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HomeMy WebLinkAbout _ 9.1(f)--Modernize Transient Occupancy Tax Collection Chapter 4.12 GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: June 16,2026 FROM: William S Tarbox, City ITEM NO. 9.1(�j Manager ***APPROVED BY*** wtarbox@cityofredding.gov r� z:� ��� �,� � ��� �� � ~� ���� .� .�� � �-� w �,fi ww,. �r�1ra1���� ar�itix,,C"x���anag€;r f,f9t�t2�}2f� wtarbox@cityofredding.gov SUBJECT: 9.1(�--Consider updates to Redding M�unicipal Code Chapter 4.12 (Transient Occu ancy Tax to u date and modernize tax administration of Transient Occu anc Tax. Recommendation Authorize and approve the following to modernize tax administration, align local code with recent changes in California law, and improve the City of Redding's ability to administer and collect transient occupancy taxes associated with short-term rental platforms: (1) Introduce Ordinance amending Chapter 4.12 (Transient Occupancy Tax) of the Redding Municipal Code, for first reading by title only and waive the full reading; (2) Direct the City Attorney to prepare a summary ordinance and authorize the City Clerk to publish the summary ordinance according to law; and (3) Find that amendment and adoption of the ordinance is exempt from environmental review under the California Environmental Quality Act, pursuant to section 15061(b)(3) — Common Sense Exemption. Fiscal Impact The proposed ordinance does not increase the Transient Occupancy Tax rate and is not expected to result in signi�icant implementation costs. The amendments are expected to improve the City of Redding's (City) ability to verify compliance and collect taxes already owed under existing 1aw. While the precise fiscal impact eannot be quantified, enhanced reporting and information-sharing requirements are expected to reduce underreporting and protect existing transient occupancy tax revenues. Alternative Actzon The City Council could direct staff to return with additional modifications; or decline to amend Chapter 4.12 and continue administering the ordinance under its current provisions. Report to Redding City Council June 10,2026 Re: 9.1(f)--Modernize Transient Occupancy Tax Collection Chapter 4.22 Page 2 Background/Analysis The City imposes a ten percent Transient Occupancy Tax (TOT) on the rent charged for short- term lodging accommodations within the City. Historically, TOT collection has been administered through traditional lodging operators such as hotels, motels, recreational vehicle parks, campgrounds, and short-term rentals. Over the past decade, the growth of online booking platforms such as Airbnb, Vrbo, and similar marketplace facilitators has significantly changed the lodging industry. A substantial portion of transient lodging transactions now occur through third-party booking platforms that process reservations, collect payment from guests, and remit lodging revenues to property owners. While many facilitators voluntarily collect and remit local transient occupancy taxes on behalf of hosts, the City's existing ordinance was developed before the widespread use of these platforms and does not contain comprehensive provisions regarding facilitator reporting obligations, information sharing requirements, record retention, or collection responsibilities. In 2025, California enacted Senate Bill 346, which clarified and strengthened local agencies' authority to obtain information necessary to administer transient occupancy taxes and to require marketplace facilitators that collect rent from guests to provide records needed to verify compliance. The legislation was intended to provide local governments with practical tools to administer TOT programs in an environment where the underlying transaction information is frequently maintained by third-party platforms rather than Zoca1 operators. The proposed ordinance updates Chapter 4.12 to reflect current industry practices, align local code with state law, and improve the City's ability to verify collections, identify unregistered operators, and ensure equitable administration of the transient occupancy tax. Facilitator Collection Authority The proposed ordinance formally recognizes facilitators as entities that provide the means for booking lodging accommodations and collecting payment from transient occupants. Because facilitators often control the reservation and payment process, the ordinance clarifies that facilitators may collect and remit TOT on taxable transactions and establishes clear responsibilities for doing so. These revisions provide a modern framework that reflects how short-term rental transactions are conducted today and reduces uncertainty regarding collection obligations. Information and Reportin�Requirements The proposed amendments also establish clear information-sharing requirements necessary for effective tax administration. Under the current code, the City's ability to verify transient occupancy tax compliance is limited when booking and payment information is maintained exclusively by a facilitatar. The proposed amendments authorize the City to require facilitators and operators to provide information reasonably necessary to verify the accuracy of tax returns, identify taxable transactions, and determine eompliance with City requirements. Report to Redding City Council June 10,2026 Re: 9.1(f)--Modernize Transient Occupancy Tax Collection Chapter 4.22 Page 3 The updated provisions allow the City to obtain information regarding: • Gross rents and taxable revenues associated with transient occupancies; • The number and location of short-term rental transactions occurring within the City; • Information necessary to identify responsible operators and property locations; • Records necessary to verify taxes collected, remitted, or claimed as exempt; and • Additional in�ormation authorized under state law for tax administration purposes. The amendments are intended to provide sufficient information for tax administration while remaining consistent with applicable privacy protections and state law limitations. Alignment with Senate Bil1346 Senate Bill (SB) 346 established additional authority for local agencies to require records and information �rom inarketplace �acilitators involved in