HomeMy WebLinkAboutResolution No. 22-8091 - Calling for the Placement of a General Tax Measure on 11-8-22 Ballot of a Proposed Ordinance Amending the Transient Occupancy Tax CodeRESOLUTION NO. 22-8091
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WHEREAS, pursuant to Proposition 218 (California Constitution Article X111C, §2(b)), the
general rule is that any local election for the approval of an increase to a general tax must be
consolidated with a regularly scheduled general election for members of the governing body of
the local government; and
WHEREAS, pursuant to the Downey City Charter, Sections 500 and 1300, the City's
general municipal elections for officers are held on the first Tuesday after the first Monday in
November of each even -numbered year. Therefore, the next regularly scheduled General
Municipal Election for the election of members of the City Council will be held on Tuesday,
November 8, 2022; and
WHEREAS, based on the above, the City Council desires to submit a measure to the
voters at the November 8, 2022 General Municipal Election seeking approval of the proposed
TOT rate increase from 9% to 13% and modernizing the ordinance to address online travel
company and other third party bookings (the "Measure"). The specific terms relating to the
Measure are provided for in the ordinance to be considered by the qualified voters, attached
hereto as Exhibit "A" and by this reference made an operative part hereof, and in accordance with
all applicable laws; and
WHEREAS, pursuant to Downey City Charter §511, "[U]nless a higher vote is required by
other provisions of this Charter the affirmative votes of at least three members of the City Council
shall be required for the enactment of any ordinance or resolution, or for the making or approving
of any order for the payment of money"; and
WHEREAS, the City Charter does not otherwise require a supermajority of
Councilmembers to enact this resolution; and
WHEREAS, in Traders Sports v. City of San Leandro, (2001) 93 Cal. App. 4 th 37, the
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62") to obtain a two-thirds (2/3) supermajority vote of all members of the City Council to place a
general tax measure on the ballot does not apply to charter cities whose charters set a different
voting threshold; and
WHEREAS, therefore, the affirmative votes of at least three members of the City Council
are required to place this Measure on the November, 8, 2022 ballot; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the
Statewide General Election to be held on the same date and that within the City the precincts,
A. places, voting centers and election officers of the two elections be the same, and that the
Los Angeles County election department canvass the returns of the General Municipal Election
and that the election be held in all respects as if there were only one election; and
WHEREAS, it is also desirable to establish deadlines and rules for the submission of
written arguments and rebuttals for and against the Measure in accordance with applicable
California Elections Code procedures.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY, CALIFORNIA,
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. RociWs. The City Council hereby finds and determines that the foregoing
part hereof.
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SECTION3. BAIWMeas,.ure. The City Council, pursuant to its right and authority, ••
hereby order that the Measure shall be presented and printed upon the ballot submitted to the
qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted
to the qualified • at the General Municipal Election to be held • Tuesday, November 8,
2022, in addition to any other matters required by law, there shall be printed substantially the
following -ballot question:
• Transient Occupancy Tax Measure: "Shall the
measure • increase the rate • the City's Transient I INN
I Occupancy (Room) Tax from 9% to 13%, providing
approximately $950,000 annually until ended by voters for
general government use such as City parks, streets and
public safety, and applying the tax to all rent charged to
hotel guests, including by online travel and short term rental
companies, for transient occupancy • any hotel, •.e
adopted?" 11 1
A. The ballots to be used at the election shall be in the form and content as required by
law.
B. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of
Supervisors of the County of Los Angeles is hereby requested to consent and agree
• the consolidation •` a General Municipal Election with the Statewide General
Election on Tuesday, November 8, 2022, for the purpose of submitting to the voters
the question relating to the City's Measure.
