Background
The City’s existing transient occupancy tax ordinance imposes a tax on guests of hotels and motels at the rate of 12% of the rent charged to the guest by the lodging operator. Lodging guests are referred to as “transients,” which are people with a right to occupy a lodging for 21 consecutive calendar days or less. The existing ordinance defines “hotels” and “motels” in a manner that is limited to lodging facilities that either have six or more rooms (motel) or provide additional services such as restaurants and meeting rooms.
Proposal
If approved, Measure HT The Proposed Tax would amend the definition of “hotel” to include any facility that provides temporary lodging to people. Thus, it would not require a “hotel” to have a minimum number of rooms, or provide additional services, and “hotel” would include any short-term rental of a residential dwelling to a person that meets the definition of “transient.”
Measure HT would amend the definition of “transient” to include any person with a right to occupy a hotel for 30 consecutive calendar days or less (as opposed to 21 days under the Existing TOT), consistent with state law.
Measure HT would not amend the existing 12% transient occupancy tax rate. However, the existing TOT rate will be applied to the newly defined “transients” occupying “hotels” to generate additional revenue of approximately $134,000 per year.
The TOT is a general tax because the City may use the revenue to fund any lawful City program or service. The Proposed Tax would remain in effect until ended by a majority of City voters at a subsequent election.
Source: Measure HT: Impartial Analysis