2003 AGN JUL 15 I04 - Laserfiche WebLink

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inception. However, the City has been informed that at least one business would like its agreement with a hotel to exclude it from the definition of "transient" under this provision. They rely at least in part on the fact that the term "person" includes corporate entities under Section 3.24.020(D) and that the term "occupancy" includes the right to the use or possession of a hotel room under Section 3.24.020(B). Their hope is that the TOT should not apply to their agreement with a hotel for more than 30 days, even if that agreement is merely a broker's rate agreement which "blocks" a certain number of rooms, but does not obligate the business to pay for rooms not actually occupied. The language of Section 3.24.020(G) supports the City's interpretation. The exception for a long term stay agreement between the operator and an "occupant" rather than between the operator and "the person" shows that the ordinance is meant to focus on the occupier of the room rather than the "person" who arranges for or pays for the room. The "right to use or possession of a room" also is intended to mean the party that has the key to the room, not a contractual right to register for a room at a certain price. In an effort to clarify any apparent misunderstandings regarding the way in which the City has interpreted and enforced its TOT, the proposed amendments to the TOT ordinance provide clarification on the definition of "transient" under Section 3.24.020(G). The proposed amendments use individual identification as indication of occupancy and specifically mention the intent to tax the individual occupant of the room. ALTERNATIVES: Deny adoption of the proposed ordinance and maintain the existing provisions in the Colton Municipal Code regarding transient occupancy tax. 2. Direct staff to revise the proposed ordinance pursuant to Council discussion. FINANCIAL IMPACT: No financial impact is anticipated because the proposed ordinance merely clarifies the existing provisions of the Colton Municipal Code related to the definition of "transient" and the issuance of refunds regarding the transient occupancy tax. It does not increase or decrease the amount of the City's existing transient occupancy tax. ENVIRONMENTAL IMPACT: