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HomeMy WebLinkAboutMINUTES - 09292011 - D.2PDF Return To:Board of Supervisors From:David Twa, County Administrator Date:September 29, 2011 Contra Costa County Subject:Finance Committee Referral - Use of Transient Occupancy Taxes APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/29/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes:See Addendum VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Federal D. Glover, District V Supervisor NO:Karen Mitchoff, District IV Supervisor ABSENT:Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Contact:Lisa Driscoll, County Finance Director (925) 335-1023 cc:Robert Campbell, County Auditor-Controller I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 29, 2011 David Twa, BY:June McHuen , Deputy RECOMMENDATION(S): ACCEPT report on the Use of Transient Occupancy Tax revenues in Contra Costa County. FISCAL IMPACT: No specific fiscal impact. The report makes recommendations regarding how general purpose revenues are allocated not how they are spent. BACKGROUND: See attached report. CLERK'S ADDENDUM The following people spoke: Tim McGallion, resident of Concord; Beverly Lane, Contra Costa Historical Society; Kris Hunt, Contra Costa Taxpayers Association; Commander Sean Fawell, Office of the Sheriff; Jim Bickert, Deputy Sheriff's Association; Belette Solomon, Catholic Charities; Ruth Rodriguez, Monument Community Partnership/First 5 Center; Mike Van Hofwegen, Michael Chavez Center; Myrna Lopez, Women's Initiative; Pamela Crispin, Planned Parenthood; Matthew Fragoso, Mt. Diablo CARES After School Programs; Pete Caldwell, We Care. Recommend to the full board, consistent with County policy (including Policy Related to Practice of Allocating General Fund Revenue to Specific Communities or Programs dated April 19, 2005) and all other General Purpose Revenues, that all Transient Occupancy revenue (including revenues from the Renaissance Club Sport Hotel) be deposited directly into General Purpose revenue and that any future allocations for CCFutures be discussed during the annual budget process rather than be automatically allocated through Transient Occupancy revenue. AgendaQuick©2005 - 2021 Destiny Software Inc., All Rights Reserved County of Contra Costa Office of the County Administrator MEMORANDUM DATE: September 26, 2011 TO: FINANCE COMMITTEE: Supervisor John Gioia, Chair Supervisor Federal Glover, Vice-Chair FROM: Lisa Driscoll, County Finance Director SUBJECT: Transient Occupancy Tax Collection and Allocation Report Recommendation: Accept report on history of collection and allocation of Transient Occupancy Tax (TOT) revenue; and consider policy on future allocations. Background: At the September 13, 2011 meeting of the Board of Supervisors, a two-part referral was made to the Finance and Internal Operations Committees. The first part was to look at the County’s Transient Occupancy Tax (TOT) revenues including the history of collection and allocation in order to expedite a broader policy of TOT and its use. The second part of the referral was to revisit the report of Special Revenue Funds Administered by Board of Supervisors Members. On December 9, 2008, following a discussion about a proposal to allocate Dougherty Valley Regional Enhancement funds to provide industrial education and vocational training to West County youths, the Board of Supervisors referred to the Internal Operations Committee (IOC) a review of how special revenue or “trust” funds are expended by the County and the possible development of a policy regarding the expenditure of such funds. At that time, staff compiled information on selected special revenues administered by the Board of Supervisors and drafted a policy that defined various types of special revenues and how new special revenues would be administered in the future. In 2009, this matter was discussed in June, July, and September at IOC and at two meetings of the Finance Committee while on dual referral. In a 5-0 vote on December 15, 2009, the Board of Supervisors approved an alternative policy proposed by Supervisors Piepho and Bonilla. Staff will bring a report on this broader issue to the Finance and Internal Operations Committees within the next few months. Transient Occupancy Tax (Hotel, Motel, Campground or Bed Tax) is authorized under State Revenue and Taxation Code Section 7280, as an additional source of non-property tax revenue to local government. This tax is levied in Contra Costa County at a rate of 10% for accommodations at facilities in the unincorporated areas of the County. TOT funds are discretionary, in that the Board of Supervisors may direct use of these funds for any legitimate county expense. The tax code does not require any specific use of the Transient Occupancy Tax Funds. Although local governments were given the power to tax for transient occupancy in 1963, Contra Costa County did not adopt an Ordinance until 1990 (effective date was October 30, 1990). Finance