transient lodging transactions. The proposed ordinance incorporates concepts reflected in SB 346 by: • Recognizing facilitator involvement in transient lodging transactions; • Clarifying facilitator reporting and recordkeeping obligations; • Authorizing the City to obtain information necessary to verify tax compliance; • Improving the City's ability to identify unregistered or non-compliant operators; and • Providing administrative tools necessary to enforce local transient occupancy tax requirements. These changes ensure that the City's ordinance remains consistent with current California law and industry practices. Administrative Benefits The proposed amendments are expected to improve compliance and reduce administrative burdens by: • Increasing transparency regarding short-term rental activity; • Improving the City's ability to reconcile taxes collected and remitted; • Reducing revenue leakage associated with unreported transactions; • Establishing consistent reporting expectations for operators and facilitators; and • Providing clearer enforcement authority when records are unavailable or incomplete. Implementation Staff will have this fully implemented by January 1, 2027. The implementation of the new code will require communication with the facilitators and operators. This will require all of the new forms and guidance need to be sent to the facilitators and operators to explain the impacts of the adopted code section and how their monthly reporting will be changed. Environmental Review CEQA applies only to actions which have the potential for causing a significant effect on the environment. The ordinance amendment wi11 provide updated language and minor adjustments to keep the code updated, but will not result in physical alteration of the environment. The action has been reviewed and it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment. Report to Redding City Council June 10,2026 Re: 9.1(f)--Modernize Transient Occupancy Tax Collection Chapter 4.22 Page 4 Council Pr�iority/City Manage� Goals • This is a routine operation item. Attachments Ordinance Ordinance - strikeout NOE Ordinance Amending Title 4, Chapter 4.12 TOT � ORDINANCE NO. AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING MUNICPAL CODE TITLE 4 (REVENUE AND FINANCE), CHAPTER 4.12 (TRANSIENT OCCUPANCY TAX), SECTIONS 4.12.010 - 412.150 THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS: Section 1. Title 4 (Revenue and Finance), Chapter 4.12 (Transient Occupancy Tax), Sections 4.12.010 - 4.12.150 are amended to read in its entirety as follows: 4.12.010 Definitions. Except where the context requires otherwise, the definitions given in this section govern the construction of this chapter. "Campground" means an area or a tract of land where one or more spaces are occupied or intended to be occupied by a camping party and which is customarily occupied for temporary purposes using tents, tent trailers, or other such structure for sleeping purposes. Campground does not mean any of the following: 1. Any camp or other housing furnished by an employer exclusively for employees; 2. Any area or tract of land within the curtilage of any private dwelling house rented only occasionally and incidental to the normal occupancy of the dwelling house; 3. Any area or tract of land operated or used exclusively for religious, charitable, or educational purposes by any organization that has qualified for an exemption from property taxes under the laws of the state of California; 4. A campground owned and operated by the state of California. "Camping party" means a person or group of persons occupying a space at a campground. "Facilitator" means any person or entity who, for a fee, provides a means through which a transient may book any room or rooms or portion thereof in any hotel or dwelling, or space in any campground or recreational vehicle park,regardless of whether payment is transferred through or processed by such platform. "Hotel" means any structure, or any portion of any struct�ure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes,including any hotel,inn,tourist home or house,motel, studio hotel,bachelor hotel,lodginghouse,roominghouse, apartment house,dormitory,public or private club,mobile home or house trailer at a fixed location, or other similar structure or portion thereo£ A mobile home or house trailer at a fixed location shall not include a mobile home located within a mobile home park, nor a location where the mobile home tenant is an employee of the owner or operator of the property on which the mobile home is located. "Occupancy"ineans the use or possession of,or the right to use or possess,any room or rooms or portion thereof in any hotel or dwelling, or space in any campground or recreational vehicle park, for lodging or sleeping purposes. "Operator" means the person who is proprietor of the hotel, campground, or recreational vehicle park, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent sha11 also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however,be considered to be compliance by both. "Person" means any individual, camping party, firm, partnership,joint venture, association, social club, fraternal organization,joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. "Recreational vehicle" means a motor home, travel trailer, truck camper, or camping trailer, with or without motive power, designed for human habitation for recreational purposes and is either self-propelled, truck-mounted, or permanently towable on the highways without a permit. "Recreational vehicle park" means an area or tract of land where one or more spaces are occupied or intended to be occupied by owners or users of recreational vehicles and which is customarily occupied for temporary purposes. Recreational vehicle park does not mean any of the following: 1. A mobile home park as defined in the Health and Safety Code; 2. An area or tract of land used for the placement of manufactured homes as defined in the Health and Safety Code; 3. Any area or tract of land where spaces are furnished by an employer exclusively for employees; 4. Any area or tract of land within the curtilage of any private dwelling house rented only occasionally and incidental to the normal