HomeMy WebLinkAboutRes 103 - Transient Room Tax AmendmentDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
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AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of August 19,2013
Please see directions for completing this document on the next page.
DATE: August 14,2013
FROM: Dave Inbody Administrative Services 322-7697
TITLE OF AGENDA ITEM:
Consideration of Signature of Resolution 2013-103
PUBLIC HEARING ON THIS DATE? YES.
BACKGROUND AND POLICY IMPLICATIONS:
Renters of hotel, motel or other overnight accommodations pay transient room taxes. The County's
current transient room tax of 7% was established in 1988. Revenues from transient room taxes, paid by
these renters, have been used to promote tourism and to partially pay for County services and facilities
also used by County visitors. The cities of Bend and Redmond currently impose a 9% transient room
tax. Increasing the County room tax to 8% would generate estimated increased revenue of $527,000
The increased revenues will primarily be used to fund tourism promotion and enhance business activity
at the Fair and Expo Center. A key component will include marketing programs designed to increase
the number oflarge, region-wide events. Up to 30% of the revenue will be used to fund critical county
service needs, such as public safety, health and human services and County infrastructure.
It is estimated that the events and activities at the Fair and Expo Center generated $30 million in
economic impact to the region, based on multipliers established by Travel Oregon and updated using
Travel Industries of America's travel index. This economic impact includes the purchase oflodging,
meals, transportation, retail and recreation. The Fair and Expo Center also contributes to the community
by serving as the command center for natural disasters and emergency services, as well as hosting a
variety of activities at no cost, such as area high school graduations, health and immunization clinics
and military memorial services.
Approval of this measure will adopt a Deschutes County Ordinance amending the first sentence of
Deschutes County Code ("DCC") section 4.08.090 to read, "For the privilege of occupancy in any
hotel, on or after the effective date of the Ordinance codified in DCC 4.08, each transient shall pay a tax
in the amount of seven percent (7%), and eight percent (8%) beginning on July 1, 2014 of the rent for
occupancy of space in a hoteL"
FISCAL IMPLICATIONS:
The passage of this ballot measure would increase the transient room tax from 7% to 8%. Of these
additional funds, 70% would be allocated to the Fair & Expo Center and the remaining 30% would be
in support of critical County service needs such as public safety, health and human services and County
infrastructure.
RECOMMENDATION & ACTION REQUESTED:
Approval and signature of Resolution #2013-103, authorizing the inclusion of a measure on the
November 5, 2013 ballot to increase the transient room tax from 7% to 8%.
ATTENDANCE: Dave Inbody, Administrative Services.
DISTRIBUTION OF DOCUMENTS:
Copy of signed Resolution to Dave Inbody, Administrative Services.
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Submitting a Proposed Ordinance *
Amending Section 4.08.090 of the Deschutes County * RESOLUTION NO. 2013~103
Code, Increasing the Transient Room Tax Rate from *
Seven Percent (7%) to Eight Percent (8%) Beginning
July 1,2014, to the People of Deschutes County,
Oregon, for Their Approval or Rejection at an
Election to be Held on Tuesday, November 5, 2013,
and Providing for a Ballot Title.
WHEREAS, the Deschutes County Transient Room Tax provides needed funds for the promotion of
tourism; and
WHEREAS, Transient Room Taxes also provide funds for county services which generally support
tourism, such as public safety, health and human services and county infrastructure, which have a substantial
purpose of supporting tourism or accommodating tourism activities; and
WHEREAS, the Transient Room Tax was last amended to the current rate of 7% in 1988; and
WHEREAS, the current Transient Room Tax imposed by the Cities of Bend and Redmond is 9%; and
WHEREAS, the Transient Room Tax is paid by occupants of Deschutes County hotels, motels and other
overnight accommodations; and
WHEREAS, the Fair and Expo Center attracts a number of events and activities, such as the Family
Motor Coach Association and BMW Motorcycle Rally, which in turn has generated an estimated $30 million in
economic impact to Central Oregon annually; and
WHEREAS, the Fair and Expo Center also contributes to the community by serving as the emergency
response command center for natural disasters, as well as hosting a variety of activities at no cost, such as area
High School graduations, health and immunization clinics, and military memorial services; and
WHEREAS, Deschutes County Board of County Commissioners ("Board") by this resolution intends to
submit to the voters of Deschutes County an Ordinance Amending Deschutes County Code ("DCC") Section
4.08.090 to Increase the Transient Room Tax from seven percent (7%) to eight percent (8%) beginning on July
1, 2014; now therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. Ordinance Proposed. The Deschutes County Code Amendment, set forth in Exhibit "A,"
attached hereto and by this reference incorporated herein, proposing to amend Section 4.08.090, "Tax
Imposed/' of the Deschutes County code, is hereby submitted to the legal voters of Deschutes County, Oregon,
for their approval or rejection.
