HomeMy WebLinkAbout06/01/1993, C-3 - INCREASE IN TRANSIENT OCCUPANCY TAX RATE III'I^IIIIIII�IIIIII�II II MEETING DATE-
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ATS:ci"J of san Luis oBi spo _
Wacma COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: William C. Statler, Director of Finance
Prepared by: Linda Asprion, Revenue Manager
SUBJECT: INCREASE IN TRANSIENT OCCUPANCY TAX RATE
CAO RECOMMENDATION
Give final passage to Ordinance 1232 (1993 Series) increasing the transient occupancy tax
rate from nine percent (9%) to ten percent (10%) effective October 1, 1993.
DISCUSSION
On April 27, 1993, Council held a public hearing to consider increasing the transient
occupancy tax (TOT) rate from nine percent (9%) to ten percent (10%). Public comment
was heard and Council approved the recommended increase to be effective October 1, 1993.
FISCAL IMPACT j
The TOT revenue goes directly into the City's General Fund and is used for General Fund
purposes. By adopting the proposed increase, the City will receive approximately $260,000
annually in additional TOT revenue. However, this amount will be reduced by
approximately$80,000 in Fiscal Year 1993-94 due to the delay in implementation to October
1, 1993.
I
i
ORDINANCE NO 1232 (1993 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING CHAPTER 3.04, SECTION 3.04.030 OF THE MUNICIPAL CODE
TRANSIENT OCCUPANCY TAX RATE
WHEREAS, applicable state legislation provides the authority for counties and cities
to levy a hotel and motel room tax; and
WHEREAS, the Constitution of the State of California provides additional authority
to charter cities to levy such taxes; and
WHEREAS, the City Council has identified the need for increased financial support
for the usual and current expenses of the City, and to fund City projects and programs on
an ongoing basis by raising the Transient Occupancy Tax from nine percent (9%) to ten
percent (10%);
NOW, THEREFORE, BE.IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Municipal Code Section 3.04.030 is hereby amended to read in full as
follows:
3.04.030 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 upon the transient's
ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the
operator of the hotel, the Tax Administrator may require that such tax shall be paid directly
to the Tax Administrator.
SEC'T'ION 2. This ordinance, inasmuch as it provides for a tax levy for the usual and
current expenses of the. City, shall take effect immediately upon adoption, except that the
additional tax imposed by this ordinance shall become operative and be imposed on October
1, 1993 and shall not apply prior to said date.
SEC'T'ION 3. This ordinance, approved by the City Attorney, together with the ayes
and noes, shall be published once in full, at least three (3) days prior to the final passage
in the Telegram-Tribune, a newspaper published and circulated in said City, and the same
CIF2
0-1232
shall go into effect October 1, 1993.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis
i
Obispo at its meeting held on the 27th day of April , 1993, on motion
of Council Member Roalman . Seconded by Council Member Romero and on
the following roll call vote:
AYES: Council Members Roalman, Romero, and Rappa
NOES: Council Member Settle, and Mayor Pinard
ABSENT:None
Mayor Rptiz.Pinard
ATTEST:
PClerk
Diane ladwell
APPROVED:
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