By: Zachary Lopez (ZachNews)
Source: City of Needles (Information and Agenda Item Packet)
Needles, California: Members of the Needles City Council will be discussing and possibly voting on a proposed November 2022 ballot measure for a Transient Occupancy Tax for short term residential rental units during their regular meeting scheduled for 6:00 p.m. PT on Tuesday, June 14th, 2022 inside the Needles City Council Chambers located at 1111 Bailey Avenue near J Street.
According to information from the Needles City Clerk’s Office, on February 22, 2022 the City Council gave direction to staff to draft a Ballot Measure to be included at the General Municipal Election on Tuesday, November 8, 2022.
A short term rental is often a substitute for a hotel or motel room rental. A visitor renting a short term rental creates the same impacts as a hotel guest such as traffic, demands for law enforcement, fire safety, and other demands on the public service system. As such, the Planning Commission also recommends that the City’s Transient Occupancy Tax (10% of total rental charge) be collected from short term rentals. The City of Needles currently levies a 10% Transit Occupancy Tax on all hotels, motels, apartment hotels, apartment motels, trailer courts, recreational vehicle parks and any other commercial establishment furnishing lodging space in exchange for monetary compensation located within the City.
On April 26, 2022 the City Council approved Ordinance No. 649-AC which amended the Municipal Code to include Short-Term Residential Rentals. Within the Ordinance, a short-term residential unit was subject to the uniform transient occupancy tax, if and when approved by the voters. The City Charter requires that application of the Transient Occupancy Tax requires voter approval on even numbered year general elections such as November 2022.
- Section 20-8 of the Needles Municipal Code is amended to read:
Tax levied. Every operator of a hotel, motel, apartment hotel, apartment motel, trailer court, recreational vehicle park, short term residential rental unit and/or property, or any other commercial establishment furnishing lodging space in exchange for monetary compensation, located within the city, shall pay a transient occupancy tax of ten percent which shall be based on the operator’s gross monthly receipts received from transient lodgers.
- Section 20-8.2(c) of the Needles Municipal Code is amended to read:
“Operator” shall mean the person who is an owner and/or proprietor of a hotel, motel, apartment hotel, apartment motel, trailer court, recreational vehicle park, short term residential rental unit and/or property, or any other commercial establishment furnishing lodging space in exchange for monetary compensation within the city. If an operator utilizes a managing agent who is not an employee, then such agent shall also constitute an “operator” for the purposes of this Article. Compliance with this Article by either the principal or the managing agent shall constitute compliance by both.
- Section 20-8.2(e) of the Needles Municipal Code is amended to read:
“Lodging space” shall mean (i) one or more rooms used or intended to be used for dwelling or sleeping purposes, (ii) land in a trailer court or recreational vehicle park used or intended to be used for the parking of a trailer, recreational vehicle or other type vehicle used or intended to be for dwelling or sleeping purposes, and or a short term residential rental unit as defined in section 12-68.3.030, as may be amended from time to time.
As for any fiscal impact to note, the City of Needles states by including short term residential rental units in the transient occupancy tax (10%), it is estimated the City will raise approximately $84,300 annually, which will be used for general city services, including protecting residents’ quality of life and property values and continue to provide excellent services.
As of any environmental related issues or information to note, the City of Needles states there is none.
According to information from the Needles City Clerk’s Office, the recommendation for members of the Needles City Council is to approve Ordinance No. 651-AC Amending Sections 20-8, 20-8.2(c) and 20-8.2(e) of the Needles Municipal Code to include in the city’s transient occupancy tax, short term residential units.
The agenda item was submitted by Patrick Martinez, Needles Assistant City Manager and Needles Development Services City Management.
*** Agenda Packet Information (PDF File Download): ***
The mayor and City council members may be attending this meeting via Microsoft Teams.
The public may attend the meeting but masks are encourage or can attend via Microsoft Teams.
The public may submit any comments in writing prior to noon on the day of the meeting by emailing: firstname.lastname@example.org
To join the live Microsoft Teams meeting log into the City of Needles website at: https://cityofneedles.com/ to access the agenda and the meeting.
If asked, enter the following: Meeting ID: 217 048 915# or listen in and participate by calling Microsoft Teams: 1-323-488-2227 – Meeting ID: 217 048 915#.
The meetings are being recorded by the City of Needles.
ZachNews will be broadcasting live at ZachNews on Facebook or recording to post later on ZachNews this portion of the regular meeting regarding this agenda item.
For more information, please contact Dale Jones, City Clerk at the City of Needles at: 1 (760) 326-2113.