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Home My WebLink About10-48 - Proposing a Transient Occupancy Tax Increase Repealing & Replacing Sec 16-68RESOLUTION NO. 10-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, PROPOSING A TRANSIENT OCCUPANCY TAX INCREASE, REPEALING AND REPLACING SECTION 16-68 OF THE COSTA MESA MUNICIPAL CODE WHEREAS, the City Council of the City of Costa Mesa, California, desires to submit to the voters of the City at a General Municipal Election a proposed measure relating to a Transient Occupancy Tax increase; and WHEREAS, California Government Code Sections 53723 and 53724 require that the City Council propose by ordinance or resolution any general tax to be imposed and obtain voter approval as to such proposal prior to imposition of such tax; WHEREAS, Proposition 218; California Constitution Article XIIIC, Section 2 requires that the imposition, extension, or any increase of any general tax be approved bythe voters; WHEREAS, the City intends to . charge transients an 8 percent tax for the privilege of occupying living space within the City in order to raise revenue for the general governmental purposes of the City. All of the proceeds from the tax shall be placed in the City's general fund and used for the usual current expenses of the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE, DECLARE AND ORDER AS FOLLOWS: SECTION 1. That a Measure be proposed to the voters to hereafter increase the existing transient occupancy tax, by repealing and replacing Section 16-68 of the Costa Mesa Municipal Code, at a rate of 8 percent on all transient occupancy of living space. The proposed language of the revised Transient Occupancy Tax rate will be in accordance.with the provisions of the proposed ordinance attached hereto as Exhibit A. The proposed exhibit attached to this resolution, and incorporated herein by reference, shall be made available for public examination at all times by the City Clerk, in accordance with California Elections Code Sections 9223 and 9295. SECTION 2. The election upon which the voters are to approve the Measure proposing the increase in the existing Transient 'Occupancy Tax is Tuesday, November 2, 2010, pursuant to a separate resolution of the City Council calling a General Special Municipal Election for that purpose. SECTION 3. Any legal action to challenge, test, or otherwise determine the validity of this resolution, or any portion thereof and the tax imposed thereby must be brought within sixty days of the effective date of this resolution, in accordance with the provisions of California Code of Civil Procedure Section 860 et seq., and Sections 860 and 863 in particular, or any shorter period of time provided by applicable law. SECTION 4. Should any section, subsection, clause or provision of this resolution for any reason be held to be invalid, then the remainder of the resolution shall be deemed valid, it being hereby expressly declared that this resolution, and each and every section, subsection, sentence, clause and phrase hereof would have been prepared, proposed, approved, adopted and/or ratified even if any other section, subsection, sentence, clause or phrase of this resolution were declared invalid. SECTION 5. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED and ADOPTED this 22nd day of June, 2010. ATTEST: Julie cik, City derk Allan R. Mansoor, Mayor APPROVED AS TO FORM: Ki berly FTall Barlow, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 10-48 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 22nd day of June, 2010, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: LEECE, BEVER, FOLEY, MONAHAN NOES: COUNCIL MEMBERS: MANSOOR ABSENT: COUNCIL MEMBERS: NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 25th day of June, 2010. Q :� t;; ; � (Z� JU E FOLCIK, CITY CLERK, (SEAL) Exhibit A [PROPOSED] ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA REPEALING AND REPLACING SECTION 16-68 OF CHAPTER IV OF THE COSTA - MESA MUNICIPAL CODE REGARDING THE CITY'S TRANSIENT OCCUPANY TAX WHEREAS, the City currently imposes a six percent (6%) tax for the privilege of occupying a hotel room on a transient basis pursuant to Title 16, Chapter IV of the Costa Mesa Municipal Code; and WHEREAS, the City's Transient Occupancy Tax is currently, and will continue to be, deposited into the City's General Fund for the City's regular expenses, which include services and programs of which transients make use while temporarily in the City; and WHEREAS, the electors of the City of Costa Mesa at a regular municipal election on November 2, 2010, approved a City Measure to increase the City's Transient Occupancy tax from six percent (6%) to eight percent (8%). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section 16-68 of Title 16 (Taxation), of Chapter IV (Transient Occupancy Tax) of the Costa Mesa Municipal Code is hereby repealed and replaced in its entirety with the following: Section 16-68 - Tax imposed; nature; payment. For the privilege of occupancy in any hotel or motel, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator. The 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 or motel 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 to occupy space in the hotel or motel. If for any reason the tax due is not paid to the operator of the hotel or motel, the finance department may require that the tax shall be paid directly to the finance department. Section 2. In all other respects, the existing Transient Occupancy Tax, including the method of collection shall remain the same as currently provided in Exhibit A Title 16 (Taxation), Chapter IV (Transient Occupancy Tax) of the Costa Mesa Municipal Code. Section 3. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 4. 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 Costa Mesa 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 be declared invalid or unconstitutional. Section 5. Any legal action to challenge, test, or otherwise determine the validity of this ordinance, or any portion thereof and the tax imposed thereby must be brought within sixty days of the effective date of this ordinance, in accordance with the provisions of California Code of Civil Procedure Section 860 et seq., and Sections 860 and 863 in particular. Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage. PASSED AND ADOPTED this day of , 2010. Mayor APPROVED AS TO FORM: City Attorney ATTEST: City Clerk of the City of Costa Mesa