C. The election services which the City of Downey requests the Registrar of Voters, or
such other official as may be appropriate, to perform and which such officer is hereby
authorized and directed to perform, if said Board of Supervisors consents, include: the
preparation, printing and mailing • sample ballots; the establishment or appointment
of precincts, polling places, voting centers, and election officers, the preparation,
printing, mailing and furnishing of vote -by -mail ballots, making such publications as
are required by law in connection therewith; the furnishing of ballots, voting booths and
other necessary supplies or materials for polling places and voting centers; the
canvassing of the returns of the election and the furnishing of the results of such
• to the City Clerk • the City of • and the performance • such other
election services as may be requested by the City Clerk.
DThe City Clerk is authorized, instructed and directed to procure and furnish, or cause
• be procured .n• furnished through the County of Los Angeles, any and all •,I
ballots, notices, printed matter and all supplies, equipment and paraphernalia that may
be necessary in order to properly and lawfully conduct the election.
RESOLUTION NO. 22-8091
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The polls, vote centers and/or vote -by -mail drop-off boxes shall be open and the
procedures for submitting votes -by -mail or votes at polls and vote centers shall be in
accordance with those times and procedures established by the County of Los
Angeles, except as otherwise provided in the Elections Code of the State of California.
F. In all particulars not recited in this Resolution, the election shall be held and conduct
as provided by law for holding municipal elections in the City. I
G. Notice of the time and place of holding the election is given and the City Clerk i-I
authorized, instructed and directed to give further or additional notice of the election,
in time, form, and manner as required by law.
H, All ballots shall be tallied at a central counting place and not at the precincts. Said
central counting place shall be at a County center as designated by the Registrar of
Voters.
The Los Angeles County Registrar of Voters is hereby authorized to canvass t
returns of said election. I
JThe City Clerk of the City of Downey shall receive the canvass from the County as
pertains to the election on the Measures, and shall certify the results to the Ci-1
Council, as required by law.
A, The City Council authorizes (i) the City Council or any member(s) of the City Council,
(ii) any individual voter eligible to vote on the above measure, (iii) a bona fide
association of such citizens or (iv) any combination of voters and associations, to file
a written argument in favor of or against the Measure, in accordance with Article 4,
Chapter 3, Division 9 of the Elections Code of the State of California, which arguments
may be changed until and including Friday, August 19, 2022, after which no
arguments for or against the Measure may be submitted to the City Clerk. Arguments
in favor of or against the Measure shall each not exceed 300 words in length. Each
argument shall be filed with the City Clerk, signed, and include the printed name(s)
and signature(s) of the author(s) submitting it, or if submitted on behalf of an
organization, the name of the organization, and the printed name and signature of at
least one of its principal officers who is the author of the argument.
B, The City Clerk shall comply with all provisions of law establishing priority of argumen'l
for printing and distribution to the voters, and shall take all necessary actions to cau
the selected arguments to be printed and distributed to the voters. I
C. Pursuant to Section 9280 of the Elections Code, the City Council directs the City Clerk
to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare
an impartial analysis of the Measure, not to exceed 500 words in length, showing the
effect of the Measure on the existing law and the operation of the Measure. The City
Attorney shall transmit such impartial analysis to the City Clerk, who shall cause the
analysis to be published in the voter information guide along with the Measure as
provided by law. The Impartial Analysis shall be filed by the deadline set for filing of
primary arguments as set forth in subsection (A) above. The impartial analysis shall
include a statement indicating whether the Measure was placed on the ballot by a
petition signed by the requisite number of voters or by the City Council. In the event
the entire text of the Measure is not printed on the ballot, nor in the voter information
portion • the sample ballot, there shall • printed immediately below the •
analysis, in no less than 10-font bold type, the following: "The above statement is
an impartial analysis of Ordinance or Measure _. If you desire a copy of the
Ordinance • Measure, • call the election official's office at (562) 904-7280
and a copy will be mailed at no cost to you."
