Pasadena Municipal Code Ch. 4.101 Pasadena Tourism Business Improvement District

This chapter shall be known as the "Pasadena tourism business improvement district ordinance."

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

For the purposes of this chapter, all terms in this chapter shall have the meanings set forth in Section 4.44.020 of this code. Additionally, for the purposes of this chapter, the following definitions shall apply:

A. "Assessment" means the assessment authorized by Section 4.101.050 of this chapter.

B. "Authorized activities" means the activities authorized to be provided in connection with the district, as set forth in Section 4.101.040 of this chapter.

C. "District" means the Pasadena tourism business improvement district established by Section 4.101.020 of this chapter.

D. "Fiscal year" means the period beginning July 1 of each calendar year and ending June 30 of the following calendar year, except that the fiscal year ending June 30, 2003 shall begin on the later of the effective date of this chapter or March 5, 2003.

E. "Gross occupancy revenue" means the total rent received from transients by a hotel and motel business.

F. "Hotel and motel business" means any operator of a hotel other than an operator of a hotel that is owned by a nonprofit corporation and operated as an adjunct to a charitable or educational activity.

G. "Law" means the Parking and Business Improvement Area Law of 1989, being Sections 36500 and following of the California Streets and Highways Code.

H. "Transient occupancy tax" means the tax imposed by the city pursuant to Section 4.44.030 of this code.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

A parking and business improvement area designated as the "Pasadena tourism business improvement district" is hereby created and established pursuant to the law.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The boundaries of the district are the city limits of the city of Pasadena.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The following activities are authorized to be provided in connection with the district: (i) the promotion of tourism within the district; (ii) the promotion of public events which benefit hotel and motel businesses operating in the district; (ii) furnishing of music in any public place in the district; and (iv) activities which benefit hotel and motel businesses located and operating in the district. The primary purpose of these activities is to promote tourism within the district.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Except where funds are otherwise available, an assessment shall be levied annually to pay for all authorized activities within the district. The assessment shall be in addition to any other assessments, fees, charges or taxes imposed by the city.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The assessment will be levied against each hotel and motel business in the city. No other business shall be subject to the assessment.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

New hotel and motel businesses established in the district after the beginning of any fiscal year shall not be exempt from the levy of the assessment for that fiscal year but shall instead be subject to the assessment.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The assessment will be calculated as a percentage of each day's gross occupancy revenue. The rate of the assessment effective in any fiscal year shall be set by resolution of the city council adopted pursuant to Section 36535 of the law, and shall not exceed 2.89%.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The assessment calculated based on any day's gross occupancy revenues shall be paid to the city no later than the date on which the hotel and motel business is required, pursuant to Section 4.44.070 of this code, to remit to the city the transient occupancy tax collected by the hotel and motel business on that day.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

The provisions of sections 4.44.080 through 4.44.180 (which generally pertain to enforcement of transient occupancy tax requirements) shall be treated as fully applicable to assessments made pursuant to this chapter.

(Ord. No. 7401, § 3, 9-22-2022)

Editor's note— Ord. No. 7401, § 3, adopted September 22, 2022, amended the Code by repealing former §§ 4.101.110 and 4.101.120, adding a new § 4.101.110, and, in effect, renumbering former §§ 4.101.130—4.101.180 as new §§ 4.101.120—4.101.170. Former § 4.101.110 pertained to penalties and interest for assessments, and former § 4.101.120 pertained to debt to city. Both sections derived from Ords. 6929 and 6945 of 2003.

The assessment is levied upon each hotel and motel business subject to the assessment, and each such business shall be solely responsible for paying all assessments when due. Without disturbance of the foregoing, a hotel or motel business may elect to recover some or all of the amount of the assessment from transients owning rent to the hotel or motel business. The amount to be recovered from any transient may not exceed the amount of rent owed by that transient to the hotel and motel business, multiplied by the then effective rate of the assessment. The amount recovered shall be identified or itemized (separately or in conjunction with the amount of transient occupancy tax owned by that transient) on a document provided to the transient. Assessments levied on hotel and motel businesses pursuant to this chapter and recovered from transients pursuant to this section are not considered "rent" for the purposes of Section 4.44.020 of this code.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.130. See editor's note, § 4.101.110.

There is created a special fund designated as "Pasadena tourism business improvement district fund" into which all revenue derived from assessments levied pursuant to this chapter shall be placed, and such funds shall be used only for the purposes specified in this chapter. This fund shall be subject to an annual independent audit.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.140. See editor's note, § 4.101.110.

Revenues from the levy of the assessment may be used only for authorized activities, and shall not be used for activities outside of the district.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.150. See editor's note, § 4.101.110.

The city may contract with a separate public or private agency to administer the authorized activities. Any agency that holds funds in trust for purposes related to the contract shall, at no expense to the city, provide an annual independent audit report by a certified public accountant of these funds. The audit may be funded from assessment proceeds as part of the general administration of the district. At all times the city shall reserve full rights of accounting of these funds.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.160. See editor's note, § 4.101.110.

Hotel and motel businesses within the district shall be subject to any amendments to the law.

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.170. See editor's note, § 4.101.110.

It shall be the duty of every hotel and motel business to keep all records as may be necessary to determine the amount of assessment due hereunder and shall preserve the same for a period of 4 years. The tax administrator shall have the right to inspect such records at all reasonable times.

The finance director shall determine the mode and method of recordkeeping required to assist the tax administrator to perform the duties required of him under this section. Any audit which must be performed to secure compliance with the terms of this section is to be performed in the city. If for any reason the audit cannot be performed in the city, the hotel and motel business shall reimburse the city for the actual cost of all transportation, lodging, meals, travel time and other incidental costs reasonably incurred by the city in conducting the audit."

(Ord. 6945 § 3 (part), 2003; Ord. 6929 § 3 (part), 2003)

(Ord. No. 7401, § 3, 9-22-2022)

Note— Former § 4.101.180. See editor's note, § 4.101.110.