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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | | AGENDA DATE: | November 27, 2018 |
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| | | | | | | | | SUBJECT: | Adopt an Ordinance Amending the Code of
Ordinances, Chapter 2, Section 2-6, 'Hotel Occupancy Tax Levied' Regarding the Regulations for the
Imposition and Collection of Hotel Occupancy Tax. |
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| | | | | | | | | STAFF RESOURCE: | Eric Cannon, Chief Financial Officer |
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| | | | | | | | | PREVIOUS COUNCIL ACTION: | On July 18, 1996, the City Council Adopted
Ordinance No. 1440-7-96, which established regulations regarding the imposition and collection of Hotel Occupancy Tax. |
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| | | | | | | | | BOARD / COMMISSION ACTION: | On September 17, 2018, the CVB Advisory Board was provided communication
outlining the proposed changes to the regulations regarding the collection of Hotel Occupancy Tax.
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| | | | | | | | | ACTION PROPOSED: | Adopt an Ordinance Amending the Code of
Ordinances, Chapter 2, Section 2-6, 'Hotel Occupancy Tax Levied' Regarding the Regulations for the
Imposition and Collection of Hotel Occupancy Tax. |
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| | | | | | | | BACKGROUND
Chapter
351 of the Tax Code authorizes municipalities to levy a hotel occupancy tax.
State law stipulates the taxes, the guidelines for collecting and remitting the
taxes, the penalties and interest, records, and the use of the taxes.
The
purpose of this amendment is to incorporate legislative updates, clarify terms,
and align the City due date with the State.
Staff
sent proposed changes to all Hoteliers located within the City of Allen.
Additionally, a meeting was scheduled and held to address any questions or concerns. No
representatives from the existing eight hotels attended the meeting.
A summary of the changes are listed below:
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New Ordinance
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Previous
Ordinance
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Due Date
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20th
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30th
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Retainage
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0%
(no Discount)
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Retain
1% (Discount)
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Penalty 1
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5%
if paid after the 20th
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5%
if paid after 30th
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Penalty 2
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5%
if paid 31 days late
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5%
if paid 31 days late
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Penalty 3
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15%
after 1 fiscal quarter
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N/A
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Interest
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12%
starting 1 day late
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12%
starting 60 days late
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Offense
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$500
per offense if convicted
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N/A
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| | | | | | | | BUDGETARY IMPACT
Amendments to this Ordinance will result in an annual
increase of approximately $15,000 in hotel occupancy tax revenue to the City of Allen.
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| | | | | | | | STAFF RECOMMENDATION
Staff recommends adopting an Ordinance amending the Code of
Ordinances, Chapter 2, Section 2-6, 'Hotel Occupancy Tax Levied' regarding the regulations for the imposition and collection of Hotel Occupancy Tax.
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| | | | | | | | MOTION
I make a motion to adopt an
Ordinance amending the Code of Ordinances, Chapter 2, Section 2-6, "Hotel Occupancy Tax Levied".
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