D, That the provisions of this Section 5 herein shall apply only to the election to be he
on November 8, 2022, and shall then be repealed. i
A. •: to • 9285 • the Elections Code • the State • • when the
C—ler—k has selected the argument$ for and against the various City initiated -measures
which will be printed and distributed to the voters, the Clerk shall send copies of the
argument in favor of the measures to the authors of the argument against, and copies
of the argument against to the authors of the argument in favor. The authors or persons
designated by them may prepare and submit rebuttal arguments not exceeding 250
words. The rebuttal arguments shall be filed with the City Clerk not later than Monday,
August 29, 2022. Rebuttal arguments shall be printed in the same manner as the
• • Each rebuttal argument shall immediately follow the • argument
which it seeks to rebut.
B. The provisions •.. this Section • herein shall apply ♦ to the election to •' held •'
November 8, 2022, and shall then be repealed.
SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed
in the voter information guide, and a statement shall be printed in the ballot pursuant to Section
9223 of the Elections Code advising voters that they may obtain a copy of the Measure at no cost,
upon request made to the City Clerk.
NOW
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Council directs the City Clerk to deliver copies of this Resolution, including the Measure attached
hereto as Exhibit "A", to the Clerk of the Board of Supervisors of Los Angeles County and to th(f-
Registrar of Voters of Los Angeles County.
• • Public Examination. Pursuant to :• Elections Code • 9295,
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• 10. CEQA. The City Council hereby '• and • that the ballot
direct or indirect physical changes in the environment, and therefore is not a project within the
meaning of the California Environmental Quality Act ("CEQK) and the State CEQA Guidelines,
section 15378(b)(5).
SECTION 11. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of the Resolution which can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The City Council
RESOLUTION NO. 22-809'-.
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hereby declares that it would have adopted this Resolution irrespective of the invalidity of any
particular portion thereof.
SECTION 12. Effective Date of Resolution. This Resolution shall take effec)
;mmediately upon its adoption.
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ATTEST:
"T" A A
W" VJ a
1, Maria Alicia Duarte, City Clerk of the City Council of the City of Downey, California, de
POT."r.61 101 1�14 W I I Miami
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of July, 2022, by the following vote:
AYES:
Council Members
Frometa, La Plante, Trujillo, Alvarez, Mayor Pacheco
NOES:
Council Members:
None.
ABSENT:
Council Members:
None.
ABSTAIN,
Council Members:
None.
A i
A
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SECTION 1. Subjectto the approval of a majority of the voters of the City of Downey
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location, or other similar structure or portion ereof.
•1111 *6411 # is , •
-. - ♦n" means any individual,partnership,
joint venture, association, social club, fraternal organization, joint stock company,
corporation, estate, trust,business.:: . ..:. trustee, syndicate, or other is • ♦.
or a • / re as a unit.
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in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, setter, reseller,
or any other capacity. Where the Operator performs his or her functions through a managing
agent of any type or character other than an employee, the managing agent shall also be deemed
an Operator for the purposes of this chapter, and shall have the same duties and liabilities as his
or her principal. Full Gcompliance with the provisions of this chapter by either the principal or the
managing agent shall be considered to be compliance by both.
"Tax Administrator' means the City's Director of Finance who shall be charged with
?dministration of the tax under this chapter.
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"Online Travel Company" shall mean any person, whether operating for profit or not for
profit, which enables transients to purchase occupancy in a hotel via the Internet, or by
similar electronic means.
For the privilege of occupancy in any Hotel, each Transient is subject to and shall pay a tax in the
amount of nine thirteen percent ("0 13%) of the as Rental GhaFged paid by the QpeFat9
Transient. Said tax constitutes a debt owed by the Transient to the City which is extinguished
only by payment to the Operator, a rental agent pursuant to Section 6129.5 of this chapter,
or to the City. The Transient shall pay the tax to the Operator of the Hotel or rental agent at the
time the Room Rental is paid. If the Room Rental is paid in installments, a proportionate share of
the tax shall be paid with each installment. The unpaid tax shall be due upon the Transient's
ceasing to occupy space in the Hotel. If for any reason the tax due is not paid to the Operator or
rental agent of the Hetel, the Tax Administrator may require that such tax shall be paid directly
to the Tax Administrator.
