HomeMy WebLinkAboutEstablish Payment Deferral Programs for Business License Ren A901wvub Its kr1EN�ED
9-o
Ta 2E�-lovE�v sin r�o v
City of Huntington Beach
f,2 6_TVa v 7a 7 C 5�/yl.Zo
CITY e0Uj#jcIL HC,&7WAJ6
File #: 20-1577 MEETING DATE: 4/20/2020
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
Request for Approval to Establish Payment Deferral Programs for Business License Renewal
Taxes and Fees, Transient Occupancy Taxes, and BID assessments collected by the City in
Response to COVID-19 - Resolution Nos. 2020-24, 2020-25, 2020-26 and 2020-27
Statement of Issue:
In response to the economic effects of the COVID-19 pandemic, staff is requesting approval to
establish a payment deferral program for business license renewals and transient occupancy taxes
(TOT), covering the period of March 1, 2020. through July 31 , 2020. Pursuant to the proposed
program parameters, given the uncertain nature of the COVID-19 situation, the payment deferral
period could be extended through September 30, 2020, unless changes are directed by the City
Council. In addition, the proposed programs may include BID assessments collected by the City as
part of the business license and TOT collection process.
Financial Impact:
Given the design of the proposed program, any business license and TOT revenues due to the City
will still need to be paid in full by June 30, 2021. However, given the current fiscal challenges
presented by the COVID-19 situation, the deferral program has been developed to provide business
support in a manner that does not relieve the obligation of businesses, hotels and motels to pay their
requisite taxes, fees, and assessment.
Recommended Action:
A) Adopt Resolution 2020-25 related to the establishment of a business license payment deferral
program for renewals; and,
B) Adopt Resolution 2020-24 related to the establishment of a TOT payment deferral program; and,
C) Adopt Resolution 2020-26 and 2020-27 related to the establishment of a BID payment deferral
program, which would be instituted if the City were directed to do so by each respective BID.
Alternative Action(s):
City of Huntington Beach Page 1 of 3 Printed on 4/15/2020
powered by LegistarT°
File #: 20-1577 MEETING DATE: 4/20/2020
Do not approve the recommended action and direct staff accordingly.
Analysis:
On March 16, 2020, the Governor ordered the closure of all non-essential businesses in response to
the COVID-19 pandemic. The COVID-19 outbreak has caused tremendous impacts to the global
and local economy. 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.
Furthermore, 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 current occupancy rate of the hotels could be as low as 4% and
may decrease even further in the coming months.
In order to give relief to Huntington Beach businesses, staff recommends that City Council approve a
policy to defer payment of Business License Renewal Taxes and Fees and Transient Occupancy
Taxes, along with the possible deferral of BID Assessments, in response to COVID-19 until July 31,
2020, for fees and assessments charged and/or collected from March 1 - June 30, 2020 period. The
proposed action does not relieve the obligation of businesses, hotels and motels to pay the taxes,
fees and assessments. Under the program, the City will provide a no-interest repayment
arrangement option for a period not to extend past June 30, 2021. The deferral BID assessments is
contingent upon written authorization and approval by each respective BID.
The City of Huntington Beach sends over 21,000 Business License Renewal bills annually in
compliance to Chapter 5.04 of the Huntington Beach Municipal Code. The Business License
Renewals would continue to be mailed to businesses on their annual renewal dates. Hotels and
motels will still be required to submit monthly reports to the City of the taxes and assessments
collected as required by the City's Municipal Code 3.28.090 Transient Occupancy Tax. This deferral
and option for payment plans will give temporary relief to our valued businesses during these difficult
economic times.
This policy may be extended by the City Manager if the COVID-19 pandemic or its effects go past
July 31, 2020, and in no event will the deferral extend beyond fees and/or assessments related to the
September 30, 2020. These timelines are also subject to change based on City Council direction.
Business License Renewal Taxes and Fees due to the City after July 31, 2020, or the extended date
are due within the normal collection cycle. Transient Occupancy Taxes and BID Assessments due to
the City after July 31, 2020, or the extended date, will be payable to the City monthly.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Enhance and maintain high quality City services
City of Huntington Beach Page 2 of 3 Printed on 4/15/2020
powered by LegistarT"
File #: 20-1577 MEETING DATE: 4/20/2020
Improve Quality of Life
Attachment(s):
1 Resolution 2020-25 related to the establishment of a business license payment deferral
program for renewals.
2 Resolution 2020-24 related to the establishment of a TOT payment deferral program.
3. Resolution 2020-26 and 2020-27 related to the establishment of a BID payment deferral
program, which would be instituted if the City were directed to do so by each respective BID.
4. Municipal Code 5.04 Business Licenses and Regulations
5. Municipal Code 3.28 Transient Occupancy Tax
6. Resolution No. 2018-84 Huntington Beach Tourism Business Improvement District
7. Resolution No. 2019-54 Huntington Beach Downtown Business Improvement District
City of Huntington Beach Page 3 of 3 Printed on 4/15/2020
powered by LegistarT'1
City Council/Public Financing AGENDA April 20, 2020
Authority
ADMINISTRATIVE ITEMS
6. 20-1577 Requested for Approval to Establish Payment Deferral Programs
Business License Renewal Taxes and Fees, Transient Occupancy
Taxes, and BID assessments collected by the City in Response to
COVID-19 - Resolution Nos. 2020-24, 2020-25, 2020-26 and- 2-02-0_27
Recommended Action:
A) Adopt Resolution 2020-25 related to the establishment of a business license payment
deferral program for renewals; and,
B) Adopt Resolution 2020-24 related to the establishment of a TOT payment deferral program;
and,
C) Adopt Resolution 2020-26 and 2020 27 related to the establishment of a B I D payment deferral
program, which would be instituted if the City were directed to do so by each respective BID.
Approved as amended 7-0 to remove consideration of Resolution No. 2020-27
and return to the May 4, 2020 city council meeting.
7. 20-1578 Emergency Facility Use Agreement between the County of Orange
and the City of Huntington Beach to Establish a Temporary
Alternative Shelter Site at 17631 Cameron Lane to Respond to the
COVID-19 Pandemic.
Recommended Action:
Authorize the City Manager to execute, in a form approved by the City Attorney, the "Emergency
Facility Use Agreement between the County of Orange and the City of Huntington Beach" to establish
a temporary alternative shelter site at 17631 Cameron Lane to respond to the COVID-19 pandemic.
Approved 7-0
8. 20-1569 Adopted Resolution No. 2020-21 Approving and Implementing the
Memorandum of Understanding Between the Huntington Beach
Police Officers' Association and the City of Huntington Beach for
January 1, 2020, through June 30, 2023
Recommended Action:
Adopt Resolution No. 2020-21, "A Resolution of the City Council of the City of Huntington Beach
Approving and Implementing the Memorandum of Understanding Between the Huntington Beach
Police Officers' Association (HBPOA) and the City for January 1, 2020 through June 30, 2023."
