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6549ORDINANCE NO. 6549 AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 2.12.005 (DEFINITIONS) OF CHAPTER 2.12 (TRANSIENT OCCUPANCY TAX) OF THE ANAHEIM MUNICIPAL CODE TO INCLUDE ONLINE AND OTHER TRAVEL COMPANIES AS OPERATORS REQUIRED TO COLLECT AND REMIT TRANSIENT OCCUPANCY TAX ON THE FULL AMOUNT PAID BY HOTEL GUESTS FOR ACCOMMODATIONS AND TO MAKE OTHER RELATED AND/OR CLARIFYING CHANGES (MEASURE J) BE IT ORDAINED by the People of the City of Anaheim at the November 8, 2022 consolidated general election that section 2.12.005 (Definitions) of Chapter 2.12 (Transient Occupancy Tax) of the Anaheim Municipal Code is hereby amended as follows (underlining showing additions and strike -through showing deletions): Section 1: TEXT OF AMENDMENT TO ANAHEIM MUNICIPAL CODE. 2.12.005 DEFINITIONS. For purposes of this chapter, the following words, terms, phrases, and the derivations and variants thereof, shall have the meanings given herein: .010 "Accommodation(s )" means any room or other space in a hotel used for lodging_or sleeping u oses as well as other items or services provided to a transient as part of or accompanying the room ors ace upon which rent is charged pursuant to this chap -ter. .020 "Accommodations Intermedi . " means any person, corporation, entity, trust or partnership other than an accommodations supplier) that directly or indirectly i facilitates the rental of accommodations in a hotel and ii charges, collects or receives rent in connection with such rental, which may include, without limitation. a facilitation fee. "Accommodations intermediary" includes, without limitation, a travel or booking agent, a room seller or reseller. an on-line room seller or reseller, and an on-line travel agent or com . any of any bpe or nature whatsoever. but does not include employees of an accommodations intermediary or accommodations supplier. .030 "Accommodations Supplier" means any person, corporation, entity, trust or partnership which operates or provides accommodations in a hotel, whether in the capacity of owner proprietor, rietor, lessee, sublessee managing agent mortga ee in possession, debtor in possession, licensee or any other capacity, other than as an employee of an accommodations intermediary or accommodations supplier. "Accommodations supplier" does not mean an accommodations intermediary. .044-0 "Anaheim" or "City" means the City of Anaheim. .050 "City Auditor" means the Audit Manager of the City..021 "Direet Pa, q,,e.,+" fneans th transient, and shall inebade where the tfaasiefit'S Fefft payment dir-eefly to the epefmer- is made or- d using eash, „i,eek ,.edit e rd debt ea -aor- y othef dire + i per -son o7a,.+.,,ffl, ., third p rE. who the remits the rent i,�_s..he a .,,.E e �+ , , E t ei u.wr. .060 "Discount Room Charge" means the total consideration charged by an accommodations sLipplier to an accommodations intermedipa, or an affiliate thereof, for furnishin accommodations in a hotel. .070 "Facilitation Fee" means the total consideration charged by an accommodations intermediary to a transient for accommodations minus the discount room charge, if any provided that the facilitation fee shall not be less than $0. .0802-=',-- "Fiscal Year" means the period commencing July 1 of one calendar year through June 30 of the immediately subsequent calendar year. .09-0 "Homeless person" means any person who lived or resided in Anaheim immediately prior to being provided shelter in a hotel by a Qualifying Nonprofit Service Organization. .100040 "Hotel" means any structure or portion thereof, which is occupied by persons for lodging or sleeping purposes for periods of less than thirty consecutive days including, without limitation, any hotel, bachelor hotel, motel, lodging house, rooming house, bed and breakfast inn, short-term rental, apartment house, dormitory, vacation ownership resort, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof, and any space, lot, area or site in any trailer court, camp, park, or lot which is occupied or intended or designed for occupancy by a tent, trailer, recreational vehicle, mobilehome, motorhome, or other similar conveyance, where such structure, space, lot, area or site is occupied by persons for lodging or sleeping purposes for periods of less than thirty consecutive days.. 4?"Indir PaymeRV means the payment of rent from a tFansient dimetly to a third pafty who eelleets the r-ent ...i..,e.) ff.,...the ...»...,.en.and ..ate., then ,_mi....the _-- , --- whole -- --- r----, to the -r------, and shall inelude where the 1 s r-ent payment dir-eetly to the third party is made e pmeessed using 7 7 7 debit > paymeM and elleratieft rne method, �- - n .05110 "Operator" means an accommodations supplier or accommodations intermediary. a,Ay entity,per-son, eer-peFeAiea, > whether- in eapaoity of owner-, lessee, sublessee, mertgage > > t�qpe or 1, eter other- diaji as an employee, the managing agent�l„'lxxazI also 0o av eper-ater- and shall hmle the same dufies and liabilities as its prineipal. Gemplianee with the of -this chapter by either the pFineipa4 agent shall eenstitute semplianese by-bethrFor purposes of the notice and appeal provisions of this chapter only, "operator" shall also include any managing