This report is intended for the internal use of the City of Stockton , and may not be provided to, used, or relied upon by any third parties.
Proprietary & Confidential
FINAL REPORT
CITY OF STOCKTON
HOTEL MOTEL ORDINANCE REVIEW
September 13, 2024
Moss Adams LLP
999 Third Avenue, Suite 2800
Seattle, WA 98104
(206) 30
2-6500
Attachment A
Hotel Motel Ordinance Review Report
Table of Contents
E xecutive Summary 1
A. Background, Scope, and Methodology 1
B. Summary of Observations and Recommendations 2
I ntroduction 4
A. Background 4
B. Scope and Methodology 6
O bservations and Recommendations 8
A. Transient Occupancy Tax – Chapter 3.28 8
B. Hotel, Motel, and Residential Hotel/Motel Permit Ordinance – C
hapter 5.80 15
C. Hotel Guest Registers – Chapter 5.44 25
D. Short-T erm Rentals 27
E. Ordinance Administration 29
Appendix A: Peer City Overview 34
Appendix B: Transient Occupancy Tax – Chapter 3.28 Analysis 35 Appendix C: Hotel, Motel, and Residential Hotel/Motel Permit Ordinance – Chapter 5.80 Analysis 39
Appendix D: Hotel Guest Registers – Chapter 5.44 Analysis 52 Appendix E: Kern County Hotel Risk Assessment Form 54
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EXECUTIVE SUMMARY
The City of Stockton (the City, Stockton) engaged Moss Adams LLP (Moss Adams) to conduct best practice research, peer benchmarking, and internal process review related to the structure and implementation of the City’s municipal hotel, motel, lodging, and rooming houses ordinances. The purpose of this assessment is to evaluate changes other municipalities have made to City regulations and compare their code and internal processes with best practices, particularly with the rise of short- term rentals (STRs).
This work took place between December 2023 and June 2024 and was carried out across the following four phases:
1 Start-Up and Management. Our team finalized the work plan to refine and confirm project deliverables, responsibilities, and schedules. We also provided ongoing updates related to work plan milestones and project progress.
2 Fact Finding. We conducted a planning session with the City to develop a research framework to support updates based on industry trends and identify target peers for benchmarking. We reviewed the current landscape of the City’s regulations related to the desired topic areas and leveraged the framework to determine relevant data points for research and peer benchmarking. We conducted a series of interviews with City management, staff, and external stakeholders, including representatives from Visit Stockton and the local hotel industry. Interviews were conducted to understand opportunities to update the City’s ordinance and improve internal processes. 3 Analysis. We identified and collected pertinent industry information on the topics and data points included within the established research framework. Using these identified topics and data points, we conducted peer benchmarking through document reviews and/or interviews for targeted peer cities. We then compiled data from the fact-finding phase to identify current trends. 4 Reporting. We prepared the draft report, including observations and recommendations to address updates to the City’s ordinance and internal processes. The draft report was shared with management for review. Feedback from the draft report review was incorporated into the final report before being presented to the Audit Committee.
This work was performed in accordance with the Standards for Consulting Services established by the American Institute of Certified Public Accountants (AICPA).
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Summarized observations and recommendations are provided in the following table. Detailed observations and recommendations are provided in Section III.
OBSERVATIONS AND RECOMMENDATIONS
ORDINANCE REVIEW
1. Observation
All
sections included within the City’s Transient Occupancy Tax (TOT) ordinance are also found across peers and in the majority of instances contain similar provisions.
Recommendation Consider minor updates to the City’s TOT ordinance to clarify specific sections and strengthen enforceability.
2. Observation Ther e are some commonly found provisions across peer TOT ordinances that are not found within the City’s ordinance.
Recommendation
In alignment with peer ordinances, assess the value of adding select provisions related to exemptions, successor liabilities, and confidentiality to strengthen the City’s TOT ordinance.
3. Observation
St
ockton’s hotel/motel permitting ordinance is highly prescriptive and nearly unique across peers. Only one of seven peers reviewed has a sub-section within its business licensing ordinance dedicated to hotel/motel permits; all other peers require hotels/motels to obtain a general business license or tax certificate. Several provisions within Stockton’s Chapter 5.80 do not exist anywhere across peer municipal codes.
Recommendation Consider significantly revising the City’s Chapter 5.80 ordinance to align with peers, and promote enforceability.
4. Observation
Four
of seven peer ordinances outline requirements related to guest registers.
The location and contents of the requirements vary widely across peers and in comparison to Stockton.
Recommendation Evaluate potential updates to the ordinance to help ensure that guest information is accessible and accurate.
5. Observation
Cur
rently, the City does not assess STRs. The City’s renewal option includes the addition of STR assessments by the end of 2024. Five of seven peer cities address STRs within their city ordinance.
Recommendation
The City can consider future adoption of an ordinance regulating STRs as this lodging option becomes more popular, but should evaluate staff capacity to enforce a future policy.
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OBSERVATIONS AND RECOMMENDATIONS
ORDINANCE ADMINISTRATION
6. Observation
The C
ity’s Code Enforcement team responsible for the hotel/motel program is struggling with operational inefficiencies driven by understaffing, lack of systems, and unstandardized processes.
Recommendations
A. Continue adoption of Comcate Code enforcement Software to manage citations, scheduling, and reporting.
B. Continue targeted recruitment efforts to fill vacancies in staffing.
C. Consider adopting a Hotel Risk form to standardize the inspection grading process and what might qualify a hotel/motel for additional inspections.
7. Observation The C ity currently operates with heavy use of paper. Efforts to digitize processes have been taken but still have not surpassed traditional methods.
Recommendations
A. Continue efforts to digitize information collection, management, and reporting.
B. Evaluate opportunities to shift TOT collections to an outsourced provider.
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I NTRODUCTION
The City engaged Moss Adams to review the structure and implementation of the City’s municipal hotel, motel, lodging, and rooming houses ordinances and associated internal processes. The primary sponsor of this project was the Economic Development Department (EDD), which includes the Tourism and Business Improvement Division.
The City sought to understand how other municipalities have adopted regulations and codes, or otherwise modified internal processes related to hotels/motels in response to the rise of STRs. The goal of this review is to identify opportunities to improve internal processes and potential updates to the City’s hotel, motel, lodging, and rooming houses ordinances.
The City is located in the Central Valley of California. It is the county seat of San Joaquin County and is situated in a region known for its agricultural productivity. At the start of 2024, the City reported 36 active hotels/motels operating within its limits, with an additional 13 hotels/motels identified as inactive or closed.
Stockton operates under a City Charter, which serves as its municipal constitution, with supplementary provisions in its Code of Ordinances (the Stockton Municipal Code). There are three primary sections of the Stockton Municipal Code relating to hotel/motel ordinances:
• Volume 1, Title 3, Chapter 3.28:
1 This chapter is called the “Uniform Transient Occupancy Tax of the City of Stockton” within the code. This ordinance outlines the regulations and procedures for imposing a tax on occupants renting accommodations in hotels, motels, and other lodging facilities within Stockton. The tax is levied for stays of less than 30 days and is used to generate r
evenue for the City’s general fund. It includes definitions, the tax rate, exemptions, the r
esponsibilities of operators, and enforcement measures. • Volume 1, Title 5, Chapter 5.80:2 This chapter is called the “Hotel, Motel, and Residential Hotel/Motel Permit Ordinance” within the code. This ordinance mandates that operators of hotels, motels, and residential hotels/motels obtain a permit to operate within Stockton. It details the app
lication process, requirements for obtaining and renewing permits, and standards for maintaining the permit. The ordinance aims to ensure the safety, health, and welfare of guests and the public by setting operational standards and conducting regular inspections. It als o
i
ncludes enforcement provisions and penalties for violations. • Volume 1, Title 5, Chapter 5.44:3 This chapter is called the “Hotel Guest Registers.” This ordinance mandates that operators of any place intended to be used by guests for sleepin g pur
poses maintain a register of guests. The ordinance outlines the type of information to be c
ollected. It also stipulates that the guest register be made available for inspection. 1 https://ecode360.com/43424270#43424270
2 https://ecode360.com/43421909#43421909
3 https://ecode360.com/43421193#43421193
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These sections provide the regulatory framework for hotels and motels within Stockton, covering aspects such as business licensing requirements and the imposition and collection of fees.
A TBID is a designated area within a city where businesses must pay an additional tax or fee. Its primary function is to generate funds for marketing and promotional activities to increase tourism within the district. The current Stockton TBID was established effective January 1, 2016 by the Stockton City Council and expires December 31, 2025. Visit Stockton is a 501(c)6 non-profit corporation funded through the TBID and is the official destination marketing organization for the City.
The key functions of a TBID include:
• Revenue Generation: TBIDs generate revenue through an additional fee charged to hotels and other tourism-related businesses. The current TBID assessment levies a four percent fee per hotel room per night.
• Marketing and Promotion: The TBID’s funds are used to market and promote the district as a tourist destination. This can include advertising campaigns, promotional events, tourism packages, and collaborations with travel agencies and tour operators. • Tourism Development: TBIDs also play a crucial role in developing and enhancing the district ’s appeal to tourists. This can involve improving public spaces, supporting local events and festivals, and working with businesses to improve tourist offerings. • Business Support: TBIDs often support businesses within the district to help them benefit from increased tourism. This can include training programs, networking events, and assistance with marketing and promotion.
Overall, the function of a TBID is to boost tourism within a specific area, benefiting the businesses within the district and contributing to the city’s overall economic health.
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This assessment included a review of the City’s Hotel Motel Ordinance. Analysis was informed by interviews with City management, City staff, and external stakeholders; a review of data and documents provided by the City; and a comparison of current practices to peers and industry trends.
The project was conducted between December 2023 and June 2024, in accordance with the Standards for Consulting Services established by the American Institute of Certified Public Accountants (AICPA). Specific phases of the project included:
PROJECT PHASES
Phase Description Period
1 Startup and
Management
Project initiation consisted of collaborative project planning with the City and project management, including developing our scope of work and final work plan.
December
2023
2 Fact-Finding ● I n the second phase , we conducted fieldwork, including ordinance review and interviews. Our procedures included:
○ Reviewing the existing City ordinances—Business License and Regulations (Chapter 5.80) and Transient Occupancy Tax (Chapter 3.28).
○ Reviewing process documentation to understand how the ordinance is administered and enforced within the City.
○ Conducting interviews with key stakeholders to understand the operational impacts of existing provisions included in the ordinances.
Fieldwork also included peer comparison.
● In collaboration with the City, we identified relevant peer municipalities for comparison based on the following criteria:
○ Jurisdictional Relevance: Entities that share jurisdictional similarities with the City, such as population, number of hotels, and regulatory environment.
○ Geographic Proximity: Entities located within the region were chosen due to geographic proximity and associated shared operating environments.
○ Resource Alignment: Entities with similarly-aligned resources, funding, and operational frameworks. ● Using the above criteria, we targeted the following seven peers for comparison and benchmarking:
○ Bakersfield
○ Elk Grove
○ Fresno
January–
March 2024
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PROJECT PHASES
Phase Description Period
○ Irvine
○ Lodi
○ Riverside
○ Sacramento
● We conducted research into relevant municipal codes for peer cities, initiated several rounds of outreach to supplement benchmarking, and conducted interviews with available peer cities. ● We relied on a variety of research sources to inform the analysis, observations, and recommendations.
Sources included the National League of Cities, the Municipal Research and Services Center, and the International City/County Management Association.
3 Targeted
Analysis
Based on t he information gained during Phase 2, we performed a comparative analysis to identify opportunities for Stockton to update its ordinances to align with peers and best practices. We developed practical recommendations for the City to consider. Key procedures included:
● For each ordinance section, we recommended potential revisions, comparing the City’s existing language to peer and best practice provisions.
● Preparing, presenting, and revising the draft report.
April–May
2024
4 Reporting
Results
We communicated the results of our analysis with observations a nd recommendations, presented first in a draft report that was reviewed with management, to confirm the practicality and relevance of recommendations before finalizing the report.
June 2024
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O BSERVATIONS AND RECOMMENDATIONS
Based on the input gathered from interviews, document review, focus groups, and comparisons to peer and industry trends, we prepared a comprehensive set of observations and recommendations, presented below.
The observations and recommendations in this section pertain to the TOT section of the City’s municipal code, found in Chapter 3.28. A comprehensive comparison to peer cities is included in Appendix B.
1. Observation All sections included within the City’s Transient Occupancy Tax (TOT) ordinance are also found across peers and in the majority of instances contain similar provisions.
Recommendation Consider m inor updates to the City’s TOT ordinance to clarify specific sections and strengthen enforceability.
A TOT ordinance, often referred to as a “hotel” or “bed” tax, is a local law that imposes a tax on guests who rent accommodations in a hotel, inn, tourist home or house, motel, or other lodging for a period of less than 30 days. The primary purpose of a TOT ordinance is to generate revenue for the city or jurisdiction. This revenue is typically used to fund local services and infrastructure, such as public safety, parks, and roads, as well as tourism promotion and development. In some cases, a portion of the revenue may also be allocated to special projects or initiatives, such as affordable housing or cultural programs.
A TOT ordinance establishes the responsibilities of operators in collecting and remitting the tax, provides for penalties in case of non-compliance, and sets out procedures for appeals and disputes.