Approved 4-3 (Hardy, Semeta, Peterson— No)
20-1570 Adopted Resolution No. 2020-20 Approving and Implementing the
Memorandum of Understanding Between the Huntington Beach
Management Employees' Organization (MEO) and the City of
Huntington Beach for November 1, 2019, through October 31, 2020
Page 3 of 4
ATTACHMENT # 1
RESOLUTION NO. 2020-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF BUSINESS LICENSE
RENEWAL TAXES AND FEES IN RESPONSE TO COVID-19
WHEREAS, Title 5 of the Huntington Beach Municipal Code ("HBMC") establishes the
authority and process for licensing, renewing and setting and collecting fees and taxes for all
businesses, trades, professions, callings and occupations specified in Title 5 along with the
amounts prescribed; and
COVID-19 pandemic has cause tremendous negative impacts to the global and local
economies. In response, on March 16, 2020 the Governor issued Executive Order N-28-20 that
in part, authorizes local governments to suspend water shutoffs and proclaims that many utility
providers, public and private, covering electricity, gas, water, and sewer, have voluntarily
announced moratoriums on service disconnections and late fees for non-payment in response to
COVID-19; and
Executive Order N-28-20 further proclaims that many telecommunication companies,
including internet and cell phone providers, have voluntarily announced moratoriums on service
disconnections and late fees for non-payment in response to COVID-19.
The temporary extension of the date business license renewal taxes and fees are due in
response to COVID-19, will protect the health, safety and welfare of the citizens of Huntington
Beach by allowing 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 business license renewal tax:
In the spirit of the Governor's Order N-28-20, the City will defer payment of business
license renewal taxes and fees until July 31, 2020, to all existing business because of the
hardships caused by the COVID-19 pandemic. The City will continue to mail business license
renewal bills monthly to businesses, however, the taxes and fees 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
of business license tax and fees. 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, 2 02 1.
RESOLUTION NO. 2020-25
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.
VIEWE D APP VED: INITIATED AND APPROVED:
t
�Q Q�
City Manager Chief Financial Officer
APPROVED AS TO FORM:
L ,-�-' U '1�
City Attorney
2
20-8600/228361
Res. No. 2020-25
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
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
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
CVIEAND PROVED: INITIATED AND APPROVED:
City Manager Chief Financial Officer
APPROVED AS TO FORM:
ity Attorney
2
20-8 60 1/22847 1
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
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #3
RESOLUTION NO. 2020-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF HUNTINGTON
BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENTS IN
RESPONSE TO COVID-19
WHEREAS, the Parking and Business Improvement Area Law of 1994, codified at
Streets and Highways Code §36500 et seq. (the "Act") authorizes cities to establish parking and
business improvement areas for the purpose of imposing benefit assessments on businesses for
certain purposes; and
The City Council formed a business improvement area, the Huntington Beach Downtown
Business Improvement District(the "District"), by the passage of Ordinance 3661 on September
7, 2004. The City is proposing to levy an assessment for fiscal year 2016-2017 pursuant to the
process detailed in Streets and Highways Code §36500, et seq.
Each year, the District's Advisory Board prepares and files with the City Clerk a report an
"Annual Report/Operating Budget 2017-2018 Fiscal Year to Date" and "Proposed Budget for
Fiscal Year 2018-2019" (collectively, "Annual Report"); and
Each year, the City Council adopts a resolution declaring its intention to levy an annual
assessment for Fiscal Year 2018-2019 as proposed by the District's Annual Report. This City
Council action authorizes the imposition of an assessment on businesses within the area to pay
for matters listed in the Annual Report/Operating Budget.
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.
This deferral of assessments will give temporary relief to our valued downtown
businesses during these difficult economic times. The deferral of the District assessments is
contingent upon written authorization and approval by the District. Businesses will still be
required to remit the assessments as required by Ordinance 3661 after July 31, 2020.
In response to COVID-19, the date upon which the assessments are due to the City will
be temporarily extended until July 31, 2020 for assessments charged and/or collected from
March 1 to June 30, 2020 period. This will protect the health, safety and welfare of the citizens
of Huntington Beach by allowing downtown Huntington Beach businesses some temporary
financial security.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
RESOLUTION NO. 2020-26
SECTION 1. The City Council of the City of Huntington Beach adopts the following
policy regarding the payment of assessment on businesses within the Huntington Beach
Downtown Business Improvement District area:
In the spirit of the Governor's Order N-28-20, the City will extend the time to pay
assessment on businesses within the Huntington Beach Downtown Business Improvement
District area until July 31, 2020, because of the hardships caused by the COVID-19 pandemic.
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.
Q9'L:
May r
t
AND APPROVED INITIATED AND APPROVED:
r Chief Financial Officer
APPROVED AS TO FORM:
,c-� itityAttorney
2
20-8606/228492
Res. No. 2020-26
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
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
RE77iA4^4r ; 77) OtTy
elO-WleyIL D A)
RESOLUTION NO. 2020-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF HUNTINGTON
BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT IN RESPONSE
TO COVID-19
WHEREAS, the Parking and Business Improvement Area Law of 1994, codified at
Streets and Highways Code §36600 et sect. (the "Act") authorizes cities to establish property and
business improvement areas for the purpose of imposing benefit assessments on property and
businesses for certain purposes; and
The Huntington Beach Tourism. Business Improvement District (HBTBID) was
established for a five (5) year term, beginning October 1, 2014 through September 30, 2019. And
subsequently renewed renewed for a nine (9) and five (5) months year term, beginning February
1, 2019 through June 30, 2028.
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. Hotels and motels have been particularly
harmed by the lack of travel and tourism created by COVID-19.
This deferral of assessments will give temporary relief to our valued hotels and motels
during these difficult economic times. The deferral of HBTBID assessments is contingent upon
written authorization and approval by the HBTBID.
In response to COVID-19, the date upon which the assessments are due to the City will
be temporarily extended until July 31,2020 for assessments charged and/or collected from
March 1 to June 30, 2020. This will protect the health, safety and welfare of the citizens of
Huntington Beach by allowing downtown Huntington Beach 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 assessment by hotels and motels within the Huntington Beach
Tourism Business Improvement District:
In the spirit of the Governor's Order N-28-20, the City will extend the time to pay
assessment on hotels and motels within the HBTBID area until July 31, 2020,because of the
hardships caused by the COVID-19 pandemic. City Council delegates to the City Manager the
authority to provide a program for the repayment assessments during this time period. City
RESOLUTION NO. 2020-27
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 day of , 2020.
