipal Code § 4.72.145
in effect4.72.145 - Duty and liability of operator's successor.
A. Any operator liable for payment to the city of the tax who sells or otherwise disposes of a hotel, and the operator's successor, shall notify the director of finance of the date of sale at least thirty days prior to the date of the sale or, if the agreement to sell or otherwise dispose of the hotel was made less than thirty days prior to the date of the sale, no later than the date of the agreement. The successor shall withhold from the operator in trust for the account of city a portion of the purchase price sufficient to pay the amount of the tax owed to city until the operator secures a written "transient occupancy tax clearance certificate" from the director of finance stating that no tax is due from the operator through the date of the sale. If no transient occupancy tax clearance certificate is presented by the operator to the successor within thirty days after the successor commences operation of the hotel, the successor shall immediately deposit with the director of finance the amount withheld from the purchase price to be applied to the amount of the tax owed by the prior operator.
B. If the successor fails to withhold the amount required by Subsection A. above, the successor is liable to city for payment of the tax owed by the operator.
C. The director of finance shall, within thirty days of receipt of a written request for a transient occupancy tax clearance certificate, either issue the certificate or give written notice to the operator, with a copy to the successor, of the amount of tax which must be paid to secure issuance of the transient occupancy tax clearance certificate. The transient occupancy tax clearance certificate shall be a defense, available solely to the successor and not the operator, to any claim the city may assert against the successor for the amount of the tax owed by the operator.
D. Any operator from whom the successor has withheld and paid to the city a portion of the purchase price may challenge the director of finance's determination pursuant to Subsection A., by making application in writing for a hearing on the amount determined by the director of finance within ten days of mailing by the director of finance. Following receipt of a timely request for hearing, the hearing provisions of Section 4.72.110 shall apply.
(Ord. 29145.)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT4REFIBUTA_CH4.72TROCTA_4.72.145DULIOPSUFetched: 11/1/2026