I. RECOMMENDATION:
There is no staff recommendation for this item. This item was requested as a future agenda item by Councilman Adkisson. It is informational only as there is not a way for the City to apply the tax.
II. BACKGROUND:
The City of Coalinga currently charges a Transient Occupancy Tax (TOT) of 6% to all transients. The Transient Occupancy Tax is collected by the Hotel/Motel owner at the time the rent is collected. The TOT cannot be collected or paid if no rent is charged to the transient.
III. DISCUSSION:
This item was brought up because there have been occupants residing at businesses within the City limits.
Based on the information received from the City Attorney, CA Rev. Tax Code Section 7280(a) states, the term “occupying a room or rooms, or other living spaces, in a hotel, inn, tourist home or house, motel or other lodging” does not include a guest of the owner who occupies the room, rooms, camping site, or other real property in which the owner retains interest.
“Guest of the Owner” includes a person who exercises the owner’s right of occupancy without payment of any compensation to the owner. Id. At Section 7280(b)(3)(B).
IV. ALTERNATIVES:
None.
V. FISCAL IMPACT:
None. |