Committee September 26, 2011 Page 2 Transient Occupancy Taxes Historically all Transient Occupancy Taxes within the County were deposited into the General Fund/General Purpose Revenue. On April 9, 1991 by a 3-1-1 vote of the Board of Supervisors (McPeak/Powers/Torlakson – Yes, Schroder – No, Fahden – Abstained), the Board approved procedures for using TOT revenues from the Embassy Suites Hotel to establish a Child Care Affordability Fund. The action designated 50% of the TOT revenues from the Embassy Suites Hotel for the allocation to the trust fund, not to exceed $250,000 annually). As part of the annual budget, the Board discontinued the allocation of TOT to the Child Care Affordability Fund at the end of fiscal year 2006/07. On February 4, 2003, the Board of Supervisors created the CCFuture Fund; adopted, in concept, the earmarking of 100% of the annual TOT from the Renaissance Suites Hotel to fund prevention programs serving children and families in Contra Costa County; and directed that the focus of prevention efforts initially be in the Monument Corridor area of the City of Concord. Beginning in 2003/04 fiscal year and continuing today, TOT revenues from the Renaissance Suites Hotel are deposited directly into the general fund account for the CCFuture Fund. Currently the County has four hotels in the unincorporated areas of the County for which it receives TOTs. The current hotels are the: Embassy Suite (1345 Treat Blvd, Walnut Creek); Crowne Plaza (45 John Glenn Drive, Concord); Burlington Hotel (2 Canyon Lake Drive, Port Costa); and the Renaissance Club Sport Hotel (2805 Jones Road, Walnut Creek). Pursuant to Board direction, TOT revenues are deposited into two departments within the General Fund. The first is department 0005 (General Purpose Revenue) account 9062 (Transient Occupancy Tax) and the second is department 0007/1112 (Board Mitigation Programs) also account 9062. The chart below breaks out historical revenues for the last ten years, budgeted revenue for the current year, year-to-year total growth/decline, percentage share of total, and the ten year average amount deposited. Note that figures have been adjusted by approximately $250,000 per year from 2001/02 through 2006/07 for transfers to the Child Care Affordability Fund. Additionally fiscal years 2009/10 and 2010/11 have been adjusted for accruals – the net adjustment for these two years is zero. Total Transient Occupancy Taxes Collected Growth/ Decline Deposited into General Purpose Revenue Share of Total Deposited into CCFutures Fund Account Share of Total FY 2001/02 1,286,703 -21.0% 1,286,703 100.0% FY 2002/03 1,116,912 -13.2% 1,116,912 100.0% FY 2003/04 1,283,243 14.9% 690,836 53.8% 592,407 46.2% FY 2004/05 1,824,773 42.2% 1,002,678 54.9% 822,095 45.1% FY 2005/06 1,343,952 -26.3% 694,124 51.6% 649,828 48.4% FY 2006/07 1,872,714 39.3% 1,186,597 63.4% 686,117 36.6% FY 2007/08 1,776,567 -5.1% 1,011,923 57.0% 764,644 43.0% FY 2008/09 1,844,492 3.8% 1,248,653 67.7% 595,839 32.3% FY 2009/10 1,627,513 -11.8% 1,081,276 66.4% 546,237 33.6% FY 2010/11 1,718,508 5.6% 1,163,284 67.7% 555,224 32.3% Budget 2011/12 1,506,000 -12.4% 950,000 63.1% 556,000 36.9% 10 Year Average 1,569,538 1,048,299 66.8% 651,549 41.5% Finance Committee September 26, 2011 Page 3 Transient Occupancy Taxes The following chart provides revenues by hotel for the last three fiscal years. Fiscal Year Embassy Suites Crowne Plaza Concord Burlington Hotel General Fund Account 0005 Renaissance Club Sport (CCFutures Fund) TOTAL TOT REVENUES 2008/09 608,790.80$ 635,703.30$ 4,159.22$ 1,248,653.32$ 595,839.30$ 1,844,492.62$ 2009/10 685,338.00$ 392,807.56$ 3,129.76$ 1,081,275.32$ 546,237.40$ 1,627,512.72$ 2010/11 774,231.00$ 385,834.63$ 3,218.40$ 1,163,284.03$ 555,223.70$ 1,772,590.86$ CCFutures Fund/Earmark The purpose of this report is not to support nor debate the needs of the CCFutures fund but rather to focus on the source of allocation to the project. The Board of Supervisors may, of course, allocate general purpose revenues to any project as it sees fit. The issue is how the allocation is made. The County’s current policy regarding the allocation of General Fund revenue to specific communities or programs was adopted in 2005. The Policy’s intent was to ‘discourage the practice of establishing new programs or mechanisms to allocate revenue sources to specific communities or programs when revenue would otherwise accrue to the General Fund’. Additionally, the County Budget Policy prohibits the creation of earmarks. The Budget Policy states, “The County will not directly allocate a specific General Purpose Revenue source to specific programs/communities. The policy would not apply to mitigation revenue that is derived from a project and intended to offset the environmental impacts from the project on the “host” community.” If the Board of Supervisors wishes to support a particular program, rather than earmarking the transient occupancy tax from a specific hotel to a project, in