occupancy of the dwelling house; 5. Any area or tract of land used exclusively for religious, charitable, or educational purposes by any organization that has qualified for an exemption from property taxes under the laws of the state of California; 6. A recreational vehicle park owned and operated by the state of California. "Rent" means the consideration charged, whether or not received, for the occupancy of any room or rooms or portion thereof in any hotel, or space in any campground or recreational vehicle park, valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction therefrom whatsoever. "Short term rental"means occupancy by a transient. "Spaee" means an area or traet of land of a campground or recreational vehicle park designated or used for the occupancy of a camping party or recreational vehicle. "Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession,permit,right of access,license, or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying any room or rooms or portion thereof in a hotel, or space in any campground or recreational vehicle park, sha11 be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. Any occupant entering into a written month-to-month agreement shall not be considered a transient.A registration form signed by the occupant showing consecutive dates of occupancy will suffice as a written agreement between the operator and the occupant. Any occupant who enters into a written agreement providing for occupancy of thirty or more consecutive days,but terminates his or her occupancy without paying for at least thirty days, shall be considered a transient. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the e�fective date of amendment of this chapter may be considered. 4.12.020 Tax imposed—Payment and collection. For the privilege of occupancy in any hotel, campground, or recreational vehicle park, each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. The operator or facilitator of the hotel, campground, or recreational vehicle park, sha11 collect the tax from the transient at the time the rent is paid. The tax constitutes a debt owed by the transient to the city, which is extinguished only by payment to the operator, facilitator, or to the city. The transient shall pay the tax to the operator, or facilitator of the hotel, campground, or recreational vehicle park, 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 ceasing to occupy space in a room or rooms or portion thereof in any hotel, or space in any campground or recreational vehicle park. If for any reason the tax due is not paid to the operator or facilitator of the hotel, campground, or recreational vehicle park, the finance officer shall require that the tax be paid directly to the finance officer of the city. An operator and a facilitator may come to an agreement about the obligations within this part. 4.12.030 Exemptions. A. No tax shall be imposed upon the following: 1. Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this chapter; 2. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. B. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form preseribed by the �nance officer of the city. 4.12.040 Operator and facilitator duties. A.Duties of Operator. Unless using a faeilitator, or in the event that the facilitator fails to collect and remit the tax imposed by this chapter, each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged,and each transient shall receive a receipt for payment from the operator. No operator of a hotel, campground, or recreational vehicle park shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof wi11 be assumed or absorbed by the operator, or that it will not be added to the rent,or that,if added,any part will be refunded except in the manner provided in this chapter. B. Duties of Facilitator. 1. Each facilitator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax sha11 be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the facilitator. No �acilitator of a hotel, campground, or recreational vehicle park shall advertise or state in any manner,whether directly or indirectly,that the tax or any part thereof wi11 be assumed or absorbed by the operator or the facilitator, or that it will not be added to the rent, or that, if added, any part wi11 be refunded except in the manner provided in this chapter. 2. Pursuant to Government Code section 50990(b), the city hereby adopts and makes applicable within the city's jurisdictional boundaries the Short-Term Rental Facilitator Act of 2025 (Gov. Code, § 50990 et seq.). The definitions set forth in Government Code section 50991 are incorporated by this reference and apply to this section. 3. Upon request by the city, each facilitator must report, in the form and manner prescribed by the city, the physical address, including nine-digit ZIP Code, of each short-term rental during the reporting period. The reporting period may be no more frequently than monthly. 4. If the information provided under paragraph 2 is not sufficient for the city to identify a specific short-term rental at the provided address, the city may request (1) the assessor parcel number of the short-term rental, (2) the URL associated with the specific short-term rental listing, and (3) the information exclusively related to the identification of an accessory dwelling unit, guest house, or single unit of a timeshare or multifamily housing project located at a single address, which is located at the address ar assessor parcel number requested. 5. A facilitator must include in the listing of a short-term rental any applicable local license number associated with the short-term rental and any transient occupancy tax certification issued by the city. 6. A facilitator's failure to timely and properly report the information required by this section in the form and manner prescribed by the City may result in issuance of an administrative citation under Chapter 1.13 of this code in addition to the penalties under Section 4.12.150. 