ORD 428
ORDINANCE NO. 428
AN ORDINANCE OF THE CITY OF LA QUINT A,
CALIFORNIA, VALIDATING, RE-ENACTING AND
APPROVING THE CITY'S TRANSIENT OCCUPANCY TAX
RATE AND THE DEFINITION OF GROUP HOTELS
THE PEOPLE OF THE CITY OF LA QUINTA, CALIFORNIA, DO ORDAIN AS
FOLLOWS:
SECTION 1. Findings. The People of the City of La Quinta, California, find
as follows:
(a) In September of 1992, the La Quinta City Council adopted
Ordinance No. 211. Section 1 of Ordinance No. 211 amended the first sentence of
Municipal Code Section 3.24.030 to increase the rate of the Transient Occupancy
Tax to 11 % from 10% for certain group hotels and to maintain the established
Transient Occupancy Tax at 10% for all other hotels. Section 2 of Ordinance
No. 211 amended Section 3.24.020 (the definitional section of the Transient
Occupancy Tax Ordinance) to add Subsection I, which is a definition for "Group
Hotels." No other provisions in Municipal Code Sections 3.24.020, 3.24.030 or in
Municipal Code Chapter 3.24 (the City's Transient Occupancy Tax Ordinance) were
amended by Ordinance No. 211.
(b) As adopted in Section 1 of Ordinance No. 211, the first sentence
of Municipal Code Section 3.24.030 was amended to read: "For the privilege of
occupancy in any Group Hotel or Hotel, each transient is subject to, and shall pay a
tax in the amount of eleven (11) percent of the rent charged by the operator or
otherwise payable by the transient for Group Hotels and ten percent (10%) for all
other Hotel occupancy." As adopted in Section 2 of Ordinance No. 211,
Subsection I of Municipal Code Section 3.24.020 was added to read: '''Group
Hotel' means any Hotel which has each of the following characteristics: (i) one
hundred twenty-five (125) or more rooms; (ii) group meeting space to
accommodate fifty (50) or more people; (iii) an on-site sales effort that solicits
and/or serves group meetings."
(c) In 1986, the State's voters approved Proposition 62 to require
voter approval of local general taxes. The City Council did not seek voter approval
of Ordinance No. 211 because a number of appeals courts, including the court
which ruled in the case of the City of Wood/ake v. Logan, had previously decided
that Proposition 62's requirement that general taxes be submitted to a referendum
violated the California Constitution and was therefore unenforceable. On December
Ordinance No. 428
Validating. Re-Enacting & Approving
the City's Transient Occupancy Tax Rate
and the Definition of Group Hotels
Adopted: December 5, 2006
Page 2
14, 1995, the California Supreme Court disapproved the Wood/ake decision in the
case of Santa Clara County Loca/ Transportation Authority v. Guardino.
Subsequently, that Court decided Howard Jarvis Taxpayers Association v. City of
La Habra, which further suggested that the City should seek voter approval of
certain provisions in Ordinance No. 211. The City Council thereafter has proposed
this Ordinance to the voters to validate, re-enact and approve the first sentence in
Municipal Code Section 3.24.030, as amended by Ordinance No. 211, and
Section 2 of Ordinance No. 211, which added Subsection I to Section 3.24.020 of
the Municipal Code.
SECTION 2. Validation and Re-Enactment of Certain Provisions in Existing
Ordinance. The first sentence in Municipal Code Section 3.24.030, as amended by
Ordinance No. 211, and Subsection I of Municipal Code Section 3.24.020, as
added by Section 2 of Ordinance No. 211, are hereby validated and re-enacted or
approved. The full text of these provisions is contained in Section 1, Finding "(b)"
above.
SECTION 3. Intent. The intent of Section 2 of this Ordinance is to authorize
the continued collection of the Transient Occupancy Tax at the rates established in
Ordinance No. 211 's amendment to the first sentence of Municipal Code
Section 3.24.030, to validate the adoption of that tax rate, to validate taxes
previously collected pursuant to Municipal Code Section 3.24.030, and to re-enact
the first sentence in Municipal Code Section 3.24.030, as amended by Ordinance
No. 211, to authorize the future collection of the tax at the rates established in
such sentence. It is the further intent of Section 2 of this Ordinance to validate
and re-enact Subsection I of Municipal Code Section 3.24.020, as added by
Section 2 of Ordinance No. 211.
SECTION 4: Effect of this Ordinance. Other than the first sentence of
Municipal Code Section 3.24.030 and Subsection I of Municipal Code
Section 3.24.020, this Ordinance does not affect any other provisions in Municipal
Code Chapter No. 3.24.
SECTION 5: Severability. If any section, subsection, sentence, clause
phrase or portion of this Ordinance, or any section, subsection, sentence, clause
phrase or portion of Ordinance No. 211 that are validated or re-enacted by this
Ordinance, is for any reason, held to be invalid or unenforceable by a court of
competent jurisdiction, then the remaining portions of this Ordinance and Ordinance
No. 211 shall nonetheless remain in full force and effect. The People of the City of
La Quinta, California, hereby declare that they would have adopted each section,
subsection, sentence, clause, phrase, or portion of this Ordinance, and each
section, subsection, sentence, clause phrase or portion of Ordinance No. 211 that
Ordinance No. 428
Validating. Re-Enacting & Approving
the City's Transient Occupancy Tax Rate
and the Definition of Group Hotels
Adopted: December 5. 2006
Page 3
are validated or re-enacted by this Ordinance, irrespective of the fact that anyone
or more sections, subsections, sentences, clauses, phrases, or portions of this
Ordinance, and Ordinance No. 211 that are validated or re-enacted by this
Ordinance, be declared invalid or unenforceable.
SECTION 6. Effective Date. This Ordinance shall go into effect ten (10)
days after the date on which the election results are declared by the City Council.
SECTION 7. Codification. Upon the Effective Date of this Ordinance, the
City Clerk, in consultation with the City Attorney, is hereby authorized and directed
to codify this Ordinance in the City's Municipal Code.
SECTION 8. Execution. The Mayor is hereby authorized to attest to the
adoption of this Ordinance by the voters of the City of La Guinta by signing where
indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED, and
ADOPTED by the People of the City of La Quinta, California, voting on the 7th day
of November, 2006.
(1.;D~
City of La Guinta, California
VERONICA JOT CINO, CMC, City Clerk
City of La Guinta, California
(CITY SEAL)
APPROVED AS TO FORM:
Ordinance No. 428
Validating, Re-Enacting & Approving
the City's Transient Occupancy Tax Rate
and the Definition of Group Hotels
Adopted: December 5. 2006
Page 4
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LA GUINTA )
I, VERONICA J. MONTECINO, City Clerk of the City of La Guinta, California, do
hereby certify the foregoing to be a full, true, and correct copy of Ordinance No.
428.
I further certify that the foregoing Ordinance was posted in three places within the
City of La Guinta as specified in City Council Resolution 98-109.
ERONICA J. M TE INO, CMC, City Clerk
City of La Guinta, California
DECLARATION OF POSTING
I, VERONICA J. MONTECINO, City Clerk of the City of La Guinta, California, do
hereby certify that the foregoing ordinance was posted on- ~/' . /~ Pla/h
pursuant to Council Resolution. ..;.. -
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VERONICA J. TECINO, CMC, City Clerk
City of La Guinta, California