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CI~'rf OF SAN BERNARDI~ - REQ~EST FOR COUNCIL AiTION
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From: Shauna Clark, City Clerk
Subject: Exemption for Low Income Hotel/Motel
Residents
Dept: City Clerk's Office
Date: June I, 1990
Synopsis of Previous Council action:
Synoosis
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%.
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.
~/L~d~6if/
'" Signature
Contact person: Shauna Clark
Phone: extension 5002
Supporting data attached:
Ward:
FUNDING REOUIREMENTS:
Amount: Unknown at this time
Source: (Acct. No.! General Fund
(Acct. Description)
Finance:
Council Notes:
75-0262
Agenda Item No S.3
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. 'CI~~ OF SAN BERNARDIN~ - REQ~ST FOR COUNCIL A~TION
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 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