keeping with current County policy, staff recommends that the Board of Supervisors should, instead, appropriate General Funds for that purpose. Attachments: 1. April 19, 2005 Board Order – Policy Related to Practice of Allocating General Fund Revenue to Specific Communities or Programs 2. December 15, 2009 Board Order – Special Revenue Mitigation Funds 3. September 14, 2009 Finance Committee Report – Draft Policy Regarding the Allocation of Board-Administered Special Revenues 4. April 7, 2009 Internal Operations Committee Report – Inventory of Special Revenues Administered by the Board of Supervisors (cover report and sections 1 and 2) 5. County Ordinance Code – Transient Occupancy Tax (Chapter 64-4) 6. California Revenue and Tax Code – Occupancy Taxes (Section 7280-7283.51) 7. April 13, 2011 State Controller Report of California Counties Transient Lodging Tax Revenue Attachment 2 Attachment 2 Attachment 2 Attachment 2 Attachment 3 Attachment 3 Attachment 3 Attachment 3 Attachment 3 Attachment 4 Attachment 4 1 Attachment 4 Special Revenue: Child Care Affordability Fund (Trust Acct 810900/CC0009062) Authority to Collect: The Board of Supervisors established the Child Care Affordability Fund on April 9, 1991. Source of Funds: Originally, 50% of Transient Occupancy Tax (TOT) revenue from the Embassy Suites Hotel, not to exceed $250,000 annually was earmarked by the Board for the Fund, with the remaining 50% of the Embassy Suites TOT deposited in the County General Fund. In fiscal year 2008/09, the CAO substituted accumulated Dependent Care Assistance Program (DCAP) forfeitures in the amount of $250,000 annually in lieu of TOT, freeing up $250,000 of General Fund dollars to help balance the budget. There are sufficient DCAP forfeitures accumulated at this time to support the Child Care Affordability Fund for about two more fiscal years, after which TOT will need to be resumed to support the Fund. Purpose of Funds at Genesis: To assist low-income parents with child care affordability needs throughout Contra Costa County. Level of Board Discretion Over Use of Funds: The Board has limited discretion over the use of DCAP forfeitures. Resolution No. 89/175 stipulates that these forfeitures shall be used at the direction of the Human Resources Director to reimburse the costs of administering the DCAP and for other child care programs authorized by the Board that assist County employees. The Board has complete discretion over TOT funds. Method of Disbursement: In 1996, responsibility for recommending annual financial plans to the Board of Supervisors was transferred to the Family and Human Services Committee. In 1997, the Board added a layer of community input by assigning responsibility to the Family and Children's Trust (FACT) Committee to establish annual priorities for use of the Fund, develop a competitive bid process based on those priorities, and recommend agencies and funding amounts to the Family and Human Services Committee. Current allocations are recommended by the FACT Committee to the Family and Human Services Committee. The period of funding is one year with the option for a one year renewal pending program evaluation and availability of funds. Current Estimated Balance: $ - Annual Estimated Revenue: $ 250,000 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 2 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 REVENUE AND TAXATION CODE SECTION 7280-7283.51 7280. (a) The legislative body of any city, county, or city and county may levy a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging unless the occupancy is for a period of more than 30 days. The tax, when levied by the legislative body of a county, applies only to the unincorporated areas of the county. (b) For purposes of this section, the term "the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging" does not include the right of an owner of a time-share estate in a room or rooms in a time-share project, or the owner of a membership camping contract in a camping site at a campground, or the guest of the owner, to occupy the room, rooms, camping site, or other real property in which the owner retains that interest. For purposes of this subdivision: (1) "Time-share estate" means a time-share estate, as defined by paragraph (1) of subdivision (x) of Section 11212 of the Business and Professions Code. (2) "Membership camping contract" means a right or license as defined by subdivision (b) of Section 1812.300 of the Civil Code. (3) "Guest of that owner" means a person who does either of the following: (A) Occupies real property accompanied by the owner of either of the following: (i) A time-share estate in that real property. (ii) A camping site in a campground pursuant to a right or license under a membership camping contract. (B) Exercises that owner's right of occupancy without payment of any compensation to the owner. (C) "Guest of that owner" specifically includes a person occupying a time-share unit or a camping site in a campground pursuant