HomeMy WebLinkAbout11/19/2003 - STAFF REPORTS (27) ORDINANCE NO.
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.
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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Palm Springs Municipal Code are hereby repealed.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 (11.5%) 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) 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.
(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.
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 day of 2003.
ADOPTED this day of 2003.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk Mayor
REVIEWED AND APPROVED AS TO FORM
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)
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