ORDINANCE 1216ORDINANCE NO. 1216
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF EL SEGUNDO, CALIFORNIA
ESTABLISHING TRANSIENT OCCUPANCY
TAX RATES, CREDITS AND EXEMPTIONS
THE CITY COUNCIL OF THE CITY OF EL SEGUNDO DOES ORDAIN AS
FOLLOWS:
SECTION 1. Section 3.12.030 of the El Segundo Municipal Code is hereby amended to
read as follows:
"3.12.030 DAPOSITION - RATE.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax
in the following amounts:
(a) From the effective date of this ordinance to and including December 31, 1994, nine
percent (9%) of the rent charged by the operator;
(b) Beginning January 1, 1995 and thereafter, ten percent (10%) of the rent charged by
the operator.
The tax constitutes a debt owed by the transient to the City which is extinguished only
by payment 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 ceasing to occupy space in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the tax administrator may require that the tax shall
be paid directly to the tax administrator."
SECTION 2. The definition of "transient" contained in Section 3.12.020 is hereby
amended to read as follows:
"3.12.020 DEFINITIONS.
"....:.transient" means:
(1) Any person as defined in this section, who exercises occupancy or is entitled to
occupancy by reason of concession, permit, right of access, license or other agreement, for a period
of thirty (30) consecutive calendar days or less.
(2) Any individual who personally exercises occupancy or is entitled to occupancy by
reason of concession, permit, right of access, license or other agreement, for a period of thirty (30)
consecutive calendar days or less."
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SECTION 3. SECTION 3.12.036 of the El Segundo Municipal Code is hereby deleted
in its entirety.
SECTION 4. SECTION 3.12.045 is hereby added to the El Segundo Municipal Code
to read as follows:
"Section 3.12.045 TRANSIENT OCCUPANCY TAX CREDIT.
Credits against the Transient Occupancy Tax shall be granted to hotel operators and shall
be calculated and administered as follows:
(1) The provision of this Section 3.12.045 shall become effective on the date that an
occupancy occurs in the Summerfield Suites Hotel to be constructed in El Segundo at Douglas
and Rosecrans and shall automatically be of no further effect exactly five (5) years after the
effective date of this Section.
(2) The provisions of Section 3.12.045 shall not apply to the aforementioned Summerfield
Suites Hotel, but shall only apply to hotels operating in the City as of the adoption of this
ordinance.
(3) The total amount of the credits shall be an amount calculated on the cumulative total
Transient Occupancy Tax generated by hotels to which this Section 3.12.045 applies in each of
the five (5) years mentioned in Subsection (1) above, but shall in no event exceed Five Hundred
Thousand Dollars ($500,000) in each of the said five (5) years.
(4) The credits shall be calculated only on those hotel rooms which are occupied at a rent
of more than Seventy Four Dollars and Ninety Nine Cents ($74.99) on weekdays and more than
Sixty Four Dollars and Ninety Nine Cents ($64.99) on weekends.
and
(5) The credits shall only apply to those hotel rooms occupied by:
(a) Any Federal or State of California officer or employee on official government business,
(b) Any private business occupant on company business who rents a hotel room directly
from a hotel operator.
(6) In each of the five (5) years mentioned in Subsection (1) above and subject to all of
the provisions of this Section 3.12.045, each hotel operator shall be entitled to a credit against the
Transient Occupancy Tax submitted to the City by that hotel operator under Section 3.12.070.
The credit shall be calculated on the following formulae:
(a) One third (1 /3rd) of the amount described in paragraph (3) above shall be credited
to each applicable hotel operator based upon the percentage of Transient Occupancy Tax each
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applicable hotel operator generates compared with the total Transient Occupancy generated by
all applicable hotels in El Segundo.
(b) Two thirds (2 /3rds) of the amount described in paragraph (3) above shall be credited
to each applicable hotel operator based upon the percentage of the number of hotel rooms
described in Subsection (5) above rented by each applicable hotel operator compared with the total
amount of rooms described in Subsection (5) above rented by all applicable hotels in El Segundo."
(7) Each applicable hotel operator shall submit to the Finance Director on forms supplied
by the Finance Director sufficient information from which the Finance Director can make the
calculations required by Subsection (6) above. The Finance Director shall prepare a written
process for applying the credits granted by this Section 3.12.045 which shall ensure that the credits
are properly applied to each hotel operator and shall submit the written process to the City
Manager for his approval.
SECTION 5. The City Clerk shall publish or post the ordinance according to law. This
ordinance shall go into effect immediately.
PASSED, APPROVED and ADOPTED this 1st day of March, I.
ATTEST:
C CLE
APPROVED AS TO FORM:
,,�—`CITY ATTIORNEY
YOR
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STATE OF CALIFOiZNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGLiNt)0 1
I, Cindy Nlortesen, City Clerk of the City of El Segundo, California, DO HEREBY
CERTIFY that the whole number of members of the City Council of the said City is five;
that the foregoing ord irnance, being ORDINANCE NO.1216 is a full, true correct original
of ORDINANCE- NO. 1216 of the said City of El Segundo, California, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, ESTABLISHING TRANSIENT OCCUPANCY
TAX RATES, CREDITS .AND EXEMPTIONS.
which was duly INISY'd and adopted by the said City Council, approved and signed by
the Mayor or said City, and attested by the City Clerk of said City, all at a regular
meeting of the said Council held on the 1ST DAY OF MARCH,1994, and the same was
so passed and idopted by the following vote:
AYES: Nlavor ProTem Wise, Councilman West, Councilman
Switz and Councilman Robbins.
NOES: Nlayor Jacobson
ABSENT: NONE
NOT PAID "I ICIPATING: NONE
I do hereby further certify that pursuant to the provisions of Section 36933 of the
Goverrunent Code of the State of California, that the foregoing ORDINANCE NO. 1216,
was posted and /or published in the manner prescribed by law.
CI DY MOVTRSEN
City Clerk of the
City of El Segundo, California
(SEAL)