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HomeMy WebLinkAboutORD 547ORDINANCE NO. 547 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 3.28, INCREASING THE TRANSIENT OCCUPANCY TAX IN SAID CITY FROM 6% TO 6%, AS APPROVED BY THE VOTERS OF PALM DESERT AT THE NOVEMBER 8, 1988, SPECIAL ELECTION The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN as follows: Section 1: That Section 3.28.030 of the Municipal Code of the City of Palm Desert, California, be and the same hereby is amended to read as follows: '3.28.030 Tax Imposed. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eight percent (8%) (as approved by the voters of Palm Desert at the November 8, 1988, Special Election) of the rent charged by the operator or otherwise payable by the transient. 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. "For purposes of this section, the rent deemed payable on account of time-share occupancy by a transient shall be the rental value of the unit or room(s) which accommodated such occupancy, which rental value shall be computed by determining the prorata share of the total purchase price of the time-share right or entitlement (whether or not involving an estate or an ownership in real property), which share is allocable to the period of transient occupancy currently involved, and adding thereto the total amount of any and all fees, assessments, charges, and expenses charged by the operator as attributable to the time-share occupancy of the transient by whatever name such fees, assessments, charges, or expenses may be denominated, whether 'occupying fee', 'maintenance or operations charge', 'per diem fee', 'management fee', or like name or otherwise. In making the computation referred to above of the prorata share of the total purchase price, in any case wherein the time-share right or entitlement is in perpetuity, or for life, or otherwise not for a definite or ascertainable term, such proration shall be made upon an assumed term of forty (40) years. 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 when the transient ceases to occupy space in the hotel. If for any reason the tax due is not paid to the operator of ORDINANCE NO. 547 the hotel. the tax administrator may require that such tax sha)1 be paid directly to the tax administrator. Tax on occupancies in exchange for services of any kind is due and payable to the City by the operator, the amount of tax being determined on the basis of eight percent (8%) (as approved by the voters of Palm Desert at the November 8, 1988, Special Election) of the current rental value of the accommodations furnished." Section 2: Section I of the Ordinance shall be effective upon approval of a majority of voters of the City of Palm Desert of a proposition to increase said transient occupancy tax from 6% to 8%. Said Special Election is to be held November 8, 1988. PASSED, APPROVED, and ADOPTED by the City Counci 1 of the City of Palm Desert, California, this 8th day of September, 1988, by the following vote, to wit: AYES: CRITES, KELLY, SNYDER, BENSON NOES: WILSON ABSENT: NONE ABSTAIN: NONE ATTEST: SHEILA R. L L I G A N ITY CLERK _ CITY OF PALM DESERT-, CALIFORNIA :mpf 2 ;JN M. BENSON, MAYOR