A. Duty of Transferor (Seller). Prior to a change of ownership of a lodging, the transferor or operator of the lodging shall give written notice to the Tax Collector of the sale no later than 15 days before the close of escrow or the transfer of title. The transferor shall request and complete a final transient occupancy report form and pay upon close of escrow or upon delivery of title or transfer, whichever first occurs, all taxes, penalties and interest due in addition to any unsecured property taxes which are a statutory lien against the transferor.

B. Duty of Transferee (Buyer). Prior to the change in ownership of a lodging, the transferee or prospective operator of the lodging shall give written notice to the Tax Collector of the sale no later than 15 days before the close of escrow or the transfer of title. The transferee shall retain from the purchase price the amount for which the transferor is liable until the transferor produces a certificate from the Tax Collector stating that the taxes have been paid. If the tax is not paid as provided in this chapter, the Tax Collector shall request the retained amount from the transferor. The transferor shall pay the request within 10 days.

C. Effect of Notice. If proper notice is given by the parties to the transfer of ownership of a lodging, an audit may be performed by the Tax Collector in order to determine any tax liability of the transferor prior to the change of ownership. If proper notice was given, the county will release the transferee from any tax liability arising prior to the change of ownership, even if no audit was conducted.

D. This section shall be deemed constructive notice to all new owners of lodgings that they shall assume liability for all unpaid taxes when the Tax Collector is not properly notified as set forth in this section. (Ord. 786, eff. 6/20/92; Ord. 377, eff. 10/7/71)