HomeMy WebLinkAbout2292 - Measure D ORDINANCE NO. 2292
MEASURE "D"
AN ORDINANCE OF THE PEOPLE OF THE CITY OF ARCADIA
AMENDING THE CITY'S TRANSIENT OCCUPANCY TAX CODE BY
EXTENDING THE PERIOD OF TRANSIENCY SUBJECT TO THE TAX
FROM 30 TO 90 DAYS, ADDRESSING ONLINE TRAVEL COMPANY
AND OTHER THIRD PARTY BOOKINGS, AND MAKING VARIOUS
CONFORMING CHANGES.
THE PEOPLE OF THE CITY OF ARCADIA, CALIFORNIA DO HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Divisions 1 through 3 of Part 6 of Chapter 6 of Article II of the
Arcadia Municipal Code are hereby amended to read as follows:
"PART 6 —TRANSIENT OCCUPANCY TAX
DIVISION 1. — DEFINITIONS
2661. - DEFINITIONS.
2661.1. - TITLE.
2661.2. - HOTEL.
2661.3. - OCCUPANCY.
2661.4. - TRANSIENT.
2661.5. - RENT.
2661.6. - OPERATOR.
2661.7. - TAX ADMINISTRATOR.
2661.8. — ONLINE TRAVEL COMPANY.
2661.9. - PERSON.
2661.10 — BLOCK RESERVATION
2661. - DEFINITIONS.
For the purpose of this Part certain words and terms are hereafter defined and
shall have the meaning thus ascribed.
2661.1. - TITLE.
This Part shall be known as the Transient Occupancy Tax Ordinance of the City
of Arcadia.
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2661.2. - HOTEL.
"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, dormitory, public or
private club, mobile home or house trailer at a fixed location, or other similar structure or
portion thereof.
2661.3. - OCCUPANCY.
"Occupancy" means the use or possession, or the right to the use or possession
of any room or rooms or portion thereof (whether or not the person entitled to the use or
possession actually uses or possesses such room or rooms or portion thereof), in any
hotel for dwelling, lodging or sleeping purposes. The use or possession or right to use
or possess any room or any suite of connecting rooms as office space, banquet or
private dining rooms, or exhibits, sample or display space shall not be considered
"occupancy" within the meaning of this definition unless the person exercising
occupancy uses or possesses, or has the right to use or possess all or any portion of
such room or suite of rooms for dwelling, lodging or sleeping purposes.
2661.4. - TRANSIENT.
"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 ninety (90) consecutive calendar days or less, counting portions of
calendar days as full days. The following rules shall apply to this definition:
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A. Any such person so occupying or entitled to occupy a room in a hotel shall
be deemed to be a transient until the period of ninety (90) calendar days has expired.
In the event a person exercises or is entitled to occupancy for a continuous and
uninterrupted period of longer than ninety (90) calendar days, he or she shall be
deemed a transient and subject to the tax for only the first ninety (90) calendar days of
occupancy and shall cease being a transient and the tax shall not apply on the ninety-
first (91st) day of occupancy and following. However, any break or interruption in
occupancy shall start a new ninety (90) day period subject to the tax.
B. In determining whether a person is a transient, uninterrupted periods of
time extending both prior and subsequent to the effective date of this Part may be
considered.
C. Any person who exercises or is entitled to occupancy for a period of ninety
(90) consecutive calendar days or less shall be deemed to be a transient for that period,
regardless of whether the reservation and/or payment for occupancy is made directly by
the person exercising or entitled to occupancy or by another person. The intent is to tax
the person exercising occupancy or having the entitlement to occupancy of a hotel
room.
D. In the case of a block reservation, a person's employee or agent shall be
deemed a transient if that employee or agent exercises or is entitled to occupancy of a
room for a period of ninety (90) consecutive calendar days or less, regardless of the
duration of any block reservation agreement. By way of example, if a corporation enters
into a one-year block reservation agreement with an operator and one of the
corporation's employees occupies a room for ninety (90) calendar days, the employee
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shall be deemed a transient whose occupancy is subject to the tax, notwithstanding the
fact that the block reservation agreement has a duration longer than ninety (90)
calendar days.
2661.5. - RENT.
"Rent" means the total consideration charged to the transient, (including but not
limited to, room rates, service charges, parking fees, purchase price, advance
registration, block or group reservation charges, assessments, retail markup,
commission, processing fees, cancellation charges, attrition fees, or online booking
fees), whether or not received, for occupancy 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. Nothing in this definition shall be construed to mean that rent is charged
directly or indirectly for occupancy in a hotel when a room is provided to the transient as
a compliment for the operator and where no consideration is charged to or received
from any other person. Further, bona fide charges for food and beverages which are
subject to tax under the California Sales and Use Tax Law (Revenue and Taxation
Code Sections 6001 et. seq.) shall not be deemed rent subject to the tax imposed by
this Part.
