HomeMy WebLinkAbout2001-14RESOLUTION NO. 2001-14
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UKIAH ESTABLISHING ALLOWABLE USES OF HOTEL-
MOTEL ROOM OCCUPANCY TAX REVENUES
RESULTING FROM AN INCREASE IN THE TAX RATE
FROM 8% TO 10%.
WHEREAS,
1. The City of Ukiah in 1965 adopted Sections 1750-1763 (Chapter 8A of Division
One) of the Ukiah City Code ("UCC"), establishing a hotel-motel room occupancy tax by
an ordinance known as the Uniform Transient Occupancy Tax Ordinance; and
2. Said tax is a general excise tax imposed on each transient paying for the
privilege of occupying any hotel or motel located within the City; and
3. The revenues produced by the Hotel-Motel Room Occupancy Tax are
deposited into the City's general fund and used for general governmental purposes of
the City; and
4. At least since1990, the rate of tax has been established by UCC Section
1752 at 8% of the rent charged by a hotel or motel operator to stay in a room in the
hotel or motel; and
5. The City Council has determined to present to the voters of the City at the
Statewide General election scheduled for November 7, 2000, a measure which would
increase the tax rate provided in UCC Section 1752 to 10% of the rent charged by a
hotel or motel operator ("rate increase"), but would make no other changes to the
Uniform Transient Occupancy Tax Ordinance; and
6. If the rate increase is approved by a majority vote of the voters in the
November 7, 2000, election, the Hotel-Motel Room Occupancy Tax will remain a
general excise tax in the City to be used for the general governmental purposes of the
City; and
7. The City Council expects the revenues from the City's Hotel-Motel Room
Occupancy Tax to increase in the coming years due to the increase in the number of
hotels and motels within the City; and
8. The City Council also expects an increase in revenues deposited in the
general fund resulting from the rate increase if it is approved by the voters; and
9. The City Council wants to inform the voters of the City and future City
Councils how it expects to spend the revenue increase to the City resulting from the rate
2001-14
increase;
NOW, THEREFORE, BE IT RESOLVED as follows:
1. The City Council shall use increased revenues that may result from the tax
increase exclusively for the following purposes:
A. The development of park facilities or acquisition of open space for the
City of Ukiah;
B. Beautification of commercial areas in the City of Ukiah;
C. Promotion of the City of Ukiah and its tourist industry; and
D. Support of services for the homeless;
2. Prior to conducting public hearings on the annual budget, the Finance Director
shall report to the City Council the total tax revenues attributable to the tax increase
projected for the next fiscal year, commencing July 1. The projection shall be based on
the actual revenues received from the tax increase in the previous fiscal year and
reasonable assumptions about the potential change in such revenues for the upcoming
fiscal year. A specific budget for the use of these revenues among the categories
specified in Section 1 of this Resolution shall be prepared and approved each year as
part of the City Council's approval of the annual budget for the City of Ukiah.
3. The City Council does not intend any portion of this resolution to change the
Hotel-Motel Room Occupancy Tax from a general excise tax to a special tax or
assessment. If a court of competent jurisdiction were to determine in a final, non-
appealable judgment that this resolution or any portion thereof converts such tax or all
or any portion of the revenues produced by such tax from a general tax to a special tax
or assessment, then this resolution is and shall be to that extent null and void.
PASSED AND ADOPTED this 16th day of August, 2000, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers Smith, Baldwin, and Mayor Mastin.
Councilmember Libby.
Councilmember Ashiku.
None.
Marie Ulvila, City Clerk
2001-14
Ji~m iV~astin~- -
, Mayor