HomeMy WebLinkAboutRESO 9434Resolution No 9434
Resolution of the Council of the City of Palo Alto Calling a Special Election for
November 4, 2014 for Submittal to the Qualified Electors of the City a Measure
Related To The City's Transient Occupancy Tax
RECITALS
A. Pursuant to Section 2.33.020 of title 2 of the Palo Alto Municipal Code, the City
currently levies a Transient Occupancy Tax.
B. The City Council desires to amend the Palo Alto Municipal Code to increase the
transient occupancy tax (commonly called the "hotel tax") which is currently charged on
persons who occupy hotel or motel rooms in the City for 30 days or less, from the current 12%
to 14% and to make other revisions to the method of calculating the tax in order to help
maintain basic City services.
C. The City depends on the hotel tax to fund basic City services.
D. A proposed ordinance attached hereto and incorporated herein by reference as
Attachment "A" (the "Ordinance") would implement these proposed revisions to the tax.
E. By its Resolution No. 9421 the City Council called a general municipal election for
November 4, 2014 ("Election").
F. Pursuant to Government Code Section 53724 and Election Code Section 9222,
the City Council desires to submit the Ordinance to the voters of the City.
The City Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Findings. The City Council finds and determines that each of the findings
set forth above are true and correct.
SECTION 2. General Tax Election. The City Council proposes to impose the general
tax set forth in the Ordinance and to present this proposal to the voters on November 4,
2014.
SECTION 3. Measure. Pursuant to Elections Code Section 9222, the City Council
hereby submits the Ordinance to the voters at the Election and orders the following question to
be submitted to the voters at the Election:
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To provide funding that cannot be taken away by the State YES for general fund infrastructure and City services such as
earthquake safe fire stations; pedestrian and bike
improvements including safe routes to school, streets,
sidewalks, paths, and bridges; and maintaining parks and NO recreation facilities, shall the City increase the hotel/motel
tax by two percent and update language to confirm equal
treatment oftraditional and online bookings?
This question requires the approval of a majority of those casting votes.
SECTION 4. Adoption of Measure. The measure to be submitted to the voters is
attached to this Resolution as Exhibit A and incorporated herein by this reference.
SECTION 5. Notice of Election. Notice of the time and place of holding the election is
hereby given, and the City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in time, form and manner as required by law.
SECTION 6. Impartial Analysis. Pursuant to California Elections Code Section 9280,
the City Council hereby directs the City Clerk to transmit a copy of the measure to the City
Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed
500 words in length, showing the effect of the measure on the existing law and the operation of
the measure, and transmit such impartial analysis to the City Clerk on or before August 19,
2014.
SECTION 7. Ballot Arguments. Pursuant to Elections Code Section 9286 et. seq.,
August 12, 2014 at 5:30 p.m. shall be the deadline for submission of arguments in favor of, and
arguments against, any local measures on the ballot. If more than one argument for and/or
against is received, the priorities established by Elections Code Section 9287 shall control.
SECTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall
control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments
shall be August 19, 2014 at 5:30p.m.
SECTION 9. Consolidation Request. The Council of the City of Palo Alto requests the
governing body of any other political subdivision, or any officers otherwise authorized by law,
to partially or completely consolidate such elections and the City Council consents to such
consolidation. The Council requests the Board of Supervisors of Santa Clara County to include
on the ballots and sample ballots, all qualified measures submitted by the City Council to be
ratified by the qualified electors of the City of Palo Alto. The Council acknowledges that the
election will be held and conducted according to procedures in the Elections Code, including
Section 10418.
SECTION 10. Request for County Services. Pursuant to Section 10002 of the California
Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of
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Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto
relating to the conduct of Palo Alto's General Municipal and Special Elections which are called
to be held on Tuesday, November 4, 2014. The services shall be of the type normally performed
by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections
including, but not limited to, checking registrations, mailing ballots, hiring election officers and
arranging for polling places, receiving absentee voter ballot applications, mailing and receiving
absent voter ballots and opening and counting same, providing and distributing election
supplies, and furnishing voting machines.
SECTION 11. Transmittal of Resolution. The City Clerk is hereby directed to submit
forthwith a certified copy of this resolution to the Santa Clara County Board of Supervisors and
to the Registrar of Voters.