By doing so, the ordinance ensures that the tax is collected in a fair and consistent manner . All peers have a TOT ordinance within their municipal code; however, specific sections contained within each TOT ordinance can vary widely. The following is a comparison of Stockton’s TOT ordinance and sections against seven peers.
TRANSIENT OCCUPANCY TAX – CHAPTER 3.28
Section Stockton Ordinance
Peer Ordinance
Analysis Recommendation
Section 3.28.020
Definitions
The ordinance defines
k
ey terms like “hotel,”
“occupancy,” “operator,”
“person,” “rent,” and
“transient.”
Similar definitions with
some variation to include
city-specific terms such
as “campground,” “bed
and breakfast,”
“recreational vehicle
park,” etc.
No updates
recommended.
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TRANSIENT OCCUPANCY TAX – CHAPTER 3.28
Section Stockton Ordinance
Peer Ordinance
Analysis Recommendation
Section 3.28.030 Tax
imposed
A tax of 8% of the rent is
i
mposed on transients for
the privilege of
occupancy in any hotel.
● Four of seven peers
have rates closer to
12–13%.
● Three peer have
rates ranging
between 6–8%.
Assess TOT rates to
evaluate the practicality
of incremental increases
over time.
Section 3.28.040
Operator’s duties
Operators must collect
t
he tax from transients
and separately state it
from the rent charged.
Most peers title this
section similarly and
include similar
provisions.
No updates
recommended.
Section 3.28.050
Registration
Operators must register
t
heir hotels with the Tax
Administrator and obtain
a transient occupancy
registration certificate
within 30 days of the
effective tax or
commencing the
business.
The certificate must
include the:
● Name of operator
● Address of the hotel
● Date the certificate
was issued
● Statement certifying
registration
● Five peers also
include a registration
provision in their TOT
ordinance.
● There is some
variation in the
number of days
whereby registration
must be completed,
ranging from 5–60.
● Some provisions
state the signing
authorities within the
city.
● Certificate
information is the
same across peers
with a registration
provision.
The City can consider
updating the ordinance to
include who in the City is
authorized to sign the
certificate. This could be
a good control measure,
if this was an issue.
No other updates
recommended.
Section 3.28.060
Security for collection
of tax
The Tax Administrator
m
ay require operators to
provide a security
deposit to ensure
compliance with tax
payment requirements.
The security deposit shall
be equal to an amount
not greater than twice
the person’s estimated
average liability for the
first period for which a
return must be filed, or
the sum of $10,000.00,
whichever is less.
Includes obligations of
tax liability clearance in
the event an operator
Two peers have
provisions for securities
that are the same as
Stockton’s.
Four peers enable the
city to place a lien on a
property. Sections in
these provisions
address:
● Lien certificate
recording
● Warrant for
collections
● Seizure and sale
Five peers have separate
provisions for successor
liabilities.
● Assess the
practicality of shifting
the City’s security
provisions to enable
the City to place a
lien on a property.
● Create a separate
section of the
ordinance to address
successor liabilities.
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TRANSIENT OCCUPANCY TAX – CHAPTER 3.28
Section Stockton Ordinance
Peer Ordinance
Analysis Recommendation
stops, sells, or transfers
the business.
Section 3.28.070
Reporting and
remitting
Operators must make
quar
terly returns to the
Tax Administrator on or
before the last day of the
month following the close
of each quarter and remit
the full amount of tax
collected.
The Tax Administrator
may collect more
frequently.
● Four of seven peers
collect tax monthly.
Three peers collect
tax quarterly.
● Two peers require
reposting at the
cessation of the
business.
● All have similar
powers of the tax
administrator or
equivalent position to
impose shorter
collection periods.
No changes
recommended. The City
does not currently have
sufficient personnel to
administer monthly
collections.
Section 3.28.080
Penalties and interest
Operators face penalties
and i
nterest for failing to
timely remit taxes.
● First delinquency:
Tax amount plus 10%
● Continued
delinquency: Tax
amount plus 10%
● Fraud: 25% of tax in
addition to the
penalties above
● Interest: 0.5% per
month of the tax
exclusive of the
penalties
Penalties merged: Every
penalty and such interest
accrues until the tax is
paid
Six of seven peers have
identical:
● Penalties for
delinquency
● Penalties for fraud
● Allowability to merge
penalties
There is some variation
in interest penalties,
ranging from 0.5% to 1%
monthly, or 2% per
annum.
● One peer has
significantly more
severe penalties.
No updates
recommended.
Section 3.28.090
Failure to collect and
report tax
The Tax Administrator
c
an determine the tax
due if an operator fails to
collect and report it.
● An operator may
apply for a hearing on
the amount assessed
within 10 days of the
notice.
● The Tax
Administrator must
● Four out of seven
peers have identical
provisions.
● Variations include the
method for
notification (first-class
mail, in person, etc.).
● Two peers do not
allow for hearings.
One of these does
allow for a
“redetermination.”
No updates
recommended.
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TRANSIENT OCCUPANCY TAX – CHAPTER 3.28
Section Stockton Ordinance
Peer Ordinance
Analysis Recommendation
respond within five
days.
The amount determined
to be due shall be
payable after 15 days
unless there is an
appeal.
● Nearly all have a 15-
day payment
requirement. One
requires payment due
immediately.
Section 3.28.100
Appeal
Operators can appeal
t
he Tax Administrator’s
determinations to the
City Council.
● Appeals can be made
within 15 days.
● Hearings are held in
front of City Council.
Payment is due
immediately upon
determination (as
applies).
Four peers of seven
have identical provisions.
Two peers reference a
broader municipal code
that guides all appeals.
● One peer hosts
hearings in front of
the Financial
Performance and
Budget Committee
rather than in front of
City Council.
No updates
recommended. Stockton
embeds the appeals
process within specific
ordinances across its
municipal code. This
should be noted for
consistency if this were
ever to be updated in the
future.
Section 3.28.110
Records
Operators must keep
re
cords for three years to
determine their tax
liability.
● Four of seven peers
have identical
provisions.
● Some have a longer
retention period
between 3.5–4 years.
● Some include more
prescriptive guidance
on records retention.
No updates
recommended.
Section 3.28.120
Refunds
Procedures are provided
f
or obtaining refunds of
overpaid, duplicate, or
erroneously collected
taxes by either an
operator or a transient.
Claims must be filed
within three years.
● Most peers have
identical or similar
provisions.
● Two peers limit the
claim period to one
year.
No updates
recommended.
If the City were
experiencing issues with
the window to file claims
it could shorten it to one
year.
Section 3.28.130
Actions to collect
Unpaid taxes are debts
ow
ed to the City that can
be recovered through
legal action.
● Five of seven peers
have identical
provisions within their
ordinance. Others are
not materially
different.
No updates
recommended.
Section 3.28.140
Violations
It is unlawful to fail to
register, file returns, or
provide truthful
Six of seven peers
designate any violation of
Consider updating the
code to state that
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TRANSIENT OCCUPANCY TAX – CHAPTER 3.28
Section Stockton Ordinance
Peer Ordinance
Analysis Recommendation
information as required
by the ordinance.
Does not qualify
violations of the
ordinance as a
misdemeanor or other.
the ordinance of a
misdemeanor.
● Four of seven peers
reference broader
municipal ordinances
that outline the
commencement for
criminal proceedings
related to
misdemeanors.
violations of the code will
result in a misdemeanor.
Reference guidance for
the punishment of
misdemeanors as
established in Chapter
1.08.010- Criminal
Violations—
Misdemeanors and
infractions.
2. Observation There are some commonly found provisions across peer TOT ordinances that are not found within the City’s ordinance.
Recommendation In alignment with peer ordinances, assess the value of adding sel ect provisions related to exemptions, successor liabilities, and confidentiality to strengthen the City’s TOT ordinance.
The City’s TOT ordinance, while comprehensive in many respects, does not include certain sections that are commonly found in similar ordinances in peer jurisdictions. These missing sections, which cover aspects such as exemptions, confidentiality, and guidance on uncollectable accounts and successor liabilities, could help to strengthen Stockton’s TOT ordinance. Incorporating these elements could provide greater clarity for both the City and operators, reduce potential ambiguities, and ensure more robust enforcement of the TOT. As such, it may be beneficial for the City to consider revising its TOT ordinance to include these commonly found sections.
Exemptions
Six of seven peers include a section on exemptions within their TOT ordinance. The purpose of an exemption section is to specify individuals who are not required to pay the tax. These could include certain government officials, long-term residents, or others for whom the imposition of the tax would be inappropriate or unlawful.
All exemption sections across peers include the following:
• No tax shall be imposed upon any person or occupancy that is beyond the power of the city to impose. This is a common phrase that appears in each of the sections, indicating that the city cannot tax individuals or situations where it does not have the legal authority to do so. • All peers require that any exemption must be claimed at the time rent is collected and under penalty of perjury. This means that individuals must claim their exemption when they pay their rent and they must be truthful in their claim, or they could face legal consequences.
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• All peers require the exemption claim be made on a form prescribed by a city official, such as the assessor-collector, Tax Administrator, Director of Administrative Services, or Tax and License Collector.
Peer ordinances included differences in exemptions. For example, some sections specify that officers or employees of a foreign government who are exempt by express provision of federal law or international treaty are not subject to the tax. Others extend this exemption to federal or s tate officers or employees when on official business. Some peer ordinances also provide exemptions for occupants for more than 30 successive calendar days, occupants whose rent is of a value less than two dollars a day, and people who rent certain types of rooms or facilities. One peer provides a presumption within its ordinance that an operator is not liable for the tax with respect to any government employee or officer for whom the operator retains a signed and dated copy of the exemption form.
The City should consider updating its TOT ordinance to include a section for exemptions. An exemption section is important because it ensures that the tax is applied consistently and in accordance with the City’s legal authority and policy objectives. It also provides a clear process for claiming an exemption, which helps to prevent misunderstandings and disputes.
Successor Liability
Five of seven peer cities have a distinct section in their ordinance called Successor Liabilities. Th is section includes additional details to clarify successor roles, responsibilities, liabilities, and obligations of the seller, purchaser, and the city.
Within the City’s TOT ordinance is a section called Security to Collect on Tax. Included in this section are the rules explaining the circumstances in which a person is considered a successor to a person leaving a business (specifically a hotel or motel operator). It also explains the successor’s responsibility for payment of an outstanding tax liability owed by the taxpayer who left the business, whether that liability is known at the time of purchase or not. For peers that have a Successor Liabilities section, their Security for Collection of Tax section defines the mechanism by which a city can ensure compliance with this TOT ordinance for existing operators.
The City’s Security for Collection of Tax section of its TOT ordinance does not enable the City to collect outstanding TOT taxes in instances where an operator leaves or sells the business. The effectiveness of the terms outlined in Stockton’s Security for the Collection of Tax relies heavi ly on the operational efficiency of the Tax Administrator’s office in processing requests for tax clearance certificates and communicating amounts due. Any inefficiencies, resource constraints, or procedural lapses in the Tax Administrator’s office can significantly undermine the ordinance’s enforcement, leading to lapses in tax collection and financial discrepancies.
1. Notification: Rules describing notifications of a sale or transfer are outlined in the City’s Hotel, Motel, Lodging, and Rooming Houses ordinance (Chapter 5.80). The five of seven peers with specific successor liability sections in their TOT ordinance include notification of quitting, selling, or transferring a hotel/motel within that section. If Stockton does not create a separate section for successor liabilities, it should consider linking to the notification requirements in Chapter 5.80.
2. Release of successor obligation to withhold funds: With the exception of the City of Fresno, no other peer cities release the successor from their obligation to withhold funds from the purchase price without a tax clearance certificate from the successor or the seller.
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a. The City should consider eliminating this qualifier from its ordinance. The City of Lodi simply states:
“Within thirty days after receiving a written request from the successor for a tax clearance certificate stating that no tax or penalty is due, the tax administrator shall either issue the certificate or mail notice to the successor at its address as it appears on the records of the city of the estimated amount of the tax and penalty that must be paid as a condition of issuing the certificate.”
The City of Elk Grove’s ordinance states, “Nothing herein shall relieve any operator, assignor, seller, transferor, or other person or entity who transfers ownership of the hotel from any liability under this chapter or as otherwise provided by law.” b. Alternatively, the City could take a similar approach to the City of Irvine, which requires the successor to pay the tax due in the absence of a tax clearance certificate. “If the selling operator fails to present a transient occupancy tax clearance certificate showing that no tax or penalty is due from the operator through the date of sale to the operator ’s successor within 30 days after such successor commences operation of the hotel, then the successor shall immediately deposit the amount withheld from the purchase price with the Director of Administrative Services pending settlement of the account of the selling operator.”
3. Response time: Peer cities more commonly have a 60–90 day response deadline for their Tax Administrator (or equivalent) role to respond to a request for a tax clearance certificate or to be informed of the tax due. For example, the City of Bakersfield’s ordinance states:
“Within sixty days after receiving a written request from the purchaser for a certificate, or within sixty days from the date the former owner’s records were made available for audit, whichever period expires the later, but in any event not later than ninety days after receiving the request…” The City of Elk Grove has a 90-day response timeline from receipt of a written request for a tax clearance certificate.
Extending the notification requirements can help the City manage operational challenges that may result in extended notification timelines and the subsequent release of the successor from withholding funds to cover unpaid TOT taxes.