Section 2. Date of Election. That the Ordinance proposed in Section 1 of this Resolution, relating to the
amendment of Deschutes County Code Section 4.08.090, be submitted to the legal electors of Deschutes
County, Oregon, at the special election to be held on November 5, 2013.
PAGE 1 OF 5 RESOLUTION NO. 2013-103
Section 3. Notice of County Measure Election. The Notice of County Measure Election containing the
ballot title for the proposed Ordinance set forth in Section 1 of this Resolution, to be submitted to the legal
electors of Deschutes County, Oregon shall be as follows:
Caption: Increase in Deschutes County Transient Room Tax by 1%
Question: Shall County Code be amended to increase transient room tax outside cities to 8% beginning
July 1, 20147
SUMMARY STATEMENT:
The Board of County Commissioners is referring to the voters of Deschutes County an ordinance which would
amend the Deschutes County Code Section 4.08.090 to increase the County Transient Room Tax. This tax,
which is collected from guests of hotels, motels and similar overnight lodging outside of cities, would increase
from the current 7% to 8% beginning on July 1, 2014. Seventy percent (70%) of the revenue from this tax
increase would be used to promote tourism through the Deschutes County Fair and Expo Center. Up to 30% of
the revenue would be used to fund other county services, such as public safety, health and human services and
county infrastructure. The tax increase is expected to raise an additional $527,000 annually.
Section 4. Explanatory Statement: The Notice of Measure Election to be submitted to the County Clerk
for preparation of the ballot is attached as Exhibit "B" and incorporated herein by reference. The Explanatory
Statement to be submitted to the County Clerk to be included in the County voters' pamphlet is attached as
Exhibit "c" and incorporated by reference herein.
Section 5. The Board Chair is authorized to sign the Notice of County Measure Election and the
Explanatory Statement.
Section 6. The Deschutes County Clerk shall include on the November 5, 2013 general election ballot
the required information from the Notice of County Measure Election and the Explanatory Statement.
Section 7. Election. The election for the ordinance proposed in Section 1 of this Resolution shall be
conducted as prescribed by law.
Section 8. Filing. Immediately following passage, this Resolution shall be filed with the Deschutes
County Clerk.
Dated this day of , 2013 BOARD OF COUNTY COMMISSIONERS ------------~
OF DESCHUTES COUNTY, OREGON
ALAN UNGER, Chair
TAMMY BANEY, Vice Chair
ATTEST:
Recording Secretary ANTHONY DEBONE, Commissioner
PAGE 2 OF 5 -RESOLUTION NO. 2013-103
EXHIBIT "A"
THE PEOPLE OF DESCHUTES COUNTY, OREGON, ORDAIN AS FOLLOWS:
Section 1. Deschutes County Code Section 4.08.090, Tax Imposed, is amended as follows with
new language underlined and language to be deleted in strilEethrough:
"4.08.090 Tax Imposed.
