Ordinance/Transient Occupancy Tax Rate Increase Page 1 of 3 Rev: 09/2019
ORDINANCE NO. 2073
AN ORDINANCE OF THE CITY OF SANTA CLARA,
CALIFORNIA, AMENDING SECTION 3.25.030 (“TAX
IMPOSED”) OF CHAPTER 3.25 (“TRANSIENT OCCUPANCY
TAX”) OF “THE CODE OF THE CITY OF SANTA CLARA,
CALIFORNIA” TO REFLECT THE INCREASED TAX RATE
BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, On November 3, 2020, 73.57% of Santa Clara voters approved the following ballot measure (Measure E) that allowed for an increase of up to four percentage points in the City’s TOT from the starting rate of 9.5%;
;
WHEREAS, the TOT rate was increased from 9.5% to 11.5%, effective January 1, 2022, consistent with the FY 2021/22 and FY 2022/23 Biennial Operating Budget; WHEREAS, the TOT rate was increased from 11.5% to 12.5%, effective January 1, 2024, consistent with the FY 2023/24 and FY 2024/25 Biennial Operating Budget; WHEREAS, concurrently with this ordinance amendment, pursuant to the authorization granted by the voters in Measure E, the City Council is adopting a resolution increasing the TOT rate from 12.5% to 13.5%, which will be effective January 1, 2025; and WHEREAS, the City Code currently reflects a TOT rate of 12.5%, which must be amended to be consistent with the TOT rate increase.
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Ordinance/Transient Occupancy Tax Rate Increase Page 2 of 3 Rev: 09/2019
NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:
SECTION 1 : That Section 3.25.030 (entitled “Tax Imposed”) of Chapter 3.25 (entitled “Transient Occupancy Tax”) of Title 3 (entitled “Revenue and Finance”) of “The Code of the City of Santa Clara, California” (“SCCC”) is amended to read as follows:
“3.25.030 Tax imposed.
(a) For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax as imposed from time to time by City Council resolution. Said tax shall be a percentage of the rent charged by the operator to the occupant. (b) On and as of January 1, 2025 and continuing thereafter until further change by City Council resolution, the amount of the tax imposed is t hirteen and one-half percent (13.5%) of the rent charged by the operator.
(c) 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, or any person paying rent on the transient’s behalf, 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 Director of Finance may require that such tax shall be paid directly to the Director of Finance.”
SECTION 2: Ordinances Repealed. With exception of the provisions protected by the savings clause, all ordinances (or parts of ordinances) in conflict with or inconsistent with this ordinance are hereby repealed.
SECTION 3: Savings clause. The changes provided for in this ordinance shall not affect any offense or act committed or done or any penalty or forfeiture incurred or any right established or accruing before the effective date of this ordinance; nor shall it affect any prosecution, suit or proceeding pending or any judgment rendered prior to the effective date of this ordinance. All fee schedules shall remain in force until superseded by the fee schedules adopted by the City Council.
SECTION 4: Effective date. This ordinance shall, by its terms, take effect on and as of January 1, 2025; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of "The Charter of the City of Santa Clara, California."
PASSED FOR THE PURPOSE OF PUBLICATION this 22ND day of October 2024, by the following vote:
AYES: COUNCILORS :
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED : COUNCILORS:
Becker, Chahal, Hardy, Jain, Park and
Watanabe, and Mayor Gillmor
None
None
None
ATTEST : mP
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference: None
Ordinancen-ransient Occupancy Tax Rate Increase
Rev: 09/2019