4. Audit: Rather than requiring the city to provide the amount of unpaid TOT tax due to either the seller or the purchaser, some cities require documentation supporting the estimate of unpaid TOT tax (if any) be provided to the city. In these instances, the city’s obligation is to affirm the estimate or notify the requestor (either seller or successor) of an update. Cities that include the right to audit the estimated liabilities include the cities of Irvine, Bakersfield, and Elk Grove.
The City can consider adopting an audit clause in its ordinance; however, this will require the availability of personnel, and that operators are aware of the requirements to retain documentation supporting estimates of their TOT tax.
In addition to the updates above, the City can consider structural and philosophical updates to its ordinance. As observed, the City’s ordinance places the responsibility of compliance with the ordinance internally. Conversely, peer cities such as Lodi, Irvine, Elk Grove, and Bakersfield shift the burden of proof that the tax liability is cleared on the seller or the purchaser. An overall approach similar to peer cities can help mitigate Stockton’s risk of lost TOT taxes.
Confidentiality
Three of seven peers include sections that address the confidentiality of records within their related hotel/motel ordinances (either TOT or Guest Registers).
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Maintaining the confidentiality of records can be an important aspect of any regulatory framework, particularly when it comes to tax-related matters. A section dedicated to this topic would protect the sensitive information of taxpayers, operators, and guests, such as name, address, and payment details. It would also establish clear guidelines for City officials and employees regarding the handling, storage, and disclosure of such information.
A confidentiality section in Stockton’s TOT or Guest Registers ordinances could outline the types of information considered confidential, the responsibilities of various parties in maintaining this confidentiality, and the circumstances under which such information can be lawfully disclosed. It could also detail the penalties for unauthorized disclosure of confidential information. By including such a section, the City can demonstrate its commitment to privacy and data protection, thereby enhancing trust among taxpayers and operators and potentially improving compliance with the ordinance.
The observations and recommendations in this section pertain to the hotel/motel business license and regulations section of the City’s municipal code (Chapter 5.80). A comprehensive comparison against peers is included in Appendix C.
Of surveyed peers, only the City of Bakersfield has a subsection within its business licensing ordinance to specifically address hotel/motel permitting. All other peers require hotels and motels to obtain a general business license or business tax certificate. As Stockton also has a section for general business licensing, the details of the business licensing section were not compared but noted. Where sections of Stockton’s Hotel/Motel permit ordinance are not addressed by general business licensing, peer ordinances were examined to determine if relevant information was addressed elsewhere.
3. Observation Stockton’s hotel/motel permitting ordinance is highly prescriptive and nearly unique across peers. Only one of seven peers reviewed has a sub- section within its business licensing ordinance dedicated to hotel/motel permits; all other peers require hotels/motels to obtain a general business license or tax certificate. Several provisions within Stockton’s Chapter 5.80 do not exist anywhere across peer municipal codes.
Recommendation Consider significantly revising the City’s Chapter 5.80 ordinance t o align with peers, and promote enforceability.
In other cities, a business license or a business tax certificate requirement within a city’s municipal code helps ensure that businesses operating within a city’s jurisdiction comply with local laws and standards. This includes adherence to health and safety regulations, zoning laws, and other relevant municipal codes. A business license or business tax certificate further acts as a source of revenue for a city. The fees collected from business licenses or tax certificates contribute to a city ’s budget, helping to fund public services and infrastructure. In addition, having a business license or tax certificate can provide a level of legitimacy to a business, reassuring customers and other Attachment A
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stakeholders that the business is operating legally and in compliance with local regulations. It also allows a city to keep track of the types and numbers of businesses operating within its jurisdiction, which can be useful for planning and economic development purposes.
The City has a subsection in its business license ordinance specifically for hotel, motel, and residential hotel/motel permits. This ordinance, known as the “Hotel, Motel, and Residential Hotel/Motel Permit Ordinance,” is designed to improve the conditions of the City’s hotel and motel stock, particularly those that serve as temporary or long-term housing for low-income residents. The ordinance requires these establishments to obtain a permit to operate and comply with certain standards, with the aim of providing safe and decent accommodation. It also requires hotel and motel managers to obtain a permit, and sets out rules and regulations for the issuance, suspension, or revocation of these permits.
Across peers, only the City of Bakersfield has a subsection requiring hotels/motels to obtain a permit to operate in addition to a business license or tax certificate. The City of Riverside includes its TOT ordinance within the business license and tax section of its municipal code; therefore, several sections within its TOT ordinance regulate some aspects of hotel/motel permitting. The majority of peers (five of seven) do not make specific reference to hotel/motel permitting whatsoever beyond requirements to obtain a general business license or a business tax certificate.
The City should consider whether the conditions that necessitated the Hotel, Motel, and Residential Hotel/Motel Permit Ordinance still exist today. If the City were to keep its permit to operate requirement, there are opportunities to streamline this ordinance. Simplifying the ordinance can help clarify expectations, avoid duplications, and match the enforcement procedures with the actual capacity of the City’s code enforcement team (see Enforcement). In t he future, Stockton could
consider moving the Hotel/Motel Permit Ordinance to within section 5.04 Business Licenses. This might make it easier for individuals to know that there is both a requirement for a business license as well as a permit to operate for hotels and motels.
The following is a review of the observations and recommendations for each section of the City’s hot
el/motel permitting ordinance.
SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation Section 5.80.020
Purpose
Chapter 5.80 was
dev
eloped based on
recommendations
provided by the
Community
Improvement Task
Force to address
significant concerns
related to the City’s
hotel and motel stock
which also serves as
temporary housing.
Chapter 5.80 requires
permits to operate a
hotel, and permits for
One peer (Bakersfield) requires
hotel/motel operators to obtain
a permit to operate in addition
to a business tax certificate or
general business license.
Though uncommon, the
5.80 ordinance was created
to respond to a specific
need. There is no
recommendation at this time
to fully eliminate the
ordinance.
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation managers of those
hotels.
The permits required
in this chapter are in
addition to
requirements to
obtain a business
license.
Section 5.80.030
Definitions
Defines key terms
us
ed throughout as
expected (e.g., hotel,
motel, manager, etc.)
Additional definitions
include specific
amenities such as
bed, bathroom,
kitchen, and pest
control, and room
charges.
Of the one comparable peer
(Bakersfield), definitions are
fewer and include only “hotel,”
“transient,” and “person.”
Review relevant definitions if
updates are made to the
code.
Section 5.80.040
Permit required
It is unlawful to
oper
ate a hotel,
motel, or residential
hotel/motel without
first obtaining a
written permit from
the City Manager; this
is in addition to a
business license.
One peer (Bakersfield) requires
a permit to operate in addition
to a business tax certificate or
license, which is required by all
peers.
No updates recommended.
As noted above, only one
other peer also requires a
hotel/motel permit to
operate. Though
uncommon, the ordinance
was created in response to
a community need. The
condition upon which the
ordinance was created
should be assessed before
potentially revising the need
for a permit to operate.
Section 5.80.050
Application
Applications for
per
mits must be filed
with the City
Manager, be in
writing on City forms,
and be accompanied
by an annual fee.
There is no deadline
to apply.
One peer (Bakersfield) requires
applications to be submitted on
city-provided forms at least 30
days before starting a business.
Consider adopting a 30-day
advance application
requirement similar to
Bakersfield for better
administrative processing.
Section 5.80.060
Documents
accompanying
application
The permit
application must
include various
documents such as
photos, proof of age,
a management plan,
One peer requires more
detailed information, including
personal and business details
such as contact information,
physical characteristics,
identification numbers, and
Consider revising this
section to:
● Remove duplicate
requirements that may
be listed within the
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation and pest control
certification.
arrest record, if any. If the
owner is a corporation, its
incorporation details are
required. The application must
also include the business
location, tax certificate number,
and history of prior permits,
including any suspensions or
revocations.
No other peers require a
management plan.
business license section
of the City’s ordinance.
● Combine with section
5.80.070.
As a sub-section to the
City’s business license
ordinance, this section
should focus on the
additional documents
required for a permit to
operate.
Consider removing the
requirement for a
management plan, as no
other peers require this.
Section 5.80.070
Additional
information
required for
residential
hotel/motel
Residential
hot
el/motel
applications must
also include
information about
zoning, parking,
facilities, and onsite
management.
This is commonly addressed in
the business certificate/tax
ordinance.
This is duplicative alongside
the business license
application requirements
and section 5.80.060.
Consider consolidating.
Section
5.80.080
Investigation
The Ci ty Manager
and other
departments will
investigate and
inspect the premises
before granting or
denying a permit.
There are consistent
investigation practices across
peers.
No updates recommended.
Section
5.80.090
Required
conditions of the
premises ––
Required
management
plan
The premises must
m
eet various housing,
building, fire, and
health code
requirements, and the
application must
include a
management plan.
Across peers, this information is
more commonly captured in a
city’s planning and development
department, health and safety,
zoning, or building code
section.
Consider streamlining this
section.
Requirement of a
management plan is
duplicative of section
5.80.060.
Similar to peers, consider
simplifying the ordinance to
reference “all additional
government approvals,
permits, licenses, and/or
entitlements required in
order to operate the
business.”
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation Section 5.80.100
List of room
charges
A list of all room
c
harges must be
made available to
residents and the
public.
There are no similar provisions
in peer cities.
No updates recommended.
A new proposed law many
require all fees be disclosed.
Section 5.80.110
Quarterly
inspections -
Exemptions
Quarterly inspections
ar
e required unless
the initial inspection
shows full compliance
and no subsequent
violations.
Across peers, hotel/motel
inspections can be carried out
either by the city or county.
Inspections typically occur
yearly. If persistent violations
are found, then inspections can
increase in frequency to semi-
annually.
The City can consider
updating its ordinance to
transition to annual
inspections. If ongoing
violations are found, the
inspection cadence can
increase.
This will likely not result in
an operational shift, as
many hotels are in
compliance and inspections
occur less than quarterly.
Section 5.80.120
Business license
Obt aining a business
license is required in
addition to the permit
to operate.
Most peers require only a
business license or business
tax certificate.
One peer has a similar
provision with a permit-to-
operate requirement
(Bakersfield).
No updates are
recommended as long as
the City requires a permit to
operate in addition to a
business license, which is
uncommon across peers.
Section 5.80.130
Time within
which to grant or
deny permit to
operate
Requires the Ci ty to
review the permit
application and grant
or deny the permit
within 45 days.
The one city with a permit-to-
operate requirement
(Bakersfield) does not include a
response deadline.
No updates recommended.
Section
5.80.140
Grounds for
denial of a permit
to operate
Lists the grounds on
w
hich the City can
deny a permit to
operate, such as the
premises not
complying with
applicable laws or the
applicant having
certain criminal
convictions.
This is somewhat different than
the one peer with a similar
ordinance (Bakersfield).
That peer instead has
conditions in which a permit can
be approved, which are more
simplified.
A philosophical change
might help strengthen the
ordinance.
Rather than listing the ways
in which a permit is denied
(creating the potential for
loopholes), the City could list
the conditions in which a
permit could be approved.
This might allow more
flexibility to reject a permit, if
unforeseen circumstances
arise that would warrant a
denial.
Section
5.80.150
Alternate
Allows the City to
issue a conditional
permit to operate if
Of the one comparable peer
(Bakersfield), there are no
No updates recommended.
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation procedure—
Issuance of
permit with
conditions
imposed
the premises don’t
fully meet
requirements, with
conditions the
operator must comply
with.
provisions to issue a conditional
permit.
Some peers include provisions
for the conditional granting of a
business license.
Section
5.80.160
Inspection
Requires the
pr
emises to be
accessible for
inspection by City and
county officials.
Ongoing inspections are
typically included in a city’s
code enforcement ordinance.
This section should be
combined with section
5.80.110, or be eliminated
and instead reference
regular building inspections
outlined in other areas of the
City’s ordinance.
Section
5.80.170
Business name
Requires any
c
hanges to the
business name to be
approved by the City.
Across all peers, this is more
commonly addressed in the
business license or business
tax certificate general
provisions.
Consider combining with
section 5.80.180 to simply
state that a permit to
operate is non-transferable
and/or valid only for the
business name/location
listed on the application.
Section
5.80.180
Business
location change
Requires approval
f
rom the City for
changing the location
of the hotel, motel, or
residential
hotel/motel.
Section
5.80.190 Sale or
transfer of hotel,
motel, and
residential
hotel/motel
establishment
interest
Requires reporting
and a
pproval for the
sale or transfer of
majority ownership
interest in the
establishment.
This is most often found in a
city’s TOT ordinance under
Successor Liabilities or within
the general provisions of a
business license or business
tax certificate.
In combination with the
recommendation to add a
section for Successor
Liabilities in the City’s TOT
ordinance, consider cross
referencing these sections
(reference the TOT
ordinance here, and this
section in the TOT
ordinance) to make sure
owners and prospective
buyers are aware of both
requirements.
Section
5.80.200 Display
of permits
Requires the operator
t
o display the permit
to operate and
manager permits.
Bakersfield has identical
provisions, requiring the
operator to display the permit to
operate.
No updates recommended.
Section
5.80.210 Records
Requires the operator
t
o maintain records of
employees.
One peer (Fresno) has
somewhat similar provisions,
requiring the hotel operator to
maintain a register that includes
the name of the hotel employee
checking in the guest. However,
Consider removing.
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation no other employee information
is required.
Section
5.80.220 Pre-
existing
operators and
managers
Requires existing
oper
ators and
managers to comply
with the ordinance
within 180 days.
