Ord 2290 - Amend Transient Tax
COUNCIL BILL NO. 2317
ORDINANCE NO. 2290
AN ORDINANCE AMENDING ORDINANCE NO. 2057 (THE TRANSIENT
OCCUPANCY TAX ORDINANCE) TO DEDICATE A CERTAIN PERCENTAGE OF
THE TRANSIENT OCCUPANCY TAX TO TOURISM AND ECONOMIC
DEVELOPMENT AND TO RAISE THE AMOUNT OF SAID TAX.
WHEREAS, on 1991 the City enacted Ordinance No. 2057, imposing a transient
occupancy tax; and
WHEREAS, under the provisions of Ordinance No. 2057 the transient occupancy tax
has been used by the City as discretionary revenue; and
WHEREAS, the Council finds that it is now in the City's interest to dedicate a certain
portion of the transient occupancy tax to support tourism and economic development; and
WHEREAS, the Council further finds that in order to accommodate the City's needs, the
transient occupancy tax should be increased from six percent (6%) to nine percent (9%) of the
rent charged by operators under the transient occupancy tax ordinance; NOW, THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Section 2 of Ordinance No. 2057 is hereby amended to read as follows:
Section 2. Imposition of Tax. For the privilege of occupancy in a hotel, a
transient shall pay a tax in the amount of nine percent (9%) of the rent charged by
the operator. The tax constitutes a debt owned by the transient to the City, and
the debt is extinguished only when the tax is remitted by the operator to the City.
The transient shall pay the tax to the operator of the hotel at the time the rent is
paid. The operator shall enter the tax into the records when rent is collected if the
operator keeps his records on the accrual accounting basis. If rent is paid in
installments, a proportionate share of the tax shall be paid by the transient to the
operator with each installment. If for any reason the tax due is not paid to the
operator of the hotel, the tax administrator may require that the tax be paid
directly to the City. In all cases, the rent paid or charged for occupancy shall
exclude the sale of any goods, services and commodities other than the furnishing
of rooms, accommodations, and parking space in mobile home parks, trailer parks
or recreation vehicle parks.
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ORDINANCE NO. 2290
Section 2.
Section 23 of Ordinance No. 2057 is hereby amended to read as follows:
Section 23. Disposition of Tax Funds. All revenue received from the transient
occupancy tax shall be accounted for by a special line item account contained in
the general fund. Sixty-six and two-thirds percent (66 2/3%) of all revenues
received from the transient occupancy tax shall be used at the City Council's
discretion. Thirty-three and one-third percent (33 1/3%) of all revenues received
from the transient occupancy tax shall be dedicated to uses that promote and
support tourism and economic development activities. Of the amount dedicated
to tourism and economic development, one-third (1/3) shall solely be used to
plan, produce and promote City-sponsored celebrations and special events. The
remaining 2/3 shall be used to promote and support other tourism and economic
development activities in the community. These monies shall be distributed on an
annual basis to qualified agencies and organizations on a fee-for-services basis,
pursuant to a tourism and economic development grant program. Policies and
procedures governing that program may be established by City Council
resolution.
Approved as to form:~' ~ ~ ~ - 7- - z () 0 (
N. Robert Shields, City Attorney Date ./
Approved:<'~~ ~ ~
lli.chard Jennmgs,~lay&.
Passed by the Council June 11. 2001
Submitted to the Mayor June 12, 2001
Approved by the Mayor June 12, 2001
Filed in the Office of the Recorder June 12, 2001
ATTEST: fJ1~ --Z;::~
Mary Te nt, City Recorder
City of Woodburn, Oregon
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ORDINANCE NO. 2290