HomeMy WebLinkAboutRes 119 - Room Tax Ballot Item (2)ES L.
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Deschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of August 27, 2008
DATE: August 20, 2008
FROM: Dave Kanner
Administration 388-6565
TITLE OF AGENDA ITEM:
Consideration of Resolution No. 2008-119, a resolution submitting a proposed ordinance amending
section 4.08.090 of the Deschutes County Code, increasing the transient room tax rate to 9% to the
people of Deschutes County, Oregon, for their approval or rejection at an election to be held November
4, 2008, and providing for a ballot title.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
The Board of Commissioners first began discussing an increase in the transient lodging tax (TLT) -- a
tax paid on the gross rental rate for overnight lodging facilities -- in March 2007 when it became
apparent that the County would lose the $3 million the County received annually from the federal
government for road maintenance purposes. The County's current TLT is 7%, as compared to 9% in the
cities of Bend and Redmond. An increase in the County tax to 9% would generate about $1 million in
new revenues annually. Although the increase was discussed, the idea was shelved following
discussions with the local lodging industry and among Board members at other public meetings.
At the Board's annual joint meeting with the Fair Board on July 17, the Fair Board asked the
Commissioners to reconsider referring a TLT increase to the voters in the November election, although
the Fair Board clearly envisions that the increase would be used primarily for tourism promotion and as
an ongoing revenue source for the Fair's capital reserve.
The Board held a public hearing on this proposal on August 18, 2008. Much of the testimony focused
on the allocation of the funds raised by an increase in the TLT, although representatives of the local
lodging industry either are opposed outright to this increase or would prefer a phase-in of the tax
increase, beginning after the summer of 2009.
On August 25, 2008, the Board met in a work session to discuss this resolution and the input received at
the work session. Because this staff report has been prepared prior to that August 25 meeting, a revised
resolution may be presented by legal counsel at the August 27 meeting.
FISCAL IMPLICATIONS:
An increase in the County TLT would generate slightly more than $1 million annually. Under stat,:
law, no more than 30% of an increased TLT can be spent for general county purposes. The remain [ng
70% must be spent on tourism promotion and tourism related facilities. The exact allocation of thc.
increased funds is still open to discussion and would be determined by the Board and the Budget
Committee as part of the budget adoption process.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends approval of Resolution No. 2008-119, as amended, on August 27. Commissioners
should bear in mind that the deadline for filing materials with the Clerk for the November election is
September 4. Thus, the September 3 business meeting would be the Board's last opportunity to refer the
measure this year, if they choose to do so.
ATTENDANCE: Dave Kanner
DISTRIBUTION OF DOCUMENTS:
Mark Pilliod, Legal Counsel
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
Code, Increasing the Transient Room Tax Rate to
Nine Percent (9%), to the People of Deschutes
County, Oregon, for Their Approval or Rejection at
an Election to be Held on Tuesday, November 4,
2008, and Providing for a Ballot Title.
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* RESOLUTION NO. 2008-119
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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 support tourism, such
as law enforcement and emergency response, and for tourism -related facilities which substantially support
tourism, such as the Fair and Expo Center Complex and certain county roads, listed on Exhibit A. that are tourist
related; 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 County has recently witnessed a substantial decline (approximately $3 million per
year) in federal funds, which the county has historically used to maintain its roadway system;
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 nine percent (9%); 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 "B,"
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 general election to be held on November 4, 2008.
Section 3. Notice of County Measure Election. The Notice of County Measure Election for the
proposed Ordinance set forth in Section 1 of this Resolution, shall be submitted to the Deschutes County Clt:rk
in substantially the same form as the attached Exhibit C, incorporated by reference herein.
PAGE l OF 2 — RESOLUTION NO. 2008-119 (08/13/08)
CAPTION: Increase in Deschutes County Transient Room Tax.
QUESTION: Shall the County Code be amended to increase the transient room tax outside cities to
9% beginning January 1, 2009?