All peers simplify this provision
to state that an active business
must have valid licenses and
permits.
If the City adopts the
application deadline of 30
days prior to commencing
operations, it could simplify
this provision similar to
peers.
Section
5.80.230
Summary
suspension of a
permit to operate
Allows the Ci ty to
summarily suspend a
permit to operate in
certain
circumstances.
For the one comparable peer
(Bakersfield), this is simplified
into one section called
“Revocation.”
This section simply states that
the City Manager may
immediately revoke a permit
based on certain conditions
(only four are listed).
Notification, hearing, and
appeal procedures are
represented in the business tax
certificate section.
Consider consolidating this
section and simplifying
procedures for revoking a
permit.
Section
5.80.240
Suspension or
revocation by
City Manager
Allows the City
M
anager to initiate
suspension or
revocation of a permit
to operate.
Section
5.80.250
Grounds for
revocation or
suspension of
permit to operate
Grounds for
r
evocation or
suspension of a
permit to operate
include violating
provisions,
committing acts for
permit denial,
engaging in fraud,
failing to correct
violations, operating
without a valid permit,
or employing an
unpermitted manager.
Section
5.80.260 Rights
of appeal from
denial,
suspension, or
revocation of
permit to
Outlines the appeal
process for a denied,
suspended, or
revoked permit to
operate.
For the one comparable peer
(Bakersfield), this is simplified
into one section called
“Appeals.”
Consider simplifying this
section or linking it to
established procedures for
notification, appeals,
hearings, etc. outlined in
Chapter 1.44.
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation operate/hearing
procedure
Section
5.80.270 Action
of Administrative
Hearing Officer
as to permit to
operate—Final
and conclusive
States the
A
dministrative
Hearing Officer’s
decision on a permit
to operate is final.
Section
5.80.280 Return
of permit to
operate—
Closure of
premises
Requires the return of
a r
evoked or
suspended permit
and allows the City to
close the premises.
The comparable peer with a
permit to operate ordinance
(Bakersfield) does not include
provisions or hotel/motel
closure.
One peer (Riverside) outlines
provisions to close a hotel in its
TOT ordinance.
All other entities reference their
general business license
ordinance.
The City could consider
removing this section and
referencing business
closures within its general
business license ordinance.
Section
5.80.290 Hotel,
motel, and
residential
hotel/motel
manager’s work
permit required
Requires managers
t
o obtain a work
permit.
No peers require a manager’s
permit or anything similar.
One peer (Fresno) stipulates
that employees responsible for
check-in guests receive proper
training. Training is required to
be provided by the hotel
operator, not the city.
Consider evaluating the
conditions that resulted in
this requirement and
whether those are still
relevant today and updating
accordingly. For example:
● Remove the educational
requirement.
● Link references to
appeals to Chapter 1.44
Section
5.80.300
Manager’s permit
eligibility
Outlines the
r
equirements for
obtaining a
manager’s permit.
Section
5.80.310
Application for
manager’s
permit
Specifies the
appl
ication process
for a manager’s
permit.
Section
5.80.320
Investigation of
manager permit
applications
Lists the grounds for
deny
ing, suspending,
or revoking a
manager’s permit.
Section
5.80.330
Outlines the appeal
process for a denied,
suspended, or
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation Time within
which to grant or
deny a
manager’s
permit
revoked manager’s
permit.
Section
5.80.340
Grounds for
denial of a
manager’s
permit
Allows the Cit y to
summarily suspend a
manager’s permit in
certain
circumstances.
Section
5.80.350
Summary
suspension of
permit
States the
A
dministrative
Hearing Officer’s
decision on a
manager’s permit is
final.
Section 5.80.360
Notice of
summary
suspension
Allows the City
M
anager or Chief of
Police to obtain
identification
information from
hotel/motel
employees.
Section 5.80.370
Suspension and
revocation by
City Manager
Allows the Cit y
Manager to initiate
suspension or
revocation
procedures for a
manager’s permit by
sending written
notice.
Section 5.80.380
Grounds for
revocation or
suspension of
manager’s
permit
Lists the grounds
under
which a
manager’s permit
may be suspended or
revoked, such as
violating the
ordinance or
continuing to function
as a manager after
the permit has been
suspended.
Section 5.80.390
Return of permit
Requires the
manager’s permit to
be returned to the
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation City upon revocation
or suspension.
Section 5.80.400
Rights of appeal
from denial,
suspension, or
revocation of a
manager’s
permit
Outlines the
pr
ocedures for
appealing the denial,
suspension, or
revocation of a
manager’s permit.
Section 5.80.410
Action of
Administrative
Hearing Officer
as to manager
permits final and
conclusive
States that the
dec
isions of the
Administrative
Hearing Officer
regarding manager
permits are final.
Section 5.80.420
Renewal of
manager’s
permit
Allows for the renewal
of
a valid manager’s
permit.
Section 5.80.430
Administrative
procedure and
authority of
Administrative
Hearing Officer
Authorizes the
A
dministrative
Hearing Officer to
hold hearings
regarding violations of
the ordinance.
All peers reference the city’s
business license and tax
ordinance’s general provisions
for procedures on
administrative hearings.
Consider removing and
referencing this information
within Chapter 1.44.
Section 5.80.440
Violations and
penalties
Establishes a penalty
s
chedule for
violations of the
ordinance.
All peers reference the city’s
business license and tax
ordinance’s general provisions
for violations and penalties.
The language is simplified to
state that any violation of the
ordinance (which includes
applicable government-issued
permits, certificates, and
licenses) is considered a
misdemeanor.
Penalties for various code
infractions are captured in the
city’s respective fee schedule.
Consider linking this
information to the
established code violation
penalties sections in the
City’s ordinance 1.24, and
1.32 (fire, police, health and
safety, etc.).
Similar to the TOT
ordinance, this could simply
state that penalties can be
cumulative. This would
ensure that violation
penalties are consistent
across businesses, and that
fee amounts remain
consistently updated across
the ordinance.
Maintain all other provisions
for suspension or
revocation.
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SUMMARY OF BUSINESS LICENSE AND REGULATIONS CHAPTER 5.8 Section Stockton Ordinance Peer Ordinance Analysis Recommendation Section 5.80.450
Appeal of
administrative
citation issued
hereunder
Allows for the appeal
of
any administrative
citations issued under
the ordinance under
the procedures
outlined in Chapter
1.44. There are similar provisions
across peers.
No updates recommended.
Section 5.80.460
Permits issued
for one year
States that all permits
i
ssued under the
ordinance expire after
one year and must be
renewed annually.
The one comparable peer
(Bakersfield) states that the
permit is in effect until
suspended or revoked.
No update recommended.
Section 5.80.470
Other licenses,
permits required
Clarifies that the
per
mits required by
this ordinance are in
addition to any other
required licenses or
permits.
There are similar provisions
across peers.
No updates recommended.
The observations and recommendations in this section pertain to the hotel guest register section of the City’s municipal code (Chapter 5.44). A comprehensive comparison against peers is included in Appendix D.
4. Observation Four of seven peer ordinances outline requirements related to guest registers. The location and contents of the requirements vary widely across peers and in comparison to Stockton.
Recommendation Evaluate potential updates to t he ordinance to help ensure that guest information is accessible and accurate.
When present, a hotel guest register ordinance ensures that hotel/motel operators maintain a comprehensive and accurate record of all guests who occupy a room or facility. Ordinances often specify the type of information required at the time of booking and can include the guest's name, address, details of their party, number of rooms, and dates of the stay. This information can be important for various reasons, such as ensuring the safety and security of guests, aiding in the management of the establishment, and providing a reliable record in case of legal or administrative needs. This also helps with accurate TOT tax collection.
Chapter 5.44 of Stockton’s municipal code regulates the maintenance and inspection of hotel guest registers. While the basic premise of maintaining a guest register is common (four of seven peers Attachment A
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include this somewhere in their municipal code), the specifics of what information is required, how it is stored, and who has access to it can differ significantly. For example, some cities only require that a register to include a guest’s name and address, while others require date of birth, room rate, method of payment, and the name of the hotel employee checking in the guest. The location of this information in the city’s ordinances can also differ:
• Bakersfield includes reference to their register within its Hotels and Lodging Houses permitting ordinance 5.26. This is different from Stockton where the Hotel Guest Register chapter is separate from its hotel/motel permitting chapter.
• Fresno includes register regulations with Chapter 9 – Regulations Regarding Business and Personal Conduct (section 9-105 – Hotel Registration)
• Riverside includes this information in its Peace, Safety, and Morals Title 9 in a chapter that more broadly addresses limitations on continuous and cumulative occupancy. • Sacramento has a section addressing hotel guest registers in a separate chapter under its Business License and Regulations Title 5, similar to Stockton.
The following is a summary review of the City’s Hotel Guest Registers Chapter 5.44 ordinance with recommended updates.
SUMMARY OF HOTE GUEST REGISTERS CHAPTER 5.44
Section Stockton Ordinance Peer Ordinance
Analysis
Recommendation
Section 5.44.010
Words and
phrases defined
Defines guest, and the
hot
el, motel auto court,
and/or place intended for
guest use for sleeping
purposes.
There are somewhat
consistent definitions
across peers.
No updates recommended.
Section 5.44.020
Hotel etc., guest
registers
Outlines the required
i
nformation to register a
guest and members of
the guest party,
including:
● Name
● Address
● Number of rooms
rented
● Check-in and check-
out dates
● Form of government-
issued identification
Of the four peers who also
reference guest registers,
two have sections that are
more simplified
(Bakersfield, and
Sacramento) and two that
are more comprehensive
(Fresno and Riverside).
Consider whether the following
updates would be beneficial to
the City:
● Require that register
records be made available
for one year
● Prohibitions against use of
fictitious names, or altering
register records
Section 5.44.020
Guest register to
be open for
inspection
Requirement to make
t
he guest register
available upon request
and with the information
specified in 5.44.020.
Consistent across peers
that include sections for
registers.
No updates recommended.
Attachment A
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5. Observation Currently, the City does not assess STRs. The City’s renewal option includes the addition of STR assessments by the end of 2024. Five of seven peer cities address STRs within their city ordinance.
Recommendation The City can consider future adoption of an ordinance regulating STRs as
this lodging option becomes more popular, but should evaluate staff capacity to enforce a future policy.
STRs have existed for several decades, but widespread usage increased significantly with the advent of businesses such as Airbnb and VRBO. STRs are widely defined as a house, condominium, or apartment that is rented for a fee for fewer than 30 consecutive nights. While the market was severely impacted during the COVID-19 pandemic, STR popularity has risen as travel returns to pre-pandemic levels. These rentals generate substantial revenue and increase demand for municipal services such as waste management, infrastructure maintenance, and public safety. The lack of regulation and oversight of STRs can also lead to growing issues related to noise complaints, parking problems, and neighborhood disruptions. It also has an adverse impact on the City’s historical homes. Assessing STRs is important because it ensures that all lodging establishments contribute fairly to the local economy through taxes. By assessing STRs, the City can capture a significant source of tax revenue that would otherwise be untapped, helping to fund essential services.
Five of seven peer cities address STRs within their municipal code to varying degrees, summarized as follows:
• Bakersfield: Though not in the ordinance, STRs are not permitted in the City. Properties listed/advertised on a vacation rental marketplace are subject to TOT fees at the county level. • Elk Grove: The City of Elk Grove requires any person operating an STR to secure an STR license. The procedures to secure a license, grounds for revocation, and standards for operations among other provisions are outlined in Chapter 4.38 4. This chapter of the city’s municipal code is within Title 4 for Business Regulation.
• Fresno: Similar to Elk Grove, the City of Fresno also requires operators of STRs to obtain a special permit. Section 7-12495 outlines the procedures to secure a permit. The parts in the ordinance are core sections that would typically be found in a special permit section including purpose, definitions, application, issuance, prohibitions, revocation, renewal, and violations , among others. This section of the municipal code is located in the article for business licenses. • Irvine: There is a total ban on STRs within the city’s ordinance. Chapter 3-256 states that rentals and advertising of rentals are prohibited, and that hosting platforms may not complete a booking.
Violations of the ordinance are considered a misdemeanor.
4 https://www.codepublishing.com/CA/ElkGrove/#!/html/ElkGrove04/ElkGrove0438.html 5 https://library.municode.com/ca/fresno/codes/code_of_ordinances?nodeId=MUCOFR_CH7CIFIRETA_ART12BULIICFE_S7- 1249SHRMRE
6 https://library.municode.com/ca/irvine/codes/zoning?nodeId=ZOOR_DIV3GEDESTLAUSRE_CH3-25SHTERE Attachment A
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• Riverside: The City of Riverside does not require a permit to operate an STR. The only reference to STRs in the city’s ordinance is related to land use and zoning. Chapter 19.443.0707 simply requires that units created as STRs be rented or leased for a period of less than 30 days , and that a covenant be recorded against the property title to such effect. • Sacramento: Similar to Elk Grove and Fresno, the City of Sacramento requires STR operators to obtain an STR permit. However, Sacramento requires a permit for each dwelling unit. Chapter
5.1148, includes sub-articles for general provisions, permitting, regulations, actions on permits, and hosting platform responsibilities.
