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HomeMy WebLinkAboutOrdinance 6357 10/17/2016 CITY OF SPRINGFIELD, OREGON ORDINANCE NO. 6357 (GENERAL) AN ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE SECTIONS 7.700, 7.706, 7.708, and 7.726 TO ADD DEFINITIONS AND CLARIFY DUTIES OF BOOKING AGENTS AND HOSTS OF SHORT TERM RENTAL LOCATIONS WHEREAS, online booking agents that facilitate transactions between individual property owners ("hosts') and people seeking short-term accommodations have become a major part of the travel industry within the last decade and are viewed as an alternative to traditional hotels; WHEREAS, through booking agents, hosts are offering short-term rentals within residential districts in the City of Springfield for transient occupancy and transient room taxes are not consistently being collected or remitted by these hosts under the City of Springfield's transient room tax code, Springfield Municipal Code sections 7.700 through 7.738; WHEREAS, amendments are needed to chapter 7 of the Springfield Municipal Code in order to clarify the obligations of hosts of short-term rentals to collect and remit transient room taxes under the chapter; WHEREAS, the City of Springfield believes that, to the extent that booking agents are booking rooms for transient occupancy and accepting payments on behalf of hosts of short-term rentals, the booking agents should also collect and remit to the City transient lodging tax on behalf of their hosts; and WHEREAS, the City of Springfield has entered into a voluntary contractual agreement with Airbnb Inc., a transient lodging booking agent, whereby Airbnb collects transient room taxes for rentals booked through its online platform within the City of Springfield and remits the tax to the City of Springfield through the Transient Room Tax program operated by the City of Eugene, NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS: Section 1. Section 7.700 of the Springfield Municipal Code is hereby amended to read: "The following words and phrases as used in sections 7.700 to 7.738 mean: Accrual Accounting. A system of accounting in which the operator enters on his or her records the rent due from a transient when the rent is earned, whether or not it is paid. Booking Agent. An Operator or any person that provides a means through which a Host may offer a Short-Term Rental for transient lodging occupancy. This service is usually, though not necessarily, provided through an online platform and generally allows a Host to advertise the Short-Term Rental through a website provided by the Booking Agent's hosting platform and provides a means for potential users to arrange transient lodging occupancy and payment, whether the transient pays rent directly to the Host or to the Booking Agent. Booking Agents include, but are not limited to: (1) Online travel booking sites which are involved in the process of listing and booking Short-Term Rental transient lodging occupancies and handle any aspect of the resulting financial transaction; and/or (2) Online travel booking sites for Short-Term Rental transient lodging occupancy where advertisements of Short-Term Rental transient lodging occupancy rentals are displayed; and/or (3) A hosting or other online site that provides Page 1 of 4 a means through which an Operator, Host or agent may offer a Short-Term Rental unit for transient lodging occupancy. Cash Accounting. A system of accounting in which the operator does not enter on his or her records the rent due from a transient until the rent is paid. Host. The owner or person who resides at the Short-Term Rental or has been designated by the owner or resident to manage the Short-Term Rental and who rents out the Short-Term Rental for transient lodging occupancy either directly or through the use of a Booking Agent. Hotel. Any structure or portion of any structure which is occupied or intended or designed for transient occupancy for 30 days or less for dwelling, lodging, or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, house, duplex, condominium, multi-dwelling structure, trailer home, houseboat, public or private dormitory, fraternity, sorority, public or private club, space in a mobile home or trailer park, or similar structure or portion thereof so occupied, provided the occupancy is for less than a 30-day period. Occupancy. The use or possession, or the right to use or possession, for lodging or sleeping purposes, of any room in a hotel, or space in a mobile home or trailer park or portion thereof. Operator. The person who is proprietor of a hotel in any capacity and, where the operator performs functions through a managing agent other than an employee, the managing agent who shall have the same duties and liabilities as his or her principal. Compliance with the provisions of sections 7.700 to 7.738 by either