Mayor
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City Manager Chief Financial Officer
APPR SVP AS TO FORM:
_CA
-�Zt bty Attorney
2
20-8607/228493
ATTACHMENT #4
4/11/2020 Chapter 5.04 GENERAL PROVISIONS
Huntington Beach Charter and Codes
Up Previous Next Main Collapse Search Print No Frames
MUNICIPAL CODE
Title 5 BUSINESS LICENSES AND REGULATIONS
Chapter 5.04 GENERAL PROVISIONS
Note
* Note: §5.04.070 repealed by Ord.3603-6/03.
..........
5.04.010 Definitions
Unless the particular chapter,provision or the context otherwise requires,the definitions and provisions contained in this
section shall govern the construction, meaning, and application of words and phrases used in Title 5.
"Amusement machine"means any mechanical or electronic game, equipment, machine or device which is played
or operated for amusement or entertainment, wherein a sum of money is charged or collected for the operation of
such machine or device by means of a coin slot or otherwise.
"Apartment house"means any building, or portion thereof, which is designed, built,rented, leased, let or hired out
to be occupied, or which is occupied as the home or residence of two or more families living independently of each
other, in which building or portion thereof,kitchen or cooking facilities are incorporated, whether or not the
occupants do their cooking in said building, and shall include flats and apartments. This section shall not apply
where the building or portion thereof mentioned above consists of two units on a single lot as long as one of such
units is owner occupied.
"Auto wrecker"means any person who buys any motor vehicle for the purpose of dismantling or disassembling, or
who dismantles or disassembles any such motor vehicle whether for the purpose of dealing in the parts thereof or
using the same for the purpose of reconditioning any other vehicle, or for the purpose of selling or otherwise dealing
in the materials of such vehicle or vehicles.
"Average number of employees"means the full-time equivalent of employees in the managing, operating,
transacting and carrying on of any business in the City. The average number of employees for any business means
the average number of persons employed daily for the 12-month period ending on December 31 st preceding the date
of license application and shall be determined by ascertaining the total number of hours of service performed by all
employees during such year, and dividing the total number of hours of service thus obtained by the number of hours
of service constituting a day's work, according to the custom or laws governing such employments, and by again
dividing the sum thus obtained by the number of business days in such year.
"Bulk-vending machine"means a nonelectrically-operated vending machine, containing unsorted confections, nuts
or merchandise which,upon insertion of a coin or coins, dispenses same in equal portions, at random and without
selection by the customer, excluding"vending machines."
"Business"means professions, trades, and occupations and all and every kind of calling whether or not carried on
for profit.
"City Treasurer"means the City Treasurer and designee.
"Dinner dancing place"means a place where music is provided and the public is permitted to dance without
payment of a fee.
"Event"means certain short-term events which may be held on public or private property by persons, charitable
organizations or businesses, at which some measure of business is conducted which may include the sale of tickets,
entry fees or registration,the promoting or advertising of a business or organization, fund-raising events, or the sale
of merchandise. These events include but are not limited to art shows, sidewalk sales, seminars, trade shows,
amusement attractions, fashion shows, marathon runs, car shows, festivals, sporting events or any combination
thereof.
"Exhibitors"means any person or organization exhibiting, displaying, selling, exchanging, or offering for sale or
exchange any property or service at a meet or event.
www.qcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-5-5_04&showAl1=1&frames=on 1/4
4/11/2020 Chapter 5.04 GENERAL PROVISIONS
"Finance Director" shall mean the Finance Director or his or her designee.
"General building contractor"means a contractor whose principal contracting business is in connection with any
structure built, being built or to be built, for the support, shelter and enclosure of persons, animals, chattels or
movable property of any kind, requiring in its construction the use of more than two unrelated building trades or
crafts or to do or superintend the whole or any part thereof.
"General engineering contractor"means a contractor whose principal contracting business is in connection with
fixed works requiring specialized engineering knowledge and skill, including the following divisions or subjects:
irrigation, drainage, water power, water supply, flood control, inland waterways,harbors, docks and wharves,
shipyards and ports, levees,river control and reclamation works,railroads,highways, streets and roads,tunnels,
sewers and sewage disposal plants and systems,pipelines and other systems for the transmission of petroleum and
other liquid or gaseous substances, parks,playgrounds and other recreational works,refineries, chemical plants and
similar industrial plants requiring specialized engineering knowledge and skill,powerhouses,power plants and other
utility plants and installations, land leveling and earthmoving projects, excavating, grading,trenching,paving and
surfacing work and cement and concrete works in connection with the abovementioned fixed works.
"Hotel, motel or rooming house"means any lodging house, motel, hotel,rooming house, bungalow court, auto
court or public or private club containing more than three guest rooms or units, and which is occupied or is intended
or designed for occupancy by more than three guests,whether rent is paid in money, goods, labor, services or
otherwise and which is maintained, advertised or held out to the public as a place where sleeping or rooming
accommodations are furnished to the whole or any part of the public whether with or without meals.
"Junk collectors"means any person, other than a junk dealer engaged in the business of buying or selling, either at
wholesale or retail,rags,bottles,papers, cans,metal or other articles of junk.
"License"means a license required for any person conducting,transacting, carrying on or engaged in any business,
trade,profession, calling or occupation in the City.
"Licensee"means any person conducting,transacting, carrying on or engaged in any business in the City who has
acquired, or is required to obtain, a business license.
"Merchandise"means tangible items, wares, goods, objects and articles which may be offered for sale.
"Operator"means any person conducting or operating a swap meet, or event within the City. This shall include
such events commonly referred to as a farmer's market and arts and craft shows.
"Peddler"means any person not having a fixed place of business in this City,who for him or herself, or as agent or
representative for or of another, goes from house to house, and place to place, or at or along the streets of this City
offering to sell tangible objects or articles, goods,wares,merchandise or services, who delivers such object, article,
goods,wares, merchandise or service, in person,to the person placing the order for the same, at the time such order
is placed and paid for.
"Person"means all domestic and foreign corporations, associations, syndicates,joint stock corporations,
partnerships of every kind, clubs, or common law trusts, societies and individuals transacting and carrying on any
business in the City other than as an employee.
"Public dance"means a dance open to the public for an admittance fee or charge, which is held on one day only.
"Public dance hall"means a place open to the public upon payment of admittance fee,wherein music is provided
and people are allowed to dance which is so open at regular intervals or on regular days of the week.
"Service machine"means any mechanical or electronic machine, device or equipment that is operated,rented or
used for a fee and provides a service to the customer, such as computers, scanners,photocopiers, weighing
machines,vacuum cleaners or car washes.