Establishing an ordinance to address STRs will be important for Stockton. An ordinance can help manage the growing sector of the sharing economy, ensure the safety and well-being of residents and visitors, and maintain the character and stability of residential neighborhoods. However, it’s critical that the City consider the enforceability of such an ordinance and its impact on City staff. An effective ordinance should be clear, practical, and enforceable, with defined roles and responsibilities for all parties involved. The City should also consider the resources needed to enforce the ordinance, as a lack of enforcement could lead to non-compliance, undermining the purpose of the ordinance.
Therefore, while it’s important to regulate STRs for the benefit of the community, it’s equally important to ensure that the ordinance is designed in a way that is manageable for City staff and enforceable in a practical manner. A review of best practices9,10 outlines a framework to guide policy development to regulate STRs:
1. Understand the Community. It’s important to first determine what, if any, specific issues related to STRs are trending within the City. Engaging with the City’s TBID, neighborhood associations, or other groups can help the City understand the current STR landscape to help inform policy objectives that address current and future needs.
2. Develop explicit policy objectives. The City and relevant stakeholders should agree on a clear set of policy goals they want to achieve through STR regulation. This could be preserving affordable housing, minimizing nuisance issues, or encouraging tourism. The Granicus guide11 provides examples of policy objective considerations based on neighborhood type, such as communities with affordable housing shortages, communities with a struggling downtown, or tourist destinations with a more traditional vacation rental structure.
3. Adopt enforceable regulations. The regulations should be designed in a way that can be practically enforced, rather than adopting complicated rules that are hard to monitor and enforce.
The goal of the policy should be to not place undue burden on City Staff in terms of monitoring, enforcement, and administration.
4. Include viable regulatory approaches. Viable regulatory tools like permitting (as required by Elk Grove, Fresno, and Sacramento), occupancy limits, parking requirements, and fine structures can be used to achieve the policy objectives.
7https://library.municode.com/ca/riverside/codes/code_of_ordinances?nodeId=PTIICOOR_TIT19ZO_ARTVIISPLAUSPR_CH1
9.443TITDE_19.443.070ADRE
8 https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0-0-0-13954#JD_Chapter5.114 9 Granicus. “A Practical Guide To Effectively Regulating Short-Term Rentals on the Local Government Level.” https://granicus.com/pdfs/Whitepaper_-A-pr actical-guide-to-effectively-regulating-short-term-rentals-on-the-local-government- level.pdf
10 National League of Cities. “Short-Term Rental Regulations: A Guide for Local Governments.” https://www.nlc.org/resource/short-term-rental-regulations-a-guide-for-local-governments/ 11 Granicus. “A Practical Guide To Effectively Regulating Short-Term Rentals on the Local Government Level.” Attachment A
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5. Consider sustainable enforcement. Monitoring STRs can be extremely challenging.
Considering the number of sites that require administering and enforcing permits ongoing monitoring, and regulating any collection of TOT taxes is often too much for a City department alone to manage. Most often, cities outsource enforcement to specialized firms that can leverage technology and data to cost-effectively identify and address violations.
This section’s observations and recommendations address administrating and operating the processes guided by the City’s hotel, motel, lodging, and rooming house ordinances. It addresses areas of overlap, gaps, or opportunities to support improved service delivery.
6. Observation The City’s Code Enforcement team responsible for th e hotel/motel program is struggling with operational inefficiencies driven by understaffing, lack of systems, and unstandardized processes.
Recommendations A. C ontinue adoption of Comcate Code enforcement Software to manage citations, scheduling, and reporting.
B. Continue targeted recruitment efforts to fill vacancies in staffing.
C. Consider adopting a Hotel Risk form to standardize the inspection grading process and what might qualify a hotel/motel for additional inspections.
Stockton’s Code Enforcement division (the Division) is responsible for several aspects of the hotel/motel lifecycle:
PROCESS DESCRIPTION
Permits ● R eceive, review, and approve or deny operator and manager permit applications (this is different than the business license and the TOT registration). ● Coordinate with San Joaquin County, Fire, and Police for each division’s respective inspections and to complete a background check.
● Participate in the Hotel Advisory Committee to review and approve applications. ● Process permit renewals on an annual basis.
Fees ● M anage the collection of fees and fines (does not include collection of the TOT tax). ● Work with the Tax Collector to apply delinquent fines to a hotel/motel’s property tax.
Inspections ● C onduct annual inspections. If violations are found during inspections, the frequency may increase to quarterly or more, depending on the severity and location of the violations.
The most significant issues facing the City’s code enforcement team are persistent vacancies.
Currently, one Senior Inspector and the Police Services Manager are responsible for managing permit applications, reviews, approvals, renewals, fee collection, and inspection for the City’s 40 hotels. The Division has designed the process to batch renewals and inspections by quarter so that the work can be dispersed across the year. Interviewees note that this method functions well and that Attachment A
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the division has fallen into a somewhat predictable rhythm of work. If the volume of work were to increase, the team would be quickly overwhelmed.
Long-term, there are concerns about the division’s capacity to manage the entire program, especially with the potential addition of STR oversight. The Division has the positions within its budget and should continue to support recruitment efforts. HR and the Division could work collaboratively to review job descriptions, assess compensation, or consider creative incentives to attract applicants.
As noted in the Hotel/Motel Permitting Ordinance Review se ction , inspection responsibilities vary widely across peers. Some cities rely on both county and city inspections, some cities only conduct building and fire code inspections and counties conduct health inspections, some outsource inspections to a third party, and some (like Stockton) manage full inspection in-house. There is no general best practice to follow, but if Stockton continues to experience staffing shortages or encounters issues effectively managing inspections, it can consider alternatives.
The high volume of interdepartmental coordination i nvolved in hotel/motel ordinance administration requires significant time. Interviewees note that the division often spends a significant amount of time following up with other divisions (e.g., San Joaquin County, Fire, Police, and Administrative Services) to review, approve, or gather information related to applications, fees, and inspections. This is mainly due to recent system deficiencies. At the time of this report, the City was in the process of adopting Comcate Code Enforcement Software to help manage citations, scheduling, and reporting. By improving communication channels and streamlining the process of information exchange, the division could potentially increase its efficiencies to support the program.
The Division is also meant to be responsible for holding the required manager’s training. Overall staff limitations and outdated equipment have meant that training has not been held within the last 5–6 years. The Hotel/Motel Permitting Ordinance Review s
ection notes that no other peers require the
City to provide training, and only one other peer requires any kind of training for hotel/motel employees. The recommendation is to remove this requirement from the ordinance. I f the requirement is retained, the City should consider shifting the responsibility for training to the operator or a third party.
Risk Assessment
Stockton inspects hotels annually, but if violations are found, the frequency of inspections can increase to quarterly or more. Interviewees note that the criteria for what constitutes a violation severe enough to trigger more frequent inspections are not clearly defined. This lack of clarity can lead to inconsistencies in how different hotels are treated and can potentially create confusion or perceived unfairness among hotel owners and managers. Establishing clearer, more objective criteria for what triggers more frequent inspections would help to standardize the process and ensure fairness.
Kern County has an established risk assessment process for to hotels/motels that helps outline escalating measures for both the frequency of inspections as well as fines. The risk assessment for hotels in the county is a systematic process that categorizes hotels based on the level of risk they pose. This process begins with the completion of a Risk Form (Appendix E), which is filled out
annually during routine inspections. Each May, the hotel’s file is pulled for review.
Attachment A
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Hotels are categorized into three risk levels: low, medium, and high. A hotel’s risk level dictates the percentage of rooms reviewed during inspections; low-risk hotels have 25% of their rooms inspected, medium-risk hotels have 50% of their rooms inspected twice a year, and high-risk hotels have 100% of their rooms inspected three times a year.
The risk level also impacts permit fees (i.e., high-risk hotels have higher permitting fees). The ultimate aim is not to deter hotel owners, but to help identify deteriorating properties. Frequent visits allow for tracking trends and identifying common issues such as sewage problems, trash accumulation, or fire risks. This approach is more preventative, aiming to address issues before they esc alate. High-risk hotels are often the first ones to be fully closed due to potential hazards. Currently, there is only one high-risk hotel in the county, with around 80–100 hotels categorized as medium- or moderate-risk.
7. Observation The City currently operates with heavy use of paper. Efforts to digitize p
rocesses have been taken but still have not surpassed traditional methods.
Recommendations A. Continue efforts to digitize information collection, management, and reporting.
B. Evaluate opportunities to shift TOT collections to an outsourced provider.
Interviewees note that the TOT reporting and remitting processes operate somewhat effectively, but are heavily reliant on manual processes, static spreadsheets, and paper-based forms, which contribute to operational inefficiencies and challenges with proactively tracking and managing payments and data. It also contributes to challenges sharing information cross -functionally.
Reporting and remitting TOT taxes begins with a TOT and TBID Assessment form physically mailed to hotel/motels on the registered list every quarter. The City has developed a matrix of which hotels to contact per quarter so that not all forms and payments are processed at the same time. These establishments then have 30 days to submit their form and pay the taxes due. The options to submit are limited to in-person or mail-in, which can be inconvenient and time-consuming for the hotels/motels. The forms and payments are received by the Permit Center and provided to the Finance department to enter into TylerMunis. Tracking of quarterly assessments is also a manual process, maintained through an Excel spreadsheet that is color-coded to indicate the status of the TOT remittance (represented below for illustrative purposes).
Attachment A
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If a hotel/motel does not submit their quarterly payment within the given timeframe, reminders are mailed. Persistent non-compliance leads to involvement from the code enforcement and collections departments.
Manual processing can be quite time-consuming, as tasks such as data entry, calculations, and recordkeeping often require significant time and effort. This slows down productivity and can increase the likelihood of errors. Manual processes are also difficult to scale. This will become a significant barrier if the City were to begin assessing STRs. In addition, manual processing poses a risk of data loss, especially when dealing with paper records that can be easily misplaced or damaged. It also limits the ability to proactively report, as real-time data is often not available, and generating accurate reports can be a tedious task. Manual processes often lack clear audit trails, making it difficult to trace errors or irregularities, which can lead to compliance issues. For example, the City experienced a situation where a hotel did not pay its TOT tax for 18 months. Despite being sent to collections, the hotel eventually closed and the City was ultimately unable to collect on outstanding taxes.
To address these issues, Stockton should consider opportunities to move to electronic processing.
This could include implementing digital forms for TOT assessment with automated calculations, or looking further into the TylerMunis Hotel/Motel Tax Module to automate tasks and track data that can be used for reporting. Digitization at any level can help streamline operations, reduce errors, and increase efficiency. It also allows for better scalability, as digital systems can handle larger volumes of data and transactions. Transitioning from manual to digital processes can be a significant step in enhancing productivity, but often involves significant time investment from staff, which may not be realistic. The City should carefully evaluate which processes could be digitized and which automation could be adopted to help manage this work. At least three peers outsource their TOT collection; if it’s determined that staff does not have the capacity to transition processes, or that the City desires to assess STRs (a significant increase in work), it could consider outsourcing TOT collection.
When evaluating outsourced options, the City should consider:
• Cost-Effectiveness: The City should analyze if outsourcing the collection process would be more cost-effective than handling it internally. This includes considering the costs of hiring, training, and maintaining an internal team versus the fees of the outsourcing company.
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• Expertise: The City should consider the level of expertise and experience the outsourcing company has in TOT collection. The company should have a thorough understanding of the laws and regulations surrounding this tax.
• Compliance: The City should consider the company’s ability to ensure compliance with all relevant laws and regulations. This includes their ability to handle audits and provide necessary documentation.
• Security: The outsourcing company should have robust security measures in place to protect sensitive data. This includes measures to prevent data breaches and ensure the privacy of individuals and businesses.
• Customer Service: The company should provide excellent customer service to both the City and the taxpayers. This includes clear communication, responsiveness to inquiries, and the ability to resolve issues quickly and effectively.
• Scalability: The City should consider whether the company can scale its services if the volume of TOT collection increases.
• Contract Terms: The City should carefully review the terms of the contract, including the length of the contract, cost, services included, and terms for termination.
By considering these factors, the City can make an informed decision about whether outsourcing TOT collection is the right move.
Attachment A
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APPENDIX A: PEER CITY OVERVIEW
STOCKTON BAKERSFIELD
ELK
GROVE FRESNO IRVINE LODI RIVERSIDE SACRAMENTO
Population 321,819 410, 647 177,558 545,567 313,685 67,258 320,764 528,001 Tourism
Business
Improvement
District
Yes; Stockton
Tourism
Business
Improvement
District (STBID)
N/A
Yes; Elk
Grove
Tourism
Marketing
District
(EGTMD)
Yes;
Fresno/Clovis
Tourism
Business
Improvement
District
(FCTBID)
Yes; Hotel
Improvement
District (HID)
Yes; Lodi
Tourism
Business
Improvement
District (LTBID)
N/A
Yes;
Sacramento
Tourism
Marketing
District (STMD)
Number of
Hotels/Motels
(Approximate)
43 60 7 80 25 12 34 125
Attachment A
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APPENDIX B: TRANSIENT OCCUPANCY TAX – CHAPTER 3.28 ANALYSIS
STOCKTON
PEER SUMMARY
Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Transient Occupancy Tax
Chapter 3.28
Transient Occupancy
Chapter 4.
Uniform Transient
Occupancy Tax
Chapter 3.08
Transient Room Tax
Chapter 7, Article 6
Transient Occupancy
Chapter 4
Transient Occupancy Tax
Chapter 3.12
Transient Occupancy Tax
Chapter 5.32
Uniform Transient
Occupancy Tax
Chapter 3.28
Section 3.28.020
Definitions
The ordinance defines key
terms like “hotel,”
“occupancy,” “operator,”
“person,” “rent,” and
“transient.”