to any form of exchange program. (c) For purposes of this section, "other lodging" includes, but is not limited to, a camping site or a space at a campground or recreational vehicle park, but does not include any of the following: (1) Any facilities operated by a local government entity. (2) Any lodging excluded pursuant to subdivision (b). (3) Any campsite excluded from taxation pursuant to Section 7282. (d) Subdivision (b) does not affect or apply to the authority of any city, county, or city and county to collect a transient occupancy tax from time-share projects that were in existence as of May 1, 1985, and which time-share projects were then subject to a transient occupancy tax imposed by an ordinance duly enacted prior to May 1, 1985, pursuant to this section. Chapter 257 of the Statutes of 1985 may not be construed to affect any litigation pending on or prior to December 31, 1985. (e) (1) (A) If the legislative body of a city, county, or city and county elects to exempt from a tax imposed pursuant to this section any of the following persons whose occupancy is for the official business of their employers, the legislative body shall create a standard form to claim this exemption and the officer or employee claiming the exemption shall sign the form under penalty of perjury: (i) An employee or officer of a government outside the United States. (ii) An employee or officer of the United States government. (iii) An employee or officer of the state government or of the government of a political subdivision of the state. (B) The standard form described in subparagraph (A) shall contain a requirement that the employee or officer claiming the exemption provide to the property owner one of the following, as determined by Attachment 6 the legislative body of the city, county, or city and county imposing the tax, as conclusive evidence that his or her occupancy is for the official business of his or her employer: (i) Travel orders from his or her government employer. (ii) A government warrant issued by his or her employer to pay for the occupancy. (iii) A government credit card issued by his or her employer to pay for the occupancy. (C) The standard form described in subparagraph (A) shall contain a requirement that the officer or employee provide photo identification, proof of his or her governmental employment as an employee or officer as described in clause (i), (ii), or (iii) of subparagraph (A), and proof, consistent with the provisions of subparagraph (B), that his or her occupancy is for the official business of his or her governmental employer. (2) There shall be a rebuttable presumption that a property owner is not liable for the tax imposed pursuant to this section with respect to any government employee or officer described in clause (i), (ii), or (iii) of subparagraph (A) of paragraph (1) for whom the property owner retains a signed and dated copy of a standard form that complies with the provisions of subparagraphs (B) and (C) of paragraph (1). (f) The provisions of subdivision (e) are not intended to preclude a city, county, or city and county from electing to exempt any other class of persons from the tax imposed pursuant to this section. 7280.5. (a) The redevelopment agency of any city which has levied a transient occupancy tax pursuant to Section 7280 or 7281 may also, by ordinance, levy a transient occupancy tax in accordance with this part, if the city's ordinance entitles any person subject to a transient occupancy tax under the city's ordinance to credit the amount of transient occupancy taxes due to the redevelopment agency of that city pursuant to this section against the payment of taxes due under the city's ordinance. (b) An ordinance of a redevelopment agency imposing a transient occupancy tax pursuant to this section shall contain an enacting clause which states as follows: "The redevelopment agency of the City of ____ does ordain as follows:" The ordinance shall be signed by the chairperson of the agency and attested by the clerk or secretary of the agency, and shall take effect immediately upon its final passage, but shall become operative on the first day of the first calendar quarter commencing more than 180 days after adoption of the ordinance. In all other respects, the ordinance shall be introduced and passed, and notice given by publication, in the manner provided by law for general law cities. (c) Any redevelopment agency adopting an ordinance pursuant to this section shall not levy a transient occupancy tax in excess of the rate of transient occupancy tax levied by its city, and the tax shall be levied only on accommodations located in a redevelopment project area for which the taxes are pledged pursuant to subdivision (e) of Section 33641 of the Health and Safety Code. (d) Any pledge pursuant to Section 33641 of the Health and Safety Code made with respect to taxes imposed under this section for the payment of principal and interest on bonds of a redevelopment agency shall constitute the obligation of a contract between the redevelopment agency and the holder of the bonds and shall be protected from impairment by the United States and California Constitutions. The provisions of this section which authorize the imposition of the taxes may not be repealed during the time that any of the bonds remain outstanding. 