Ordinance 15-13 Enacting a Hotel, Motel, Inn, Bed and Breakfast Tax

CITY OF HOMER

HOMER, ALASKA

               Lewis

ORDINANCE 15-13

AN ORDINANCE OF THE HOMER CITY COUNCIL, ENACTING HOMER CITY CODE CHAPTER 9.20, HOTEL TAX; AND SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY AT THE OCTOBER 6, 2015 REGULAR CITY ELECTION THE QUESTION OF LEVYING A TAX OF 2.5% IN ADDITION TO THE GENERAL CITY SALES TAX ON RENT FOR OCCUPANCY OF A ROOM IN A HOTEL, MOTEL, INN, BED AND BREAKFAST OR SIMILAR STRUCTURE.

THE CITY OF HOMER ORDAINS:

Section 1. Homer City Code 9.20, Hotel Tax, is enacted to read as follows:

Chapter 9.20 - HOTEL TAX

9.20.010             Definitions

9.20.020             Levy of tax; allocation tax revenues

9.20.010 Definitions. In this chapter,

“Guest” means a person who pays rent for the transient occupancy of a hotel room.

“Hotel” means a structure in the city containing one or more rooms that are rented or offered for rent for transient occupancy for dwelling, lodging, or sleeping purposes and includes any hotel, motel, inn, bed and breakfast or similar structure.

“Operator” means a person who owns, operates or controls a hotel, the rent for one or more rooms in which is taxable under this chapter.

 “Rent” means the amount of money, and the fair market value of consideration other than money, given in exchange for the right to transient occupancy of a hotel room.

“Transient occupancy” means occupancy for fewer than 30 consecutive days. An employee’s occupancy for fewer than 30 days of a room that is rented by an employer for more than 30 consecutive days for use basis by employees on a rotating is not a transient occupancy.

9.20.020 Levy of tax; allocation tax revenues.

a. Subject to the remainder of this chapter, a tax of two and one-half percent (2.5%) of the rent is levied on all rent.   This tax is in addition to the tax levied under Chapter 9.16.

b. Revenues from the tax levied under (a) of this section shall be allocated as follows:

1. Twenty five percent (25%) shall be allocated to parks, arts, recreation and culture programs in the city.

2. Twenty percent (20%) shall be allocated to council-approved programs to market and promote the city.

3. Ten percent (10%) shall be allocated to funding of street reconstruction improvements and related utilities, construction of new local roads, and construction of new local trails.

4. Ten percent (10%) shall be allocated to funding debt retirement of the sewer treatment plant improvements, and to the extent revenues from such tax exceed such debt retirement obligations, for the purpose of funding water and sewer systems.

5. Thirty five percent (35%) shall be allocated to the general fund of the city to be appropriated as determined by the council.

Section 2. The City shall submit the following proposition to the qualified voters of the City at the October 6, 2015, regular City election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved.

PROPOSITION NO. ___

TAX ON RENT FOR OCCUPANCY OF A ROOM IN A HOTEL, MOTEL, INN, BED AND BREAKFAST OR SIMILAR STRUCTURE

               Shall the City of Homer levy a tax of two and one-half percent (2.5%) on all rent for occupancy of a room in a hotel, motel, inn, bed and breakfast or similar structure for dwelling, lodging, or sleeping purposes for fewer than 30 consecutive days, in addition to the City’s general sales tax?

               Revenues from the tax shall be allocated as follows:

1. 25% to parks, arts, recreation and culture programs in the city.

2. 20% to council-approved programs to market and promote the city.

3. 10% to funding the Homer Accelerated Roads and Trails Program.

4. 10% to funding the Homer Accelerated Water Sewer Program.

5. 35% to the general fund of the city to be appropriated as determined by the council.

Section 3. The proposition shall be printed on paper ballots and machine ballots, and the following words shall be added as appropriate next to an oval provided for marking the ballot for voting by hand or machine:

               PROPOSITION NO. __

               O            Yes

               O            No

Section 4.  Section 1 of this ordinance is of a permanent and general character and shall be included in the city code. 

Section 5. Sections 1 and 4 of this ordinance shall become effective only (i) if the proposition described in Section 2 is approved by a majority of the qualified voters voting on the proposition at the October 6, 2015, regular City election, and (ii) upon the effective date of an ordinance of the Kenai Peninsula Borough authorizing the City to levy the tax described in Section 1. The remaining sections of this ordinance shall become effective upon adoption.

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this ____ day of ______________ 2015.

CITY OF HOMER

______________________
MARY E. WYTHE, MAYOR

ATTEST:

____________________________

JO JOHNSON, MMC, CITY CLERK

AYES:

NOES:

ABSTAIN:

ABSENT:

First Reading:

Public Hearing:

Second Reading:

Effective Date:

Reviewed and approved as to form:

                                                                                                                                                                                                  
Mary K. Koester, City Manager                                                          Thomas F. Klinkner, City Attorney

Date: _________________________                                              Date: _________________________