Similar to Stockton, but with
more emphasis on “lodging.”
Definitions are nearly
identical to Stockton’s.
Definitions are more
extensive and include terms
like “campground.”
More robust hotel
definition. Fewer
definitions, but more
focused on “operator”
and “transient.”
Similar definitions, but
includes additional terms
like “bed and breakfast.”
Includes unique terms like
“recreational vehicle park.”
Similar definitions with
slight variations in
wording.
Section 3.28.030
Tax imposed
A tax of 8% of the rent is
imposed on transients for the
privilege of occupancy in any
hotel.
Different rate (12%).
Not materially different
provisions.
Separate section within the
ordinance to address
exemptions.
Different rate (12%).
Identical provisions.
Separate section within the
ordinance to address
exemptions.
Rates are set in the Master
Fee Resolution (currently
12%).
Provisions in this section also
apply to collection of a duly
authorized TBID assessment.
Separate section within the
ordinance to address
exemptions.
Same rate (8%).
Not materially different
provisions. Additional 2%
charged to HID (not in
the ordinance).
Separate section within
the ordinance to address
exemptions.
Different rate (6%).
Not materially different
provisions.
Different rate (13%).
Separate section within the
ordinance to address
exemptions.
Tax imposed generally
(7%).
Additional taxes by year
are outlined under
“Additional tax” sections
and include both limited-
duration levies and
ongoing tax increases.
Separate section within
the ordinance to address
exemptions.
Section 3.28.040
Operator’s duties
Operators must collect the tax
from transients and
separately state it from the
rent charged.
Called the “Collection of Tax.”
Outlines procedures for the
operator to request a refund
from the city and return the
tax collected to an occupant
that stays longer than 30
consecutive days.
Additional sections within the
ordinance to address:
● “Enjoining Collection
Forbidden”
“Action to challenge validity”
Not materially different
provisions.
Not materially different
provisions.
Additional section titled
“Collection of Tax by
Operator; Rules for Collection
Schedule” outlines the
requirements for operators to
collect the tax, holding the tax
in trust for the city and
transferring it as specified in
the ordinance, with the Tax
Administrator enforcing the
ordinance and setting
payment schedules.
Not materially different
provisions.
Called the “Collection by
Operators.”
Not materially different
provisions.
Not materially different
provisions.
Not materially different
provisions.
Includes restrictions on
advertising, stating that
the tax will be assumed or
absorbed by the operator.
Section 3.28.050
Registration
Operators must register their
hotels with the Tax
Administrator and obtain a
transient occupancy
registration certificate within
30 days of the effective tax or
30 days after commencing
the business.
The certificate must include
the:
N/A Within 60 days after the
effective date of the
ordinance or 30 days after
commending the business.
Certificate information is the
same as Stockton.
Within 15 days of
commencing the business, or
after July 15, 1964.
Certificate information is the
same as Stockton.
Ordinance includes additional
signatory, issuance, and
other additional information.
Within 30 days of
commencing the
business.
Certificate information is
the same as Stockton.
Same registration deadline
requirements as Stockton.
Certificate information is the
same as Stockton.
No registration deadline: “It
shall be unlawful to operate
a hotel without a transient
occupancy registration
permit…”
Includes registration fee
information.
Includes signatory
authority.
N/A
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STOCKTON
PEER SUMMARY
Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento ● Name of operator
● Address of the hotel
● Date the certificate was
issued
● Statement certifying
registration
Certificate information is the
same as Stockton.
Section 3.28.060
Security for
collection of tax
The Tax Administrator may
require operators to deposit
security to ensure compliance
with tax payment
requirements. The security
amount shall be equal to an
amount not greater than twice
the person’s estimated
average liability for the first
period for which a return must
be filed, or the sum of
$10,000.00, whichever is
less.
Includes obligations of tax
liability clearance in the event
an operator stops, sells, or
transfers the business.
Same security amount
stipulations.
Enables the city to sell the
security at auction.
Successor liabilities are
addressed in the following
separate sections:
● Successor or Assignee of
Business to Withhold Tax
From Purchase Money—
Certificate of No Tax Due
● Liability of Successor or
Assignee for Tax—
Issuance of Certificate
The section “Lien-
Recordation of certificate-
Notice of pendency of
action” enables the city’s tax
collector to file a lien with
the county that creates a
legal claim on the person’s
property for the owed taxes.
This claim lasts for 10 years
and can be renewed.
● Successor liabilities are
addressed in the
Successor Liability
section.
Same security amount
stipulation.
Sets limitations of three years
by which the city can impose
a security.
Same as Stockton; includes
obligations of tax liability
clearance in the event an
operator stops, sells, or
transfers the business.
The section “Penalties and
Interest” (below) addresses:
● Liens and collection
● Warrant for collection
● Seizure and sale
● Combining actions
The section “Actions to
Collect Taxes and
Enforcement of Liens”
includes:
● Recording of a
certificate of lien:
There is no limit to
the time in which the
city may record a lien.
The Lien can be
renewed every 10
years.
● Warrant for collection
of tax: The county
sheriff may be
engaged to enforce
the lien.
● Seizure and sale: The
Director of
Administrative
Services may seize
any property to
collect the delinquent
amount.
Successor liabilities are
addressed in the
following separate
sections:
● Duty and Liability of
Successor Operator
● Issuance of
Occupancy Tax
Clearance Certificate
N/A – Security/Lien
Ordinance.
Successor liabilities are
addressed in the following
separate sections:
● Sale or Transfer
● Successor Liability
Municipal code contains the
following sections related to
ensuring payment of tax to
the city:
● Recording Certificate –
Lien
● Priority and Lien of Tax
● Warrant for Collection of
Taxes
● Seizure and Sale
It also includes separate
sections describing
successor liabilities:
● Successor’s Liability –
Withholding by
Purchaser
● Liability of Purchaser –
Release
N/A – Security/Lien
Ordinance
Section 3.28.070
Reporting and
remitting
Operators must make
quarterly returns to the Tax
Administrator on or before the
last day of the month
following the close of each
quarter and remit the full
amount of tax collected.
Tax is collected monthly.
Similar powers of the tax
administrator or equivalent
position to impose shorter
collection periods.
Tax is collected monthly.
Similar powers of the tax
administrator or equivalent
position to impose shorter
collection periods.
Tax is collected quarterly.
Similar powers of the tax
administrator or equivalent
position to impose shorter
collection periods.
Allows an operator to request
an extension to file a
payment.
Tax is collected monthly.
Similar powers of the tax
administrator or
equivalent position to
impose shorter collection
periods.
Includes reporting and
remitting requirements
Tax is collected quarterly.
Similar powers of the tax
administrator or equivalent
position to impose shorter
collection periods.
Tax is collected monthly.
Similar powers of the tax
administrator or equivalent
position to impose shorter
collection periods.
Tax is collected quarterly.
Similar powers of the tax
administrator or
equivalent position to
impose shorter collection
periods.
Includes reporting and
remitting requirements
Attachment A
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STOCKTON
PEER SUMMARY
Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento The Tax Administrator may
collect more frequently.
upon cessation of the
business.
upon cessation of the
business.
Section 3.28.080
Penalties and
interest
Operators face penalties and
interest for failing to timely
remit taxes:
● First delinquency: Tax
amount plus 10%.
● Continued delinquency:
Tax amount plus 10%.
● Fraud: 25% of tax in
addition to the penalties
above.
● Interest: 0.5% per month
of the tax exclusive of the
penalties.
● Penalties merged: Every
penalty and such interest
accrues until the tax is
paid.
Same delinquency penalties
stipulations as Stockton.
No additional interest.
No penalty assigned for
instances of fraud.
Identical delinquency, fraud,
and interest penalties.
Identical allowability to
merge penalties.
Identical delinquency and
fraud penalties.
Similar interest penalty (1%).
Identical allowability to merge
penalties.
Identical delinquency and
fraud penalties.
Different interest penalty
(prime rate plus 2% per
annum).
Identical allowability to
merge penalties.
Identical delinquency, fraud,
and interest penalties.
Identical allowability to
merge penalties.
Delinquency:
● 1 day: 10%
● 30 days: 25%
● 60 days: 50%
Interest is accrued at 1%
per month.
Fraud penalties are a
separate section and 100%
of the tax amount, in
addition to the penalties
above.
Identical delinquency,
fraud, and interest
penalties.
Identical allowability to
merge penalties.
Section 3.28.090
Failure to collect
and report tax
The Tax Administrator can
determine the tax due if an
operator fails to collect and
report it.
● An operator may apply for
a hearing on the amount
assessed within 10 days
of the notice.
● The Tax Administrator
must respond within five
days.
● The amount determined
to be due shall be payable
after 15 days unless there
is an appeal.
Same investigation and
notification protocols.
The amount payable is due
within 15 days.
The ordinance does not
include a provision for a
hearing.
Same investigation, similar
notification protocols.
Notification many be done
personally or by first-class
certified mail, return receipt
requested.
Same provision for
hearings, response by the
Tax Administrator, and
payment due (15 days).
Titled “Deficiency
Determinations.”
Same investigation protocols.
Similar notification protocols.
Payment is due immediately,
and if not paid within 10 days
is subject to penalties.
There is no provision for
hearings; however, an
operator may file for a
redetermination. The section
titled “Redeterminations”
includes:
● Petition deadline: 30 or 10
days
● Authority of the Tax
Administrator to
redetermine
Prohibitions for any injunction
or other legal process may
enjoin the collection of taxes
Identical provisions.
Carried out by the
Director of Administrative
Services rather than the
Tax Administrator.
Identical provisions. Identical provisions. Identical provisions.
Section 3.28.100
Appeal
Operators can appeal the Tax
Administrator’s
determinations to the City
Council.
N/A Appeals pursuant to EGMC
Chapter 1.18—Tax and Fee
Appeals.
Appeals are described under
Chapter 1, Article 4:
General
Administrative Hearing
Procedures.
Identical p
rovisions. Identical provisions. Similar provisions.
Includes a deadline of not
less than 10 days and not
more than 30 by which the
Identical provisions.
Attachment A
Hotel Motel Ordinance Review | 38
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON
PEER SUMMARY
Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento ● Appeals can be made
within 15 days.
● Hearings are held in front
of City Council.
● Payment is due
immediately upon
determination (as
applies).
● Appeals can be made
within 14 days.
● Additional provisions are
outlined in the full
chapter.
● Appeals can be made
within 15 days.
Additional provisions are
outlined in the full chapter.
City Clerk must set a
hearing.
Includes a notification
deadline upon
determination of three days.
Hearings are held in front of
the Financial Performance
and Budget Committee.
Section 3.28.110
Records
Operators must keep records
for three years to determine
their tax liability.
Identical provisions. Identical provisions. Included within the “Administration” Section of
the chapter.
● Records must be retained
for 3.5 years.
● Authorization to inspect
records must be done in
writing.
Records must be
retained for four years.
Identical right to inspect
records.
Clarification that this
section does not limit the
ability of the city of collect
on taxes after four years.
Identical provisions. Records must be retained
for three years.
More prescriptive rights of
the Tax Administrator to
inspect records.
Identical provisions.
Section 3.28.120
Refunds
Procedures are provided for
obtaining refunds of overpaid,
duplicate, or erroneously
collected taxes by either an
operator or a transient.
Claims must be filed within
three years.
Simplified provisions.
The ordinance does not
distinguish between a
transient or an operator filing
the claim.
Claims must be filed within
one year.
Identical provisions. Simplified provisions.
The ordinance does not
distinguish between a
transient or an operator filing
the claim.
Same three-year limit to file a
claim.
Identical provisions. Identical provisions. Identical provisions. Nearly identical provisions.
Claims must be filed
within one year.
Section 3.28.130
Actions to collect
Unpaid taxes are debts owed
to the City that can be
recovered through legal
action.
N/A Identical provisions. Part A contains identical
collections provisions.
The section is inclusive of
security mechanisms
(outlined above in Security).
Identical provisions. Identical provisions. Titled “Responsibility for Payment.”
Not materially different
provisions.
Identical provisions.
Section 3.28.140
Violations
It is unlawful to fail to register,
file returns, or provide truthful
information as required by the
ordinance.
Does not qualify violations of
the ordinance as a
misdemeanor or other.
Somewhat addressed in the
Enforcement section of the
ordinance.
Any violation of any provision
is a misdemeanor.
Identifies the officers or
employees empowered to
enforce the ordinance.
These individuals can arrest
without warrant, but with
reasonable cause violators.
Similar provisions.
Violations are considered a
misdemeanor.
Violators are subject to
punishments set forth in
EGMC Chapter 1.04
Identical provisions.
There is a separate section
titled “Misdemeanor,”
establishing violations as
misdemeanors, punishable
by a fine of not more than
$500, or by imprisonment in
the county jail for a period of
not more than six months, or
by both.
Similar provisions.
Violations are considered
a misdemeanor.
Violators are subject to
punishments set forth in
Title 4, Division 13.
Similar provisions.
Violations are considered a
misdemeanor.
Similar provisions.
Violations are considered a
misdemeanor.
The commencement of
criminal proceedings does
not preclude administration
of civil action to collect
taxes due.
Similar provisions.
Violations are considered
an infraction.
Violators are subject to
punishments set forth in
Government Code
Section 36900(b).
