Vallejo Municipal Code Ch. 14.50 Vallejo Tourism Business Improvement District

The proceedings herein are taken pursuant to the authority of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Sections 36500 through 35551, inclusive. The businesses within the boundaries of the district established by this chapter shall be subject to any amendments of the Parking and Business Improvement Area Law of 1989.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

This chapter is adopted pursuant to the resolution of intention adopted by the city council, being Resolution No. 03-401 N.C., adopted on October 28, 2003, which resolution of intention was adopted by the city council and proceedings thereunder taken pursuant to the authority of the Parking and Business Improvement Area Law of 1989.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

Resolution No. 03-401 N.C. was published and mailed as provided by law, and a public meeting thereon was held by the city council on December 9, 2003 at 7:00 p.m. before the city council in the Chambers of the Vallejo City Council at 555 Santa Clara Street, Vallejo, California, and a public hearing thereon was held by the city council on December 16, 2003 at 7:00 p.m. before the city council in the Chambers of the Vallejo City Council at 555 Santa Clara Street, Vallejo, California. A protest against the proposed formation of "Vallejo tourism business improvement district" has not been made by businesses which will pay fifty percent or more of the proposed assessment. All protests, both written and oral, are overruled and denied and the city council finds that there is not a majority protest within the meaning of Sections 36524 and 36525 of the California Streets and Highways Code.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

For the purposes of this chapter, the following definitions apply:

a. "Finance director" means the director of finance for the city or his/her designated representative.

b. "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, but not limited to, any hotel, inn, bed and breakfast; tourist home or house, motel, studio hotel, bachelor hotel, lodging house, or other similar structure or portion thereof.

c. "Operator" means the person who is proprietor of the hotel, 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.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

There is hereby established a parking and business improvement area which shall be known as the "Vallejo tourism business improvement district," hereinafter for brevity and convenience sometimes referred to as "VTBID."

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

The boundaries of the VTBID shall be the boundaries of the city of Vallejo.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

The improvements and activities to be provided in the VTBID will be funded by the levy of the assessments. The city council hereby finds that the hotels within the business and improvement area will be benefited by the improvements and activities funded by the assessments to be levied. The revenue from the levy of assessments within the VTBID shall not be used to provide improvements or activities outside the VTBID or for any purpose other than the purposes specified in the resolution of intention. The proceeds from the VTBID assessment, as hereinafter provided, shall be used to administer marketing programs to promote the city of Vallejo as a tourism destination and to fund projects, programs, and activities that benefit hotels within the city of Vallejo.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

All of the assessments imposed pursuant to this chapter shall be reviewed by the council annually, based upon the annual reports prepared by the advisory board appointed pursuant to this chapter and Sections 36530 and 36533 of the California Streets and Highways Code.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

The VTBID includes all hotels within the city of Vallejo. The assessment shall be levied on all hotels, existing and future, within the city of Vallejo. On and after January 1, 2026, the assessment shall be a flat fee of two dollars and fifty cents per occupied room per night for hotels with more than forty rooms and one dollar and fifty cents per occupied room per night for hotels with forty or less rooms. On and after January 1, 2027, the assessment shall be increased to a flat fee of three dollars per occupied room per night for hotels with more than forty rooms and two dollars per occupied room per night for hotels with forty or less rooms. Except where funds are otherwise available, an assessment will be levied annually to pay for the improvements and activities within the area. New hotels within the boundaries will not be exempt from the levy of assessment pursuant to Section 36531 of the California Streets and Highways Code. Pursuant to the city of Vallejo's transient occupancy tax ordinance, assessments pursuant to the VTBID shall not be included in gross room rental revenue for purpose of determining the amount of the transient occupancy tax.

(Ord. 1598 N.C. (2d) § 1, 2007: Ord. 1522 N.C. (2d) § 1 (part), 2004.)

(Ord. No. 1884 N.C. (2d), § 1, 12-16-2025)

An advisory board shall be appointed by the city council to advise the city council and make recommendations concerning the operation and extent of the VTBID and the methods and ways the revenue derived from the assessment imposed by this chapter shall be used within the scope of the purposes set forth in Section 14.32.070, and to incur obligations against the funds derived from the assessment only according to policy guidelines the city council from time to time may establish and direct and to perform only such other powers and duties as the council from time to time may determine and direct. The city council shall annually approve a budget which shall include a program of activities intended to carry out the purposes set forth in Section 14.32.070, accompanied with an estimate of expenditures.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

The assessment imposed by this chapter is levied upon the hotels within the district, and the operator of each hotel shall be solely responsible for paying all assessments when due. Notwithstanding the foregoing, in the event that the operator of a hotel elects to pass on some or all of the assessment to customers of the hotel, the operator of the hotel shall separately identify or itemize the assessment on any document provided to a customer. Assessments levied on the operators of hotels pursuant to this chapter and passed on to customers are not part of a hotel's gross receipts or gross revenues for any purpose, including the calculation of sales or use tax, transient occupancy tax, or income pursuant to any lease. However, assessments that are passed on to customers shall be included in gross receipts for purposes of income and franchise taxes.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

It shall be the duty of every operator of a hotel liable for the collection and payment to the applicable city or the county of any assessment 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 assessment as he may have been liable for the collection of and payment to the applicable city or the county, which records the applicable city or the county shall have the right to inspect at a reasonable time and following twenty-four hour prior written notice.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)

The collection of the assessment imposed by this chapter shall be made on an annual basis and collected monthly from hotels within the city of Vallejo. Each operator shall, on or before the last day of each month, make a report to the finance director on forms provided by city, of the amount of assessment due for that month. The report and amount become delinquent twenty days after they are due. The full amount of the assessment calculated shall be remitted to the finance director at the time the return is filed. The finance director may establish shorter reporting or remitting periods for any operator and may require additional information in any return. Returns and payments are due immediately upon cessation of business for any reason. Each return shall contain a declaration under penalty of perjury, executed by the operator or its authorized agent, that, to the best of the declarant's knowledge, the statements in the return are true, correct and complete.

Any operator who fails to remit any assessment imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the assessment in addition to the amount of the assessment. Any operator who fails to remit any delinquent remittance on or before the fifteenth day of the month following date of the first penalty shall pay a second delinquency penalty of ten percent of the amount of the assessment in addition to the amount of assessment and ten percent penalty first imposed.

If the finance director 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 assessment shall be added thereto in addition to the penalties stated above.

In addition to the penalties imposed, any operator who fails to remit any assessment imposed by this chapter shall pay interest at the rate of one percent per month or fraction thereof on the amount of tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment required to be paid by this chapter.

(Ord. 1522 N.C.(2d) § 1 (part), 2004.)