Loading...
HomeMy WebLinkAboutProvisional Adoption of Ordinance No. 1776, Exemptions from Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney Chris Kukulski, City Manager SUBJECT: Provisional Adoption of Ordinance 1776: An Ordinance of the City Commission of the City of Bozeman, Montana, Creating Exemptions from Assessments of the BozemanTourism Business Improvement District. MEETING DATE: November 23, 2009 AGENDAITEM TYPE: RegularAgenda RECOMMENDATION: Provisionally adopt Ordinance 1776:An Ordinance of the City Commission of the City of Bozeman, Montana, Creating Exemptions from Assessments of the BozemanTourism Business Improvement District. BACKGROUND: The Commission created the Bozeman Tourism Business Improvement District (BTBID) and the Board of Trustees this past summer via Ordinance 1765. The District began assessing overnight stays on November 1, 2009. After the Trusteesbegan meeting to discuss logistical issues relatedtoitsoperationsthe Trusteesrecognized two important exemptions from assessments were not requested by the Chamber of Commerce to be included in the operating ordinance. The Trustees now requests you amend 3.22.020.F to include these exemptions. According to the Trustees, two exemptions are requested. First, the Trusteesrequestthat facilities which would otherwise be exempt from the Montana Lodging Facility Use Tax under sections 15-65-101 through 15-65-136, MCA, are exempt from the assessments. Section 15-65- 101(4), MCA defines “facilities:” (4) (a) "Facility" means a building containing individual sleeping rooms or suites, providing overnight lodging facilities for periods of less than 30 days to the general public for compensation. The term includes a facility represented to the public as a hotel, motel, campground, resort, dormitory, condominium inn, dude ranch, guest ranch, hostel, public lodginghouse, or bed and breakfast facility. (b) The term does not include any health care facility, as defined in 50-5-101, any facility owned by a corporation organized under Title 35, chapter 2 or 3, that is used primarily by persons under the age of 18 years for camping purposes, any hotel, motel, hostel, public lodginghouse, or bed and Provisional Adoption of Ordinance 1776: An Ordinance of the City Commission of the City of Bozeman, Montana, Creating Exemptions from the Assessments of the Bozeman Tourism Business Improvement District Page 1of 2  breakfast facility whose average daily accommodation charge for single occupancy does not exceed 2-18-501for the actual cost of lodging for travel within the 60% of the amount authorized under state of Montana, or any other facility that is rented solely on a monthly basis or for a period of 30 days or more. (Emphasisadded). If a “facility” fitsinthedefinitionofsubsection(4)(b),above,noovernightstaysatthatfacility willbeassessed. Second,theBoardrequeststheCommissionexemptovernightstayswhereinafacilityprovidesa complimentaryroomwithoutcompensation. Cyndy Andrus, the Executive Director of the BTBID,will be available onMondayeveningto answer any questions you haveregardingtheimpactoftheseexemptionsontheoperationsand financesoftheDistrict. Please notethe Commission is not prohibited by lawfrom exempting these categories from assessments. FISCAL EFFECTS: As stated to the Commission previously, theannual assessments for the district will be based on actual number of occupied room nights and was initially estimated to total $511,000 in the first year of assessment. It is unclear at this time how this initial estimate of annual assessments will be affected by the two exemptions requested by the BTBID. ALTERNATIVES: As suggested by the City Commission. Attachments:Ordinance 1776 RequestbyCyndyAndrustoamendSect.3.22,BMC(pleasenotewedidnot includethespecificlanguagerequestedintheordinance). Report compiled on: November 18, 2009 Provisional Adoption of Ordinance 1776: An Ordinance of the City Commission of the City of Bozeman, Montana, Creating Exemptions from the Assessments of the Bozeman Tourism Business Improvement District Page 2of 2  ORDINANCE NO. 1776 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTION 3.22.020.FOF THE BOZEMAN MUNICIPAL CODETO CREATE EXEMPTIONS FOR CERTAINOVERNIGHT STAYS FROM THE ASSESSMENTS OF THE BOZEMAN TOURISM BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on July 6, 2009, the City Commission of the City of Bozeman adopted Resolution 4182, creating the BozemanTourism Business Improvement District(the “District”); and WHEREAS, the City Commission adopted Ordinance 1765 creating the Bozeman Tourism Business Improvement District and administrative and operational procedures; and WHEREAS, the District desires to amend 3.22.020.F, BMC, to clarify that facilities exempt from the requirements of the Montana Lodging Facility and Use Tax, under Title 15, Chpt. 65, Part 1, MCA, are exempt from the assessments of the Districtand that complimentary overnight stays where no compensation is given for the room are also exempt from assessments; and WHEREAS, the City Commission intends this Ordinance to apply to allassessments to be collected from qualifyingfacilities beginning November 1, 2009. ORDINANCE NO. 1776:Amending the Bozeman Tourism Business Improvement District’s Operational and Administrative Procedures to Create Certain Exemptions from Assessments Page 1of 4  NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That 3.22.020.F, BMC, shall be amended as follows: F.Assessments. Finding the benefits derived by each property or facility are proportional, the Bozeman City Commission shall annually assess the entire cost of the BTBID against the BTBID in the amount of one dollar ($1.00) per occupied room night. The properties to be assessed shall be those meeting the requirements of Sect. 3.22.020.D.2. The assessments described herein shall be subject to the provisions of Chpt. 3.04 of this code.Certain occupied room nightsare exempt from assessments under this chapter. These include: (i) occupied room nightsat facilitiesthat are otherwise exempt from paying a lodging facility use taxpursuant tosections15-65- 101through 15-65-136,MCA; and (ii) complimentary occupied room nights provided by a facility for no compensation. Section 2 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 3 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. ORDINANCE NO. 1776:Amending the Bozeman Tourism Business Improvement District’s Operational and Administrative Procedures to Create Certain Exemptions from Assessments Page 2of 4  Section 4 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 5 Codification Instruction. The provisions of Section 1 shall be codified as appropriate in Chapter 3.22 of the Bozeman Municipal Code. Section 6 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 23rdof November, 2009. ____________________________________ KAAREN JACOBSON , Mayor ORDINANCE NO. 1776:Amending the Bozeman Tourism Business Improvement District’s Operational and Administrative Procedures to Create Certain Exemptions from Assessments Page 3of 4  ATTEST: _______________________________ STACY ULMEN City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney FINALLYPASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ____day of December, 2009. The effective date of this ordinance is the ___ day of January, 2010. _________________________________ KAAREN JACOBSON, Mayor ATTEST: _______________________________ STACY ULMEN City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney ORDINANCE NO. 1776:Amending the Bozeman Tourism Business Improvement District’s Operational and Administrative Procedures to Create Certain Exemptions from Assessments Page 4of 4  BozemanTourismBusinessImprovementDistrict To: HonorableMayorandCityCommission From:CyndyAndrus,ExecutiveDirector-BozemanTourismImprovementDistrict Subject:AddingtaxexemptlanguageandadefinitiontotheTBIDordinance MeetingDate:TBD IthascometotheattentionoftheBozemanTourismImprovementDistrictBoard thatlanguageregardingtaxexemptvisitorswasnotincludedinOrdinance#1765, creatingaTourismBusinessImprovementDistrict. TheBTBIDboardrespectfullyrequeststheadditionofthefollowinglanguageto theordinance: SectionE#4 Staysbypersonswhoareotherwiseexemptfrompayingatransientoccupancy tax(a.k.a.lodgingfacilityusetax)asprovidedinsection15-65-101MCA-through 15-65-136MCA,shallbeexemptfortheassessment. Inadditionwewouldliketoaddthefollowingdefinition: OccupiedRoomnightisdefinedas:Aroomwhichisoccupiedbyanindividualor individualswherebycompensationfor thatroomismadewithrealfundsascash orfuturecredit.