7281. The legislative body of any city or county may levy a tax on Attachment 6 the privilege of renting a mobilehome, as defined in Section 18008 of the Health and Safety Code, which is located outside a mobilehome park for occupancy on a transient basis unless such occupancy is for any period of more than 30 days. Such tax when levied by the legislative body of a county shall apply only to the unincorporated areas of the county. This section does not authorize any city or county to levy a tax on the privilege of renting any mobilehome when the tenant is an employee of the owner or operator of the mobilehome. 7282. Notwithstanding any other provision of law, no city, county, or city and county may levy a tax on the privilege of occupying a campsite in a unit of the state park system. 7282.3. (a) Notwithstanding any other provision of law, no city, county, or city and county may levy a tax under Section 7280 on any amount subject to tax under the Sales and Use Tax Law (Part 1 (commencing with Section 6001)) with respect to the sale of food products. (b) This section shall also apply to charter cities. (c) For purposes of this section, "food products" means food and beverage products of every kind, regardless of how or where served, and shall specifically include, but not be limited to, alcoholic beverages and carbonated beverages of every kind. 7283. A board of supervisors may, by ordinance or resolution, establish procedures for the collection of delinquent amounts of any tax levied pursuant to this chapter. 7283.5. (a) (1) A purchaser, transferee, or other person or entity attempting to obtain ownership of a property, the owner of which is required to collect the tax imposed pursuant to this chapter, may request the city, county, or city and county in which that property is located to issue a tax clearance certificate under this section. (2) A city, county, or city and county that issues a tax clearance certificate under this section may charge an administrative fee to cover its costs in issuing the certificate. (b) Within 90 days of receiving a request described in subdivision (a), a city, county, or city and county shall do either of the following: (1) Issue the tax clearance certificate. (2) (A) Request the current owner of the property to make available that owner's transient occupancy tax records for the purpose of conducting an audit regarding transient occupancy taxes that may be due and owing from the owner of the property. (B) (i) Complete the audit described in subparagraph (A) on or before 90 days after the date that the current or former owner's records are made available to the auditing jurisdiction and issue a tax clearance certificate within 30 days of completing the audit. (ii) If, after completing the audit, the city, county, or city and county makes a determination that the current owner's records are insufficient to make a determination of whether transient occupancy taxes may be due and owing, the city, county, or city and county is not required to issue a tax clearance certificate as otherwise required by this subdivision. The city, county, or city and county shall, within 30 days of making that determination, notify the purchaser, transferee, or other person or entity that made the request that it will not issue a tax clearance certificate due to the Attachment 6 insufficiency of the prior owner's records. (c) If a city, county, or city and county does not comply with subdivision (b), the purchaser, transferee, or other person or entity that obtains ownership of the property shall not be liable for any transient occupancy tax obligations incurred prior to the purchase or transfer of the property. (d) For a tax clearance certificate issued under this section, all of the following apply: (1) The certificate shall state the amount of tax due and owing for the subject property, if any. (2) The certificate shall state the period of time for which it is valid. (3) The purchaser, transferee, or other person or entity who obtains ownership of the property may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate. (e) Any purchaser, transferee, or other person or entity described in subdivision (a) who does not obtain a tax clearance certificate under this section, or who obtains a tax clearance certificate that indicates that tax is due and fails to withhold, for the benefit of the city, county, or city and county, sufficient funds in the escrow account for the purchase of the property to satisfy the transient occupancy tax liability, shall be held liable for the amount of tax due and owing on the property. (f) This section may not be construed to relieve a property owner of transient occupancy tax obligations incurred when that owner owned the property. 