"Solicitors and canvassers"means any person not having a fixed place of business within the City who for him or
herself or as agent or representative for or of another, in person or by telephone or by any other means of
communication is engaged in the business of going from house to house and place to place or at or along the streets
of this City, offering to sell intangibles, such as bonds or stock or oil or mining shares or units, or soliciting or taking
orders for future delivery of articles, goods, wares or merchandise, services or subscriptions inclusive of
newspapers,magazines,periodicals,books and all other publications, and whether collecting advance payments or
not, and inclusive of all persons who thus go from place to place, and from house to house within the City, in any
like or analogous activities, and inclusive of any and all such persons who may or may not engage in any actual or
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-5-5_04&showAl1=1&frames=on 2/4
4/11/2020 Chapter 5.04 GENERAL PROVISIONS
purported interstate commerce. The terms"solicitor" and"canvasser" shall not apply to commercial salespeople,
agents and the like who sell or take orders for the sale of wholesale goods to persons maintaining a fixed place of
business in this City who are licensed as prescribed by this title.
"Specialty contractor"means a subcontractor and is a contractor whose operations as such are the performance of
construction or other work requiring special skill and whose principal contracting business involves the use of
specialized building trades or crafts or other specialized techniques and who is not classified as a general
engineering or general building contractor by the Department of Professional and Vocational Standards of the State
of California, and those various categories of contractors who are not required to be and who are not licensed as
"contractors"by the aforementioned department. The classification assigned to contractors by the State of California
will be used in determining the fee for issue of license by this City. A license as a specialty or subcontractor will not
be issued to a person classified by the state as a general or engineering contractor unless such contractor holds a
valid sub or specialty contractor classification license in addition to his or her general or engineering license.
"Stall,space or booth" shall be defined as a physical area measuring 144 square feet or less.
"Swap meet"means an operation of occasional, periodic or regularly scheduled markets held within a building of at
least 100,000 square feet, or outside, that has received a conditional use pennit to conduct an indoor swap meet.
"Vending machine"means any weighing, service, merchandise, food or drink-dispensing machine, or device
wherein a sum of money is charged or collected for the operation of such machine or device by means of a coin slot
or otherwise, excluding"bulk-vending machines."(766-7/60, 838-6/61, 904-6/62, 1461-2/69, 1604-10/70, 1924-
7/74, 1935-11/74, 2594-2/83, 2679-3/84, 3100-5/91, 3161-7/92, 3603-6/03, 3751-11/06)
5.04.020 Purpose
The ordinance codified herein is enacted solely to raise revenue for municipal purposes, and is not intended for
regulation. (766-7/60)
5.04.030 Effect on Other Ordinances
Persons required to pay a license tax for transacting and carrying on any business under this title shall not be relieved
from the payment of any license tax for the privilege of doing such business required under any other ordinance of the
City of Huntington Beach, and shall remain subject to the regulatory provisions of other ordinances. (766-7/60)
5.04 040 Effect on Past Actions and Obligations
Neither the adoption of the ordinance codified herein nor its superseding of any portion of any other ordinance of the City
shall in any manner be construed to affect prosecution for violation of any other ordinance committed prior to the
effective date hereof,nor be construed as a waiver of any license or any penal provision applicable to any such violation,
nor be construed to affect the validity of any bond or cash deposit required by any ordinance to be posted, filed or
deposited, and all rights and obligations thereunto appertaining shall continue in full force and effect. (766-7/60)
5.04.050 Prohibited Occupations
Nothing in this title shall be construed to permit the conduct of any trade,business or occupation which is prohibited by
an applicable federal, state or municipal ordinance or regulation, or which has been declared illegal or to constitute a
nuisance by any governmental or municipal authority. (852-8/61)
5 04.060 Permit From Council Required for Certain Businesses
No license shall be issued for the conduct of any business which, in the opinion of the Finance Director would be
detrimental to the public health, safety, welfare or moral standards of the City until a permit shall have first been obtained
from the City Council or appropriate City department. (838-6/61, 3603-6/03, 3751-11/06)
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-5-5_04&showAl1=1&frames=on 3/4
4/11/2020 Chapter 5.04 GENERAL PROVISIONS
5.04 080 Investigation Fees
Investigation fees may be levied against business applicants, firms,persons or subsequent employees, when so designated
by the City Manager and City Council. Said fees shall be reasonable and based on standards set by the City Manager and
shall be payable to the City Treasurer prior to the police investigation. Fees are not refundable. (1171-1/66, 3603-6/03)
5.04.090 License Not a Permit
The business licenses issued pursuant to the provisions of this title constitute a receipt for the license fee paid and shall
have no other legal effect. A business license is a requirement,not a permit to conduct, manage or carry on any business
activity within this City. (838-6/61)
View the mobile version.
www.qcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-5-5_04&showAll=1&frames=on 4/4
ATTACHMENT #5
4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
Huntington Beach Charter and Codes
Up Previous Next When Collapse Search Print No Frames
MUNICIPAL CODE
Title 3 REVENUE AND FINANCE
Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
3.28 010 Purpose
The City Council of the City of Huntington Beach hereby declares that this chapter, which shall be known as the Uniform
Transient Occupancy Tax, is adopted to provide a tax on the rent charged in a hotel by the operator of said hotel. (1068-
7/64, 2015-11/75)
3.28.020 Definitions
Except where the context otherwise requires,the definitions given in this section govern the construction of this chapter:
"Hotel"means any structure, or any portion of any structure which is occupied or intended or designed for
occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn,tourist home or
house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory,public or
private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.
"Occupancy"means the use or possession or the right to the use or possession of any room or rooms or portion
thereof, in any hotel for dwelling, lodging or sleeping purposes.
"Operator"means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee,
mortgagee in possession, licensee, or any other capacity.Where the operator performs his or her functions through
managing agent of any type or character other than an employee,the managing agent shall also be deemed an
operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal.
Compliance with the provisions of this chapter by either the principal or the managing agent shall,however, be
considered to be compliance by both.
"Person"means any individual, firm,partnership,joint venture, association, social club, fraternal organization,joint
stock company, corporation, estate,trust,business trust,receiver,trustee, syndicate, or any other group or
combination acting as a unit.
"Rent"means the consideration charged,whether or not received, for the occupancy of space in a hotel valued in
money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property
and services of any kind or nature, without any deduction therefrom whatsoever.
"Transient"means any person who exercises occupancy or is entitled to occupancy by reason of concession,
permit,right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting
portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a
transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the
occupant providing for a longer period of occupancy. In determining whether a person is a transient,uninterrupted
periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (1068-
7/64)
3.28.030 Tax Imposed
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax on the rent charged by the
operator at a rate equal to the current, combined state and local use tax rate. Said rate shall be declared by the City
Council by resolution from time to time. Said tax constitutes a debt owed by the transient to the City which is
extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at
the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the City Treasurer may require that such tax be paid directly to the City
Treasurer. (1068-7/64, 1590-8/70, 2015-11/75, Res. 5859-5/88)
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAll=1&frames=on 1/5
4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
3.28.040 Exemptions
No tax shall be imposed upon:
A. Any person as to whom, or any occupancy as to which it is beyond the power of the City to impose the tax
herein provided;
B. Any federal or State of California officer or employee when on official business;
C. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law
or international treaty.
