HomeMy WebLinkAboutRes 2016-89 - Establish-Implmntatn for Increase of TOTRESOLUTION NO. 2016-89
CITY OF PALM DESERT
REQUEST: ADOPT RESOLUTION NO. 2016- 89 ESTABLISHING
THE IMPLEMENTATION PROCESS FOR THE INCREASE
IN TRANSIENT OCCUPANCY TAX FROM 9% TO 11 % AS
A RESULT OF THE GENERAL ELECTION HELD ON
NOVEMBER 8, 2016 (ALSO KNOWN AS MEASURE T:
PALM DESERT COMMUNITY SAFETY, VITAL SERVICES
AND FISCAL STABILITY MEASURE)
SUBMITTED BY: JANET MOORE, DIRECTOR OF FINANCE
DATE: DECEMBER 8, 2016
CONTENTS: Resolution 2016 - 89
Recommendation
Waive further reading and adopt Resolution 2016- 89 establishing the
implementation process for the increase in transient occupancy tax from 9%
to 11 % as a result of the general election held on November 8, 2016 (also
known as Measure T: Palm Desert Community Safety, Vital Services And
Fiscal Stability Measure).
Strateqic Plan Obiective
Measure T and its proposed increase in transient occupancy taxes (TOT) was
submitted to voters "...to maintain 9-1-1 emergency medical/police/fire response; Palm
Desert's long-term financial stability; neighborhood policing/crime prevention; water
conservation; street repairs and other vital services..." The Strategic Plan — Envision
Palm Desert Forward Together — provides a comprehensive framework that will
guide the City on priorities for the use of public resources across strategic results areas
including Public Safety and Emergency Services; Economic Development; Parks and
Recreation; Energy and Sustainability; Transportation; Arts & Culture; and Land Use,
Housing & Open Space.
Backqround
On November 8, 2016, Measure T was approved by a majority of the voters, increasing
the Transient Occupancy Tax (TOT) from 9% to 11 % in the City of Palm Desert.
Upon adopting the resolution to declare the results of the election, Ordinance No. 1307,
amending Sections 3.28.030 and 3.28.070 of Title 3 of the Palm Desert Municipal Code
relating to Transient Occupancy Taxes will become effective immediately. In order to
properly notify the hotel and timeshare operators of the increase and to implement the
Staff Report
Implementation of Increase in TOT
Page 2 of 2
December 8, 2016
collection of the tax at the increased rate, the attached resolution establishes the
effective date of the increase to be January 1, 2017.
The platform for making reservations in hotels and properties subject to TOT varies and
we understand that some reservations for arrival on or after January 1, 2017 may have
been paid in full prior to the election. This implementation resolution also authorizes the
City Manager, upon request, to consider allowing reservations made for occupancy after
January 1, 2017, but reserved and paid for prior to the date the election results became
known, to collect the Transient Occupancy Tax rate in effect prior to November 9, 2016.
Fiscal Impact
The fiscal impact is an increase in TOT revenues to the General Fund. Annually, the
increase is estimated to be $2,000,000. In 2016-2017, the increase in TOT revenues
will add approximately $1,200,000 to the existing budget of $11,300,000.
Submitted By:
4anj�4 Moore, Director of Finance
Approval:
Lauri Aylaian, City Manager
G \Finance\Niamh Ortega\Staff Repo rts\201 6\TOT Rate Increase 120816\SR - TOT Increase Implementation. Docx
RESOLUTION NO. 2016 - 89
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
ESTABLISHING THE IMPLEMENTATION PROCESS FOR THE INCREASE IN
TRANSIENT OCCUPANCY TAX FROM 9% TO 11% AS A RESULT OF THE
GENERAL ELECTION HELD ON NOVEMBER 8, 2016 (ALSO KNOWN AS
MEASURE T: PALM DESERT COMMUNITY SAFETY, VITAL SERVICES AND
FISCAL STABILITY MEASURE)
WHEREAS, pursuant to Article XIIIC, Section 2(b) of the California Constitution and
California Government Code section 53723, no local government may impose, extend, or
increase any general tax unless and until that tax is submitted to the electorate and approved by
a majority vote of the qualified electors voting in the election; and
WHEREAS, on July 28, 2016 pursuant to California Revenue and Taxation Code
Sections 7280 and 7281, the City Council authorized to submit to the qualified electors of the
City a ballot measure regarding an increase to the City's Transient Occupancy Tax, a general
tax, from nine percent (9%) to eleven percent (11%); and
WHEREAS, Measure T: Palm Desert Community Safety, Vital Services and Fiscal
Stability Measure was submitted as follows; and
MEASURE T : PALM DESERT COMMUNITY SAFETY, VITAL SERVICES AND
FISCAL STABILITY MEASURE
To maintain 9-1-1 emergency medical/police/fire response;
Palm Desert's long-term financial stability; neighborhood YES
policing/crime prevention; water conservation; street repairs
and other vital services, shall an ordinance increasing
Palm Desert's short-term general rental tax from 9% to 11 %,
paid only by hotel guests/short-term renters, generating
approximately $2,200,000 annually until ended by voters, NO
requiring independent audits, public oversight, and local
control of funds be adopted?
WHEREAS, a General Election was conducted on November 8, 2016; and
WHEREAS, as a result of the Election, a majority of the voters voting on Measure T to
increase the Transient Occupancy Tax, did vote in favor of the measure; and
WHEREAS, the City Council has accepted the results of the election; and;
WHEREAS, the City Council has adopted Ordinance No. 1307, amending Sections
3.28.030 and 3.28.070 of Title 3 of the Palm Desert Municipal Code relating to Transient
Occupancy Taxes; and
WHEREAS, the City Council desires to establish an implementation process for
Measure T.
RESOLUTION NO. 2016-89
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council finds that all of the foregoing recitals are true and correct
and are hereby incorporated and adopted as findings and determinations by the City Council as
if fully set forth herein.
Section 2. The City Council pursuant to its right and authority, declares the increase
in the City's Transient Occupancy Tax, a general tax, from 9% to 11 %, to be effective January
1, 2017.
Section 3. The City Council, pursuant to its right and authority, authorizes the City
Manager, when requested, to consider allowing reservations made for occupancy after January
1, 2017, but reserved and paid for prior to the date the election results became known,
November 9, 2016, the authority to collect the Transient Occupancy Tax rate in effect prior to
November 9, 2016.
Section 4. If any section, subsection, sentence, clause, phrase or provision of this
Resolution or the application thereof to any person or circumstances is held invalid or
unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall
not affect the validity of any other provision or applications, and to this end the provisions of this
Resolution are declared to be severable. The City Council hereby declares that it would have
passed this Resolution and each section, subsection, sentence, clause, phrase or provision
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
phrases or provisions thereof be declared invalid or unconstitutional.
Section 5. This Resolution shall take effect immediately upon its adoption by a
majority vote of the City Council.
PASSED, APPROVED AND ADOPTED this 8th day of December, 2016, by the City
Council of the City of Palm Desert, California, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JAN C. HARNIK
MAYOR
APPROVED AS TO FORM:
ROBERT W. HARGREAVES, CITY ATTORNEY
CITY OF PALM DESERT, CALIFORNIA
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