HomeMy WebLinkAboutItem 17 - Hotel Occupancy Tax RateFROM: • RUMBELOW,M
MEETING DATE: JULY 15, 2014
SUBJECT: INCREASE THE HOTEL OCCUPANCY TAX RATE AND THE
ADDITION OF AIRPORT TERMINAL TO "HOTEL" DEFINITION
om►1�T►�iTm�T�7_��C•P►�
City Council to consider a ordinance adopting the available 1 % of the hotel occupancy
tax rate to fully utilize the state authorized 7%. This will reflect 7% in the Code of
Ordinances (Article II; Sec. 21-21) and consider adding "airport terminal" to the list of
buildings included in the definition of "Hotel" in the Code of Ordinances (Article II; Sec.
21-20).
't a
The Hotel Occupancy Tax Rate (Article II; Sec. 21-21) for the City of Grapevine was first
established in August 1974 with the establishment of the Convention & Visitors Bureau.
The Code was later amended in 1979, 1983, 1985, 1987, and 1989. It is currently set at
6%. The additional 1 % is allowed by state law.
The definition of "Hotel" (Article II; Sec. 21-20) for the City of Grapevine was first
established in August 1974 with the establishment of the Convention & Visitors Bureau.
The Code was later amended in 1987 and 1989. If the ordinance is approved, the new
tax rate would take effect October 1, 2014.
As discussed during the Presentation Item a few weeks ago, the funds will be
segregated in the CVB budget and restricted for use to attract new group business and
new hotel room development as a part of our Economic Development efforts.
Staff recommends approval.
m
7/10/2014 (4:34:15 PM)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, AMENDING THE CODE OF
ORDINANCES CHAPTER 21, TAXATION, ARTICLE II
SECTION 21-20 RELATING TO THE DEFINITION OF A
HOTEL AND SECTION 21-21 RELATING TO THE LEVY
OF AN ADDITIONAL ONE PERCENT HOTEL TAX;
DECLARING AN EMERGENCY AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas (the "City") is a home rule city pursuant
to Article II, Section 5 of the Texas Constitution, Section 9.001 et seq, Tex. Loc. Gov.
Code. Ann. (Vernon), and its Home Rule Charter; and
WHEREAS, as a home rule City, the City has the full power of self-government,
and looks to acts of the Legislature not for grants of power but only for limitation of the
City's authority; and
WHEREAS, the City is authorized by Chapter 351 of the Texas Tax Code to
impose a tax for occupancy of a hotel room as outlined therein; and
WHEREAS, the City has heretofore imposed such a hotel occupancy tax, as set
forth in Article II, Chapter 21 of the City's Code of Ordinances; and
WHEREAS, the City is authorized by statute generally to collect taxes authorized
by law and impose penalties for delinquent taxes (§ 302.102 (b), Tax Code), and
specifically to collect delinquent hotel taxes by the filing of an injunction suit ((§
351.004(x), Tax Code) or by other remedies provided by law or ordinance (§ 3g, art.
1269j-4.1, codified in § 351.004(b), Tax Code); and
WHEREAS, in addition to other remedies available to the City, the City desires to
collect delinquent hotel taxes by placing a first lien for such nonpayment on the real
property on which a hotel which is subject to the tax is located.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all of the above premises are found to be true and correct and
are incorporated into the body of this ordinance as if copied herein in their entirety.
Section 2. That Article II of Chapter 21 of the Code of Ordinances of the City of
Grapevine, Texas relating to a hotel occupancy tax is hereby amended in the following
particulars, and all other chapters, articles, sections, subsections, paragraphs,
sentences, phrases, and words of the said Code are not amended but are in all things
ratified, verified, approved and affirmed:
A. That Chapter 21 Taxation, Section 21-20 Definitions is hereby amended
so that the definition of "Hotel" shall hereafter read as follows:
"Hotel: A building in which members of the public obtain
sleeping accommodations for a consideration. The term
includes a hotel, motel, tourist home, tourist house, tourist
court, lodging house, inn, rooming house, or airport terminal,
but does not include a hospital, sanitarium, or nursing
home."
B. That Chapter 21 Taxation, Section 21-21 Levy of tax; rate; exceptions,
subsection (a) is hereby amended so that it shall hereafter read as follows:
"(a) There is hereby levied a tax of seven percent (7%) of the
price paid for a room in a hotel on a person who, under a
lease, concession, permit, right of access, license, contract
or agreement, pays for the use or possession or for the right
of use or possession of a room in the hotel, costing ten
dollars ($10.00) or more each day, and is ordinarily used for
sleeping."
Section 3. That this ordinance shall be cumulative of all other ordinances of
the City of Grapevine, Texas, affecting taxes and shall not repeal any of the provisions
of said ordinances except in those instances where provisions of those ordinances are
in direct conflict with the provisions of this ordinance.
Section 4. That if any section, article, paragraph, sentence, clause, phrase or
word in this ordinance, or application thereto any person or circumstances is held invalid
or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby declares
it would have passed such remaining portions of the ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
Section 5. That the fact that the present ordinance and regulations of the City
of Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an
emergency for the immediate preservation of the public business, property, health,
safety and general welfare of the public which requires that this ordinance shall become
effective from and after the date of its final passage, and it is accordingly so ordained.
Section 6. That this ordinance shall take effect on October 1, 2014.
ORD. NO. 2
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 15th day of July, 2014.
ATTEST:
ORD. NO. 3