7283.51. Notwithstanding any other provision of law, except in the case of fraud or the failure of a property owner to file a transient occupancy tax return, a city, county, or city and county may institute an action to collect unpaid transient occupancy taxes within four years of the date on which the transient occupancy taxes were required to be paid. Attachment 6 REVENUE AND TAXATION CODE SECTION 7280-7283.51 7280. (a) The legislative body of any city, county, or city and county may levy a tax on the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging unless the occupancy is for a period of more than 30 days. The tax, when levied by the legislative body of a county, applies only to the unincorporated areas of the county. (b) For purposes of this section, the term "the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging" does not include the right of an owner of a time-share estate in a room or rooms in a time-share project, or the owner of a membership camping contract in a camping site at a campground, or the guest of the owner, to occupy the room, rooms, camping site, or other real property in which the owner retains that interest. For purposes of this subdivision: (1) "Time-share estate" means a time-share estate, as defined by paragraph (1) of subdivision (x) of Section 11212 of the Business and Professions Code. (2) "Membership camping contract" means a right or license as defined by subdivision (b) of Section 1812.300 of the Civil Code. (3) "Guest of that owner" means a person who does either of the following: (A) Occupies real property accompanied by the owner of either of the following: (i) A time-share estate in that real property. (ii) A camping site in a campground pursuant to a right or license under a membership camping contract. (B) Exercises that owner's right of occupancy without payment of any compensation to the owner. (C) "Guest of that owner" specifically includes a person occupying a time-share unit or a camping site in a campground pursuant to any form of exchange program. (c) For purposes of this section, "other lodging" includes, but is not limited to, a camping site or a space at a campground or recreational vehicle park, but does not include any of the following: (1) Any facilities operated by a local government entity. (2) Any lodging excluded pursuant to subdivision (b). (3) Any campsite excluded from taxation pursuant to Section 7282. (d) Subdivision (b) does not affect or apply to the authority of any city, county, or city and county to collect a transient occupancy tax from time-share projects that were in existence as of May 1, 1985, and which time-share projects were then subject to a transient occupancy tax imposed by an ordinance duly enacted prior to May 1, 1985, pursuant to this section. Chapter 257 of the Statutes of 1985 may not be construed to affect any litigation pending on or prior to December 31, 1985. (e) (1) (A) If the legislative body of a city, county, or city and county elects to exempt from a tax imposed pursuant to this section any of the following persons whose occupancy is for the official business of their employers, the legislative body shall create a standard form to claim this exemption and the officer or employee claiming the exemption shall sign the form under penalty of perjury: (i) An employee or officer of a government outside the United States. (ii) An employee or officer of the United States government. (iii) An employee or officer of the state government or of the government of a political subdivision of the state. (B) The standard form described in subparagraph (A) shall contain a requirement that the employee or officer claiming the exemption provide to the property owner one of the following, as determined by Attachment 6 the legislative body of the city, county, or city and county imposing the tax, as conclusive evidence that his or her occupancy is for the official business of his or her employer: (i) Travel orders from his or her government employer. (ii) A government warrant issued by his or her employer to pay for the occupancy. (iii) A government credit card issued by his or her employer to pay for the occupancy. (C) The standard form described in subparagraph (A) shall contain a requirement that the officer or employee provide photo identification, proof of his or her governmental employment as an employee or officer as described in clause (i), (ii), or (iii) of subparagraph (A), and proof, consistent with the provisions of subparagraph (B), that his or her occupancy is for the official business of his or her governmental employer. (2) There shall be a rebuttable presumption that a property owner is not liable for the tax imposed pursuant to this section with respect to any government employee or officer described in clause (i), (ii), or (iii) of subparagraph (A) of paragraph (1) for whom the property owner retains a signed and dated copy of a standard form that complies with the provisions of subparagraphs (B) and (C) of paragraph (1). (f) The provisions of subdivision (e) are not intended to preclude a city, county, or city and county from electing to exempt any other class of persons from the tax imposed pursuant to this section. 