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HomeMy WebLinkAboutO-1674 amending Municipal Code Title 3.04 - Transient Occupancy Tax (TOT)ORDINANCE NO. 1674 (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTIONS 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE TITLE 3.04-TRANSIENT OCCUPANCY TAX WHEREAS, the City of San Luis Obispo adopted its transient occupancy tax in 1955; and WHEREAS, since then the lodging industry has changed significantly through the availability of homestay rentals; and WHEREAS, the City's ordinance governing the lodging tax requires amendment to address some of the unique circumstances surrounding homestays; and WHEREAS, the City of San Luis Obispo amends designated portions of its Municipal Code Title 3.04 -Transient Occupancy Tax. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein as the findings of the Council by this reference. SECTION 2. Section 3.04.020 of the San Luis Obispo Municipal Code, entitled Definitions, is hereby amended to read as follows: 3.04.020 Definitions Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: A. "Effective Date of Tax Administrator's Decision" The date specified in the tax administrator's decision as the effective date. Generally, the effective date will be the date the tax administrator's decision is issued. B. "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, a homestay, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. 0 1674 Ordinance No. 1674 (2020 Series) Page 2 C. "Occupancy" means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. D. "Operator" means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. E. "Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. F. "Rent" means the consideration charged, whether or not received, for the occupancy of a space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. G. "Tax administrator" means the city tax collector or city finance director, or his or her designee, for the City of San Luis Obispo. H. "Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (Prior code§ 2551) SECTION 3. Section 3.04.080 of the San Luis Obispo Municipal Code, entitled Delinquencies and penalties, is hereby amended to read as follows: 0 1674 Ordinance No. 1674 (2020 Series) Page 3 3.04.080 Delinquencies and penalties A. Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty the amount of which will be set by the tax administrator or-by resolution of the city council. SECTION 4. Section 3.04.090 of the San Luis Obispo Municipal Code, entitled Failure to collect and report tax-Determination of tax by tax administrator, is hereby amended to read as follows: 3.04.090 Failure to collect and report tax -Determination of tax by tax administrator If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the tax administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the tax administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by certified U.S. mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. The operator's application for a hearing must be delivered to the City of San Luis Obispo's Finance Department or postmarked within ten days after the serving or mailing of such notice. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.04.100. (Prior code § 2558) SECTION 5. Section 3.04.100 of the San Luis Obispo Municipal Code, entitled Appeal, is hereby amended to read as follows: 0 1674 Ordinance No. 1674 (2020 Series) Page4 3.04.100 Appeal I . Appeal. Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal. To appeal the tax administrator's determination, the appellant shall comply with the appeals process as set forth in Chapter 1.20. 2. Contents of Appeal. The written appeal shall state the following information: a. A caption setting forth the names, addresses, phone numbers and other contact information of the appellant(s) and the operator, if the appellant and operator are not the same, participating in the appeal. b. A brief statement setting forth the interest of the appellant(s), either as the recipient of the notice of tax administrator's determination, or the legal interest of the appellant(s) in the hotel or property that is the subject of the notice of tax administrator's determination. c. A brief statement describing: 1. The specific notice of tax administrator's determination being appealed, by the day of the notice of tax administrator's determination, address of the hotel or property; and 11. Whether all or only specified tax, interest, penalties are being appealed; and 111. Why the tax administrator's determination should be revoked, modified or otherwise set aside. d. A statement that all of the matters alleged in the appeal are true, followed by the signature(s) of each appellant(s), and one official mailing address for the appellant(s) to receive further notices from City relating to the appeal. 3. Hearing Procedures for Appeal. a. Records for Appeal. The tax administrator, or his or her designee, shall ensure that the tax administrator's determination and any supporting documentation are delivered to the applicable city clerk in sufficient time prior to the appeal hearing. b. Failure to Appear. The failure of the appellant(s) to appear at the hearing, unless the hearing was continued per subsection g of this section, or unless the appellant(s) has submitted written evidence per subsection f of this section, shall constitute an abandonment of the appeal. 0 1674 Ordinance No. 1674 (2020 Series) Page 5 4. Findings of the Council. The findings of the council shall by final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.04.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. SECTION 6. Section 3.04.130 of the San Luis Obispo Municipal Code, entitled Actions to Collect, is hereby amended to read as follows: 3.04.130 Actions to Collect 1. Actions. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. (Prior code§ 2562). 2. Liens. To recover any delinquent tax as a lien on real property, the following conditions must be met: ~ The tax administrator must submit to and receive approval from the city council for a resolution certifying the amounts of the liens sought to be collected from the operator; and b. The total amount of the delinquent tax against the operator must be delinquent for sixty days or more. 3. Lien Collections. The tax administrator is authorized to take any steps necessary to enforce collection of the lien, including but not limited to request the county recorder to record a notice of any lien certified by resolution of the city council. 4. Notice of Lien Collection Procedures. All notice of the amount so assessed by the tax administrator or city council shall contain a notice that unpaid taxes, interest and penalties are subject to the lien collection procedures of this chapter. In addition, the tax administrator shall by first class mail send notice to each operator and property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien shall be imposed on the date the tax administrator's determination or city council's decision is issued to the responsible person and shall become effective upon the recording of a notice of lien by the county recorder. 0 1674 Ordinance No. 1674 (2020 Series) Page 6 5. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien for unpaid taxes, interest and penalties at the public hearing when the city council considers the resolution to certify the liens. Such contests shall be limited to the issue of the amount or validity of the lien and may not consider whether the delinquency occurred. Pursuit of such a contest by a person is necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien. SECTION 7. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City's rules and regulations. It is the City's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 8. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 153 78 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.. SECTION 9. Ordinance Number 1234 (1993 Series) is hereby amended and superseded to the extent inconsistent herewith. 0 1674 Ordinance No. 1674 (2020 Series) Page 7 SECTION 10. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 14th day of January 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 4th day of February 2020, on the following vote: AYES: NOES: ABSENT: ATTEST: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and Mayor Harmon None None ~. d Teresa Purringto~ City Clerk IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo California, this \ L'"\4\t day of F~ , 2020. Teresa Purrington City Clerk 0 1674