4.12.050 Registration certificates. Within thirty days after the effective date of the ordinance codi�ed in this chapter, or within thirty days after commencing business,whichever is later,each operator of any hotel,campground, or recr�ational vehicle park renting occupancy to transients shall register the hotel, campground or recreational vehicle park with the finance offieer of city and obtain from him a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following: A. The name of the operator; B. The name and address of the hotel, campground, or recreational vehicle park; C. The date upon which the certificate was issued; D. "This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the city fmance officer for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the finance officer, except �or taxes remitted by a facilitator pursuant to Section 4.12.040. This certificate does not authorize any person to conduct any unlawful business,or to conduct any lawful business in an unlawful manner, nor to operate a hotel, campground, or recreational vehicle park without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department, or office of this city. This certificate does not constitute a permit." 4.12.060 Reports and remittances. Each operator or facilitator sha11, within twenty (20) days following the close of each month, make a return to the finance officer, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the ret�urn is filed, the full amount of the tax collected shall be remitted to the city finance officer. The finance officer may establish a shorter reporting period for any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information on the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the city finance officer. 4.12.070 Delinquency—Interest. A. Any operator or facilitator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax. B. Any operator or facilitator who fails to remit any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinguent shall pay a secondary delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty�irst imposed. C. If the finance officer determines that the nonpayment of any remittance due under this chapter is due to fraud,a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section. D. In addition to the penalties imposed, any operator or facilitator who fails to remit any tax imposed by this chapter sha11 pay interest at the rate of one and one-half percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. E. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid by this chapter. 4.12.080 Determination of delinquency. If any operator or facilitator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the finance officer shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate o� the tax due. As soon as the finance officer procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator or facilitator who has failed or refused to collect it and to make the report and remittance,he shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this chapter. In case such deter�nination is made, the finance officer shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail,postage prepaid, addressed to the operator so assessed at his last known place of business.The operator or facilitator may,within ten days after the serving or mailing of the notice, make application in writing to the finance officer for a hearing on the amount assessed. If application by the operator or facilitator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the fmance officer shall become final and conclusive and immediately due and payable. If such application is made, the finance officer shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for the tax, interest and penalties. At the hearing,the operator or facilitator may appear and offer evidence why the specified tax, interest and penalties should not be so fixed. After the hearing the finance officer shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this section of the determination and the amount of the tax, interest and penalties. The amount determined to be due sha11 be payable after fifteen days unless an appeal is taken as provided in Section 4.12.090. 4.12.090 Appeal and hearing. Any operator or facilitator aggrieved by any decision of the finance officer with respect to the amount of the tax, interest and penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The city council shall �x a time and place for hearing the appeal, and the city clerk shall give notice in writing to the operator or facilitator at his last known place of address. The findings of the city council shall be �na1 and conclusive and shall be served upon the appellant in the manner proscribed in Section 412.0$0 for service of notice of hearing. Any amount found to be due shall be iinmediately due and payable upon the service of notice. 4.12.100 Records required. It is the duty of every operator and facilitator liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as they may have been liable for the collection of and payment of the city, which records the finance officer sha11 have the right to inspect at all reasonable times. 4.12.110 Refunds. A. Whenever the amount of any tax, interest or penalty has been overpaid ar paid more than once or has been erroneously or illegally collected or received by the city under this chapter,it may be refunded as provided in subsections B and C of this section; provided, a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the finance officer within three years of the date of payment. The claim shall be on forms furnished by the finance officer. B. An operator or facilitator may claim a re�und or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the finance officer that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit sha11 be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator or facilitator. C. A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the lnanner prescribed in subsection A of this section, but only when the tax was paid by the transient directly to the finance o�ficer, or when the transient, having paid the tax to the operator or facilitator, establishes to the satisfaction of the finance officer that the transient has been unable to obtain a refund from the operator or facilitator who collected the tax. D. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. 412.120 Collection by court action. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator or facilitator which has not been paid to the city shall be deemed a debt owed by the operator or facilitator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for recovery of such amount. 412.130 Effective date. This chapter shall be effective thirty days from and after the date of the adoption of the ordinance codifed in this chapter, except that the tax imposed by this chapter shall become operative and be imposed on July 1, 1982, and shall not apply prior to that date, and from the effective date of the remainder of this chapter to July 1, 1982, the tax rate imposed shall be the prior rate of six percent of the rent charged by the operator. 4.12.140 Proceeds deposited in general fund. Proceeds from the tax imposed pursuant to the terms of this chapter shall be deposited in the general fund for general city purposes. The city recognizes the importance of promotion of tourism and of support for, including maintenance and enhancement of use of, the Convention Center. In each budget year the city council will give the highest priority to continuing its financial support of the promotion of tourism and conventions. Nothing in this section or this chapter shall be construed as a dedication of funds for any specific purpose. 4.12.150 Violation—Penalty. A. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars or by imprisonment in the city or county jail far a period of not more than six months or by both such fine and imprisonment. B. Any operator, facilitator, or other person who fails or refuses to register as required in this chapter, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the finance officer, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as set out in subsection A of this section. Any person required to make, render, sign or verify any report or claim, who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as set out in subsection A of this section. Section 2. Severability. If any section, subsection, sentence, clause or phrase of these ordinances is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of remaining portions of the ordinances. The City Council of the City of Redding hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional. Section 3. The passage of this ordinance is not a "project" according to the definition in the California Environmental Quality Act, and therefore is not subject to the provisions requiring environmental review. Section 4. This Ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law. I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 16th day of J�une, 2026, and was duly adopted at a regular meeting on the day of , 2026,by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUlYCIL MEMBERS: MIKE LITTAU, Mayor ATTEST: FORM APPROVED: SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK,Interim City Attorney DATE ATTESTED: , 2026 � d � � OLD LANGUAGE: �'','�' � �T''" NEW LANGUAGE: 1�F12I,II�E ORDINANCE NO. AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING MUNICPAL CODE TITLE 4 (REVENUE AND FINANCE), CHAPTER 4.12 (TRANSIENT OCCUPANCY TAX), SECTIONS 4.12A10 - 412.150 4.12.010 Definitions. Except where the context requires otherwise,the definitions given in this section govern the construction of this chapter. "Campground" means an area or a tract of land where one or more spaces are occupied or intended to be occupied by a camping party and which is customarily occupied for temporary purposes using tents,tent trailers,or other such structure for sleeping purposes.Campground does not mean any of the following: 1. Any camp or other housing furnished by an employer exclusively for employees; 2. Any area or tract of land within the curtilage of any private dwelling house rented only occasionally and incidental to the normal occupancy of the dwelling house; 3. Any area or tract of land operated or used exclusively for religious, charitable, or educational purposes by any organization that has qualified for an exemption from property taxes under the laws of the state of California; 4. A campground owned and operated by the state of California. "Camping party" means a person or group of persons occupying a space at a campground. "Facilitatar" means any person ar entity wha,for a fee,pravides a means throu�h which a transient rnay boak anv raom or raoms or portion thereof in ar�y hotel �r dwellin�, or space in any carnp�rraund or recreational vehicle park, re�ardless af whether payment is transferred thrc�u�h or processed by such platform. "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging,or sleeping purposes,including any hotel, inn,tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location,or other similar structure or portion thereof. A mobile home or house trailer at a fixed location shall not include a mobile home located within a mobile home park,nor a location where the mobile home tenant is an employee of the owner or operator of the property on which the mobile home is located. "Occupancy" means the use or possession of, or the right to use or possess, any room or rooms or portion thereof in any hotel or dwelling, or space in any campground or recreational vehicle park, for lodging or sleeping purposes. 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page�1 of�7 "Operator" means the person who is proprietor of the hotel, campground, or recreational vehicle park, whether in the capacity of owner,lessee,sublessee,mortgagee in possession,licensee,or any other capacity.Where the operator performs his functions through a managing agent of any type or character other than an employee,the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal.Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. "Person" means any individual, camping party, firm, partnership, joint venture, association, social club, fraternal organization,joint stock company,corporation,estate,trust,business trust,receiver,trustee,syndicate,or any other group or combination acting as a unit. "Recreational vehicle" means a motor home,travel trailer, truck camper, or camping trailer,with or without motive power,designed for human habitation for recreational purposes and is either self-propelled,truck-mounted, or permanently towable on the highways without a permit. "Recreational vehicle park" means an area or tract of land where one or more spaces are occupied or intended to be occupied by owners or users of recreational vehicles and which is customarily occupied for temporary purposes. Recreational vehicle park does not mean any of the following: 1. A mobile home park as defined in the Health and Safety Code; 2. An area or tract of land used for the placement of manufactured homes as defined in the Health and Safety Code; 3. Any area or tract of land where spaces are furnished by an employer exclusively for employees; 4. Any area or tract of land within the curtilage of any private dwelling house rented only occasionally and incidental to the normal occupancy of the dwelling house; 5. Any area or tract of land used exclusively for religious, charitable, or educational purposes by any organization that has qualified for an exemption from property taxes under the laws of the state of California; 6. A recreational vehicle park owned and operated by the state of California. "Rent"means the consideration charged,whether or not received,for the occupancy of any room or rooms or portion thereof in any hotel,or space in any campground or recreational vehicle park,valued in money,whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature,without any deduction therefrom whatsoever. "Short term rental" me�ns occupancy bv a transient. "Space" means an area or tract of land of a campground or recreational vehicle park designated or used for the occupancy of a camping party or recreational vehicle. "Transient" means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit,right of access,license,or other agreement for a period of thirty consecutive calendar days or less,counting portions of calendar days as full days.Any such person so occupying any room or rooms or portion thereof in a hotel, or space in any campground or recreational vehicle park,shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. Any occupant entering into a written month-to-month agreement shall not be considered a transient. A registration form signed by the occupant showing consecutive dates of occupancy will suffice as a written agreement between the operator and the occupant. Any occupant who enters into a written 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page�2 of�7 agreement providing for occupancy of thirty or more consecutive days,but terminates his or her occupancy without paying for at least thirty days, shall be considered a transient. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of amendment of this chapter may be considered. 4.12.020 Tax imposed—Payment and collection. For the privilege of occupancy in any hotel,campground,or recreational vehicle park,each transient is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator. The o�erator or facilitator afi the hc�tel,camp�round,or recreatior�al vehicle p�rk,shall collect the tax from the transient at�he�ime the rent is ap id. The tax constitutes a debt owed by the transient to the city, which is extinguished only by payment to the operator, facilitatar, or to the city. The transient shall pay the tax to the operator, car �acilitator of the hotel, campground, or recreational vehicle park, 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 ceasing to occupy space in a room or rooms or portion thereof in any hotel, or space in any campground or recreational vehicle park. If for any reason the tax due is not paid to the operator or facilitator of the hotel, campground,or recreational vehicle park,the finance officer shall require that the tax be paid directly to the finance officer of the city.An aqa�ratar and a facilitat�r may eorr�e to an agreement abo�at the obligations within this�art. 4.12.030 Exemptions. A. No tax shall be imposed upon the following: 1. Any person as to whom,or any occupancy as to which, it is beyond the power of the city to impose the tax provided in this chapter; 2. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. B. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the finance officer of the city. 4.12.040 Operator f �i�i �t r duties. �^^���A. C3uties afi C3�aerator. Unless usin� a facili�ator, ar in the event that ihe facilitator fails to collect and remit the�ax imposed b�r this chapter,each aperate�r shall collect the tax imposed by this chapter to the same extent and at the same time as tne rent is collected from every transient.The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel, campground, or recreational vehicle park shall advertise or state in any manner, whether directly or indirectly,that the tax or any part thereof will be assumed or absorbed by the operator,or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this chapter. �e [�uties of Faeilitatc�r. 1e Each facilitatar shall callect the tax imposed bv this chapter ta the same ext�nt and at the same time as the rer�t is collected fram ever transient.The amount of tax shall be se aratel stated frcarn the amaunt af the rent char ed and each transient shall receiv�a reeei t for a rnent from the facili�ator. Rlo facili�ator of a hotel cam�a�raund, or recreational uehicle park shall advertise or state in anv manner,snrhether directly or indirectiv,that the tax ar anv part thereofi onrill be assumed car abscarbed by the operator or the facilitatar,or that it will not be added ta the rent, c�r that, if added,anv p�rt will be refunded except in the manner�ar�vided in this cha ter. 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page�3 of�7 2. Pursuant to Governrnent Code section 50990�b}, the city hereby ado�ts �nd makes applicable within the city`s jurisdictional boundaries the Shart-Terrn Rental Facilitat�r Act of 2025(Gav.Code,§50990 et seq.}. The definitic�ns set fc�rth in Government Ccade sectian 5Q991 are inccsrporated by this reference �r�d apKaly to this section. 3. Upon request by�he city, each facilitatar must report, in the fcarm and rr�anner prescribed by the city, the �ahysical adciress, includin� nine-di�it ZIP Code, of each short-term rental durin�the re�arting_period. The r�portin�period may be no mc�re frequent�than e�onthly. 