200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5165
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: JANUARY 24, 2023
FROM: CITY MANAGER’S OFFICE AND CITY ATTORNEY’S OFFICE
SUBJECT: SPECIAL PACKAGE TRANSIENT OCCUPANCY TAX
AGREEMENT WITH WALT DISNEY TRAVEL COMPANY
ATTACHMENT (Y/N): YES ITEM # 08
REQUESTED ACTION:
That the City Council, by Motion, approve the Special Package Transient Occupancy Tax Agreement with Walt Disney Travel Co., Inc., and authorize the City Manager to execute the agreement and any amendments thereto that do not alter the amount of transient occupancy tax due and payable under the Agreement.
DISCUSSION:
At the November 8, 2022 general municipal election, Anaheim voters approved Measure J, which modified Anaheim’s Transient Occupancy Tax (TOT) Code to make online and other travel companies (OTCs) “operators” subject to the TOT Code. Thereafter, the City Council approved Ordinance No. 6550, which, among other things, modified Section 2.12.020 of the TOT Code to create an exception to the special package form requirement in the TOT Code (the requirement that an operator submit a form each time a room is sold as part of a package and the room rate does not appear on the guest folio) in instances where an OTC sells a large number of special packages, such that filing and reviewing special package forms for each transaction would be burdensome for the OTC and the City. In these circumstances, the City would be permitted to enter into an agreement with the OTC setting forth a methodology that provides the City with the tax information it needs to administer and enforce the Code without the necessity of special package forms. Such an agreement would not alter the tax due under the Code, and the operator would still be required to collect and remit TOT on the full amount charged to the guest for accommodations.
Attached hereto is a proposed Special Package Transient Occupancy Tax Agreement with Walt Disney Travel Company (WDTC), which provides for a TOT reporting methodology in lieu of filing special package forms. The Agreement sets forth a procedure that staff believes provides the City with sufficient information to determine the items subject to TOT and to ensure that WDTC is paying the full amount of the tax due to the City. The agreement provides for an audit after six months of TOT reporting to ensure that the methodology is sound and is providing the City with sufficient information to assess the tax. It should also be noted that similar “in lieu” agreements are in place with other operators as permitted by the time share provisions in the TOT Code.
Special Package Transient Occupancy Tax Agreement
January 24, 2023
IMPACT ON BUDGET:
Approval of this Agreement will have no budgetary impact.
Respectfully submitted, Concurred by,
Jim Vanderpool Robert Fabela
City Manager City Attorney
Attachment:
1. Special Package Transient Occupancy Tax Agreement