No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of
perjury upon a form prescribed by the City Treasurer. (1068-7/64, 2015-11/75)
3.28.050 Operator's Duties
Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected
from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient
shall receive a receipt for payment from the operator.No operator of a hotel shall advertise or state in any manner,
whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will
not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided. (1068-
7/64, 2015-11/75)
3.28.060 Register
Every owner, keeper or proprietor of any lodging house, rooming house, motel or hotel shall keep a register wherein he or
she shall require all guests,roomers or lodgers to inscribe their names upon their procuring lodging of a room or
accommodations. Said register shall also show the day of the month and year when said name was inscribed, and the
room occupied, or to be occupied by said lodger, or roomer or guest in such lodging house,rooming house,motel or
hotel. Said register shall be kept in a conspicuous place in said lodging house,rooming house, motel or hotel, and shall at
all times be open to inspection by any peace officer of the State of California. (1226-7/66, 2015-11/75)
3.28.070 Guests Must Register
Before any lodging for hire to any person(s) in any lodging house, or before renting any room to any person(s)in any
rooming house, or before furnishing any accommodations to any guest(s) at any motel or hotel,the proprietor,manager or
owner thereof shall require the person(s)to whom such lodgings are furnished, or room is rented, or accommodations
furnished, to inscribe his or her or their name(s) in such register kept for that purpose as hereinabove provided, and shall
set opposite said name(s)the time when said name(s)was/were so inscribed,the room occupied by such lodger(s),
roomer(s), or guest(s), and the license number and description of the vehicle said lodger(s),roomer(s) or guest(s) drove.
(1226-7/66, 2015-11/75)
3.28.080 Registration
Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing
business, whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the
Finance Director and obtain from him or her a"Transient Occupancy Registration Certificate"to be at all times posted in
a conspicuous place on the premises. Said certificate shall, among other things, state the following:
A. The name of the operator;
B. The address of the hotel;
C. The date upon which the certificate was issued.
D. "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has
fulfilled the requirements of Chapter 3.28 by registering with the Finance Director for the purpose of collecting from
www.qcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 2/5
4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
transients the Transient Occupancy Tax and remitting said tax to the City Treasurer. This certificate does not
authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner,nor
to operate a hotel without strictly complying with all local applicable laws, including but not limited to those
requiring a permit from any board, commission, department or office of this City. This certificate does not constitute
a permit." (1068-7/64, 3751-11/06)
3.28.090 Reporting and Remitting
Each operator shall file a report each month on forms provided by the Finance Director of the total rents charged and
received and the amount of tax collected for transient occupancies for the preceding month. The full amount of tax
collected shall be remitted to the City Treasurer. Said tax collected by each operator during a calendar month, is due and
payable and must be received by the City by the last business day of the first month following and shall be delinquent and
subject to the penalties noted in Section 3.28.100 of this chapter on the first day of the second month following. Said
..........................
report shall be filed at the same time the tax is remitted. Returns are due and payable and delinquent immediately upon
cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the
account of the City until payment is made to the City Treasurer. (1068-7/64, 2098-9/76, 3751-11/06)
3.28.100 Penalties and Interest
The following shall give rise to penalties and interest:
A. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time
required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.
B. Continued Delinquency. Any operator who fails to meet any delinquent remittance on or before a period of
30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty
of 10% of the amount of the tax in addition to the amount of the tax and the 10%penalty first imposed.
C. Fraud. If the Finance Director determines that the non-payment of any remittance due under this chapter is
due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in
subsections A and B of this section.
D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter
shall pay interest at the rate of one-half of one percent per month, or fraction thereof, on the amount of the tax,
exclusive of penalties, from the date on which the remittance first became delinquent until paid.
E. Penalties Merged With Tax. Every penalty imposed and such interest as accrues under the provisions of this
section shall become a part of the tax herein required to be paid. (1068-7/64, 3751-11/06)
3.28.110 Failure to Collect and Report Tax—Determination of Tax by Finance Director
If any operator shall fail or refuse to collect said tax and to make,within the time provided in this chapter, any report and
remittance of said tax or any portion thereof required by this chapter,the Finance Director shall proceed in such manner
as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as
the Finance Director shall procure such facts and information as he or she is able to obtain upon which to base the
assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same
and to make such report and remittance,he or she shall proceed to determine and assess against such operator the tax,
interest and penalties provided for by this chapter. In case such determination is made,the Finance Director shall give a
notice of the amount so assessed by serving it personally or by depositing it in the United States mail,postage prepaid,
addressed to the operator so assessed at his or her last known place of address. Such operator may within 10 days after the
serving or mailing of such notice make application in writing to the Finance Director for a hearing on the amount
assessed. If application by the operator for a hearing is not made within the time prescribed,the tax, interest and penalties,
if any, determined by the Finance Director shall become final and conclusive and immediately due and payable to the City
Treasurer. If such application is made, the Finance Director shall give not less than five days written notice in the manner
prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein
should not be fixed for such tax, interest and penalties.At such hearing, the operator may appear and offer evidence why
such specified tax, interest and penalties should not be so fixed. After such hearing the Finance Director shall determine
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 3/5
4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
the proper tax to be remitted and shall thereafter give written notice to the person and in the manner prescribed herein of
such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable
to the City Treasurer after 15 days unless an appeal is taken as provided in Section 3,28.120. (1068-7/64 2015-11/75
.....................
3751-11/06)
3.28.120 Appeal
Any operator aggrieved by any decision of the Finance Director with respect to the amount of such tax, interest and
penalties, if any,may appeal to the City Council by filing a notice of appeal with the City Clerk within 15 days of the
serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the
City Clerk shall give notice in writing to such operator at his or her last known place of address. The findings of the
Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of
notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any
court against the City or an officer thereof to prevent or enjoin the collection of taxes sought to be collected pursuant to
this chapter and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial
review of any tax liability. (1068-7/74, 2015-11/75, 3751-11/06, 3841-11/09)
3.28.130 Records
It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter
to keep and preserve, for a period of three years, all records as may be necessary to detennine the amount of such tax as
he or she may have been liable for the collection of and payment to the City,which records the Finance Director shall
have the right to inspect at all reasonable times. (1068-7/64, 3751-11/06)
3.28.140 Refunds
The following shall warrant a refund:
A. Whenever the amount of any tax,has been overpaid or paid more than once or has been erroneously or illegally
collected or received by the City Treasurer under this chapter, it may be refunded as provided in this section.
B. The City Treasurer may refund any tax that has been overpaid, paid more than once, or has been erroneously or
illegally collected or received by the City Treasurer under this chapter,provided that no refund shall be paid under
the provisions of the section unless the claimant or his or her guardian, conservator, executor or administrator has
submitted a written claim, under penalty of perjury, to the City Clerk within one year of the overpayment or
erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written
records showing entitlement thereto.Nothing herein shall permit the filing of a refund claim on behalf of a class or
group of taxpayers. Where the amount of any individual refund claim is in excess of$5,000.00, City Council
approval shall be required.