7280.5. (a) The redevelopment agency of any city which has levied a transient occupancy tax pursuant to Section 7280 or 7281 may also, by ordinance, levy a transient occupancy tax in accordance with this part, if the city's ordinance entitles any person subject to a transient occupancy tax under the city's ordinance to credit the amount of transient occupancy taxes due to the redevelopment agency of that city pursuant to this section against the payment of taxes due under the city's ordinance. (b) An ordinance of a redevelopment agency imposing a transient occupancy tax pursuant to this section shall contain an enacting clause which states as follows: "The redevelopment agency of the City of ____ does ordain as follows:" The ordinance shall be signed by the chairperson of the agency and attested by the clerk or secretary of the agency, and shall take effect immediately upon its final passage, but shall become operative on the first day of the first calendar quarter commencing more than 180 days after adoption of the ordinance. In all other respects, the ordinance shall be introduced and passed, and notice given by publication, in the manner provided by law for general law cities. (c) Any redevelopment agency adopting an ordinance pursuant to this section shall not levy a transient occupancy tax in excess of the rate of transient occupancy tax levied by its city, and the tax shall be levied only on accommodations located in a redevelopment project area for which the taxes are pledged pursuant to subdivision (e) of Section 33641 of the Health and Safety Code. (d) Any pledge pursuant to Section 33641 of the Health and Safety Code made with respect to taxes imposed under this section for the payment of principal and interest on bonds of a redevelopment agency shall constitute the obligation of a contract between the redevelopment agency and the holder of the bonds and shall be protected from impairment by the United States and California Constitutions. The provisions of this section which authorize the imposition of the taxes may not be repealed during the time that any of the bonds remain outstanding. 7281. The legislative body of any city or county may levy a tax on Attachment 6 the privilege of renting a mobilehome, as defined in Section 18008 of the Health and Safety Code, which is located outside a mobilehome park for occupancy on a transient basis unless such occupancy is for any period of more than 30 days. Such tax when levied by the legislative body of a county shall apply only to the unincorporated areas of the county. This section does not authorize any city or county to levy a tax on the privilege of renting any mobilehome when the tenant is an employee of the owner or operator of the mobilehome. 7282. Notwithstanding any other provision of law, no city, county, or city and county may levy a tax on the privilege of occupying a campsite in a unit of the state park system. 7282.3. (a) Notwithstanding any other provision of law, no city, county, or city and county may levy a tax under Section 7280 on any amount subject to tax under the Sales and Use Tax Law (Part 1 (commencing with Section 6001)) with respect to the sale of food products. (b) This section shall also apply to charter cities. (c) For purposes of this section, "food products" means food and beverage products of every kind, regardless of how or where served, and shall specifically include, but not be limited to, alcoholic beverages and carbonated beverages of every kind. 7283. A board of supervisors may, by ordinance or resolution, establish procedures for the collection of delinquent amounts of any tax levied pursuant to this chapter. 7283.5. (a) (1) A purchaser, transferee, or other person or entity attempting to obtain ownership of a property, the owner of which is required to collect the tax imposed pursuant to this chapter, may request the city, county, or city and county in which that property is located to issue a tax clearance certificate under this section. (2) A city, county, or city and county that issues a tax clearance certificate under this section may charge an administrative fee to cover its costs in issuing the certificate. (b) Within 90 days of receiving a request described in subdivision (a), a city, county, or city and county shall do either of the following: (1) Issue the tax clearance certificate. (2) (A) Request the current owner of the property to make available that owner's transient occupancy tax records for the purpose of conducting an audit regarding transient occupancy taxes that may be due and owing from the owner of the property. (B) (i) Complete the audit described in subparagraph (A) on or before 90 days after the date that