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HomeMy WebLinkAbout08-City Clerk . 0 _(jjj 0 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 A___-1_ 1...___ ..._ ~ , 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