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HomeMy WebLinkAboutORD 679ORDINANCE NO. 679 AN ORDINANCE OF THE CITY COUNCIL OF PALM DESERT, CALIFORNIA, AMENDING SECTIONS 3.28.030 AND 3.28.070 OF THE PALM DESERT MUNICIPAL CODE, RELATING TO TRANSIENT OCCUPANCY TAXATION. WHEREAS, the city council wishes to raise the City's transient occupancy tax rate from 8% to 9%; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES ORDAIN as follows: SECTION 1: That section 3.28.030 of the Palm Desert Municipal Code be amended to provide as follows: 113.28.030 Tax imposed. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of nine percent 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 occupancy of a time-share estate shall be the rent charged or otherwise payable to the time-share estate owner by a lessee of the time-share estate. 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 or time-share. If for any reason the tax due is not paid to the operator of the hotel or time-share, the tax administrator may require that such tax shall 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 nine percent of the current rental value of the accommodations furnished." SECTION 2: That subdivision "B" of section 3.28.070 of the Palm Desert Municipal Code be amended to provide as follows: "B. Each operator shall, on or before the last day of the month following the close of each calendar month, or shorter reporting period which may be established by the tax administrator, complete a monthly transient occupancy tax form provided by the tax administrator of the total rents charged or chargeable as provided in Section 3.28.030, -1- whether or not received, including any rentals charged for occupancies exempt under the provisions of Sections 3.28.020 through 3.28.040, and the amount of tax collected for transient occupancies. At the time the return is filed, the tax -- fixed at the rate of nine (9) percent of the amounts of rentals charged or chargeable which are not exempt from tax under Sections 3.28.020, 3.28.040 and 3.28.120 -- shall be remitted to the tax administrator. The tax administrator may establish shorter reporting periods and may require a cash deposit or bond for any permit holder, if he deems it necessary, to insure collection of the tax and he may require further information in the return. 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 tax administrator." SECTION 3: That the city clerk shall certify as to the passage and adoption of this ordinance and shall cause the same to be published once in the Palm Desert Post, a newspaper of general circulation, printed, published, and circulated within the City of Palm Desert, and the same shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED this 26th day of March, 1992, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: CRITES, SNYDER, WILSON, AND BENSON NOES: NONE ABSENT: KELLY i ABSTAIN: NONE JAW-M. BENSON, Mayor ty of Palm Desert, ATTEST: SHEILA R. GILLIGAN, ity Clerk City of Palm Desert California -2- Pro-tempore California