General Election 2022
Measure CS
- Election Date
- Nov 8, 2022
English
To address homelessness, improve 911 emergency response times and neighborhood police protection, make public areas safer and cleaner, including streets, sidewalks, parks, and the beach, and provide other vital City services, shall the City of Santa Monica increase the transient occupancy tax – which is paid entirely by overnight visitors – by 1% for hotels and motels, and by 3% for home-shares, providing approximately $4.1 million annually, until ended by voters, with all funds benefitting Santa Monica?
Click here to read the staff report for this measure.
Text of Measure
Chapter 6.68 TAX ON TRANSIENTS FOR OCCUPANCY
6.68.010 Definitions.
The following words and phrases, when used in this ordinance, shall, for the purpose of this Chapter, have the following respective meanings except where the context clearly indicates a different meaning:
(a) Transient. Any person who, for any period of not more than one month30 days either at his ownthat person’s expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as hereinafter defined, for which lodging or use of lodging space a charge is made.
(b) Person. Any individual, corporation, company, association, firm, copartnership, or any group of individuals acting as a unit.
(c) Hotel. Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house, bed and breakfast, home-share (as defined in Santa Monica Municipal Code § 6.20.010), or other lodging place within the City of Santa Monica offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any transient as hereinabove defined.
(d) Room Rental. The total charge madeAny charge required by any such hotel for lodging and/or lodging space furnished to any such transient, including, but not limited to, furniture, fixtures, appliances, linens, towels, non-coin-operated safes, and maid service. Room Rental shall not include any amount upon which a sales or use tax is imposed with respect to the sale of food products. If the charge made by such hotel to such transient includes any charge for services or accommodations in addition to that of lodging, and/or the use of lodging space, then such portion of the total charge as represents only room and/or lodging space rental shall be distinctly set out and billed to such transient by such hotel as a separate item.
(e) Director of Finance-City Controller.: The Director of Finance-City Controller of the City of Santa Monica.
(f) Permanent Resident. Any person who, as of a given date, has occupied or has had the right to occupy a room or rooms in a particular hotel, as herein defined, for the thirty consecutive days next preceding such date.
6.68.020 Transient Occupancy Tax Imposed.
On and after the effective date of this ordinance, there is hereby imposed and levied on each and every transient a tax for the privilege of occupancy in a hotel (other than a home-share, which is subject to section 6.68.025) equivalent to fourteen fifteen percent (1415%) of the total amount paid for room rental by or for any such transient to any such hotel; which said tax shall be collected from such transient at the time and in the manner hereinafter provided. .Said tax is levied for revenue purposes and is necessary for the usual financial operation of the City of Santa Monica.
6.68.025 Transient Occupancy Tax Imposed on Home-Shares.
On and after the effective date of this ordinance, there is hereby imposed and levied on each and every transient a tax for the privilege of occupancy in any home-share equivalent to seventeen percent (17%) of the total amount paid for room rental by or for any such transient for the use of a home-share.
6.68.040 Collection.
On and after the effective date of this ordinance, every person receiving any payment for room rental with respect to which a tax is levied under this ordinance shall collect the amount of tax hereby imposed from the transient on whom the same is levied or from the person paying for such room rental, at the time payment for such room rental be made. Where the tax has been collected for room rental for thirty days or less and the occupant subsequently completes thirty-one consecutive days of occupancy, the person whose duty it is to collect said tax may return such tax to the occupant or person obligated to pay such tax. If said person whose duty it is to collect said tax has paid such tax over to the City, he may, within one year from the date of payment to the Director of Finance-City Controller, and provided he has returned such tax to the occupant or person obligated to pay such tax, either take credit for the tax so paid on any subsequent return filed by hint or file a claim for refund of such tax. Such claim may be paid to such person by the Director of Finance-City Controller. The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as hereinafter required.