"For the privilege of Occupancy in any Hotel, on 9f and after July I, 2014, the effeeti't'e date of
the ordinance coelified in DCC 4.08, each Transient shall pay a Tax in the amount of seYeR
percent (7%) eight percent (8%) of the Rent for Occupancy of space in a Hotel. The Tax
constitutes a debt owed by the Transient to the County, which is extinguished only by payment
to the Operator as agent for the County. The Transient shall pay the Tax to the Operator of the
Hotel at the time the Rent is paid. The Operator shall enter the Tax on Operators records
when Rent is collected if the Operator keeps records on the Cash accounting basis and when
earned if the Operator keeps records on the Accrual accounting basis. If Rent is paid in
installments, a proportionate share of the Tax shall be paid by the Transient to the Operator
with each installment. If, for any reason, the tax due is not paid to the Operator of the Hotel,
the Tax Administrator may require that such Tax shall be paid directly to the County."
PAGE 3 OF 5 RESOLUTION NO. 2013-103
lNotice of cou:tv Me_~s._u._r_e_E_I_e._c_t_i_o_n_________________S_E_L_8_0_'_____
County and Notice Information
Notice is hereby given on A.-u,[ust 19 , 20.~.~.• that II measure election will be held in
Deschutes ____ County, Oregon on November 5
Name of County or CountIes Date of Election
The following shall be the ballot title of the measure to be submitted to the county's voters.
Caption 10 words
: Increase in Deschutes County Transient Room Tax by 1 %
Question 20 words
Shall County Code be amended to increase transient room tax outside cities to 8% beginning July 1,
2013?
Summary 175 words
!The Board of County Commissioners is referring to the voters of Deschutes County an ordinance which
; would amend the Deschutes County Code Section 4.08.090 to increase the County Transient Room
Tax. This tax, which is collected from guests of hotels, motels and similar overnight lodging outside of
. cities. would increase from the current 7% to 8% beginning on July 1, 2014. Seventy percent (70%) of
: the revenue from this tax increase would be used to promote tourism through the Deschutes County
•Fair and Expo Center. Up to 30% of the revenue would be used to fund other county services, such as
public safety, health and human services and county infrastructure. The tax increase is expected to
raise an additional $527,000 annually.
The following authorized county official hereby certifies the above ballot title is true and the ballot title chal/enge process
has been completed.
Signature of Authorized County Official not required to be notarized Date Signed mm/dd/Yy
Printed Name of Authorized County Official Title
Exhibit B to Resolution 2013·103
Page 1
EXPLANATORY STATEMENT FOR COUNTY VOTERS' PAMPHLET (2013)
Ballot Title Caption: Increase in Deschutes County Transient Room Tax by 1%
Measure Number: Word Total (500 Maximum): _______
(Explanatory Statement Shall Be Typed)
Guests of hotels, motels a nd other overnight accommodations pay transient room taxes. The County's current
transient room tax of 7% was established in 1988. Revenues from transient room taxes are used to promote
tourism and to partially pay for County services and facilities provided to County residents and visitors. The
cities of Bend and Redmond currently impose a 9% transient room tax. Increasing the County room tax to 8%
would generate approximately $527,000 in additional revenue annually.
The increased revenues would primarily be used to promote tourism and enhance business activity at the Fair
and Expo Center. A key component would Include a marketing program designed to increase the number of
large events to attract visitors throughout the region. Up to 30% of the revenue would be used to help fund
other county services. such as public safety, health and human services and county infrastructure. available to
residents and visitors.
Using travel metrics developed by the Travel Industry of America and Travel Oregon, it is estimated that the
events and activities at the Fair & Expo Center generated $30 million in economic impact to Central Oregon in
2012. This economic impact consists of the amounts spent by visitors on lodging, meals, transportation, retail
and recreation. In addition to its economic impact, the Fair and Expo Center also contributes to the community,
for example, by serving as an emergency response command center for natural disasters. and hosting a variety
of activities at no cost, such as High School graduations, health and immunization clinics and military memorial
services. Approval of this measure would amend the Deschutes County Code ("DCC") section 4.08.090, first
sentence, to read:
"For the privilege of Occupancy in any Hotel, on and after July 1, 2014 each Transient shall pay a Tax in the
amount of eight percent (8%) of the Rent for Occupancy of space in a Hotel."
Person responsible for the content of the Explanatory Statement:
(Typed) __________________________
(Signed) X ___________________________
Name of the Governing Body the person represents.
Exhibit C to Resolution 2013-103
Page 1