C. It is the intent of the City that the one-year written claim requirement of this section be given retroactive effect;
provided,however,that any claims which arose prior to the enactment of the one-year claims period of this section,
and which are not otherwise barred by a then-applicable statute of limitations or claims procedure,must be filed
with the City Clerk as provided in subsection B of this section within 90 days following the effective date of the
ordinance codified in this section.
D. The City Treasurer, or the City Council where the claim is in excess of$5,000.00 and the City Treasurer has
approved the claim, shall act upon the refund claim within 45 days of the initial receipt of the refund claim. Said
decision shall be final. If the Treasurer/City Council fails or refuses to act on a refund claim within the 45-day
period, the claim shall be deemed to have been rejected by the City Treasurer/City Council on the 45th day. The
treasurer shall give notice of the action in a form which substantially complies with that set forth in Government
Code Section 913.
................
E. The filing of a written claim is a prerequisite to any suit thereon. Any action brought against the City pursuant
to this section shall be subject to the provisions of Government Code Sections 945.6 and 946. (1068-7/64 2015-
11/75, 3751-11/06)
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 4/5
4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX
3.28.150 Actions to Collect
Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the
transient to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt
owed by the operator to the City. Any person owing money to the City under the provisions of this chapter shall be liable
to an action brought in the name of the City of Huntington Beach for the recovery of such amount. (1068-7/64, 2015-
11/75)
3.28.160 Failure to Register
Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be
made, or who fails or refuses to furnish a supplemental return or other data required by the Finance Director, or who
renders a false or fraudulent return or claim, is guilty of a misdemeanor.Any person required to make, render, sign or
verify any report or claim or who makes any false or fraudulent report or claim with intent to defeat or evade the
determination of any amount due required by this chapter to be made, is guilty of a misdemeanor. (1068-7/64, 2015-
11/75, 3751-11/06)
3 28.170 Credit for Transient Occupancy Taxes Paid to Huntington Beach Redevelopment Agency
Any person or persons subject to the transient occupancy tax under this chapter shall be entitled to a credit against the
payment of such taxes due in the amount of any transient occupancy taxes due from that person or persons to the
Huntington Beach Redevelopment Agency pursuant to Ordinance No. 2, adopted by the Agency on July 1, 2002,which
affects any persons occupying a room or rooms in any hotels, inns,tourist homes or houses,motels, or other lodging
within the Main-Pier Redevelopment sub-area of the Huntington Beach Redevelopment Project. (See Ordinance No. 3559
for additional information regarding termination, or amendment, or modification of§ 328.170.) (2974-12/88, 3558-7/02,
..........................
3559-7/02)
View the mobile version.
www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 5/5
ATTAC H M E N T #6
RESOLUTION NO. 2018-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS
AND RENEWING THE HUNTINGTON BEACH TOURISM BUSINESS
IMPROVEMENT DISTRICT(HBTBID)
WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and
Highways Code §36600 et. seq.) authorizes the City to renew business improvement districts upon
petition by a weighted majority of the business owners located within the boundaries of the district;
and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the
renewed assessment, as weighted according to the amount of the assessment to be paid by the
petitioner, within the boundaries of the HBTBID have petitioned the City Council to renew the
HBTBID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary
that describes the renewed assessment to be levied on lodging businesses within the HBTBID to
pay for tourism enhancement programs, and other improvements and activities set forth in the
Plan; and
WHEREAS, the assessed lodging businesses within the HBTBID will receive a specific
benefit from the activities and improvements set forth in the Plan; and
WHEREAS, on October 15, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach, CA
92684, the City Council adopted a Resolution of Intention, Resolution No. 2018-59; and
WHEREAS, the public meeting and public hearing to consider the renewment of the
HBTBID have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on November 19, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach,
CA 92684, the City Council held a public meeting regarding the renewal of the HBTBID, and the
City Council heard and received objections and protests, if any,to the renewal of the HBTBID and
the levy of the renewed assessment; and
WHEREAS, on December 17, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach,
CA 92684, the City Council held a public hearing regarding the renewal of the HBTBID, and the
City Council heard and received all objections and protests, if any, to the renewal of the HBTBID
and the levy of the renewed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority
protest is defined as written protests received from owners of businesses in the renewed HBTBID
which would pay fifty percent (50%) or more of the assessments renewed to be levied. Protests
are weighted based on the assessment renewed to be levied on each lodging business; and
RESOLUTION NO. 2018-84
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that
an assessment imposed for a specific benefit or specific government service is not a tax, that the
amount is no more than necessary to cover the costs to the City in providing the specific benefit
or specific government service, and that the manner in which those costs are allocated to a payor
bear a fair or reasonable relationship to the specific benefits or specific government services
received by the payor.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are adopted by the City Council as findings and they
are true and correct.
2. The HBTBID is hereby renewed for a nine (9) and five (5) months year term,
beginning February 1, 2019 through June 30, 2028.
3. The Plan dated October 9, 2018 is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the HBTBID will be funded
by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide
activities that directly benefit businesses outside the HBTBID; to provide activities or
improvements outside the HBTBID; or for any purpose other than the purposes specified in this
Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing,
improvements and activities that must be provided outside the HBTBID boundaries to create a
specific benefit to the assessed businesses may be provided, but shall be limited to marketing or
signage pointing to the HBTBID.
5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed
businesses within the HBTBID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege
granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting
the privilege.
c) The assessment is a charge imposed for a specific government service or product
provided directly to the payor that is not provided to those not charged,and which does not
exceed the reasonable costs to the local government of providing the service or product.
d) Assessments imposed pursuant to the HBTBID are levied solely upon the assessed
business, and the business owner is solely responsible for payment of the assessment when
due. If the owner chooses to collect any portion of the assessment from a transient, that
portion shall be specifically called out and identified for the transient in any and all
2
18-6918/193095
RESOLUTION NO. 2018-84
communications from the business owner as the "HBTBID Assessment" or "Tourism
Assessment" as specified in the Plan.
6. The assessments levied for the HBTBID shall be applied towards tourism
enhancement programs to market Huntington Beach lodging businesses as tourist, meeting and
event destinations, and other improvements and activities as set forth in the Plan.
7. Assessments levied on lodging businesses pursuant to this resolution shall be levied
on the basis of benefit. Because the services provided are intended to increase room rentals, an
assessment based on room rentals is the best measure of benefit.
8. The assessments for the entire HBTBID will total approximately $5,000,000
annually. The initial `year' of operation will be a partial year consisting of five (5) months, for
which the anticipated budget is $2,083,333.