4. If the inf+arrnatian �rrouided under para�raph 2 is not sufficient fcar the city tca identify a specific shart-term rer�tal at the provid�d address, the city may request (1} the assessor par�el number c�f the short-term rental, (2}the URL associated with the specific short-term rental listin�, and (3}the infc�rmatican exclusively related tc�the identificatian of an accessory dw�llin� unit,�uest house, ar sin�le unit af a timeshare or multifamily housin� praject located at a single address,uvhich is lacated at the address or assessc�r pareel number requestede 5. A facilitatar must inelude ir� the listir��of a shart-term rental any ap�alicable local license number associated�nrith the short-fierm rental ar�d anv trarrsient c�ccupancy tax certificatian issued by the city. 6. A facilitator's failure ta tirnelv and prop�rly report the inforrnation r�g�aired b�r this section in the forrrf and mann�r prescribed by the City may res�alt ir� issuance of ar� adrninistrative citatior� under Cha�ter 1,13 of this c�de in additian ta the per�alties urrd�r Sectian�.12.150e 4.12.050 Registration certificates. Within thirty days after the effective date of the ordinance codified in this chapter,or within thirty days after commencing business, whichever is later, each operator of any hotel, campground, or recreational vehicle park renting occupancy to transients shall register the hotel, campground or recreational vehicle park with the finance officer of city and obtain from him a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises.The certificate shall, among other things,state the following: A. The name of the operator; B. The name and address of the hotel,campground,or recreational vehicle park; C. The date upon which the certificate was issued; D. "This transient occupancy registration certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the city finance officer for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the finance officer:, except for taxes r�mitt�d by a facilitatar pursuant to Seetion 4.12,04(7. This certificate does not authorize any person to conduct any unlawful business,or to conduct any lawful business in an unlawful manner, nor to operate a hotel, campground, or recreational vehicle park without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board,commission,department,or office of this city.This certificate does not constitute a permit." 4.12.060 Reports and remittances. Each operator or facilitator shall,within twenty(20)days following the close of each month, make a return to the finance officer,on forms provided by him,of the total rents charged and received and the amount of tax collected for transient occupancies.At the time the return is filed,the full amount of the tax collected shall be remitted to the city finance officer.The finance officer may establish a shorter reporting period for any certificate holder if he deems it necessary in order to insure collection of the tax, and he may require further information on the return. RetUrns 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page 44 of�7 and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the city until payment thereof is made to the city finance officer. 4.12.070 Delinquency—Interest. A. Any operator or facilitata�r who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax. B. Any operator or facilitator who fails to remit any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a secondary delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed. C. If the finance officer determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section. D. In addition to the penalties imposed, any operator or facilitatar who fails to remit any tax imposed by this chapter shall pay interest at the rate of one and one-half percent per month or fraction thereof on the amount of the tax,exclusive of penalties,from the date on which the remittance first became delinquent until paid. E. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid by this chapter. 4.12.080 Determination of delinquency. If any operator ar facilitator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the finance officer shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due.As soon as the finance officer procures such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator ar facili�ator who has failed or refused to collect it and to make the report and remittance, he shall proceed to determine and assess against the operator the tax,interest and penalties provided for by this chapter.In case such determination is made,the finance officer shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of business. The operator or �acilitator may,within ten days after the serving or mailing of the notice, make application in writing to the finance officer for a hearing on the amount assessed. If application by the operator c,r facilitator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the finance officer shall become final and conclusive and immediately due and payable. If such application is made,the finance officer shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for the tax,interest and penalties. At the hearing,the operator c�r f��ilitator may appear and offer evidence why the specified tax,interest and penalties should not be so fixed.After the hearing the finance officer shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this section of the determination and the amount of the tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 4.12.090. 4.12.090 Appea) and hearing. Any operator or facili�at�r aggrieved by any decision of the finance officer with respect to the amount of the tax, interest and penalties,if any,may appeal to the city council by filing a notice of appeal with the city clerk within 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page§5 of�7 fifteen days of the serving or mailing of the determination of tax due.The city council shall fix a time and place for hearing the appeal,and the city clerk shall give notice in writing to the operator or facilitator at his last known place of address.The findings of the city council shall be final and conclusive and shall be served upon the appellant in the manner proscribed in Section 4.12.080 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. 