6.68.050 Reports and Tax Remittance.
The person collecting any such tax shall prepare a report upon such forms and setting forth such information as the Director of Finance-City Controller may prescribe and require, showing the amount of room rental charges collected, and the tax required to be collected and shall sign and deliver the same to the Director of Finance-City Controller with a remittance for said tax. Said reports and remittances shall be due the first business day of each month covering the amount of tax collected during the preceding month, the first report and remittance hereunder being due on the first day of December, 1963, covering the amount of tax collected during the month of November, 1963. Any person operating a hotel regularly throughout the year may, upon written application to, and with the written consent of, the Director of Finance-City Controller, make reports and remittances on a quarterly basis in lieu of the monthly basis hereinbefore provided. Such quarterly reports and remittances shall be due on the first days of January, April, July and October in each year, and shall cover the amounts collected during the three months immediately preceding the months in which reports and remittances are required. If the remittance is by check or money order, the same shall be payable to the City of Santa Monica.
6.68.055 Determination of Date Payment Made.
(a) The payment of tax made in person or electronically prior to close of City business hours will be treated as received at the date of delivery.
(b) If payment is made by United States mail, the payment date will be the: (1) date of cancellation by the United States Postal Service, as reflected on the envelope which contains the payment; or (2) date of receipt by the City for any payment mailed in an envelope which has used a postal meter.
6.68.060 Delinquent Tax Payments - Interest and penalties.
(a) If any person shall fail or refuse to remit to the Director of Finance-City Controller the tax required to be collected and paid under this Chapter in the amount specified in this Chapter, on or before the last day of the month in which said remittance becomes due, such tax is delinquent.
(b) there Upon any tax becoming delinquent, shall be added to such tax by the Director of Finance-City Controller shall impose a penalty of ten percent of the amount of the tax.
(c) To the extent permitted by law, the Director of Finance, or their designee, may establish rules and regulations that establish an applicable interest rate for any delinquency., and(d) if If the any tax shall remains delinquent and unpaid thereafter for a period of more than thirty days, there shall be added thereto by the Director of Finance-City Controller an additional penalty of ten percent shall be added.
(e) For collection purposes only, every penalty imposed and any such interest as accrues under this section shall become a part of the tax required to be remitted.
6.68.070 Failure to collect and report tax – Notice of Delinquency.
If any person shall fail or refuse to collect said tax and to make, within the time provided in this Chapter, any report and remittance required by this Chapter, the Director of Finance-City Controller shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Director of Finance-City Controller shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such person the tax, and penalties, and interest provided for by this Chapter and shall notify provide a notice of delinquency to such person by mail sent to his or her last known place of addressas provided in section 6.68.075. The notice of delinquency shall describe of the total amount of such tax, including and applicable interest and penalties, owed. , and tThe total amount thereoftax owed shall be payable within ten days from the date of such notice of delinquency.
6.68.075 Manner of giving notice.
Any notice required under this Chapter may be served personally or by mail; if by mail, service shall be made by depositing the notice in the United States mail, in a sealed envelope with postage paid, addressed to the person on whom it is to be served at his or her address as it appears in the records of City or as ascertained by the Director of Finance, or designee. The service is complete at the time of the deposit of the notice in the United States mail, without extension of time for any reason.
6.68.080 Records.
It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of two four years, such suitable records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Director of Finance-City Controller shall have the right to inspect at all reasonable times.
6.68.090 Cessation of business.
Whenever any person required to collect and pay to the City a tax under this Chapter shall cease to operate or otherwise dispose of his or her business, any tax payable hereunder to the City shall become immediately due and payable and such person shall immediately make a report and pay the tax due.
6.68.100 Exceptions.
No tax shall be payable hereunder in any of the following instances:
(a) On room rental paid by any Federal, State of California, or City of Santa Monica, official or employees when on official business provided that a tax exempt certificate is executed at the time of registration, on a form to be provided by the Director of Finance-City Controller.
(b) (b) On room rental paid to any hospital, medical clinic, convalescent home or home for aged people.
(c) On any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax herein by reason of Federal, State, or local law or regulation.
6.68.110 Administrative Penalty.
Any person violating or failing to comply with any of the provisions of this Chapter, shall be subject to any of the penalties set forth in Section 1.08.010 of the Santa Monica Municipal
Code. upon conviction thereof, be fined not less than twenty-five dollars nor more than five hundred dollars, and each Each such violation or failure shall constitute a separate offense. Such conviction Neither the City’s pursuit of any such penalties nor the imposition of any such penalties shall not relieve any such person from the payment, collection or remittance of said the tax as provided in this Chapter.
