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.
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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:
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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:
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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.
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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.
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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.
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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
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