the principal or the managing agent shall be considered to be compliance by both. Rent. The consideration charged, whether or not received by the operator, for the occupancy of space in a hotel whether or not valued in money, goods, labor, credits, property, or other consideration valued in money, without any deductions. Rent Package Plan. The consideration charged for both food and rent where a single rate is made for the total of both. The amount applicable to rent for determination of the transient room tax under section 7.702 of this code shall be the same charge made for rent when not a part of a package plan. Short-Term Rental. A house, multi-plex, apartment, condominium, houseboat, trailer or other residential dwelling where a person rents guest bedrooms for transient lodging occupancy. Generally, a Short-Term Rental is zoned as residential property. Tax. Either the tax payable by the transient, or the aggregate amount of taxes due from an operator during the period for which he or she is required to report his or her collections. Tax Administrator. The director of finance, city of Springfield. Transient. Any individual who exercises occupancy or is entitled to occupancy in a hotel for a period of less than 30 consecutive calendar days, counting portions of calendar days as full days. The day a transient checks out of the hotel shall not be included in determining the 30-day period if the transient is not charged rent for that day by the operator. Any individual so Page 2 of 4 ORDINANCE NO. 6357 occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired, unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. A person who pays for lodging on a monthly basis, irrespective of the number of days in the month, shall not be deemed a transient." Section 2. Section 7.706 of the Springfield Municipal Code is hereby amended to read: "(1) Each operator shall collect the tax imposed by section 7.702 on a transient at the same time as he or she collects rent from the transient. The amount of the tax shall be separately stated upon the operator's records and on any receipt for the rent rendered by the operator to the transient. No operator of a hotel shall advertise that the tax or any part of the tax will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, when added, any part will be refunded. (2) An Operator or Booking Agent that directly or indirectly accepts, receives or facilitates payment, including through Application Programming Interfaces (APIs) or other computerized devices where third party providers receive information about a transaction and collect funds that may or may not be transmitted to the operator, owner or other person offering a Short- Term Rental, for the transient lodging occupancy from a transient, is required to collect, report and remit transient room taxes in accordance with this Chapter." Section 2. Section 7.708 of the Springfield Municipal Code is hereby amended to read: "No tax may be imposed upon: (1) Any occupant for more than 30 successive calendar days; (2) Any person who pays for lodging on a monthly basis, irrespective of the number of days in the month; (3) Any occupant whose rent is of a value less than $5.00; (4) Any person who rents a private home, vacation home, cabin, or like facility from any owner who rents the facility incidentally to his or her own use thereof, when the facility is rented for less than seven calendar days per year and not advertised or marketed to the public; (5) Any occupant whose rent is paid for a hospital room or to a medical clinic or foundation, convalescent home, or home for aged people; (6) Any occupant whose rent is paid by an agency, either directly or through a voucher in response to a local disaster or an emergency declared pursuant to Springfield Municipal Code section 2.808." Section 3. Subsection 7.726 of the Springfield Municipal Code is hereby amended to read: "Every operator or booking agent liable for the collection and remittance of the tax imposed by section 7.702 of this code may withhold five percent of the net tax due to cover his expense in the collection and remittance of the tax." Section 4. Savings Clause. Except as specifically amended herein, Sections 7.700 through 7.738 shall continue in full force and effect. Section 5. Severability Clause. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional by a court of competent Page 3 of 4 ORDINANCE NO. 6357 jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereof. ADOPTED by the Common Council of the City of Springfield this 17 day of OCTOBER , 2016 by a vote of 5 for and 0 against. (1 abstain - Moore) APPROVED by the Mayor of the City of Springfield this 17 day of OCTOBER 2016 ayor ATTEST: Council President a41 City Reco er REVIEWED&APPROVED ASTOF 77, `ATE! j/>/ J F)CE OF CITY ATTORNEY Page 4 of 4 ORDINANCE NO. 6357