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CITY OF SAN BERtrARDIN~ REQUEST FOR COUNCIL ACTION
From: Shauna Clark, City Clerk
Dept: City Clerk's Office
Date: June 22, 1990
Su~~: Exemption for Low Income Hotel/Motel
Residents
Synopsis of Previous Council ~ion:
01/22/90 Mayor and Common Council adopted Mc-702 which
removed the transient occupancy tax exemptions for
permanent residents.
06/04/90 Mayor and Common Council will give first reading
to ordinance which raises transient occupancy tax
to 10%.
06/21/90 Amended and approved by Legislative Review
Committee.
Recommended motion:
That the City Attorney be instructed to prepare amendments
to the Municipal Code that would allow the owner of a
hotel/motel who's building achieves clearance from Planning
and Building Services for occupancy as an efficiency
dwelling unit to grant waivers of transient occupancy tax to
residents who stay longer than 30 days and who meet low
income criteria as set forth in the ordinance to be prepared
by the City Attorney.
~a7d~
, Signature
Contact person:
Shauna Clark
Phone: extension 5002
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount: Unknown at this time
Source: (Acct. No.! General Fund
(Acct. DescriPtion)
Finance:
Council Notes:
75.0262
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, CITY OF SAN BER,QRDINO - REQUEST ~R COUNCIL ACTION
STAFF REPORT
EXEMPTION FOR LOW INCOME HOTEL/MOTEL RESIDENTS
When the Mayor and Common Council removed the transient occupancy
tax exemption, staff was instructed to find a method for granting
exemptions for low income permanent (more than 30 days)
residents.
A review of transient occupancy tax
more than 70% of all hotels in the
includes permanent residents and
permanent occupancy.
A survey conducted by our office revealed that the average room
rental rate is $600.00 per month which indicates that a
significant number of permanent residents are paying more for a
hotel/motel room than the market rate for apartments and appears
to indicate that .many permanent hotel/motel residents are not low
income.
records for 1989 shows that
city have a clientele which
43% have higher than 50%
If the city chooses to exempt low income persons from the 10%
transient occupancy tax, we will be condoning the use of motels
for permanent occupancy which is not permitted under the
Building Code.
To resolve the issue we are recommending that hotel/motels be
allowed to grant exemptions if they will meet Planning and
Building Services requirements for efficiency dwelling units and
if the owner screens low income persons based upon criteria that
will be set forth in the ordinance prepared by the City Attorney.
75.0264