9. Bonds shall not be issued to fund the HBTBID.
10. The HBTBID shall include all lodging business located within the boundaries of
the City of Huntington Beach. A boundary map is attached hereto and incorporated herein by
reference.
11. The assessments shall be used for the purposes set forth above and any funds
remaining at the end of any year may be used in subsequent years in which the HBTBID
assessment is levied as long as they are used consistent with the requirements set forth herein.
12. The assessments to fund the activities and improvements for the HBTBID will be
collected by the City on a monthly basis, and in accordance with Streets and Highways Code
§36631.
13. The City Council, through adoption of this Resolution and the Plan, has the right
pursuant to Streets and Highways Code §36651, to identify the body that shall implement the
renewed program, which shall be the Owners' Association of the HBTBID as defined in Streets
and Highways Code §36612. The City Council has determined that Visit Huntington Beach shall
be the HBTBID Owners' Association.
14. Visit Huntington Beach, pursuant to Streets and Highways Code §36650, shall
cause to be prepared a report for each fiscal year, except the first year, for which assessments are
to be levied and collected to pay the costs of the improvement and activities described in the report.
The first report shall be due after the first year of operation of the HBTBID.
15. The HBTBID renewed pursuant to this resolution will be subject to any
amendments to the Property and Business Improvement District Law of 1994 (California Streets
and Highways Code §36600 et. seq.).
16. The City Clerk, or his or her designee, is directed to take all necessary actions to
complete the renewal of the HBTBID and to levy the assessments.
3
18-6918/193095
RESOLUTION NO. 2018-84
17. This Resolution shall take effect immediately upon its adoption by the City Council.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 17th day of December ,
2018.
�.Mayor
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City ana er Deputy Direct of Economic Development
APPROVED AS O FORM:
C.
Attorney
4
18-6918/193095
RESOLUTION NO. 2018-84
Boundary Map
GARDE GROVE FREEW
GARDEN ROVE FREE
i
I
CITY OF V
HUNTINGTON BEACH
\ I
� I
w i
D
O
ADO �
uJ
C m
co
�s
T
y/c
�9y
tin..
PACIFIC OCEAN
Res. No. 2018-84
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
1, 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 December 17, 2018 by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy
NOES: None
ABSENT: None
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #7
RESOLUTION NO. 2019-54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN
ANNUAL ASSESSMENT FOR FISCAL YEAR 2019-2020 WITHIN THE
HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the California Legislature, in adopting the Parking and Business
Improvement Area Law of 1989 (Streets and Highways Code §36500 et seq.) found that
cities are authorized to levy assessments on businesses in order to promote economic
revitalization and tourism, create jobs, attract new businesses and prevent erosion of
business districts; and
The California Legislature found that cities are authorized to levy assessments on
businesses which benefit from those improvements and activities; and
A sizeable majority of the downtown businesses within the City of Huntington
Beach requested that the City Council commence proceedings under the Parking and
Business Improvement Area Law of 1989 to establish a downtown business benefit area
within the City of Huntington Beach and to levy a special assessment to promote tourism
and tourist related events; and
The City Council formed a business improvement area, known as the Huntington
Beach Downtown Business Improvement District (the "District"), by the passage of
Ordinance No. 3661 on September 7, 2004. The City is proposing to levy an assessment
for fiscal year 2016-2017 pursuant to the process detailed in Streets and Highways Code
§36500, et seq.; and
The District's Advisory Board has prepared and filed with the City Clerk an
"Annual Report/Operating Budget 2019-2020 Fiscal Year to Date" and "Proposed
Budget for Fiscal Year 2019-2020" (collectively, "Annual Report"); and
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve as follows:
SECTION 1. The City Council hereby approves the Annual Report filed by the
Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated
herein by this reference, which includes a proposed budget for Fiscal Year 2019-2020
and a description of the improvements and activities to be provided for Fiscal Year 2019-
2020.
SECTION 2. To levy and collect assessments within the District area for Fiscal
Year 2019-2020 as per the assessment schedule listed in Exhibit B attached hereto and
incorporated herein by this reference.
SECTION 3. The type or types of improvements and activities proposed to be
funded by the levy of assessments on businesses within the business improvement area
19-7864/210180 1
Resolution No. 2019-54
are specified in Exhibit C, attached hereto and incorporated herein by this reference.
Further, the improvements, if any, to be acquired for the proposed business improvement
area are specified in Exhibit C.
SECTION 4. A public hearing shall be held before the City Council on
September 16, 2019, at 6:00 p.m., or as soon thereafter as this matter may be heard, in the
Council Chambers of the City Hall, 2000 Main Street, Huntington Beach, California, at
which time the Council will hear all interested persons for or against levying of the
assessment, and the furnishing of specified types of improvements or activities. Protests
may be made orally or in writing; but, if written, shall be filed with the City Clerk at or
before the time fixed for the hearing and contain sufficient documentation to verify
business ownership and validate the particular protest. Any protest pertaining to the
regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth
the irregularity or defect to which the objection is made. The City Council may waive any
irregularity in the form or content of any written protest, and at the public hearing, may
correct minor defects in the proceedings, A written protest may be withdrawn in writing
at any time before the conclusion of the public hearing set forth above. If written protests
are received by the owners of businesses within the District, which will pay 50% or more
of the total assessments to be levied, no further proceedings to levy the proposed
assessment shall be taken for a period of one year from the date of the finding of a
majority protest by the City Council. If the majority protest is only against the furnishing
of a specified type or types of improvements or activity within the District, those types of
improvements or activities shall be eliminated.
SECTION 5. The City Clerk is hereby directed to provide notice of the public
hearing by causing this resolution of intention to be published once in a newspaper of
general circulation at least seven days before the public hearing.
SECTION 6. Further information regarding the proposed business improvement
district may be obtained at the Huntington Beach City Hall, 2000 Main Street,
Huntington Beach, California 92648; telephone (714) 536-5582; or from the Huntington
Beach Downtown Business Improvement District, 315 3Td Street, Suite E, Huntington
Beach, CA 92648, (714) 536-8300.
SECTION 7. The City Clerk shall mail a complete copy of this resolution of
intention by first-class mail to each business owner in this area within seven days after
the Council's adoption of this resolution.
SECTION 8. This resolution shall take effect immediately upon adoption.
19-7864/210180 2
Resolution No. 2019-54
PASSED AND ADOPTED by the City Council of the City of Huntington Beach
at a regular meeting thereof held on the day of , 2019.