INTRODUCED AND PASSED: June 16, 2014
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SHEPHERD
NOES:
ABSENT: SCHMID
ABSENTIONS:
ATIEST: APPROVED:
·L~~ City Clerk
APPROVED AS TO FORM:
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Exhibit A
Ordinance No.
Ordinance of the Council of the City of Palo Alto Amending Chapter 2.33 of Title
2 of the Palo Alto Municipal Code Relating to the Transient Occupancy Tax
The People of the City of Palo Alto do ordain as follows:
SECTION 1. Chapter 2.33 of the Palo Alto Municipal Code is hereby amended by
amending Chapter 2.33 as follows:
Chapter 2.33
TRANSIENT OCCUPANCY TAX
2.33.010 Definitions.
2.33.020 Tax imposed.
2.33.030 Exemptions.
2.33.040 Operator's duties.
2.33.050 Registration.
2.33.060 Reporting and remitting.
2.33.070 Penalties.
2.33.080 Failure to collect and report tax; determination of tax by supervisor of revenue
collections.
2.33.090 Appeal.
2.33.100 Records.
2.33.110 Refunds.
2.33.120 Actions to collect.
2.33.130 Violations; misdemeanor.
2.33.140 Third party rental transactions.
2.33.010 Definitions.
Except where the context otherwise requires, the definitions given in this section govern the
construction of this chapter:
(a) "Person" means 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.
(b) "Hotel" means any structure, or any portion of any structure, in the City of Palo Alto
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, morning house, apartment, house, dormitory, public or private
club, mobilehome or house trailer at a fixed location, or other similar structure or portion
thereof, even if such structure is also used for other purposes, including residential purposes.
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(c) "Occupancy" means the use or possession, or the right to the use or possession, of any
room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes.
(d) "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 thirty
consecutive days or less, counting portions of calendar days as full days. Any such person so
occupying space in a hotel shall be deemed to be a transient until the period of thirty days has
expired unless there is an agreement in writing between the operator and the occupant
providing for a longer period of occupancy.
(e) "Rent" means the total consideration chargeel paid by a transient, inch:leling, without
limitation, transaction service fees anel any ~:~nref~:~neleel aelvance reservation or other rental
eleposit, whether or not receiveel, for the occupancy of space in a hoteiL whether or not
received by the~ operator, indu~ing, without limitation, transaction service fees and any
unrefunded advance reservation or other rental deposit. For purposes ofthis definition, rent
shall be valued in money, whether it is te-9e 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.
(f) "Operator" means the person who is the proprietor of the hotel, whether in the capacity
of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where
the operator performs his or her functions through a managing agent of any type or character
{other than an employee1 the managing agent shall also be deemed an operator for the
purposes of this chapter and shall have the same duties and liabilities as his or her principal.
Compliance with the provisions of this chapter by either the principal or the managing agent
shall, however, be considered to be compliance by both.
(g) "Rental agent" means any person other than an operator who collects rent from a transient
for the transient's occupancy of a hotel.
(Ord. 4032 § 1, 1991: Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.020 Tax imposed.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in
the amount of twelve fourteen percent of the rent chargeelloly the operator paid by the
transient. 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 or to a rental agent pursuant to section
2.33.140. 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 made with
each installment. Any unpaid tax shall be due upon the transient's ceasing occupancy in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the supervisor of
revenue collections may require that such tax shall be paid directly to the supervisor of revenue
collections.
(Ord. 4983 § 1, 2007: Ord. 3704 § 1 (part), 1986: Ord. 3425 § 1, 1983: Ord. 2928 § 1, 1976: Ord.
2567 § 1 (part), 1970)
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2.33.030 Exemptions.
No tax shall be imposed upon:
(a) 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;
(b) Any officer or employee of a foreign government who is exempt by reason of express
provision of federal law or international treaty;
(c) Any federal or state of California officer or employee on official business who shall pay
rent by warrant or check drawn on the treasury of the United States or the state of California or
provides written evidence of such official business on a form approved in advance by the
supervisor of revenue collections. Copies of the documentation for each exemption claimed
must b~~ull111Jtted to the supervisor of revenue collections with each return made pursuant to
Section 2.33.060.
