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HomeMy WebLinkAboutS03-City Clerk dlTY OF SAN BER~RDINO - ~ REQUEST FOR COUNCIL ACTION From: Shauna Clark, City Clerk Subject: Exemption for Low Income Hotel/Motel Residents Dept: City Clerk's Office Date: June 1, 1990 Synopsis of Previous Council action: Svnoosis 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 ~~ ordinance which raises transient occupancy tax to 10%1. Recommended motion: That the City Attorney be instructed to prepare amendments to the Municipal Code that would allow the owner of a hotel/motel that is cleared for R-1 occupancy 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. ~/J')'L?/~U/ ~ 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: C__'l , CITY OF SAN BER~RDINO - REQUEST trbR 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. records for 1989 shows that city have a clientele which 43% have higher than 50% 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. 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 type R-l occupancy 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 . CITY OF SAN BER~DINO~REQUEST ~ COUNCIL ACTION \ From: James F. Perman _.~....\;l off. S~. ~ of tre City of San Bernardi.m ~~l{lE9.Oion 3.52.030 of tre San \991l rJ~dioo !olmicipal Cede relatin,J to tre aIOOUll.t of the Unifonn Transient O:x:upan:::y Tax. Dept: City Attorney Date: 5-30-90 Synopsis of Previous Council action: None. Recommended motion: :: 'I ~ Waive further reading of the Ordinance and layover for final adoption. /~,d Contact person: Dermis A. R;or]n.ol/RnhPrt-.1 ~lp Phone: 1R4-5'355/'3S4-50al Supporting data attached: Ward: FUNDING REOUIREMENTS: Amount: Source: (Acct. No.) (Acct. DescriPtion) Finance: Council Notes: 75-0262 Agenda Item No 5-::.3 CITY OF SAN 8ER~DINO - REQUEST ;.JR COUNCIL ACTION STAFF REPORT ...7'- The San Bernardino Convention and Visitors Bureau (CVB) was established in 1988 to encourage increased tourism in the San Bernardino area and San Bernardino in particular. Its budget has been augmented each year by the infusion of money both from the City's General Fund and from the Redevelopment Agency. The City currently imposes an 8% Transient Occupancy Tax (TO) on transients staying in hotels and motels in the City, which tax is paid into the City's General Fund for general city needs. It is proposed to increase the TOT from 8% to 10% with the intent that the increase will go to the CVB to help market the City for conventions and other tourism. The attached ordinance would provide for this increase and a subsequent resolution would express the legislative intent on the use of the funds, but would clearly allow future councils to reexamine that allocation in view of future circumstances and needs. ; The Ways and Means Committee directed that this item be placed on the June 4 Supplemental Agenda. City Administrator's Note: In order to avoid any misunderstandings regarding the utilization of funds allocated from the Transient Occupancy Tax, it is recommended that an Agreement be prepared, incorporating the standard requirements for proposed program, budget, progress reports, year-end summary, etc. 15-0264 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A 25 26 27 28 ,......... '-. / 1 ORDINANCE NO. 2 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 3.52.030 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO THE 3 AMOUNT OF THE UNIFORM TRANSIENT OCCUPANCY TAX. 4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 5 SECTION 1. Section 3.52.030 of the San Bernardino 6 Municipal Code is hereby amended to read as follows: "3.52.030 Tax Imposed For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of Ten percent (10%) of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due when the Transient ceases to occupy space in the hotel. If for any reason the tax is not paid to the operator of the hotel, such tax shall be paid directly to the City Clerk." / / / / / / / / / / / / / / / / / / / / / DAB/ses/Occu-tax.ord 1 May 18, 1990 ( \. / ~. '>..,.# 1 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 3.52.030 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO THE 2 AMOUNT OF THE UNIFORM TRANSIENT OCCUPANCY TAX. 3 I HEREBY CERTIFY that the foregoing ordinance was duly 4 adopted by the Mayor and Common Council of the City of San 5 Bernardino at a meeting thereof, held on the 6 day of , 1990, by the following vote, to wit: 7 Council Members: AYES NAYS ABSTAIN 8 ESTRADA 9 REILLY 10 FLORES 11 MAUDSLEY 12 MINOR 13 POPE-LUDLAM 14 MILLER 15 16 17 18 19 20 21 22 23 24 25 26 27 28 City Clerk The foregoing ordinance is hereby approved this day of , 1990. W. R. Holcomb, Mayor City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: L 1-~~ () DABjsesjOccu-tax.ord 2 May 18, 1990