Mayor
REVIEWED AND APPROVED: APPROVED AS ORM:
City Manager City Attorney
19-7864/210180 3
From: Estanislau,Robin
To: Esparza.Patty
Subject: Fwd:VHB Request for TBID Assessment Deferral
Date: Monday,April 20,2020 12:04:05 PM
Attachments: imace002.pno
ATT00001.htm
imaae003.ioa
ATT00002.htm
imaae004.ioc
ATT00003.htm
imape00s.igg
ATT00004.htm
Letter to Mayor re TBID Agreement Chanae.dooc
ATT00005.htm
Sent from my Wad
Begin forwarded message:
From: Kelly Miller<kelly@surfcityusa.com>
Date: April 20, 2020 at 11:44:08 AM PDT
To: Lyn Semeta<lrsemeta@gmail.com>, "Semeta, Lyn" <Lyn.Semeta@surfcity-
hb.org>, "Chi, Oliver" <oliver.chi@surfcity-hb.org>, "Vigliotta, Mike"
<MVigliotta@surfcity-hb.org>, "Estanislau, Robin" <Robin.Estanislau@surfcity-
hb.org>
Cc: "Fikes, Cathy" <CFikes@surfcity-hb.org>
Subject: VHB Request for TBID Assessment Deferral
Good morning,
Attached is a letter from the VHB Board of Directors regarding the possible deferment
of TBID assessments.The exact details of what this might look like will be worked on
and presented at the Monday, May 4, 2020 City Council meeting.Thank you for all your
hard work during these challenging times.
Robin/Cathy,
Can copies of this correspondence be forwarded to all City Council members?Thanks!
<!--[if !vml]-->
VISIT
HUNTINGTON
BEACH
SURF CITY USA
April 17, 2020
The Honorable Lyn Semeta
Mayor, City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Mayor Semeta,
The Visit Huntington Beach (VHB) Board of Directors met yesterday (April 16, 2020) to evaluate
the massive impact the COVID-19 pandemic has inflicted upon our local visitor industry. Also
discussed were several recovery plan action steps.
The VHB Board of Directors unanimously approved yesterday the following actions:
1. Request that the City of HB allows VHB to modify its existing Huntington Beach Tourism
Business Improvement District Plan for the purpose of allowing the deferment of future
TBID assessments paid to the City of Huntington Beach.
2. VHB and the City of Huntington Beach will work on the exact end period for all future
TBID deferments and related repayment schedule, which the Huntington Beach City
Council will consider at their Monday, May 4, 2020 regularly scheduled meeting.
Thank you, Mayor Semeta, for your continued support of our community's vital visitor industry.
Sincerely,
Kelly Miller
President & CEO
Visit Huntington Beach
Cc: City of Huntington Beach City Council Members
Oliver Chi, City Manager
Michael Gates,City Attorney
Michael Vigliotta,Assistant City Attorney
Robin Estanislau, City Clerk
VHB Board of Directors
155 5th Street,Suite 111,Huntington Beach,CA 92648 .714.969.3492 .www.SurfQtyUSA.com
From: Estanislau.Robin
To: EEsparza Patty
Subject: FW:BID Assessment Deferral Program
Date: Monday,April 20,2020 3:54:30 PM
Attachments: BID Assessment Deferral.odf
image001.ona
Robin Estanislau, CMC, City Clerk
City of Huntington Beach
714-536-5405
4 r'
J
y,,
Please consider the HB City Clerk's office for your passport needs!
From: Bulosan, Dahle<DBulosan@surfcity-hb.org>
Sent: Monday,April 20, 2020 3:19 PM
To:Vigliotta, Mike<MVigliotta@surfcity-hb.org>; Estanislau, Robin<Robin.Estanislau@surfcity-
hb.org>
Cc: Rief, Sunny<Sunny.Rief @surfcity-hb.org>; Zacks,Joyce<JZacks@surfcity-hb.org>
Subject: RE: BID Assessment Deferral Program
Here is the attachment.
Dahle
From:Vigliotta, Mike<MVigliottaPsurfcity-hb.orp
Sent: Monday,April 20, 2020 3:18 PM
To: Bulosan, Dahle<DBulosanl@surfcity-hb.orR>; Estanislau, Robin <Robin.Estanislauna surfcity-
h bo re>
Cc: Rief, Sunny<Sunny.Rief(@surfcity-hb.ore>;Zacks,Joyce<JZacksPsurfcity-hb.ora>
Subject: RE: BID Assessment Deferral Program
Hi Robin,
Can you please add this to the supplemental communication.
Michael Vigliotta
Chief Assistant City Attorney
Office of the City Attorney
City of Huntington Beach
714-536-5552
Confidentiality Notice: This email may contain material that is confidential,privileged and/or attorney work-product
for the sole use of the addressee. Further,this email is protected under the Electronic Communications Privacy Act,
18 U.S.C.Sections 2510-2522. Any review by,reliance,or distribution by others or forwarding to others without
express permission of the author is strictly prohibited. If you receive this transmission in error,you are advised that
any disclosure,copying,distribution,or the taking of any action in reliance upon the communication is strictly
prohibited. Moreover,any such inadvertent disclosure shall not compromise or waive the attorney-client privilege
as to this communication. If you have received this communication in error,please immediately notify the sender
and delete this e-mail. Thank you.
From: Bulosan, Dahle<DBulosanl@surfcity-hb.org>
Sent: Monday,April 20, 2020 3:15 PM
To:Vigliotta, Mike<MVigliotta(@surfcity-hb.org>
Cc: Rief, Sunny<Sunny.Rief(@surfcity-hb.org>; Zacks,Joyce<JZacks(@surfcity-hb.org>
Subject: FW: BID Assessment Deferral Program
FYI
From: Chi, Oliver<oliver.chiPsurfcity-hb.org>
Sent: Monday,April 20, 2020 3:00 PM
To: Bulosan, Dahle<DBulosan @surfcity-hb.org>
Subject: FW: BID Assessment Deferral Program
FYI!
Oliver Chi
City Manager
City of Huntington Beach
2000 Main Street
P.O.Box 190
Huntington Beach,CA 92648
Office:(714)536-5575
Cell:(310)663-9837
From:John Gilbert<bidexecutivehb(@gmail.com>
Sent: Monday,April 20, 2020 2:45 PM
To: Chi, Oliver<oliver.chi(@surfcity-hb.org>
Subject: BID Assessment Deferral Program
Oliver will this suffice?
John Gilbert
Executive Director
714 536-8300
bidexecutivehb(@gmail.com
www.HBDowntown.com
R0N,E
Z A
MEMO
To: Oliver Chi April 20, 2020
City Manager,
Huntington Beach, CA
From: John Gilbert
Executive Director
Re: BID Fee Assessment
Dear Oliver:
In response to your request, The Downtown Huntington Beach Business Improvement District will
support the City's recommendation by adopting a program similar to the Business License Department
regarding the proposed "Deferral Program" associated with Administrative Item, 20-1577. These are
very difficult times for all of our business' in the Downtown District and any assistance we can support
would be in the best interest for all parties.
John 'Ib rt
Executi Director
Downtown Huntington Beach Business Improvement District
31S 3'0 Street,Suite E. Huntington Beach,CA 92648 www.HBDowntown.com (714)536-8300