HomeMy WebLinkAbout2006-68 TOTRESOLUTION NO 2006-68
RF~OLUTION OF THE CITY.COUNCIL OF THE CITY OF UKIAH ESTABLISHING
ALLOW~t.R USES OF HOTEL- MOTEL ROOM OCCUPANCY TAX REVENUES
- RESULTING FROM AN INCREASE IN THE TAX RATE FROM 8% TO 10%,
1. The City of Ukiah in 1965 adopted Sections 1750-'1763 (Chapter 8A of Division
One) of the Ukinh 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 person 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, 2006, 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. ff the rate increase is approved by a majority vote of the voters in the November 7,
2006, election, the Hot. el-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 and increased promotional efforts if increase 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 increase;
NOW, THEREFORE, BE IT RESOLVED as follows:
1. The City Council shah use increased revenues that may result from the tax
increase exclusively for the following purposes:
A. Not less than 50% shall be expended for:
Promotion of the City of Ukiah and its tourist industry;
B. The balance shah be expended for:
* Beautification of commercial areas within the City of Ukiab;
* Economic development within the City of Ukiah;
Park development and maintenance within the City of Ukiah;
* Scholarships for local children to attend local recreation programs.
2. Prior to conducting public heatings on the annual budget, the F'mance Director
shall ~ 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 I 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 shah be to that extent null and void.
PASSED AND ADOPTED this 2nd dny of August, 2006, by the following roll call vote:
AYES:
NOES:
ABSENT:
Councilmember Crane, Rodin, McCowen, Baldwin and Mayor Ashiicu
None
None
ATFF, ST:
Gall Petersen, City Clerk
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