employee or employee of an accommodations supplier or accommodations intermediate in charge of the hotel .1200b0 "Qualifying Nonprofit Service Organization" means any nonprofit service organization which (la) is a member of the Anaheim Human Services Network, (2b) directly pays the cost of sheltering homeless persons in a hotel and (3e) does not directly or indirectly further any religious purpose by providing such shelter. .1300-0 "Qualifying Rental Agreement" means and is limited to a written contract signed by both the landlord and tenant, legally enforceable by either party, for a rental period of not less than thirty consecutive days. "Qualifying Rental Agreement" shall expressly exclude: (1) any agreement regardless of length of the rental term which is terminated for any reason by either party or by mutual consent prior to the thirtieth consecutive day of the tenancy, or (2) any agreement regardless of the length of the rental term which is for occupancy of lodging or sleeping space which is not the legal residence or principal dwelling place of the occupant, or (3) any agreement which would be unlawful or constitute a violation of law. .1400W "Rent" means the total consideration charged by an operator for accommodationts a hotel; without any deduction therefrom whatsoever, including without limitation the discount room charge and/or facilitation fee, if any, as well as any (1) transaction fees. service fees, booking feesprocessing fees. retail markups, commissions cancellation fees. California Tourism Marketing Assessments, unrefunded advance reservation or other rental deposits, (2) separate charges levied for items or services which are part of or accompany such accommodations including, but not limited to charges for overnight parking.furniture, fixtures, appliances, linens, towels, -efeted safes, spa or fitness center usa 7e or access. resort usage or access(commonly referred to as resort or destination fees internet access housekeoiqg or room cleaning, et occu anc , or et -related cleaning, additional guests/transients, and/or partial days or early or late arrival or departure, (3) consideration or value received by an operator from an award or reward program, including,the redemption of award/reward points incentives or bonuses, or (4) charges reasonably attributable to any of the foregoing taxable items that are part of a special package as defined in 2.12.020) that includes accommodation(s) and_ maid servie . "Rent" shall not include any charge, billing, or account or portion thereof which the operator finds to be worthless or uncollectible and charged off for tax purposes. If any such worthless or uncollectible rent is thereafter collected, the amount shall be considered rent in the month collected and the tax collected shall be included in the next monthly payment to Anaheim by the operator. "Rent" shall also not include any amount upon which a sales or use tax is imposed pursuant to Chapter 2.04 of this Code if the imposition of a tax pursuant to this Chapter 2.12 would be deemed to constitute an additional sales and use tax conforming to all of the conditions set forth in subdivision (b) of Section 7203.5 of the Revenue and Taxation Code of the State of California. .150 "Short-term Rental" means a residential dwelling or a portion thereof that is rented by an operator to another person or group of persons for occupancy, dwelling, lodging, or sleeping u oses fora period of less than thirty 30 consecutive calendar days. For puMoses of this definition, residential dwelling means a building, or portion thereof, designed exclusively for residential purposes, including single-family and multiple -family dwellings. .016090_ "Tax" (where such term is not capitalized) means the amounts imposed pursuant to Section 2.12.010 of this chapter; "Tax" (where such term is capitalized) means (1) the tax and (2) any applicable interest and penalties imposed by this chapter and f3) any amount collected by an operator under a representation that it is a tax which is not refunded in accordance with this chapter. .1700 "Transient" means any person who exercises occupancy, or is entitled to occupancy, of any room, space, lot, area or site in any hotel by reason of concession, permit, right of access, license or other agreement whether written or oral. Any such person shall be deemed to be a transient until the thirtieth consecutive day [counting Partial days as full days of such occupancy or right of occupancyland the tax imposed by this Chapter shall be due upon all rent collected or accruing prior to said thirtieth consecutive day unless the occupancy is pursuant to a Qualifying Rental Agreement. Section 2: AUTHORITY OF CITY COUNCIL TO AMEND CODE The City Council of the City of Anaheim is hereby authorized to amend Chapter 2.12 of the Anaheim Municipal Code in any manner that does not increase the rate of any tax or otherwise constitutes a tax increase for which voter approval is required by Article XIII C of the California Constitution, including adopting exemptions, waivers, or reductions of the tax. Section 3: BALLOT DESCRIPTION. As provided in Government Code section 34458.5, the following ballot description is included in this proposed ordinance amending section 2.12.005 of the Anaheim