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the City to
impose the tax herein provided;
(b) Any Federal officer or employee when occupying a room while on official business;
(c) Any officer or employee of a foreign government who is exempt by reason of express
provision of Federal law or international treaty;
RESOLUTION NO. 22-801
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(1) The name of the Operator;
(3) The date upon which the certificate was issued;
(4) This Transient Occupancy Registration Certificate signifies that the person named on
the face hereof has fulfilled the requirements • Article VI, Chapter 1A of the Downey Municipal
Cgoeb registeri% with the Tax Administrator for the purpose of collecting from Transients the
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Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does
not authorize any person to conduct any unlawful business or to conduct any lawful business in
an unlawful manner, nor to operate a Hotel without strictly complying with all local applicable laws,
including, but not limited to those requiring .. from any board, commission, department •,
office of this City. This certificate does not constitute a permit.
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or at the close of any shorter reporting period which may be established by the Tax Administrator
shall make a return to the Tax Administrator, on forms provided by him, of the total Room Rentals
charged and received and the amount of tax collected for Transient occupancies. At the time the
return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The
Tax Administrator may establish shorter reporting periods for any certificate holder if he deems it
necessary in order to insure collection of the tax and he may require further information in the
return. Returns and payments are due immediately upon cessation of business for any reason.
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.
(a) Original Delinquency. Any Operator who fails to remit any tax imposed by this chapter within
the time required shall •. a •- • ten •- (10%) •: the amount of the tax in addition to
the • • the tax.
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(d) Interest. In addition to the penalties imposed, any Operator who fails to remit any tax imposed
by this chapter shall pay interest at the rate of one-half of one percent (.50%) per month orfraction
thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance
first became delinquent until paid.
RESOLUTION NO. 22-8091
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portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as
he or she may deem best to obtain facts and information on which to base his or her estimate of
the tax due. As soon as the Tax Administrator shall procure such facts and information as he or
and payable by any Operator who has failed or refused to collect the same and to make such
report and remittance, he or she shall proceed to determine and assess against such Operator
the tax, interest and penalties provided for by this chapter. In case such determination is made,
the Tax Administrator shall give notice of the amount so assessed by serving it personally or by
depositing it in the United States mail, postage prepaid, addressed to the Operator so assessed
at his last known place of address. Such Operator may within ten (10) days after the serving or
mailing of such notice make application in writing to the Tax Administrator for a hearing on the
amount assessed. If application by the Operator for a hearing is not made within the time
prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall
become final and conclusive and immediately due and payable. If such application is made, the
Tax Administrator shall give not less than five (5) days' written notice in the manner prescribed
herein to the Operator to show cause at a time and place fixed in said notice why said amount
specified therein should not be so fixed for such tax, interest and penalties. At such hearing, the
Operator may appear and offer evidence why such specified tax, interest and penalties should
not be so fixed. After such hearing the Tax Administrator shall determine the proper tax to be
remitted and shall thereafter give written notice to the person in the manner prescribed herein of
such determination and the amount of such tax, interest and penalties. The amount determined
to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section
6134.
Any Operator aggrieved by any decision of the Tax Administrator may appeal the decision to the
City Manager by filing a notice of appeal with the City Clerk within fifteen (15) days of the serving
or mailing of the determination of tax due. The City Manager shall fix a time and place for hearing
such appeal, and the City Clerk shall give notice in writing by mail to such Operator at his or her
last known place of address. The findings of the City Manager or his designee shall be final and
conclusive and shall be served upon the appellant in the manner prescribed above for service of
notice of hearing. Any amount found to be due shall be immediately due and payable upon the
mailing of the City Manager's or his designee's findings.
