HomeMy WebLinkAboutAgenda Report - July 3, 2002 I-03 ER0
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COUNCIL COMMUNICATION
AGENDA TITLE: Consider a Resolution of the City Council of the City of Lodi,
California Ordering that a Measure be Submitted to the Voters at
the November 5, 2002 General Municipal Election Relating to
Increasing the Hotel -Motel Occupancy Tax Collection Rate from
9% to 10%.
MEETING DATE: July 3, 2002
PREPARED BY: Randall A. Hays, City Attorney
RECOMMENDATION: That the City Council adopt the Resolution Submitting to the
Voters the Increase in the Hotel -Motel Occupancy Tax Collection
Rate from 9% to 10%.
BACKGROUND: The State Legislature placed §51030 in the California Government Code in
1963. This represented the first statutory expression and authorization of
the occupancy tax. The current authority is found since 1971 in §7280 of
the California Revenue and Taxation Code.
The first expression of an occupancy tax in Lodi occurred September 16, 1964. Until 1991 the tax collection rate was
6%. In 1991 that collection rate was moved up to 9%. Staff is recommending that the collection rate be moved up to
10%. This recommendation requires that the proposed 10% collection rate be submitted to the voters due to the
passage of Proposition 62 in 1986. The terms of that proposition are found in §§53720 through 53730 of the
California Government Code.
§53723 requires that any general tax be submitted to the electorate and approved by a majority (50%+1) vote of the
voters voting in an election on the issue. This tax has been and is recommended to continue to be a general tax
placed in the City's general fun and available for general governmental purposes.
§53724 requires that this ballot proposal only be placed on the ballot if 213 of all of the governing body's members
vote to do so. In the case of a 5 member body such as the City Council, this requirement really demands that at least
4 members of the City Council occur.
The current 9% collection rate generates approximately $429,799.00 in revenues. A 10% rate would generate
approximately $47,755.45 in additional revenue.
Included with the memo is a chart which shows what the occupancy tax rates are for jurisdictions around Lodi. Based
upon a review of those rates, staff believes that the proposed 10% rate for Lodi is appropriate.
Funding: Not applicable.
Respectfully submitted,
APPROVED: 7
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Davis
10%
Galt
10%
Lodi
9'%
Manteca
9%
Modesto
9%
Montero
100
Napa
12%
Roseville
6%
San Luis Obispo
10%
San Joaquin Co.
8%
Stockton
8%
Trac
10%
Turlock
9%
Woodland
10%
RESOLUTION NO. 2002- ORAcr
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI,
CALIFORNIA, ORDERING THAT A MEASURE BE SUBMITTED TO THE
VOTERS AT THE GENERAL MUNICIPAL ELECTION TO BE
CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION ON
NOVEMBER 5, 2002 RELATING TO INCREASING THE HOTEL-MOTEL
OCCUPANCY TAX COLLECTION RATE FROM 9% TO 10%
WHEREAS, the City Council desires to submit to the voters of the City of Lodi at the
General Municipal Election to be consolidated with the Statewide General Election on
November 5, 2002 a question relating to increasing the Hotel -Motel Occupancy Tax Collection
Rate from 9% to 10%.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LODI, CALIFORNIA,
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the General Municipal Election the following question:
Shall Ordinance No. 1714 Increasing the Hotel -Motel Yes
Occupancy Tax Collection Rate From 9% to 10% be
Enacted. No
SECTION 2: That the proposed complete text of the measure submitted to the voters
is as follows:
ORDINANCE NO. 1714
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI
AMENDING TITLE OF CHAPTER 3.12 "TRANSIENT OCCUPANCY TAX",
RENAMING IT "HOTEL -MOTEL OCCUPANCY TAX, REPEALING AND
RE-ENACTING LODI MUNICIPAL CODE SECTION 3.12.030, THEREBY
INCREASING THE CITY OF LODI HOTEL -MOTEL OCCUPANCY TAX
FROM 9% TO 10%, AND REPEALING SECTION 3.12.035 IN ITS
ENTIRETY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS
FOLLOWS:
SECTION 1. Chapter 3.12 "Transient Occupancy Tax" of the Lodi
Municipal Code is hereby amended by repealing its current title and re -
titling Chapter 3.12 — Hotel -Motel Occupancy Tax.
SECTION 2. Section 3.12.030 of the Lodi Municipal Code is hereby
repealed and re-enacted as follows:
3.12.30.1 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 of the rent charged by the
operator. Such 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 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.
SgCTI,Qbl 3. Section 3.12.035 of the Lodi Municipal Code is hereby
repealed in its entirety.
SECTION 4. All ordinances and parts of ordinances in conflict
herewith are repealed insofar as such conflict may exist.
SECTION 5. No Mandatory Duty of Care. This ordinance is not
intended to and shall not be construed or given effect in a manner which
imposes upon the City, or any officer or employee thereof, a mandatory
duty of care towards persons or property within the City or outside of the
City so as to provide a basis of civil liability for damages, except as
otherwise imposed by law.
SECTION 6. Severability. If any provision of this ordinance or the
application thereof to any person or circumstances is held invalid, such
invalidity shall not affect other provisions or applications of the ordinance
which can be given effect without the invalid provision or application. To
this end, the provisions of this ordinance are severable. The City Council
hereby declares that it would have adopted this ordinance irrespective of
the invalidity of any particular portion thereof.
SECTION 7. This ordinance shall be published one time in the "Lodi
News Sentinel', a daily newspaper of general circulation printed and
published in the City of Lodi and shall take effect thirty days from and after
its passage and approval.
SECTION 3. That the City Clerk of the City of Lodi is authorized, instructed, and
directed to procure and furnish any and all official ballots, notices, printed matter, and all
supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully
conduct said election.
SECTION 4. That the City Clerk is hereby directed to file a certified copy of this
resolution with the Board of Supervisors and the county election department of the County of
San Joaquin.
SECTION 5. That the City Attorney prepare a ballot summary for inclusion in election
materials not to exceed 500 words.
SECTION 6. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
Dated: July 3, 2002
I hereby certify that Resolution No. 2002-_ was passed and adopted by the City
Council of the City of Lodi in an adjourned regular meeting held July 3, 2002 by the following
vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
Susan J. Blackston
City Clerk
2002-