Ordinance No. 11-2089 Transient Occupancy Tax ORDINANCE NO. 11-2089
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING CHAPTER 3.12.030 OF THE MUNICIPAL CODE INCREASING THE
TRANSIENT OCCUPANCY TAX RATE
THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY ORDAIN
AS FOLLOWS:
WHEREAS, since 1965 transient hotel guests have paid a Transient Occupancy Tax (TOT)
on hotel rooms in Cupertino. Like many other California cities, Cupertino uses this funding to
provide essential public services through its general fund, and without this revenue, the City
would be forced to cut funding that supports: library services, neighborhood police patrols, rapid
9-1-1 emergency response times, city street maintenance, current levels of police officers, and
school traffic safety and crossing guards; and
WHEREAS, the rate of the TOT has been ten percent(10%) since 1991; and
WHEREAS, many residents live in Cupertino because it offers a higher level of service,
programs and quality of life than neighboring cities; and
WHEREAS, TOT is an important revenue source and increasing that revenue to the general
fund will ensure that the City can maintain the high quality of public safety, support library
services, maintain city streets, and continue assisting with school traffic safety and crossing
guards; and
WHEREAS, TOT is paid by hotel guests only and not directly by Cupertino residents; and
WHEREAS, an increase in the TOT rate to twelve percent (12%) would help maintain city
services, including library services, neighborhood police patrols, city streets, 9-1-1 emergency
response times, current levels of police officers, and school traffic safety and crossing guards.
NOW THEREFORE, the People of the City of Cupertino do ordain as follows:
Section I. Code Amendment. Chapter 3.12.030. of the Cupertino Municipal Code is
hereby amended to read as follows:
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax
in the amount of twelve ten percent of the rent charged by the operator. The tax constitutes a
debt owed by the transient to the City, which is extinguished only by payment to the operator or
to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is
paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the
hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator
may require that such tax is paid directly to the Tax Administrator.
Ordinance No. 11-2089
Section 2. Effective Date. This Ordinance shall take effect January 1, 2012 if
approved by a majority vote of the electorate voting on the issue, at the General Municipal
Election to be held November 8, 2011 within the City of Cupertino. If so approved, the City
Clerk shall certify to adoption of this Ordinance.
Section 3. Severability. Should any provision of this Ordinance, or its application to
any person or circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other provision
of this Ordinance or the application of this Ordinance to any other person or circumstance and, to
that end, the provisions hereof are severable.
Section 4. Amendment or Repeal. Chapter 3.12.030 of the Cupertino Municipal
Code may be repealed or amended by the City Council without a vote of the people. However,
as required by Article XIIIC of the California Constitution, voter approval is required for any
amendment provision that would increase the rate of any tax levied pursuant to this Ordinance.
The People of the City of Cupertino affirm that the following actions shall not constitute an
increase of the rate of a tax:
1. The restoration of the rate of the tax to a rate that is no higher than that set
by this Ordinance, if the City Council has acted to reduce the rate of the
tax;
2. An action that interprets or clarifies the methodology of the tax, or any
deduction applicable to the lax, as long as interpretation or clarification
(even if contrary to some prior interpretation or clarification) is not
inconsistent with the language of this Ordinance.
3. The establishment of a class of persons that is exempt or excepted from
the tax or the discontinuation of any such exemption or exception(other
than the discontinuation of an exemption or exception specifically set forth
in this Ordinance); and
4. The collection of the tax imposed by this Ordinance, even if the City had,
for some period of time, failed to collect the tax.
Section 5. Ratification of Prior Tax. The voters of the City of Cupertino hereby
ratify and approve the past collection of the Transient Occupancy Tax under Chapter 3.12.030 of
the Cupertino Municipal Code as it existed prior to the effective date of this Ordinance.
Section 6. Certification. The Mayor is hereby authorized to sign where indicated
below to certify to the adoption of this Ordinance.
Ordinance No. 11-2089
PASSED, APPROVED and ADOPTED by the People of the City of Cupertino this 8th
day of November, 2011.
/0/ / /(/( \‘'
Gilbert Wong i
Mayor, City of Cupertino
ATTEST:
t;"&a?'"7-W.(—
Kim Smith, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SANTA CLARA )
CITY OF CUPERTINO )
I, KIMBERLY SMITH, City Clerk and ex-officio Clerk of the City
Council of the City of Cupertino, California, do hereby certify the attached
to be a true and correct copy of Ordinance No. 11-2089, which was enacted
on November 8th, 2011, and that it has been published or posted pursuant to
law (G.C. 40806).
IN WITNESS WHEREOF, I have hereunto set my hand and seal this
9th day of November 2011.
arArIl 11;
KIMBERLY S v" ity Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California
ordinance certificate