It shall be the duty of every Operator liable for the collection and payment to the City of any tax
imposed by this chapter to keep and preserve, for a period of three (3) years, all records as may
be necessary to determine the amount of such tax as he may have been liable for the collection
of and payment to the City, which records the Tax Administrator shall have the right to inspect at
all reasonable times.
RESOLUTION NO. 22-801
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(a) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than
ince or has been erroneously or illegally collected or received by the City under this chapter, it
may be refunded as provided in this section.
(b) No refund may be made except upon a written claim verified by the person who paid the tax,
or by his or her guardian or conservator, or by the executor or administrator of his or her will or
estate. The written claim must be presented to the Tax Administrator within one (1) year after the
payment of the amount sought to be refunded, and must state the grounds upon which the claim
is made. An Operator may claim a refund or claim a credit against taxes collected but not yet
remitted to the City of the amount overpaid, paid more than once, or erroneously or illegally
collected. However, in the case of a tax erroneously or illegally collected by the Operator but not
yet remitted to the City, no refund shall be allowed unless a written, verified claim has been
submjftgd�tQ the 0 ra r, in the form prescribed above, bv the person who paid the tax, and the
Pe to
amount thereof has either been refunded by the Operator to the person who paid the tax, or
credited against Room Rental subsequently payable by such person.
(c) No refund shall be paid under the provisions of this section unless a written claim for refund
is presented according to this section. No suit for money, damages, or a refund may be brought
against the City until a written claim for the refund has been presented to the City and has been
acted upon or has been deemed to be rejected by the City, in accordance with this section. Only
the person who filed the claim may bring such a suit, and if another person should do so, judgment
shall not be rendered for the plaintiff. .
(d) No refund shall be paid under the provisions of this section unless the claimant establishes
'r-lis right thereto by written records showing entitlement thereto.
Any tax required to be paid by any Transient under the provisions of this chapter shall be deemed
a debt owed by the Transient to the City. Any such tax collected by an Operator which has been
paid to the City shall be deemed a debt owed by the Operator to the City. Any person owing
money to the City under the provisions of this chapter shall be liable to an action brought in the
name of the City of Downey.
(a) The Tax Administrator shall have the power and duty, and is hereby directed to enforce each
and all provisions of this Ordinance.
(b) The Tax Administrator shall have the power to adopt rules and regulations not inconsistent
with the provisions of this Ordinance for the purpose of carrying out and enforcing the payment,
collection and remittance of the taxes herein imposed. A copy of such rules and regulations shall
be on file in the Tax Administrator's office.
(o) The Tax Administrator shall review all claims for exemption and ohmU determine the eligibility
RESOLUTION NO. ;0'
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Thepeople of of Downeit affirm thit 12,g1j"ra • • r
•i r'r • r • • f i • . r f • r
fapproval:
restoration of of r a rate that is no higher
set b-�rth—isvoter-
of
• An action• or i•1 i`i of or definition
applicable to the tax, so long as interpretationor clarification if f • some
prior interpretationor f not inconsistent with the languageof • ..
establishmentofa classof person or • or •` 1 from
the tax or discontinuation of f r or exception(other
wholediscontinuation of an exemption or exception explicitly set forth in this chapter); and
(d) Resuming collection of the tax imposed by this chapter, even if the City had, for
some period of time, either suspended collection of the tax or otherwise failed to collect
the tax, in or r.
SECTION 2. The transient occupancy tax set forth herein shall be collected and
administered in the manner set forth in Chapter 1A of the City of Downey Municipal Code.
SECTION3. Pursuant to Article XIIIB of the California Constitution, the appropriation limit
for the City of Downey will be increased by the maximum projected aggregate collection
authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered
bW this Ordinance _vlus t- _ f • - .s• •• • •- _ -• _
resultof - levy of general t- -t forth in this Ordinance.
SECTION 4. If any portion of this Ordinance declared invalid by • of or other
RESOLUTION NO. 22-801
PAGE 15
521M;=*
MARIA ALICIA DuARTE, CIVIC
City Clerk
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