HomeMy WebLinkAbout99-11 - Ad Hoc Committee on Resort Tax Policies EstablishmentsRESOLUTION NO. 99 -11
A RESOLUTION
OF THE CITY OF NEWPORT BEACH
ESTABLISHING THE AD HOC COMMITTEE
ON RESORT TAX POLICIES
WHEREAS, the City of Newport Beach levies a 10% Transient Occupancy Tax (`TOT ")
on the room rental rate paid by visitors or transients to the community; and
WHEREAS, TOT generates approximately $7.6 million for the City each year, making it
the City General Fund's third largest revenue source; and
WHEREAS, the City seeks to maximize the amount of revenue collected through TOT in
order to continue providing high quality municipal services to both visitors and residents; and
WHEREAS, the City has recently seen a renewed interest in the placement of privately -
owned or "timeshare" resort developments and "extended stay" hotels in the region; and
WHEREAS, plans for the expansion of the Newport Dunes Resort include a timeshare
component that may lead to up to 100 timeshare units at the Dunes; and
WHEREAS, California Revenue and Taxation Code §7280 and Chapters 3.16 and 20.84
. of the Newport Beach Municipal Code are relevant to the City's collection of TOT; and
WHEREAS, these State laws and City ordinances on TOT may limit the City's ability to
appropriately recover the service costs associated with timeshare ownerships and /or extended
stay hotels; and
WHEREAS, the City Council believes that the increasing number and variety of visitor -
serving facilities warrants a review of current City ordinances regarding the collection of TOT
and recommendations regarding any appropriate changes to the Newport Beach Municipal
Code;
NOW, THEREFORE BE IT RESOLVED, that the Newport Beach City Council does
hereby form the Ad Hoc Committee on Resort Tax Policies. The Committee shall review State
law and the City's current ordinances relating to TOT administration and collection on resort
uses, including timeshares and extended stay hotels. The Committee shall evaluate these
issues in the context of the hotel and timeshare component of the proposed expansion of the
Newport Dunes Resort and discuss with the Dunes representatives possible terms and
conditions of the development agreement or zoning ordinance that could serve as a model for
future timeshare projects. After completing this review, the Committee shall return to the full
City Council with recommendations for ordinance amendments and /or changes to the Dunes'
development agreement or zoning documents as the Committee deems appropriate; and
BE IT FURTHER RESOLVED, that the Ad Hoc Committee on Resort Tax Policies shall
• consist of three members of the City Council serving as voting members and a representative
of the Newport Beach Conference and Visitors Bureau (NBCVB) as an ex officio member. The
City Manager shall determine and assign appropriate staff support for the Committee.
ADOPTED this 22nd day of February, 1999.
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MAYOR
ATTEST:
CITY CLERK
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 99 -11, was duly and regularly introduced before and adopted by the
City Council of said City at a regular meeting of said Council, duly and regularly held on the 22nd day
of February, 1999, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 23rd day of February, 1999.
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(Seal)
CJ
M, Naw�
City Clerk of the City of
Newport Beach, California