No exemption shall be granted under this section except upon a claim therefor made at the
time rent is collected and under penalty of perjury upon a form prescribed by the supervisor of
revenue collections. Additionally, a copy of such warrant or check and a copy of such claim form
shall be submitted with each return made pursuant to Section 2.33.060.
(Ord. 3704 § 1 (partL 1986: Ord. 2567 § 1 (partL 1970)
2.33.040 Operator•s duties.
Each operator shall collect the tax imposed by this ordinance to the same extent and at the
same time as the rent is collected from every transient. The amount of tax shall be separately
stated from the amount of the rent charged, and each transient shall receive a receipt for
payment from the operator. No operator of a hotel shall advertise or state in any manner,
whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by
the operator, or that it will not be added to the rent, or that, if added, any part will be refunded
except in the manner hereinafter provided. (Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part),
1970)
2.33.050 Registration.
(a) Within ten days after commencing business, each new or unregistered operator of any
hotel renting occupancy to transients shall present a valid certificate of occupancy issued by the
building official pursuant to Title 16 and apply for registration of said hotel with the supervisor
of revenue collections who will issue a 11Transient Occupancy Registration Certificate .. to be at
all times posted in a conspicuous place on the premises by such registrant or any operator
previously registered. The application shall require such information as the supervisor of
revenue collections deems necessary or convenient to the collection of the tax imposed by this
chapter. The supervisor of revenue collections may require updating of application information
from time to time as he or she deems necessary or advisable. Registration under this section
shall lapse with the certificate of occupancy upon which it was issued. Said certificate shalt
among other things, state the following:
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(1) The name of the operator;
(2) The address of the hotel;
(3) The date upon which the certificate was issued;
(4) "This Transient Occupancy Registration Certificate signifies that the person named on the
face hereof has fulfilled the requirements of Chapter 2.33 of the Palo Alto Municipal Code
'Transient Occupancy Tax' by registering with the supervisor of revenue collections for the
purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the
supervisor of revenue collections. This certificate does not authorize any person to conduct any
unlawful business or to conduct any lawful business in an unlawful manner, or to operate a
hotel without strictly complying with all local applicable laws, including but not limited to those
requiring a permit from any board, commission, department or office ofthis city. This
certificate does-not constitute a permit and is not transferable to a different operator."
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.060 Reporting and remitting.
Each operator shall, on or before the last day of the month following the close of the previous
calendar month, or at the close of any shorter reporting period which may be established by
the supervisor of revenue collections, make a return to the supervisor of revenue collections on
forms provided by him or her of the total rents charged to transients and the total rents paid by
transients receive a and the amount of tax collected for transient occupancies. If no tax was due
or collected during the previous reporting period, the operator shall file a return so stating
under penalty of perjury. At the time the return is filed, the full amount ofthe tax collected
shall be remitted to the supervisor of revenue collections. The supervisor of revenue collections
may establish shorter reporting periods for any certificate holder if he or she deems it
necessary in order to ensure collection of the tax, and he or she may require further
information in the return. Returns and payments are due immediately upon cessation of
business for any reason. All taxes collected by operators pursuant to this chapter shall be held
.in trust for the account of the city until payment thereof is made to the supervisor of revenue
collections.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.070 Penalties.
(a) Original Delinquency. Any operator who fails to remit any tax imposed by this chapter
within the time required shall pay a penalty of ten percent of the amount of the tax which
penalty amount shall be added to the amount of the tax, for purposes of calculating additional
penalties.
(b) Continued Delinquency. Any operator who fails to remit any delinquent remittance on or
before a period of thirty days followjng the date on which the remittance first became
delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax
including the ten percent penalty first imposed.
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(c) Fraud or Misrepresentation. If the director of finance, in his or her judgment. determines
that the nonpayment of any remittance due under this chapter is due to intentional conduct,
misrepresentation or fraud, a penalty of twenty-five percent of the amount of the tax shall be
added thereto in addition to the penalties stated in subsections (a) and (b) of this section.
