HomeMy WebLinkAboutCity Council - 2020-24 RESOLUTION NO. 2020-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF TRANSIENT
OCCUPANCY TAXES IN RESPONSE TO COVID-19
WHEREAS, pursuant to Chapter 3.28 of the Huntington Beach Municipal Code
("HBMC"), a Uniform Transient Occupancy Tax (TOT) was adopted and established to provide
a tax on the rent charged in a hotel by the operator of said hotel; and
Each hotel and motel operator is required to collect the TOT at the same time as the room
rent is collected from every hotel guest. The full amount of TOT collected is due and payable
and must be must be remitted to the City Treasurer by the last business day of the first month
following the collection of the tax or deemed delinquent and subject to the penalties.
COVID-19 pandemic has cause tremendous negative impacts to the global and local
economies. Many of the Huntington Beach businesses experienced significant losses of income
as a result. The steep and. sudden drop in revenues has made it extremely difficult for businesses
to keep up with ongoing costs. Many businesses have furloughed and/or laid off employees and
in some cases are at risk of going out of business.
The Governor's "Stay at Home" order and travel restrictions have caused a devastating
impact on the travel industry. Consequently, the City has had an unprecedented drop in the
occupancies of its 24 hotels and motels. Some hotels have temporarily closed and furloughed
their employees. It is estimated that the occupancy rate of the hotels could be as low as 4%.
This deferral of TOT will give temporary relief to our valued hotel and motel businesses
during these difficult economic times. Hotels and motels will still be required to collect the tax
and submit monthly reports to the City of the taxes and assessments collected as required by
HBMC Chapter 3.28.
In response to COVID-19, the date upon which the TOT is due to the City will be
temporarily extended until July 31, 2020. This will protect the health, safety and welfare of the
citizens of Huntington Beach by allowing hotel and motel businesses some temporary financial
security.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
SECTION 1. The City Council of the City of Huntington Beach adopts the following
policy regarding the payment of TOT:
In the spirit of the Governor's Order N-28-20, the City will extend the time to pay TOT
until July 31, 2020, to all existing hotels and motels because of the hardships caused by the
COVID-19 pandemic. The TOT must be collected from each guest and TOT reports compiled,
RESOLUTION NO. 2020-24
however, the TOT will not be due until July 31, 2020 for fees and assessments charged and/or
collected from March 1 to June 30, 2020 period. City Council delegates to the City Manager the
authority to provide a program for the repayment TOT during this time period. City Council also
delegates to the City Manager the authority to extend the deferral period past July 31, 2020. In
no event will the deferral extend beyond September 30, 2020. In any case, the City will provide
a no-interest repayment arrangement option for a period not to extend past June 30, 2021.
SECTION 2. If any action, subsection, sentence, clause or phrase of this Resolution shall
be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not
affect the validity of the remaining portions of this Resolution, the, or other attachments thereto
or fees levied by this Resolution.
SECTION 3. This Resolution shall take effect immediately and apply retroactively to
March 16, 2020.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 20th day of April _' 2020.
Mayo
VIE AND R V INITIATED AND APPROVED:
City Manager Chief Financial Officer
APPROVED AS TO FORM:
, I � � )vq�
�„ ity Attorney
2
20-8601/228471
Res. No. 2020-24
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on April 20, 2020 by the following vote:
AYES: Posey, Delgleize, Hardy, Semeta, Peterson, Carr, Brenden
NOES: None
ABSENT: None
RECUSE: None
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City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California