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103-Exhibit A - Draft Ordinance.pdf
EXHIBIT A DRAFTORDINANCENO. 11- ANORDINANCEOFTHECITYCOUNCILOFTHECITYOFCUPERTINO AMENDINGCHAPTER 3.12.030 OFTHEMUNICIPALCODE INCREASINGTHE TRANSIENTOCCUPANCYTAXRATE THECITYCOUNCILOF THECITYOFCUPERTINODOESHEREBYORDAIN ASFOLLOWS: WHEREAS, since 1965 transient hotelguests have paida TransientOccupancy Tax(TOT) on hotelroomsinCupertino.Likemany otherCaliforniacities,Cupertino usesthisfundingto provideessential publicservicesthroughitsgeneralfund,andwithoutthisrevenue,theCity would beforcedtocutfundingthat supports:libraryservices,neighborhood police patrols,rapid 9-1-1emergencyresponsetimes,city streetmaintenance,currentlevels ofpolice officers,and schooltrafficsafetyandcrossingguards;and WHEREAS,therate ofthe TOT hasbeenten percent(10%) since 1991;and WHEREAS,manyresidentsliveinCupertino becauseit offersa higherlevel of service, programsand quality oflifethan neighboringcities;and WHEREAS, TOTisanimportantrevenue sourceandincreasingthatrevenuetothe general fundwillensurethattheCitycanmaintainthe high quality of public safety, supportlibrary services,maintaincity streets,andcontinueassistingwith schooltraffic safetyandcrossing guards;and WHEREAS, TOTis paidby hotelguests onlyandnot directlybyCupertinoresidents;and WHEREAS,anincreaseinthe TOTratetotwelve percent(12%)wouldhelpmaintaincity services,includinglibraryservices, neighborhood police patrols,city streets, 9-1-1emergency responsetimes,currentlevels of police officers,and schooltrafficsafetyandcrossingguards. NOW THEREFORE,thePeople oftheCity ofCupertino do ordainasfollows: Section I.Code Amendment.Chapter 3.12.030. oftheCupertino MunicipalCodeis herebyamendedtoreadasfollows: Forthe privilege of occupancyinany hotel,eachtransientis subjecttoandshall payatax intheamount oftwelvetenpercent oftherentchargedbythe operator. Thetaxconstitutesa debt owedbythetransienttotheCity,whichisextinguished onlybypaymenttothe operator or totheCity. Thetransient shall paythetaxtothe operator ofthe hotelatthetimetherentis paid.Iftherentis paidininstallments,a proportionate share ofthetax shall be paidwitheach installment. The unpaidtax shall be due upon thetransient’sceasingtooccupy spaceinthe hotel.Ifforanyreasonthetax dueis not paidtothe operator ofthe hotel,the TaxAdministrator mayrequirethat suchtaxis paid directlytotheTaxAdministrator. Section 2.EffectiveDate.ThisOrdinance shalltakeeffectJanuary 1, 2012 if approvedbyamajorityvote oftheelectorate voting on theissue,attheGeneral Municipal Electionto be heldNovember 8, 2011 withintheCityofCupertino.If soapproved,theCity Clerk shallcertifytoadoption ofthisOrdinance. Section 3.Severability .Shouldany provision ofthisOrdinance, oritsapplicationto anyperson orcircumstance, bedeterminedbyacourt ofcompetentjurisdictionto be unlawful, unenforceableor otherwise void,that determination shall have no effect onany other provision ofthisOrdinanceortheapplication ofthisOrdinancetoany otherpersonorcircumstanceand,to thatend,the provisions hereofareseverable. Section 4. Amendment or Repeal.Chapter 3.12.030 oftheCupertino Municipal CodemayberepealedoramendedbytheCityCouncilwithouta vote ofthe people.However, asrequiredbyArticleXIIICoftheCaliforniaConstitution, voterapprovalisrequiredforany amendment provisionthatwouldincreasetherateofanytaxlevied pursuanttothisOrdinance. ThePeople oftheCityofCupertinoaffirmthatthefollowingactions shall notconstitutean increase oftherate ofatax: 1.Therestoration oftherate ofthetaxtoaratethatis no higherthanthat set bythisOrdinance,iftheCityCouncil hasactedtoreducetherate ofthe tax; 2.Anactionthatinterprets orclarifiesthemethodology ofthetax, orany deductionapplicabletothetax,aslongasinterpretation orclarification (evenifcontraryto some priorinterpretation orclarification)is not inconsistentwiththelanguage ofthisOrdinance. 3.Theestablishment ofaclass of personsthatisexempt orexceptedfrom thetax orthe discontinuation ofany suchexemption orexception(other thanthe discontinuation ofanexemption orexception specifically setforth inthisOrdinance);and 4.Thecollection ofthetaximposedbythisOrdinance,eveniftheCityhad, for some periodoftime,failedtocollectthetax. Section 5.RatificationofPriorTax.ThevotersoftheCityofCupertinohereby ratifyandapprovethepastcollectionoftheTransientOccupancyTaxunderChapter3.12.030of theCupertino MunicipalCodeasitexisted priortotheeffective dateofthisOrdinance. Section6.Certification.TheMayorisherebyauthorizedtosignwhereindicated belowtocertifytotheadoption ofthisOrdinance. th PASSED,APPROVEDandADOPTEDbythePeopleoftheCityofCupertinothis 8 dayofNovember, 2011. GilbertWong Mayor,City ofCupertino ATTEST: ____________________ KimSmith,CityClerk