(d) Additional Penalty. In addition to the penalties imposed under subsections (a) and {b) of
this section, any operator who fails to remit any tax imposed by this chapter shall pay a penalty
of one percent per month or fraction thereof, whichever is less, on the amount of the tax from
the date on which the remittance first became delinquent until paid.
(e) Penalties Merged with Tax. Every penalty imposed and such additional penalties as
accrue under the provisions of this section shall become a part of the tax herein required to be
paid.
{Ord. 3704 § r(pa-rt); 1986: Ord: 2567 § 1 (part), 1970)
2.33.080 Fai.lure to collect and report tax; determination of tax by supervisor of revenue
collections.
If any operator fails or refuses to collect said tax and to make, within the time provided in this
chapter, any report and remittance of said tax or any portion thereof required by this chapter,
the supervisor of revenue collections shall proceed in such manner as he or she may deem best
to obtain facts and information on which to base his or her estimate of the tax due. As soon as
the supervisor of revenue collections shall procure such facts and information as he or she is
able to obtain upon which to base the assessment of any tax imposed by this chapter and
payable by any operator who has failed or refused to collect the same and to make such report
and remittance, he or she shall proceed to determine and assess against such operator the tax
and penalties provided by this chapter. In case such determination is made, the supervisor of
revenue and collections shall give a notice of the amount so assessed by sending it personally
or by depositing it in the United States mail, postage prepaid, addressed to the operator so
assessed at his or her last known place of address.
Such operator may within fourteen days after serving or mailing of such notice make
application in writing to the supervisor of revenue collections for a hearing on the amount
assessed. If application by an operator is not made within the time prescribed, the tax and
penalties, if any, determined by the supervisor of revenue collections to be due shall become
final and conclusive and immediately due and payable. If such application is made, the
supervisor of revenue collections shall give not less than ten days' written notice in the manner
prescribed herein to the operator to show cause at a time and place fixed in said notice why
said amount specified therein should not be fixed for such tax and penalties. At such hearing,
the operator may appear and offer evidence why such specified tax and penalties should not be
so fixed. After such hearing, the supervisor of revenue collections shall determine the proper
tax to be remitted and shall thereafter give written notice to the person operator in the manner
prescribed herein of such determination and the amount of such tax and penalties. The amount
determined to be due shall be payable after twenty days of the serving or mailing of such
determination unless an appeal is taken as provided in Section 2.33.090.
{Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970}
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2.33.090 Appeal.
Any operator aggrieved by any decision of the supervisor of revenue and collections with
respect to the amount of such tax and penalties, if any, may appeal to the director of finance or
his or her designee by filing a notice of appeal with the city clerk within twenty days of the
serving or mailing of the determination of tax due. The director of finance or the designee shall
fix a time and place for hearing of such appeal, and give notice in writing to such operator at his
or her last known place of address. The findings of the director of finance or the designee shall
be final and conclusive and shall be served upon the appellant in the manner prescribed above
for service of notice of hearing. Any amount found to be due shall be immediately due and
payable upon the service of notice.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.100 Re-cor-ds.
It shall be the duty of every operator liable for the collection and payment to the city of any
tax imposed by this chapter to keep and preserve all records as may be necessary to determine
the amount of such tax as he or she may have been liable for the collection of and payment to
the city. Said records shall be kept or made available at one location within the limits of the city
for a period of three years. The supervisor of revenue collections and/or city auditor or their
designee shall have the right at any and all reasonable times, to examine and audit said records
for the purpose of determining the accuracy thereof.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.110 Refunds.
(a) Claim Required. Prior to seeking judicial relief with respect to a dispute regarding the
amount of any tax, penalty, or interest collected or received by the city under this chapter, an
aggrieved taxpayer, fee payer, operator, transient or any other person must comply with the
provisions of section 2.28.230 of this code.
(b) Operators. An operator may claim as an overpayment any tax previously paid which was
calculated on the basis of taxable consideration written off by the operator as a bad debt in
accordance with generally accepted accounting principles and claimed as a deduction on a
federal income tax return in accordance with provisions of the Internal Revenue Code, and
regulations issued pursuant thereto. The bad debt claim may be taken as an adjustment to
future taxes due the city after the operator's procedure and forms for adjustment of bad debt
have been reviewed and approved by the supervisor of revenue collections.