Municipal Code: This ordinance would amend section 2.12.005 of the Anaheim Municipal Code to: i) expressly include online travel companies and other travel companies/room sellers and resellers in the definition of an "operator" obligated to collect and directly remit transient occupancy tax to the City of Anaheim, ii) make clear that the full amount paid by a hotel guest for accommodations in a hotel is taxable, iii) specifically list in the Code certain charges delineated in the City's Transient Occupancy Tax Guidelines, such as overnight parking, resort and intemet/WIFI charges which are part of or accompany a hotel room, that fall within the existing definition of "rent" in the Code; and iv) delete provisions mandating that online travel companies require hotel guests to directly pay hotels for accommodations. This amendment does not give the City Council power to raise its compensation or that of other City officials without voter approval. Section 4: SEVERABILITY. It is the intent of the people that the provisions of this ordinance are severable and that if any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect any other provision or application of this ordinance which can be given effect without the invalid provision or application. This is to certify that Ordinance No. 6549 in the exact form above written was submitted to the voters as Measure J on the ballot at the General Municipal Election held on November 8, 2022, and according to the Certificate of Canvass from the Orange County Registrar of Voters a majority of the voters voting on Measure J did vote in favor of it, receiving 41,143 "yes" and 28,317 "no" votes; and That the declaration of results of this canvass was adopted by the Anaheim City Council on the 6 h day of December, 2022, in the form of Resolution No. 2022-142, and said Ordinance No. 6549 will be in full force and effect 10 days following adoption of said declaration. In witness whereof I have hereunto set my hand this 8t' day of December, 2022. ERK OF THE CITY OF ANAHEIM Anaheim Bulletin 1920 Main St., Suite 225 Irvine, Ca 92614 714-796-2209 5190168 ANAHEIM,CITY OF/CLERKS OFF 200 S ANAHEIM BLVD STE 217 ANAHEIM, CA 92805-3820 FILE NO. ORDINANCE NO.6549 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA, SS County of Orange I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above -entitled matter. I am the principal clerk of the Anaheim Bulletin, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on December 28, 1951, Case No. A-21021 in and for the City of Anaheim, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: 12/15/2022 I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct: Executed at Anaheim, Orange County, California, on Date: December 15, 2022. C', �rca, Signature PROOF OF PUBLICATION Legal No. 0011576104 SUMMARY PUBLICATION CITY OF ANAHEIM ORDINANCE NO. 6549 AN ORDINANCE OF THE CITY OF ANAHEIMAMENDING SECTION 2.12.005 (DEFINITIONS) OFCHAPTER2.12 (TRANSIENT OCCUPANCY TAX) OF THE ANAHEIM MUNICIPAL CODE TO INCLUDE ONLINE AND OTHER TRAVEL COMPANIES AS OPERATORS REQUIRED TO COLLECT AND REMIT TRANSI ENT OCCUPANCY TAX ON THE FULL AMOUNT PAID BY HOTEL GUESTS FOR ACCOMMODATIONS AND TO MAKE OTHER RELATED AND/OR CLARIFYING CHANGES (MEASURE J) The primary purpose of this ordinance is to update the Anaheim Municipal Code to require online travel companies and other room sellers and resellers to collect and remit the Transient Occupancy Tax (TOT) to the City on the full rate charged to hotel guests for accommodations, and would explicitly place in the TOT Code items such as parking, resort fees and WIFl/internet charges that accompany a hotel room and are therefore subiect to TOT. I, Theresa Bass, City Clerk of the City of Anaheim do hereby certify that the foregoing is a summary of Ordinance No. 6J which ordinance was submitted to the voters as Measure J on the ballot at the General Municipal Election held on November 8, 2022, and according to the Certificate of Canvass from the Orange County Registrar of Voters a maiority of the voters voting on Measure J did vote in favor of it, receiving 41,143 "yes" and 28,317 "no" votes; and That the declaration of results of this canvass was adopted by the Anaheim City Council on the 6th day of December, 2022, in the form of Resolution No. 2022-142, and said Ordinance No. 6549 will be in full force and effect 10 days following adoption of said declaration. The above summary is a brief dgscription of the subiect matter contained in the text of Ordinance No. 6549 which has been prepared pursuant to Section 512 of the Charter of the City of Anaheim. This summary does not include or describe every provision of the ordinance and should not be relied on as a substitute for the full text of the ordinance. To obtain a copy of the full text of the ordinance, please contact the Office of the City Clerk, (714) 765-5166, between 8:00 a.m. and 5:00 P.m., Monday through Friday. There is no charge for the copy. Published Anaheim Bulletin Dec.15, 2022 11576104 r.LPI-12115116 CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Ordinance No. 6549 and was published in the Anaheim Bulletin on the 15tn day of December, 2022, pursuant to Section 512 of the City Charter of the City of Anaheim. CITY CILERK OF THE CITE' OF ANAHEIM (SEAL)