SUMMARY STATEMENT:
On August 6, 2008, the County Board of County Commissioners adopted Resolution No. 2008-119 referring 10
the voters of Deschutes County an ordinance to amend the Deschutes County Code Section 4.08.030 to increase
the County Transient Room Tax from 7% to 9% beginning January 1, 2009. The revenue from the increase in
the tax on individuals renting of hotels, motels and similar room accomodations will be used to fund tourism
promotion, tourism -related facilities, including roads principally used by Deschutes County visitors and to fur id
county services. Existing revenues which were used to pay debt service on tourism -related facilities upon
retirement of this debt shall likewise be used to fund tourism promotion or tourism -related facilities and to fund
county services. The increase in the tax is expected to raise an additional $1,033,000 in revenue in the first year.
Section 4. Explanatory Statement: The Explanatory Statement to be submitted to the County Clerk to
be included in the County voters' pamphlet is attached as Exhibit "D" 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 4, 2008 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 of , 2008 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
DENNIS R. LUKE, Chair
TAMMY (BANEY) MELTON, Vice Chair
ATTEST:
Recording Secretary MICHAEL M. DALY, Commissioner
PAGE 2 OF 2 — RESOLUTION NO. 2008-119 (08/13/08)
EXHIBIT "B"
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 strikes:
"4.08.090 Tax Imposed.
"For the privilege of Occupancy in any Hotel, on and 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%) nine
percent (9%) 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 Operator's 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."
Section 2. This Ordinance shall become effective, after approval, on January 1, 2009.
Exhibit "A" to Ordinance No. 2008-(8/6/08)
Exhibit D
EXPLANATORY STATEMENT FOR COUNTY VOTERS' PAMPHLET (2008)
Ballot Title Caption: Increase in Deschutes County Transient Room Tax
Measure Number: Enter Measure Number Here
Word Total (500 Maximum): 201
(Explanatory Statement Shall Be Typed)
Enter Explanatory Statement Here
Renters of hotel, motel or similar accommodations pay transient room taxes. 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 County's current
transient room tax of 7% was established in 1988. The cities of Bend and Redmond currently
impose a 9% transient room tax. The estimated revenue increase is $900,000 per year. The
increased revenues will be used to fund tourism promotion or tourism -related facilities and to
fund county services. Existing revenues which were used to pay debt service on tourism -related
facilities upon retirement of this debt shall likewise be used to fund tourism promotion or tourism -
related facilities and to fund county services. County property tax dollars are not used for
tourism promotion. 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 and after the effective date of the ordinance codified
in DCC 4.08, each Transient shall pay a Tax in the amount of nine percent (9%) of the Rent for
Occupancy of space in a Hotel."
Person responsible for the content of the Explanatory Statement:
(Typed) Enter Name of Person Responsible for Explanatory Statement Here
(Signed) X
Enter Name of Governing Body Here
Name of the Governing Body the person represents.
Instructions
1. The Explanatory Statement shall be typed. The text of the Explanatory Statement will
be printed as submitted.
2. The word total shall not exceed 500 words.
3. The Explanatory Statement shall be signed by the person responsible for the content of the
statement and include the name of the governing body that person represents.
4. The Explanatory Statement shall be filed with the County Clerk of the county in which the
administrative office of the electoral district is located.
5. The Explanatory Statement shall be filed by 5:00 p.m. on the filing deadline for the notice
of measure as shown in the table below.
ELECTION:
March 11, 2008
May 20, 2008
September 16, 2008
November 4, 2008
Deadline:
January 10, 2008
March 20, 2008
July 17, 2008
September 4, 200E
Return this completed form to:
Nancy Blankenship
Deschutes County Clerk
1300 NW Wall Street, Suite 200
Bend, OR 97701
Phone: 541-388-6544
Tourist Roads in Deschutes County
EXHIBIT A
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