the current or former owner's records are made available to the auditing jurisdiction and issue a tax clearance certificate within 30 days of completing the audit. (ii) If, after completing the audit, the city, county, or city and county makes a determination that the current owner's records are insufficient to make a determination of whether transient occupancy taxes may be due and owing, the city, county, or city and county is not required to issue a tax clearance certificate as otherwise required by this subdivision. The city, county, or city and county shall, within 30 days of making that determination, notify the purchaser, transferee, or other person or entity that made the request that it will not issue a tax clearance certificate due to the Attachment 6 insufficiency of the prior owner's records. (c) If a city, county, or city and county does not comply with subdivision (b), the purchaser, transferee, or other person or entity that obtains ownership of the property shall not be liable for any transient occupancy tax obligations incurred prior to the purchase or transfer of the property. (d) For a tax clearance certificate issued under this section, all of the following apply: (1) The certificate shall state the amount of tax due and owing for the subject property, if any. (2) The certificate shall state the period of time for which it is valid. (3) The purchaser, transferee, or other person or entity who obtains ownership of the property may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate. (e) Any purchaser, transferee, or other person or entity described in subdivision (a) who does not obtain a tax clearance certificate under this section, or who obtains a tax clearance certificate that indicates that tax is due and fails to withhold, for the benefit of the city, county, or city and county, sufficient funds in the escrow account for the purchase of the property to satisfy the transient occupancy tax liability, shall be held liable for the amount of tax due and owing on the property. (f) This section may not be construed to relieve a property owner of transient occupancy tax obligations incurred when that owner owned the property. 7283.51. Notwithstanding any other provision of law, except in the case of fraud or the failure of a property owner to file a transient occupancy tax return, a city, county, or city and county may institute an action to collect unpaid transient occupancy taxes within four years of the date on which the transient occupancy taxes were required to be paid. Attachment 6 California Counties Transient Lodging Tax Revenue, Rate, and Date for the Fiscal Year 2008-09 County Number County Name Transient Lodging Tax Revenue Transient Lodging Tax Rate Effective Date of Tax Rate 01 Alameda $ 481,251 10.000 01/01/03 02 Alpine 476,116 10.000 10/10/91 03 Amador 90,912 6.000 11/01/76 04 Butte 29,216 6.000 02/21/78 05 Calaveras 369,102 6.000 06/01/74 06 Colusa 07 Contra Costa 1,844,493 10.000 10/30/90 08 Del Norte 309,287 8.000 06/01/84 09 El Dorado 1,799,620 10.000 03/26/04 10 Fresno 11 Glenn 4,663 5.000 01/01/69 12 Humboldt 1,135,079 10.000 08/08/93 13 Imperial 13,577 8.000 08/13/93 14 Inyo 2,459,083 12.000 01/01/07 15 Kern 1,676,195 6.000 04/01/02 16 Kings 212,886 10.000 07/15/93 17 Lake 806,189 9.000 10/01/91 18 Lassen 49,511 10.000 01/01/93 19 Los Angeles 12,271,915 12.000 11/01/98 20 Madera 1,921,632 9.000 01/01/94 21 Marin 2,151,323 10.000 03/01/91 22 Mariposa 9,683,077 10.000 03/27/96 23 Mendocino 3,732,786 10.000 04/01/97 24 Merced 290,073 10.000 07/01/93 25 Modoc 32,343 4.000 09/05/65 26 Mono 2,512,776 12.000 05/0/02 27 Monterey 14,540,340 10.500 07/01/95 28 Napa 8,452,118 12.000 01/01/05 29 Nevada 184,889 10.000 08/11/05 30 Orange 159,357 10.000 09/30/90 31 Placer 8,878,168 8.000 01/01/85 32 Plumas 1,152,277 9.000 10/01/90 33 Riverside 1,670,498 10.000 12/30/93 34 Sacramento 5,311,006 12.000 07/01/94 35 San Benito 73,135 8.000 11/01/86 36 San Bernardino 1,485,105 7.000 07/25/02 37 San Diego 2,827,952 8.000 08/01/05 39 San Joaquin 372,774 8.000 05/15/84 40 San Luis Obispo 6,137,320 9.000 10/01/91 41 San Mateo 936,779 10.000 10/01/90 42 Santa Barbara 6,430,993 10.000 10/03/90 43 Santa Clara 406,809 8.000 09/02/86 44 Santa Cruz 3,887,256 10.000 01/16/93 45 Shasta 595,023 10.000 08/16/90 46 Sierra 300,207 10.000 01/01/93 47 Siskiyou 461,009 8.000 06/05/90 48 Solano 49 Sonoma 7,456,841 9.000 10/01/93 50 Stanislaus 835,803 8.000 10/01/86 51 Sutter 58,338 10.000 07/01/01 52 Tehama 28,685 8.000 01/01/89 53 Trinity 180,454 5.000 08/20/96 54 Tulare 1,185,422 10.000 01/01/83 55 Tuolumne 1,417,832 8.000 07/01/89 56 Ventura 235,120 8.000 07/01/78 57 Yolo 102,388 8.000 05/14/85 58 Yuba 265,858 10.000 11/0/02 2008-09 Total $ 120,382,861 NOTE: The City and County of San Francisco is considered a city in reporting financial transactions. Source: Report Date:April 13, 2011 California State Controller, Division of Accounting and Reporting, Local Government Reporting Section - County Unit Attachment 7