Attachment A
Hotel Motel Ordinance Review | 39
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
APPENDIX C: HOTEL, MOTEL, AND RESIDENTIAL HOTEL/MOTEL PERMIT ORDINANCE – CHAPTER 5.80 ANALYSIS
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Section
5.80.020
Purpose
The purpose is to
require permits to
operate hotels,
motels, and
residential
hotels/motels;
establish standards
for issuing those
permits; and provide
rules and regulations
for suspending or
revoking the permits.
N/A No separate
hotel/motel operating
permit required.
Business License
Requirements
defined in: General
Provisions for
Business License—
Chapter 4.02
No separate hotel/motel
operating permit
required.
Business License
Requirements defined
in:
General Provisions,
Article 10
No separate
hotel/motel
operating permit
required.
Business License
Requirements
defined in:
General
Services—
Businesses,
Division 18
No separate hotel/motel operating
permit required.
It’s unclear which business
license requirements hotels and
motels are required to obtain.
Business Permits and
Regulations are captured in Title
5 of the City’s ordinance. The
ordinance contains guidance for
special permits for businesses
such as cardrooms, bingo,
pedicabs, etc. Hotels and motels
are not included in any of these
special permit ordinances.
Within the special permit
or
dinances are references to the
City’s Business License code
5.04, which is not present.
The City is actively working to
adopt a revised business license
program and fees.
The program will be presented to
the City Council for consideration
on February 21, 2023. Additional
guidance is anticipated
throughout 2024.
Revenue and Finance—Business
Tax Certificate Title 3, Chapter
3.01. All businesses must obtain
a business tax certificate that
appears to be distinct from a
business license.
The City’s Business
Taxes, Licenses,
and Regulations,
Title 5 a
lso contains
the City’s Transient
Occupancy Tax
Ordinance.
As such, the City’s
T
OT ordinance is
significantly more
robust than
Stockton’s TOT,
also containing
sections relating to
Stockton’s
Hotel/Motel
permitting
ordinance.
Hotel/motel operators are required to obtain a
business operation tax certificate as outlined in
Chapter 3.08—Business Operations Tax.
There are additional or special sub-sections to the
ordinance for hotels/motels.
Section
5.80.030
Definitions
Defines key terms
used throughout as
expected, hotel,
motel, manager etc.
Additional definitions
include specific
amenities such as
bed, bathroom,
kitchen, and pest
control and room
charges.
Significantly simplified.
Definitions are restricted to hotel,
transient, and person.
TOT definitions are
captured in the table
comparison.
Business license
definitions are
different than what’s
in Stockton’s
hotel/motel
permitting
ordinance.
Section
5.80.040
Permit
required
It is unlawful to
operate a hotel,
motel, or residential
hotel/motel without
first obtaining a
written permit from
the City.
Similar provisions requiring a hotel
permit to operate.
TOT Section
5.32.050—
Registration, part (c)
Includes
requirement to also
register for a
business tax
certificate at the
Attachment A
Hotel Motel Ordinance Review | 40
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
time of registering
for the TOT
certificate.
Section
5.80.050
Application
Applications for
permits must be filed
with the City
Manager, be in
writing on city forms,
and be accompanied
by an annual fee.
Section 5.26.030 Application,
Issuance, Fee
● Requires application submittal no
less than 30 prior to
commencement.
● Same requirement to submit to the
City Manager.
Addressed
generally in Taxes,
Licenses, and
Regulation Chapter
5.04. No special
application
provisions for
hotels/motels.
Section
5.80.060
Documents
accompanying
application
The permit
application must
include :
● Two identity
prints
(recent/passport-
sized)
● Written evidence
that applicant(s)
is over 18
● Proposed
management
plan, including
provision of 24-hr
onsite manager
or designee
● Pest control
certification
● Existence of
required common
indoor space or
request for
variance
● Receipt from San
Joaquin County
Environmental
Health
Section 5.26.030 Application,
Issuance, Fee
Requirements are more similar to
standard business license
requirements.
● Additional owner/operator
requirements (Social Security
number, etc.)
● Business details
● Business tax certificate number
Other permits and their status
(revoked, withheld, expired, existing,
etc.)
Addressed
generally in Taxes,
Licenses, and
Regulation Chapter
5.04. No special
application
provisions for
hotels/motels.
Attachment A
Hotel Motel Ordinance Review | 41
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
demonstrating
compliance
Section
5.80.070
Additional
information
required for
residential
hotels/motels
Residential
hotel/motel
applications must
also include
information about:
● Zoning
● Parking
● Facilities
● Onsite
management
N/A Addressed
generally in Taxes,
Licenses, and
Regulation Chapter
5.04. No special
application
provisions for
hotels/motels.
Section
5.80.080
Investigation
All
applicants/applicatio
ns will be referred to:
● Police Chief
● Fire Chief
● City of Stockton
Health Officer
● San Joaquin
County
Environmental
Health
For their
investigation to
determine
compliance with
applicable codes.
N/A
Section
5.80.090
Required
conditions of
the premises -
Required
management
plan
The premises must
meet various
housing, building,
fire, and health code
requirements, and
the application must
include a
management plan.
Management plan not required.
Relevant fire, life, and safety code
requirements are captured within Title
15—Buildings and Construction.
Management
plan not required.
The applicant
must possess all
governmental
approvals,
permits, licenses,
and entitlements.
Chapter 19.330—
Hotel/Motel, Long-
Term Stay of the
City’s Zoning code
outlines the site and
permitting
requirements for a
hotel/motel.
Attachment A
Hotel Motel Ordinance Review | 42
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Section
5.80.100 List
of room
charges
A list of all room
charges must be
made available to
residents and the
public.
N/A N/A N/A N/A N/A N/A
Section
5.80.110
Quarterly
inspections -
Exemptions
Quarterly inspections
are required unless
the initial inspection
shows full
compliance and no
subsequent
violations.
Code enforcement is detailed in Title 8
Health and Safety, Chapter 8.80-
Abatement of Public Nuisances.
There are no prescribed timelines for
inspection.
Buildings and
Construction—
Hotel/Motel
Compliance
Assurance Program
Chapter 16.21.060—
Inspections
Specifies that hotels
and m
otels may
undergo “periodic
inspections.”
Inspections are
captured across several
ordinances.
Hotels and motels are
subject to Fire, Police,
Planning Department,
and Code Enforcement
inspections. Each
department has varying
requirements, violation
fees, and re-inspection
protocols.
Hotels and motels are
not considered
independently, but
based on the building
characteristics (number
of units, amenities, etc.)
Hotel and motel
inspections are
managed by the
County of
Orange
Environmental
Health Division.
Unclear. N/A
Section
5.80.120
Business
license
Obtaining a business
license is required in
addition to the permit
to operate.
Requires a business tax certificate,
captured in Section 5.02.060
Business License
Requirements
defined in: General
Provisions for
Business License-
Chapter 4.02
Separate permit to
operate a hotel/motel
not required.
Business License
Requirements defined
in:
General Provisions,
Article 10
Business License
Requirements
defined in:
General
Services—
Businesses,
Division 18
TOT Section
5.32.050—
Registration, Part
(c)
Includes
requirement to also
register for a
business tax
certificate at the
time of registering
for the TOT
certificate.
Section
5.80.130 Time
within which to
Requires the City to
review the permit
application and grant
No provision outlining the deadline to
respond to an application.
Addressed in
Taxes, Licenses,
Attachment A
Hotel Motel Ordinance Review | 43
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
grant or deny
permit to
operate
or deny the permit
within 45 days.
and Regulation
Chapter 5.04.
Section
5.80.140
Grounds for
denial of a
permit to
operate
Lists the grounds on
which the City can
deny a permit to
operate, such as the
premises not
complying with
applicable laws or
the applicant having
certain criminal
convictions.
Addressed in Section 5.26.030
Application, Issuance, Fee
Different than Stockton; the ordinance
describes the grounds by which a
permit may be granted.
Section
5.80.150
Alternate
procedure—
Issuance of
permit with
conditions
imposed
Allows the City to
issue a conditional
permit to operate if
the premises don’t
fully meet
requirements, with
conditions the
operator must
comply with.
Included in Section 5.26.030
Application, Issuance, Fee
Simplified provision: Permits may be
granted with conditions to ensure safe,
legal operation that doesn’t disrupt the
neighborhood or overly strain city
resources.
Section
5.80.160
Inspection
Requires the
premises to be
accessible for
inspection by City
and County officials.
Captured in Title 8 Health and Safety,
Chapter 8.80- Abatement of Public
Nuisances.
Provisions are generally for the
inspection of a business to abate
public nuisances, not specific to a
hotel or motel.
Hotel/Motel
Compliance
Assurance Program
Chapter 16.21.050—
Authority to enter and
inspect.
Similar provisions;
ins
pections can
include all exterior,
public, and food
preparation areas, as
well as randomly
selected guest
rooms.
Inspections are
captured across several
ordinances.
Hotels and motels are
subject to Fire, Police,
Planning Department,
and Code Enforcement
inspections. Each
department has varying
requirements, violation
fees, and re-inspection
protocols.
Hotel and motel
inspections are
managed by the
County of
Orange
Environmental
Health Division.
N/A
Section
5.80.170
Requires any
changes to the
Section 5.26.040 Regulations Business License
Requirements
Business License
Requirements
Addressed in
Taxes, Licenses,
Attachment A
Hotel Motel Ordinance Review | 44
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Business
name
business name to be
approved by the City.
Significantly simplified provision.
States that the permit is only valid with
the current operating name and
location.
defined in: General
Provisions for
Business License-
Chapter 4.02
Business License
Requirements defined
in:
General Provisions,
Article 10
defined in:
General
Services—
Businesses,
Division 18
and Regulation
Chapter 5.04.
Section
5.80.180
Business
location
change
Requires approval
from the City for
changing the location
of the hotel, motel, or
residential
hotel/motel.
Section 5.26.040 Regulations
Significantly simplified provision.
States that the permit is only valid with
the current operating name and
location.
Section
5.80.190 Sale
or transfer of
hotel, motel,
and residential
hotel/motel
establishment
interest
Requires reporting
and approval for the
sale or transfer of
majority ownership
interest in the
establishment.
The TOT Ordinance- Security
requirements, Chapter 3.40.080
contains sale or transfer notification
requirements.
General business license requirements
state that a permit is non-transferable.
The TOT Ordinance-
Successor Liability
Section 3.08.170
contains sale or
transfer notification
requirements.
General business
license requirements
state that a permit is
non-transferable.
Notification of a hotel or
motel sale is not
addressed in the TOT
ordinance.
General business
license requirements
state that a permit is
non-transferable.
The TOT
Ordinance-
Section 2-9-
407—Reporting
and Remitting
contains sale or
transfer
notification
requirements.
General business
license
requirements
state that a
permit is non-
transferable.
Notification of a sale or transfer to
the City is not specified.
Section 3.12.112—Sale or
Transfer within the City’s TOT
ordinance refers to tax liabilities.
TOT section
5.32.080—
Cessation of
Business addresses
notification of a
business ending.
Sale or transfer
notifications not
specified.
General business
license
requirements state
that a permit is non-
transferable.
Section
5.80.200
Display of
permits
Requires the
operator to display
the permit to operate
and manager
permits.
Section 5.26.040 Regulations part (c)
requires the permit be displayed.
Addressed in:
General Provisions
for Business
License—Chapter
4.02 Addressed in: General
Provisions, Article 10
Addressed in:
General
Services—
Businesses,
Division 18
Unclear Addressed in
Taxes, Licenses,
and Regulation—
Chapter 5.04
Section
5.80.210
Records
Requires the
operator to maintain
records of
employees.
No requirement to maintain employee
records.
No requirement to
maintain employee
records.
Section 9-105— H
otel
Registration.
The hotel operator must
m
aintain a register that
includes the name of
the hotel employee
checking in the guest.
No requirement
to maintain
employee
records.
No requirement to
maintain employee
records.
Attachment A
Hotel Motel Ordinance Review | 45
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
No requirement to keep
a list of employees.
Section
5.80.220 Pre-
existing
operators and
managers
Requires existing
operators and
managers to comply
with the ordinance
within 180 days.
N/A; ordinance requires all businesses
to carry a permit regardless of when
they were established.
Separate permit to
operate not required.
All businesses must
have a current
business license.
Business License
Requirements
defined in: General
Provisions for
Business License-
Chapter 4.02
Separate permit to
operate not required.
All businesses must
have a current business
license.
Business License
Requirements defined
in:
General Provisions,
Article 10
Separate permit
to operate not
required.
All businesses
must have a
current business
license as
defined in:
General
Services-
Businesses,
Division 18
All hotels and
motels must have a
business tax
certificate/license,
and a TOT
Registration
Certificate.
Section
5.80.230
Summary
suspension of
a permit to
operate
Allows the City to
immediately suspend
a permit to operate in
certain
circumstances.
5.26.050 Revocation
Any permit issued within the chapter
can be revoked immediately. No
suspension provision.
TOT Section
5.32.150—
Revocation of
permit.
Empowers the Tax
Administrator to
suspend or revoke
one or more of the
permits held by the
operator.
Taxes, Licenses,
and Regulation
Chapter 5.04
contain additional
provisions to revoke
a business tax
certificate/license.
Section
5.80.240
Suspension or
revocation by
City Manager
Allows the City
Manager initiate
suspension or
revocation of a
permit to operate.
