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Home My WebLink About1640 - ORDINANCES - 11/19/2003 ORDINANCE NO. 1640 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REPEALING SECTIONS 3.24.030, 3.24.035, 3.24.036, 3.24.037, AND 3.24.037(a) OF THE PALM SPRINGS MUNICIPAL CODE, AND AMENDING THE PALM SPRINGS MUNICIPAL CODE BY ADDING A NEW SECTION 3.24.030 TO IMPOSE TAX ON HOTEL GUESTS AND ADDING A NEW SECTION 3.24.035 TO IMPOSE TAX ON GROUP MEETING HOTEL GUESTS. - - - - - - - - - - - - - SECTION 1. Sections 3.24.030, 3.24.035, 3.24.036, 3.24.037, and 3.24.037(a) of the Palm Springs Municipal Code are hereby repealed. SECTION 2. Title 3 of the Municipal Code of the City of Palm Springs is hereby amended by adding a new Section 3.24.030, relating to Transient Occupancy Tax, to read in its entirety as follows: "3.24.030 Tax imposed on Hotel Guests — Use of proceeds. (a) For the privilege of occupancy in any hotel, each transient is subject to, and shall pay a tax in the amount ' of eleven and one-half percent '11,59/6, of the rent charged by the operator or otherwise payable by the transient. Insofar as the transient is concerned, said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. (b) For purposes of this section, the rent deemed payable on account of time- share occupancy by a transient shall be the rental value of the unit or room(s)which accommodated such occupancy, which rental value shall be computed by determining the pro rata share of the total purchase price of the time-share right or entitlement (whether or not involving an estate or any ownership in real property), which share is allocable to the period of transient occupancy currently involved, and adding thereto the total applicable operating costs including, but not limited to, the applicable real and personal property taxes, plus the total amount of any and all fees, assessments, charges and expenses (not including the previously referred to taxes) charged by the operator as attributable to the time-share occupancy of the transient by whatever name such fees, assessments, charges or expenses may be denominated, whether "occupying fee," "maintenance or operations charge," "per diem fee," "management fee" or like name or otherwise. In making the computation referred to above of the pro rata share of the total purchase price, in any case wherein the time-share right or entitlement is in perpetuity or for life or otherwise not for a definite or ascertainable term, such pro ration shall be made upon an assumed term of forty years. 1 Ordinance 1640, Page 2 (c) The tax imposed and collected by this section shall be allocated and paid ' into the following funds as provided herein: (i) Seven percent (7%) shall be paid into the Community Promotion Fund and used in accordance with Section 3.24.310. (ii) Four and one-half percent (4.5%) shall be paid into the general fund of the City." SECTION 3. Title 3 of the Municipal Code of the City of Palm Springs is hereby amended by adding a new Section 3.24.035, relating to Transient Occupancy Tax, to read in its entirety as follows: "3.24.035 Tax imposed on Group Meeting Hotel Guests — Use of proceeds. (a) Notwithstanding Section 3.24.030, for the privilege of occupancy in any group meeting hotel as defined in 3.24.020, each transient is subject to, and shall pay a tax in the amount of thirteen and one-half percent (13.5%) of the rent charged by the operator or otherwise payable by the transient. Insofar as the transient is concerned, said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. (b) The additional tax imposed by this section shall be administered and collected in the same manner, and is subject to all of the same definitions, , exemptions, rules and regulations as the tax imposed by Section 3.24.030. (c) The tax imposed and collected by this section shall be allocated and paid into the following funds as provided herein: (i.) Seven percent (7%) shall be paid into the Community Promotion Fund and used in accordance with Section 3.24.310. (ii.) Six and one-half percent (6.5%) shall be paid into the general fund of the City." SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Palm Springs hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional. SECTION 5. EFFECTIVE DATE. If passed by the voters at the November 2003 election, this measure shall take effect January 1, 2004. 1 Ordinance 1640 Page 3 ' SECTION 6. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passing of this Ordinance, and to cause the same or a summary thereof by display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this 19th day of November , 2003. AYES: Members Mills, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: Member Hodges ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk Mayor REVIEWED AND APPROVED AS TO FORM I HEREBY CERTIFY THAT THE FOREGOING Ordinance 1640 was duly adopted by the City Council of the City of Palm Springs, California, in a meeting held on the 19thday of November, 2003, and that same was published in the DESERT SUN, a newspaper of general circulation on November 26, 2003. PATRICIA A. SANDERS City Clerk Ordinance 1640 Page 4 T.O.T. CHART PSMC § EFF. DATE % HOTELS: ALLOCATED TO: 3.24.030 1972 7% All hotels Community Promotion Fund 3.24.035 9/1/84 2% All hotels General Fund 3.24.036 8/1/91 1% All hotels General Fund 3.24.037 7/1/92 .8% Group Meeting General Fund Hotels 3.24.037a 1/1/02 1.7% Group Meeting General Fund 1.5% Hotels General Fund All hotels Group Meeting Hotels = 12.5% (increase to 13.5%) All other hotels = 11.5% (stay the same)