4.12.100 Records required. It is the duty of every operator ' ar�d facilitatar liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as �they may have been liable for the collection of and payment of the city, which records the finance officer shall have the right to inspect at all reasonable times. 4.12.110 Refunds. A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded as provided in subsections B and C of this section; provided, a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded,is filed with the finance officer within three years of the date of payment.The claim shall be on forms furnished by the finance officer. B. An operator or facilitatar may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the finance officer that the person from whom the tax has been collected was not a transient; provided, however,that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator;ar facilitatar. C. A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner prescribed in subsection A of this section,but only when the tax was paid by the transient directly to the finance officer, or when the transient, having paid the tax to the operator or facilitator, establishes to the satisfaction of the finance officer that the transient has been unable to obtain a refund from the operator car facilitatar who collected the tax. D. No refund shall be paid under the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. 4.12.120 Collection by court action. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city.Any such tax collected by an operator or facilitatar which has not been paid to the city shall be deemed a debt owed by the operator or facilitator to the city.Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for recovery of such amount. 4.12.130 Effective date. This chapter shall be effective thirty days from and after the date of the adoption of the ordinance codified in this chapter, except that the tax imposed by this chapter shall become operative and be imposed on luly 1, 1982, and shall not apply prior to that date, and from the effective date of the remainder of this chapter to luly 1, 1982, the tax rate imposed shall be the prior rate of six percent of the rent charged by the operator. 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page�6 of�7 4.12.140 Proceeds deposited in genera)fund. Proceeds from the tax imposed pursuant to the terms of this chapter shall be deposited in the general fund for general city purposes.The city recognizes the importance of promotion of tourism and of support for, including maintenance and enhancement of use of,the Convention Center. In each budget year the city council will give the highest priority to continuing its financial support of the promotion of tourism and conventions. Nothing in this section or this chapter shall be construed as a dedication of funds for any specific purpose. 4.12.150 Violation—Penalty. A. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars or by imprisonment in the city or county jail for a period of not more than six months or by both such fine and imprisonment. B. Any operator, facilitator, or other person who fails or refuses to register as required in this chapter, or to furnish any return required to be made,or who fails or refuses to furnish a supplemental return or other data required bythe finance officer,or who renders a false or fraudulent return or claim,is guilty of a misdemeanor, and is punishable as set out in subsection A of this section.Any person required to make,render,sign or verify any report or claim, who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as set out in subsection A of this section. 4899-9664-9906 v1 Created: �@�-5-&�--.,i��i'�.�132024-11-@8 16:06:53 [EST] (Supp. No. 45) Page�7 of�7 oT�cE o� Ex�n��T�Q�r TOr � Office c�f Planning and R,esearch F12oM. City af Reddin� 1400 Tenth Street,Roam 121 Public Warks Department Sacramento, CA 95&14 777 Cypress A�enue Redding, �A 96001 Cl Shasta County Clerk Caiinty c�f Shasta P.t�.Sox 9908$0 Redding,CA 96Q99�0880 Project Title� Ordinance Amendin�Reddin�;Municipal Code Title 4 Chapter 4.12—Transient Occupaney Tax Project Location—Specific: Citv of"Redding Praject Location—Cityc Reddin�Froject Location—County. Shasta Des�ri�tion of Project:The City of Redd�ng will arn�nd Reddin�Municipal Code{RMC)Title 4 Cha,pter 4.12(Transient Occupancy Tax) by amending Sections 4 12 t?10 4 12 20 4 12 30 4 12 40 4 12 50 4 12 60 4 12 70 4 12 80 4-12 90 4 12 100 4 12 110 4 12 120 and 4 12 150 The proposed�an�ua�e chan es�date Cha�ter 4 12 ta reflect current industrv praetiees align local code wit11 state law and irnprove the�ity's abili to verify collections identi unregistered operators and ensure euuitable administration of the trar�sient occupancy tax, Name of P�rson or Agen�y+Carryit�g Q►�#Pro,JecY: Jason Gibilisco,Mana�;ernent Assistant to the City Manager Exempt Status; (check one) ❑ Ministerial [Section 2�l?80(b}f 1); r 5268] O Declared Emergency [Sectidn 21080�b}(3); 15269(a)] Cl Einergency Project[Section 21080{b)(4}; 15`269(b)] Cl Statutory Exemptions. State code number: � Commo�l Sense Exemption(This project does not fail within an exernpt class,but it;can be seen with certainty that there is no possibility thai the activity ma3�have a sign'r�cant ef�ect on.the en�ironment(14 CCR 1506I[b][3]). � Categorical Exemptian. State type and section number: C) No exceptions apply that woald bar the use of a categorical exemptian(PRD 21084 and 14 CCFt 15300.2). Reasons wihy project is exempt: CEQA applies only to actions which have the potential for causing a si�nificant effect on the enviranment,Tlie ordinance amendrnent will provide updated lan�ua�e and miilor ad�justrnents to keep the code upda�ed but will not result in phvsical alteration of the environment. The actian lZas been reviewed and it can be seen with certainty that there is no possibilitv that the actiati rnav have a sianific�nt effect on the enviranment. Lead Agency ContactPersan. Amber Kellev Te7ephone:530:225.4046 If Filed by Applicantc 1. Attach certi�ed document of exemption finding. Z. Has a natice of exemption been filed by the publi�agency approving the project? ❑Yes o No ,� ri ��� Signature.�r�� �°"��`<�` -°°`� �ate. �,�' Tit[e: Environmental Com liance na er �Signed by Lead Agency Date received far filing at OPR: � Signed by Applicant