N/A
Attachment A
Hotel Motel Ordinance Review | 46
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Section
5.80.250
Grounds for
revocation or
suspension of
permit to
operate
Grounds for
revocation or
suspension of a
permit to operate
include:
● General
violations of
provisions within
the chapter
● Committing acts
for permit denial
● Engaging in fraud
● Failing to correct
violations
● Operating without
a valid permit
Employing an
unpermitted
manager
5.26.050 Revocation
Simplified provisions
● Misrepresentations were made on
the application
● Owner or manager has been
convicted of a related crime
● Owner/manager acts of fraud or
dishonesty
● Terms of the permit have been
violated
Operations have violated state or
federal law
Section
5.80.260
Rights of
appeal from
denial,
suspension, or
revocation of
permit to
operate/hearin
g procedure
● Appeals must be
made in writing.
● $50.00 non-
refundable
administrative
hearing fee must
accompany the
appeal request.
● Hearing before
the
Administrative
Hearing Officer
shall be held
within 15
business days of
filing an appeal.
● Applicant shall be
notified of
hearing no less
5.26.060 Appeal
Simplified provisions. (a)
● Appeals must be filed within 10
days of the city manager revoking
a permit. (Stockton does not have
this requirement).
● Hearings are held during regular
City Council meetings.
● Similar hearing timeline. (three
weeks)
● Shorter notification timeline (no
less than three days before the
hearing)
Addressed in
Taxes, Licenses,
and Regulation
Chapter 5.04
Attachment A
Hotel Motel Ordinance Review | 47
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
than 10 business
days prior.
● Decisions of the
Administrative
Hearing Officer
are effective
immediately.
Section
5.80.270
Action of
Administrative
Hearing
Officer as to
permit to
operate—Final
and conclusive
Decisions of the
Administrative
Hearing Officer are
final; however, that
does not limit an
individual’s other
legal options.
5.26.060 Appeal
(b) Decisions of the city manager are
in effect until Council decision.
Council decision is immediate and final
from that date forward.
Section
5.80.280
Return of
permit to
operate—
Closure of
premises
Requires the return
of a revoked or
suspended permit
and allows the City
to close the
premises.
N/A TOT Section
5.32.160—Closure
of hotel without
permit.
Simplified provision
stating that while a
permit has not been
issued for any
reason, the Tax
Administrator can
close the hotel.
Section
5.80.290
Hotel, motel,
and residential
hotel/motel
manager’s
work permit
required
Requires managers
to obtain a work
permit.
Manager’s permit is not required. Manager’s permit is
not required.
Manager’s permit is not
required.
Hotel Registration,
Section 9-105—
Training of employees.
Training for employees
c
hecking in guests is
required. A person who
has not been trained
Manager’s permit
is not required.
Manager’s permit is not required. Manager’s permit is
not required.
Zoning
requirements
Chapter 19.330—
Hotel/Motel Long-
Term Stay requires
an onsite manager
on-duty within an
office that is open
on a 24-hour basis.
Section
5.80.300
Manager’s
Outlines the
requirements for
obtaining a
Attachment A
Hotel Motel Ordinance Review | 48
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
permit
eligibility
manager’s permit,
including completing
training.
cannot be assigned to
check-in.
Section
5.80.310
Application for
a manager’s
permit
Outlines the
requirements for
applying for a
hotel/motel
manager’s permit,
including submitting
photos, proof of age,
and proof of
completing a hotel
management course.
Section
5.80.320
Investigation
of manager
permit
applications
Requires the police
chief to investigate
the applicant’s
background,
including any prior
permit suspensions
or revocations, and
make
recommendations.
Section
5.80.330 Time
within which to
grant or deny
a manager’s
permit
Requires the City to
review the
application and
either grant or deny
the permit within 20
days.
Section
5.80.340
Grounds for
denial of a
manager’s
permit
Lists the grounds
under which a
manager’s permit
may be denied, such
as the applicant
being a registered
sex offender or
having a prior permit
revocation.
Attachment A
Hotel Motel Ordinance Review | 49
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Section
5.80.350
Summary
suspension of
permit
Allows for the
summary and
temporary
suspension of a
manager’s permit if
the holder has
committed an act
that would be
grounds for denial.
Section
5.80.360
Notice of
summary
suspension
Outlines the
procedures for
providing notice and
holding a hearing
regarding a summary
suspension of a
manager’s permit.
Section
5.80.370
Suspension
and revocation
by City
Manager
Allows the City
Manager to initiate
suspension or
revocation
procedures for a
manager’s permit by
sending written
notice.
Section
5.80.380
Grounds for
revocation or
suspension of
manager’s
permit
Lists the grounds
under which a
manager’s permit
may be suspended
or revoked, such as
violating the
ordinance or
continuing to function
as a manager after
the permit has been
suspended.
Section
5.80.390
Requires the
manager’s permit to
be returned to the
Attachment A
Hotel Motel Ordinance Review | 50
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Return of
permit
City upon revocation
or suspension.
Section
5.80.400
Rights of
appeal from
denial,
suspension, or
revocation of a
manager’s
permit
Outlines the
procedures for
appealing the denial,
suspension, or
revocation of a
manager’s permit.
Section
5.80.410
Action of
Administrative
Hearing
Officer as to
manager
permits final
and conclusive
States that the
decisions of the
Administrative
Hearing Officer
regarding manager
permits are final.
Section
5.80.420
Renewal of
manager’s
permit
Allows for the
renewal of a valid
manager’s permit.
Section
5.80.430
Administrative
procedure and
authority of
Administrative
Hearing
Officer
Authorizes the
Administrative
Hearing Officer to
hold hearings
regarding violations
of the ordinance.
Authorizes city council to hold hearings
regarding dissatisfaction on permit
decisions made by the city manager,
with the council’s decision being final.
Administrative
hearings, violations,
and penalties
addressed in:
General Provisions
for Business
License—Chapter
4.02 Business License
Requirements defined
in:
General Provisions,
Article 10
Business License
Requirements
defined in:
General
Services—
Businesses,
Division 18
Unclear. Addressed in
Taxes, Licenses,
and Regulation
Chapter 5.04
Section
5.80.440
Establishes a penalty
schedule for
N/A
Attachment A
Hotel Motel Ordinance Review | 51
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel, Motel,
and
Residential
Hotel/Motel
Permit
Ordinance
Volume 1,
Title 5,
Chapter 5.80
Business Taxes, Licenses, and
Regulations—Hotels and Lodging
Houses,
Chapter 5.26
Business
Regulation,
Title 4 B uildings
and Construction—
Hotel/Motel
Compliance
Assurance
Program, Chapter
16.21 Business Licenses—
General Provisions,
Article 10
Regulations
Regarding Business
and Personal
Conduct—Hotel
Registration
Section 9-105
Title 1—General
Services:
Businesses,
Division 18
Business Permits and
Regulations, Title 5 R evenue
and Finance—Business Tax
Certificate Title 3, Chapter 3.01
Business Taxes,
Licenses, and
Regulations, Title
5 Transient
Occupancy Tax
Chapter 5.32
Business Operations Tax,
Chapter 3.08
Violations and
penalties
violations of the
ordinance.
Section
5.80.450
Appeal of
administrative
citation issued
hereunder
Allows for the appeal
of any administrative
citations issued
under the ordinance.
N/A
Section
5.80.460
Permits issued
for one year
Permits are valid for
one year and must
be renewed
annually.
5.26.030 Application, Issuance, Fee
Permits are in effect until suspended
or revoked.
Section
5.80.470 Other
licenses,
permits
required
Clarifies that the
permits required by
this ordinance are in
addition to any other
required licenses or
permits.
Hotels and motel operators must also
obtain a general business license and
a business tax certificate, and register
the hotel/motel in accordance with the
City’s TOT Ordinance.
Hotels and motel
operators must obtain
a general business
license and a
business tax
certificate, and
register the
hotel/motel in
accordance with the
city’s TOT Ordinance.
Hotels and motel
operators must obtain a
general business
license and a business
tax certificate, and
register the hotel/motel
in accordance with the
city’s TOT Ordinance.
Hotel and motel
operators must
obtain a general
business license
and register the
hotel/motel in
accordance with
the city’s TOT
Ordinance.
Hotels and motel operators must
obtain a general business license
and a business tax certificate,
and register the hotel/motel in
accordance with the city’s TOT
Ordinance.
Individuals
conducting business
in the City must
obtain a business
license, also
referred to as a
business tax.
Hotel/motel
operators must
register the
hotel/motel in
accordance with the
city’s TOT
Ordinance.
All businesses are required to obtain a business
operations tax certificate. Hotel/Motel operators are
also required to register the hotel/motel in
accordance with the city’s TOT Ordinance.
Attachment A
Hotel Motel Ordinance Review | 52
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
APPENDIX D: HOTEL GUEST REGISTERS – CHAPTER 5.44 ANALYSIS
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel Guest
Registers
Chapter 5.44
Business Taxes, Licenses
and Regulations
Ordinance Section
5.26.040—Regulations
No reference to
requirements for guest
registration or
recordkeeping
Chapter 9- Regulations
Regarding Business and
Personal Conduct
Sec. 9-105—Hotel
Registration
No reference to
requirements for guest
registration or
recordkeeping
No reference to
requirements for guest
registration or
recordkeeping
Limitation on
Continuous and
Cumulative Occupancy
of Transient Hotels and
Motels
Chapter 9.55
Business Licenses and
Regulations—Hotels,
Rooming Houses and
Similar Establishments
Title 5 Chapter 5.76
Section 5.44.010
Words and phrases
defined
Defines guest, and the hotel,
motel auto court, and/or
place intended for guest use
for sleeping purposes.
N/A Part (a) contains somewhat
similar definitions for
hotels/motels. It does not
include guest definitions.
Includes what is exempted
from the definition.
Defines persons to rent
hotels and motels, as
defined in Chapter 19 of
the city’s code.
N/A
Section 5.44.020
Hotel etc., guest
registers
Outlines the required
information to register a
guest and members of the
guest party:
● Name
● Address
● Number of rooms rented
● Check-in and check-out
dates
● Form of government-
issued identification
Included in the Business
Taxes, Licenses and
Regulations Ordinance-
Section 5.26.040—
Regulations.
Simplified provision, stating
only that guests sign their
name and address when
renting a room. If multiple
guests, only one needs to
sign.
It does not include a
requirement to retain the
register for inspection.
Part (b) similar provision.
Requires the following
additional information:
● Guest date of birth
● Vehicle, if parked on
premises
● Room rate
● Method of payment
● Name of hotel employee
checking in the guest(s)
Additional provisions in the
ordinance require:
● Part (d) no room may be
rented without verifying
a guest’s identity.
● Part (g) prohibition
against use of fictitious
names.
● Part (h) prohibition of
hourly room rentals
● Part (i) prohibition
against use of hotel
rooms for immoral or
unlawful purposes.
● Part (j) penalties for
violating the ordinance
are a misdemeanor.
Section 9.55.030—
Limitation on duration of
occupancy Part (a)
outlines the requirements
to maintain a hotel
register.
Similar guest and room
information requirements
as Stockton.
Registers must be kept
for one year.
Additional provisions:
● Sections to address
penalties
(misdemeanor), civil,
and administrative
remedies for
violations of the
ordinance
● A guest cannot rent
more than 5% of a
hotel/motel’s rooms
● Includes property
disposal provisions
● Section 9.55.090—
Hourly rates
prohibited
Section 5.76.010 Keeping
required—Contents.
Similar provisions to
Stockton. No requirement
for a government-issued ID.
Additional provisions:
● Section 5.76.030
Violation—Penalty notes
that violators are guilty
of an infraction.
Attachment A
Hotel Motel Ordinance Review | 53
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
STOCKTON PEER SUMMARY
Section Description Bakersfield Elk Grove Fresno Irvine Lodi Riverside Sacramento Hotel Guest
Registers
Chapter 5.44
Business Taxes, Licenses
and Regulations
Ordinance Section
5.26.040—Regulations
No reference to
requirements for guest
registration or
recordkeeping
Chapter 9- Regulations
Regarding Business and
Personal Conduct
Sec. 9-105—Hotel
Registration
No reference to
requirements for guest
registration or
recordkeeping
No reference to
requirements for guest
registration or
recordkeeping
Limitation on
Continuous and
Cumulative Occupancy
of Transient Hotels and
Motels
Chapter 9.55
Business Licenses and
Regulations—Hotels,
Rooming Houses and
Similar Establishments
Title 5 Chapter 5.76
Section 5.44.020
Guest register to be
open for inspection
Requirement to make the
guest register available
upon request and with the
information specified in
5.44.020
N/A Part (c) Much more robust
section. Includes
requirement to:
● Maintain register
records for one year
● Prohibition against
defacing or altering
records
● Description of
requirements based on
registration record type
(book, cards, electronic)
● Confidentiality of guest
information
requirements
Section 9.55.030—
Limitation on duration of
occupancy Part (a).
Registers must be
available for inspection
during normal business
hours.
Similar requirements as
Stockton.
Registers must be kept
for one year.
Section 5.76.020 Where
kept—Inspection.
Similar provisions to
Stockton.
Attachment A
Hotel Motel Ordinance Review | 54
FOR INTERNAL USE OF THE CITY OF STOCKTON ONLY
APPENDIX E: KERN COUNTY HOTEL RISK
ASSESSMENT FORM
Attachment A
Attachment A