6.68.120 Director of Finance-City Controller—Powers and duties.
It shall be the duty of the Director of Finance-City Controller to ascertain the name of every person operating a hotel in the City of Santa Monica, liable for the collection of the tax levied by this Chapter, who fails, refuses or neglects to collect the tax or to make, within the time provided by this Chapter, the reports or remittances required herein.
6.68.130 Advisory Committee.
The City Council shall, no later than February 28, 2023, establish by resolution an advisory committee that will make non-binding recommendations as to the expenditure of additional funds raised by increasing the transient occupancy tax above 14%.
SECTION 2. Any provision of the Santa Monica Municipal Code inconsistent with the provisions of this measure, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this measure.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this measure is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this measure. The City Council hereby declares that it would have placed this measure and the resulting Santa Monica Municipal Code amendment, and the voters declare that they would have adopted this measure and the resulting Santa Monica Municipal Code amendment, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional, without regard to whether any portion may be subsequently declared invalid or unconstitutional.
Impartial Analysis
The City of Santa Monica currently imposes a Transient Occupancy Tax (“TOT”) on overnight visitors who enjoy lodging within the City. The City’s current TOT rate is 14% of room rental charges.
This measure would increase the City’s TOT rate from 14% to: (a) 15% for hotels, and (b) 17% for home-shares. The proposed increase is comparable with neighboring cities and other destination cities. The TOT is calculated by multiplying the applicable tax rate by the total charges for room rental.
It is estimated the proposed increases to the TOT would yield additional general fund revenue of more than $4,000,000 annually that could be utilized for any governmental purpose.
The measure would require the City Council to establish an Advisory Committee by resolution no later than February 28, 2023. The Advisory Committee would provide non-binding recommendations on the use of the additional TOT revenue generated by increasing the TOT rate above 14%.
The Santa Monica City Council placed this measure on the ballot. A “yes” vote supports the passage of the amendment to the Santa Monica Municipal Code; and a “no” vote opposes passage of the amendment. A majority vote (i.e., more than 50% of the votes cast) is required to pass the measure.
DOUGLAS T. SLOAN, City Attorney
Argument in Favor
Vote YES on Measure CS to help address crime and homelessness, support Santa Monica's high quality of life, and protect local property values - without increasing taxes on local residents.
People live in Santa Monica because it offers an exceptional quality of life and great local services. Property values here are stronger than many other cities because of the investment the City makes to ensure safe neighborhoods, clean beaches, and parks.
That's why we need Measure CS. It provides a locally controlled source of funding for increased public safety, to keep Santa Monica one of the safest cities in California.
In addition, while some progress has been made, more needs to be done to help individuals experiencing homelessness move off Santa Monica streets and into housing.
Measure CS will:
- Improve 911 emergency response times Expand Santa Monica Police presence in downtown Santa Monica, the Pier, and beach areas, freeing up resources to increase neighborhood patrols and improve public safety in residential areas
- Expand the City's Homeless Liaison Program to 7 days a week
- Expand outreach and provide 24/7 intake services for people experiencing homelessness and
behavioral health issues
- Help prevent crime and enhance safety in Santa Monica neighborhoods
Measure CS Does Not Increase Taxes for Santa Monica Residents
- Measure CS ensures that visitors to our city pay their fair share to support a clean, safe community
- Annual financial audits, citizens oversight and public review of expenditures will ensure all funds are
spent as promised
- Legally, all Measure CS funds must stay in Santa Monica. The state and federal government cannot
take one penny
Safe neighborhoods and high-quality services help make Santa Monica a desirable place to live, do business and raise families.
Please join public safety, business, community leaders, and long-time residents in voting YES on to keep Santa Monica safe and strong.
- Rev. Jim Conn, Founding Minister of Church in Ocean Park and Founding Member of Santa Monicans for Renters Rights
- Ted Winterer, Co-Chair of Community for Excellent Public Schools and Former Santa Monica Monica Mayor
- Gleam Davis, Santa Monica City Councilmember
- Manju Raman, General Manager of the Huntley Hotel and SM Public Safety Reform and Oversight Commissioner