(c) Transients. A transient may only request a refund of taxes under this chapter when the
transient, having paid the tax to the operator, establishes that the transient has been unable to
obtain a refund from the operator who collected the tax.
(Ord. 5078 § 3, 2010: Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (part), 1970)
2.33.120 Actions to collect.
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Any tax required to be paid by any transient under the provisions of this chapter shall be
deemed a debt owed by the transient to the city. Any such tax collected by an operator which
has not been paid to the city shall be deemed a debt owed by the operator to the city. Any
person owing money to the city under the provisions ofthis chapter shall be liable to an action
brought in the name of the city for the recovery of such amount.
(Ord. 3704 § 1 (partL 1986: Ord. 2567 § 1 (partL 1970)
2.33.130 Violations; misdemeanor.
Any operator or other person who violates any of the provisions of this chapter or who fails or
refuses to register as required herein, or to furnish any returns or other data required by the
supervisor of revenue collections, or who renders a false or fraudulent return or claim, is guilty
of a misdemeanor, and is punishable as provided in this code.
(Ord. 3704 § 1 (part), 1986: Ord. 2567 § 1 (partL 1970)
2.33.140 Third party rental transactions.
(a) Any transient who pays rent to a rental agent instead of to an operator shall, at the time
the rent is paid, pay the tax to the rental agent in the manner required by section 2.33.020. If
for any reason the tax is not paid to the rental agent, it shall be paid to the operator before the
transient has ceased occupancy in the hotel or paid directly to the supervisor of revenue
collections pursuant to section 2.33.020. Any transient seeking a refund under section 2.33.110
oftaxes paid to a rental agent must establish that the transient has been unable to obtain a
refund from the rental agent who collected the tax.
(b) Any rental agent who collects rent shall comply with all obligations ofthe operator set
forth in sections 2.33.040 and 2.33.100 of this chapter. The rental agent shall remit all collected
taxes to the operator before the deadline for the operator to remit the taxes to the supervisor
of revenue collections under section 2.33.060, and the rental agent shall provide the operator
with copies of all records required to be maintained by the operator pursuant to section
2.33.100 of this chapter, including records necessary for the operator to comply with its
obligations under this chapter.
(c) If the supervisor of revenue collection determines that a rental agent has failed to collect,
remit, or report any tax, the supervisor may take any action against the rental agent that he or
she may take against an operator under sections 2.33.070 and 2.33.080 of this chapter subject
to the requirements of those sections. If the supervisor assesses unremitted taxes and
penalties against the rental agent, the rental agent shall be subject to the provisions of sections
2.33080, 2.33.090, 2.33.110, and 2.33.120 of this chapter as if it were an operator. Nothing in
this section shall prohibit the supervisor from assessing the full amount of any unremitted taxes
and penalties solely against the operator in lieu of assessing some or all of those taxes and
penalties against the rental agent.
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SECTION 2. General Tax. Proceeds of the tax imposed by this Ordinance shall be
deposited in the general fund of the City and shall be available for any legal purpose.
SECTION 3. Amendment or Repeal. The City Council may repeal Chapter 2.33 of the
Palo Alto Municipal Code or amend that Chapter without a vote of the people except that any
amendment to Chapter 2.33 that increases the amount or rate of tax due from any Person
beyond the amounts and rates authorized by this Ordinance may not take effect unless
approved by a vote of the people.
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion
of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent
jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and
effect. The people hereby declare that they would have adopted each section, subsection,
sentence, clause; l:>htase, or portion of this Ordinance, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be
declared invalid or unenforceable.
SECTION 5. Effective Date. This ordinance shall be effective only if approved by a
majority of the voters and shall go into effect immediately after the vote is declared by the City
Council and the duty of service providers to collect the tax shall commence as provided in
California Public Utilities Code Section 799.
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SECTION 6. Execution. The Mayor is hereby authorized to attest to the adoption of this
Ordinance by the voters of the City by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by
the People of the City of Palo Alto voting on the 4th day of November, 2014.
ATIEST:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
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Mayor
APPROVED
City Manager
Director of Administrative
Services