HomeMy WebLinkAbout12/1/1999 - STAFF REPORTS (9) DATE: December 1, 1999
TO: City Council
FROM: Director ofFinance&Treasurer
SUSPENSION OF ENFORCEMENT OF TIMESHARE OCCUPANCY TAX
ORDINANCE
RECOMM MATION:
It is recommended that the City Council direct staff to suspend the enforcement of the Timeshare
Occupancy Tax(TSOT)Ordinance, effective November 1, 1999.
BACKGROUND:
The City's TSOT Ordinance imposes a$4 per night tax on timeshare occupancies. The ordinance
was adopted in 1984, but was never enforced. As part of the budget considerations for Fiscal
Year 1999-00,Council directed that the ordinance be enforced. A series of letters were sent to
the timeshare projects informing them that the tax would become effective November 1, 1999.
A number of individual and collective complaints were received. The primary concern was that
most timeshare interval owners pay property tax, and should not be subject to taxes not paid by
other property owners.
At least one timeshare management company stated in writing that they would not comply with
TSOT Ordinance, and were prepared to litigate the matter. Several other properties expressed
the same sentiments verbally. Only one timeshare property actually complied with the
requirement of Sling a registration form with the City. It became clear that a costly and
protracted legal battle was likely.
In discussing the potential litigation, Council arrived at the conclusion that enforcing the TSOT
Ordinance was not in the best interests of the City at this time.
The attached Minute Order suspends enforcement and directs staff to notify the timeshare
projects.
Approved:
Dallas J.Flicek Thomas M.Kanarr
Interim City Manager Director of Finance&Treasurer
Attachments: Minute Order
9�
MINUTEORDERNO.
OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA SUSPENDING
ENFORCEMENT OF ORDINANCE NO. 1214,
THE TIMESHARE OCCUPANCY TAX
ORDINANCE,EFFECTIVE NOVEMBER 1, 1999
AND DIRECTING THE TAX ADMINISTRATOR
TO NOTIFY TIMESHARE PROJECTS OF THIS
ACTION.
I hereby certify that this Minute Order suspending enforcement of Ordinance No. 1214,the
T'mieShare Occupancy Tax Ordinance, effective November 1, 1999 and directing the Tax
Administrator to notify timeshare projects of this action was adopted by the City Council of the
City of Palm Springs, Califbmia in a meeting thereof held on the 1•day of December, 1999
Patricia A Sanders
City Clerk