2661.6. - OPERATOR.
"Operator" means a person who is proprietor of the hotel or any other person
who has the right to rent rooms within the hotel, whether in the capacity of owner,
lessee, sublessee, mortgagee in possession, licensee, seller, reseller, or any other
capacity. Where the operator performs his functions through a managing agent or
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booking agent of any type or character, other than an employee (including, but not
limited to, an online travel company), the managing agent or booking agent shall also be
deemed an operator for the purposes of this Part and shall have the same duties and
liabilities as his principal. Full compliance with the provisions of this Part by either the
principal or the managing agent or booking agent shall, however, be considered to be
compliance by both.
2661.7. - TAX ADMINISTRATOR.
"Tax Administrator" means the City Director of Finance, or his or her designee.
2661.8. — ONLINE TRAVEL COMPANY.
"Online Travel Company" shall mean any person, whether operating for profit or
not for profit, which enables transients to purchase occupancy in a hotel via the Internet,
or by similar electronic means.
2661.9. - PERSON.
"Person" shall mean 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.
2661.10. — BLOCK RESERVATION.
"Block Reservation" shall means an arrangement whereby a person reserves,
whether on an exclusive or non-exclusive basis, a room or block/group of rooms for a
defined period of time under a written or oral agreement with an operator, intending for
such room(s) to be occupied by that person's employees or agents on an intermittent,
periodic or "as needed" basis during that defined period of time.
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DIVISION 2. — IMPOSITION AND RATE
2662. - TAX IMPOSED.
2662. - TAX 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. 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. 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 occupancy. 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. The proceeds of this tax are allocated to the City's
general fund for governmental expenditures.
DIVISION 3. - EXEMPTIONS
2663. - EXEMPTIONS
2663.1. - SAME. EXEMPTED BY LAW.
2663.2. - SAME. OFFICIALS.
2663.3. - SAME. FOREIGN AGENCIES.
2663.4. - SAME. PROCEDURE.
2663. - EXEMPTIONS.
The tax enacted by this Part shall not be imposed upon any person or agency
defined in the following subsections.
2663.1. - SAME. EXEMPTED BY LAW.
Any person as to whom, or any occupancy as to which, it is beyond the power of
the City to impose the tax herein provided.
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2663.2. - SAME. OFFICIALS.
Any federal or State of California officer or employee when occupying a room
while on official government business. For purposes of this section, students, non-
employee supporters and volunteers of California public universities and colleges shall
not be deemed to be officers or employees of the State of California.
2663.3. - SAME. FOREIGN AGENCIES.
Any officer or employee of a foreign government who is exempt by reason of
express provision of federal law or international treaty.
2663.4. - SAME. PROCEDURE.
No exemption shall be granted except upon a claim therefor made at the time
rent is collected and under penalty of perjury upon a form prescribed by the Tax
Administrator. Any federal or State of California officer or employee when on official
government business claiming such an exemption shall provide to the operator as
conclusive evidence that his or her occupancy is for the official business of his or her
employer:
(1) Travel orders from his or her government employer; or a government
warrant issued by his or her employer to pay for the occupancy; or a
government credit card issued by his or her employer to pay for the
occupancy; and
(2) proof of his or her governmental employment as an employee or officer as
described in paragraph (1) of this subsection (b), and proof, consistent
with these provisions, that his or her occupancy is for the official business
of his or her governmental employer.
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It shall be the duty of an operator to keep and maintain for a period of three (3)
years written documentation in support of each exemption granted under this Division
3."
SECTION 2. Effective Date. Pursuant to California Constitution Article XIIIC
§(2)(b) and California Elections Code §9217, if a majority of the qualified voters voting in
the election on Measure "D" vote in favor of the adoption of such measure, this
ordinance shall be deemed valid and binding and shall be considered as adopted upon
the date that the vote is declared by the City Council, and shall go into effect ten (10)
days after that date.
SECTION 3. Severability. If any section, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining provisions of this ordinance. The People of the City of Arcadia hereby
declare that they would have adopted this ordinance and each section, sentence,
clause or phrase thereof, irrespective of the fact that any one or more section,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 4. Certification/Summary. Following the City Clerk's certification that
the citizens of Arcadia have approved this Ordinance, the Mayor shall sign this
Ordinance and the City Clerk shall cause the same to be entered in the book of original
ordinances of said City; and shall cause the same, or a summary thereof, to be
published as required by law.
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Adopted by the People of the City of Arcadia on the 10th day of April, 2012.
411, oro `? a ityo Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
t;
Step en P. Deitsch
City Attorney
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