HomeMy WebLinkAboutOrdinance - 2019-O0128 - Collection Of Hotel Occupancy Tax For Short Term Rentals - 09/10/2019 First Reading Second Reading
August 27, 2019 September 10, 2019
Item No. 7.15 Item No. 7.16
ORDINANCE NO. 2019-00128
AN ORDINANCE AMENDING ARTICLE 18.03 "HOTEL OCCUPANCY
TAX"OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS,
WITH REGARD TO THE LEVY AND COLLECTION OF HOTEL OCCUPANCY
TAXES FOR SHORT TERM RENTALS; PROVIDING A SAVINGS CLAUSE;
PROVIDING A PENALTY; AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City of Lubbock deems it to be in the best
interests of the health, safety and welfare of the citizens of the City of Lubbock to make
the following amendment to Section 20.05.011 of the Code of Ordinances of the City of
Lubbock,Texas in order to comply with amended state law;NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK;
SECTION 1. TI-IAT Article 18.03, of the Code of Ordinances of the City of
Lubbock,Texas, is hereby amended to read as follows:
Sec. 18.03.001 Levy; rate; use
(a) There is hereby levied a tax upon the cost of occupancy of any sleeping room
furnished by any hotel or short term rental, as defined in Sec. 40.06.001, Article 40.06,
Chapter 40,where such cost of occupancy is at the rate of two dollars($2.00)or more per
day, such tax to be equal to seven(7) percent of the consideration paid by the occupant of
such room to any hotel or short term rental, exclusive of other occupancy taxes imposed
by other governmental agencies.
(b) Issuance of bonds,• use of funds.
(1) In the event the city council should in the future determine that revenue bonds should
be issued for the purposes stated in the Texas Government Code, section 1504.002(a), all
or any part of the tax levied under subsection (a) above may be pledged as security for
revenue bonds issued pursuant to the aforesaid statute.
(2) The funds received from the tax levied under subsection (a) shall be distributed in
accordance with state law and resolution of the city council.
(c) No tax shall be imposed under this article when state law provides an exemption
fiom this tax.
See. 18.03.002 Collections
(a) Every person operating,managing,or controlling any hotel or short term rental shall
collect the tax imposed in section 18.03.001 of this article for the city.
(b) Every person collecting the tax as provided in subsection(a)of this section is hereby
authorized to retain from the tax collected by such person one (1) percent of the tax
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collected to reimburse said person for that person's efforts in collecting said tax for the
city.
(c) Notwithstanding the one-percent reimbursement provided for in subsection (b) of
this section,no reimbursement shall be authorized or allowed in any case where the person
collecting the tax fails to pay said tax over to the city or fails to file reports with the city
as required by section 18.03.003 of this article. In every case where the person collecting
the tax fails to pay said tax to the city or fails to file the reports required by section
18.03.003 of this article, said one-percent reimbursement fee shall be forfeited and the
total tax collected shall be due the city.
Sec. 18.03.003 Reports
(a) On the last day of the month, every person required in section 18.03.002 of this
article to collect the tax imposed herein shall file a report with the city showing the
consideration paid for all room occupancies in the preceding month,the amount of the tax
collected on such occupancies, and any other information as the city may reasonably
require. Such person shall pay the tax due on such occupancies at the time of filing such
report.
(b) If the taxpayer is a hotel operator or owner and owes less than$500.00 for a calendar
month or$1,500.00 for a calendar quarter,the taxpayer qualifies as a quarterly filer having
a reporting period of a calendar quarter and taxes are due and payable at the end of the
month after the end of the calendar quarter.
(c) Payment, whether monthly or quarterly, shall be made by check, money order,
automatic electronic transfer, cash, or online at www.ci.lubbock.tx.us. No other method
of payment will be accepted.
Sec. 18.03.004 Rules and regulations
The city shall have the power to make such rules and regulations as are necessary to
effectively collect the tax levied herein, and shall, upon reasonable notice have access to
books and records necessary to determine the correctness of any report filed as required
by this article and the amount of taxes due under the provisions of this article.
Sec. 18.03.005 Penalties; disclosure of information; examination of records
(a) Penalties. If any person shall fail to collect the tax imposed in this article, or shall
fail to file a report as required herein,or shall fail to pay to the city the tax imposed herein
when said report for payment is due, or shall file a false report, then such person shall be
deemed guilty of a misdemeanor. In addition, such person who fails to remit the tax
imposed by this article within the time required shall forfeit five(5)percent of the amount
due as a penalty, and after the first thirty (30) days it shall forfeit an additional five (5)
percent of such tax;provided,however,that the penalty shall never be less than one dollar.
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Delinquent taxes shall draw interest at the rate of six (6) percent per annum beginning
sixty (60)days from the date due.
(b) Disclosure of information; examination of records.
(1) It shall be a misdemeanor for any official or employee of the city to make known in
any manner whatever the business affairs, operations, or information obtained by an
investigation of records and activities of any hotel or short term rental visited or examined
in the discharge of official duty, or the amount or source of income, profits, losses,
expenditures,or any particular thereof set forth or disclosed in any return,or to permit any
return or copy thereof, or any book containing any abstract or particulars thereof to be
seen or examined by any person not connected with the city.
However,the city manager may, by general or special order,authorize examination by
state officers, by the federal government, if a reciprocal arrangement exists, or by any
other person of the records maintained by the city under this article.
Nothing herein contained shall be construed to prevent: the delivery to a taxpayer, or
his or her duly authorized representative, of a copy of any report or other paper filed by
him or her pursuant to the provisions of this article; the publication of statistics so
classified as to prevent the identification of a particular report and the items thereof; the
use of such records, reports or information secured, derived or obtained by the city
attorney or the city under the terms of this article in any action against the same taxpayer
for a penalty or any tax due under any provision of this article.
(2) Successors,receivers,trustees,executors,administrators,assignees,and guarantors,
if directly interested, may be given information as to the items included in the measure
and amounts of any unpaid tax or amounts of tax required to be collected, interest, and
penalties.
SECTION 2. THAT should any paragraph, section, sentence, phrase, clause or
word of this Ordinance be declared unconstitutional or invalid for any reason, the
remainder of this Ordinance shall not be affected thereby.
SECTION 3. THAT violation of any provision of this Ordinance shall be a
misdemeanor punishable in accordance with state law and Section 1.01.004 of the Code
of Ordinances of the City of Lubbock.
SECTION 4. THAT the City Secretary is hereby authorized and directed to
cause publication of the descriptive caption of this Ordinance as an alternative method
of publication as provided by law.
AND SO IT IS ORDERED.
Passed by the City Council on first reading this 27thiay of August , 2p 19
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Passed by the City Council on second reading this 10th day of September , 2019.
Ll�
DANIEL M. POPE, MAYOR
ATTEST:
Rebe ca Garza, City Secreta y
APPROVED AS TO CONTENT:
D. Blu Ko elich, Chi-e'rTrht&p4tl Officer
APPROVED AS TO FORM:
elli Leisure, Assistant City Attorney
Ord.Amend.1-10T
08.19.19
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