HomeMy WebLinkAboutORD 7034 EXCISE TAX HOTEL MOTEL AMEND CITY CODE
ORDINANCE N0.7034
AN ORDINANCE TO AMEND THE AUGUSTA-RICHMOND COUNTY CODE BY
REDESIGNATING SECTIONS 2-2-27 THROUGH 2-2-32 WHICH IMPOSE AN EXCISE TAX
UPON HOTEL AND MOTEL ROOM RENTALS AS DIVISION ONE OF ARTICLE FIVE OF
THE AUGUSTA RICHMOND COUNTY CODE; TO ENACT A NEW DIVISION TWO OF SAID
ARTICLE FIVE, WHICH IMPOSES A TRANSPORTATION AND TOURISM FEE ON ALL
HOTEL AND MOTEL ROOM RENTALS IN AUGUSTA; TO ENACT SAID NEW SECTION
AND DESIGNATE THE SAME AS SECTIONS 2-2-33.1 THROUGH 2-2-33.7 OF SAID
AUGUSTA CODE AS PROVIDED IN EXHIBIT "A" ATTACHED HERETO; TO PROVIDE
FOR SEVERABILITY; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN
CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE FOR THE IMPOSITION OF
SAID TAX AND FOR OTHER PURPOSES.
BE IT ORDAINED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION
AND IT IS HEREBY ORDAINED BY THE AUTHORITY OF SAME, that the Augusta-Richmond
County Code be amended as follows:
SECTION 1. Section 2-2-27 through Section 2-2-32 of the Augusta Richmond-County Code which
impose an Excise Tax upon all hotel and motel room rentals in Augusta is hereby redesignated as
Division One of Article Five of said Code.
SECTION 2. There is hereby enacted a new Division Two of Article Five which imposes a
Transportation and Tourism Fee upon all hotel and motel room rentals in Augusta and said new Division
Two is hereby designated as Section 2-2-33.1 to Section 2-2-33.7 of said Code as set forth in Exhibit "A"
attached hereto and incorporated by reference herein.
SECTION 3. This ordinance shall become effective upon its adoption in accordance with applicable
laws and the fees imposed by said new sections 2-2-33.1 to 2-2-33.7 shall be imposed upon the rental of
all hotel and motel rooms in Augusta, Georgia effective at 12:01 a.m. on March 1, 2008.
SECTION 4. All ordinances or parts of ordinances in conflict herewith are hereby repealed.
Adopted thisLi day of j-.g~ ,2008.
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CERTIFICATION
The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the
:L~w>oing Ordinance was dilly adopted by the Augusta-Richmond County Commission on
\ r:tIJ.;" Ilq , 2008 and that such Ordinance have not been modified or rescinded as of
the date hereof and the undersigned further certifies that the attached Ordinance is a true copy of
the Ordinance whic was approved and adopted in the foregoing meeting(s).
Published in the Augusta Chronicle.
Date:
Publish in the Augusta chronicle Feb 28, 2008
ARTICLE 5
DIVISION TWO
TRANSPORTATION AND TOURISM FEE ORDINANCE
CONTENTS
~2-2-33.1
~2-2-33.2
~2-2-33.3
~2-2-33.4
~2-2-33.5
~2-2-33.6
~2-2-33. 7
PURPOSE
FINDINGS
DEFINITIONS
TRANSPORTATION AND TOURISM FEES
TRANSPORTATION AND FEE RATES
TRANSPORTATION PROVIDERS
TRANSPORTATION AND TOURISM FUND
ESTABLISHED
ARTICLE 5
DIVISION ONE
EXCISE TAX FOR HOTEL, MOTEL RENTALS IN AUGUSTA, GA
~2-2-33.1 PURPOSE.
The Augusta-Richmond County Commission is authorized by the State Constitution pursuant
to Article IX, ~2, ~3(a)(5) and (9) and applicable State law to provide recreational programs and
facilities and to provide public transportation services throughout Augusta to contribute to the
protection and preservation of the public health, safety and welfare and for protection of the natural
and historical resources Augusta. The Commission has determined that it will be able to provide
these services more efficiently to the residents of Augusta and to visitors of Augusta through the
construction and enhancement of public facilities to increase tourism in Augusta-Richmond County
via implementation of a Transportation and Tourism Fee to be charged upon all hotel and motel
rooms rented out in Augusta. In addition to increasing the efficiency of providing these services, the
Transportation Fee shall also enhance the quality of transportation services provided and the tourism
opportunities for both residents of Augusta and visitors to Augusta.
~2-2-32.2 FINDINGS.
The Augusta-Richmond County Commission makes the following findings offact:
I. The Augusta-Richmond County Commission finds that providing the most efficient and cost
effective public transportation system will benefit Augusta, the residents of Augusta and
visitors to Augusta by providing transportation to individuals lacking transportation services
and by relieving traffic congestion and environmental pollution by reducing the number of
motor vehicles on the roadway through encouraging the public's use of a mass public
transportation system.
2. The Augusta-Richmond County Commission finds that Augusta-Richmond County
constitutes a tourist destination for visitors to Augusta seeking to utilize the facilities of
Augusta-Richmond County and to view areas of Augusta designated as historic heritage
districts.
3. Augusta-Richmond County currently provides public mass transportation services and also
provides tourism opportunities for both the residents of Augusta-Richmond County and
visitors to Augusta-Richmond County.
4. Establishing a Transportation and Tourism Fee will provide funds to enhance the
transportation and tourism services, the value of which services will vastly exceed the Fee
charged to the Hotel Room Occupants.
5. The Transportation and Tourism Fee collected pursuant to this section shall be used to
provide transportation and tourism services by enhancing the availability of public
transportation to Hotel and Motel occupants and by enhancing the historic heritage districts
that wou1d constitute tourism destinations by residents of Augusta and visitors to Augusta.
6. To generate sufficient amounts oftourism to fund the transportation and tourism services to
be provided herein, Augusta-Richmond County needs to invest in local convention and
entertainment facilities such as the Trade Exhibit and Event Center to promote commercial
and recreational tourism in Augusta-Richmond County.
7. The enhanced transportation services will provide needed public transportation between
Hotels, the Trade Exhibit and Event Center and other tourist destinations, including the
Historic Heritage District, that will in turn increase tourism and conventions in Augusta.
This increase in tourism will then help fund the enhancements to the public transportation
services and the tourism services, benefiting visitors to and residents of Augusta-Richmond
County.
~2-2-33.3 DEFINITIONS.
The following words, terms and phrases, when used in this Article, shall have the
meanings as defined below:
Room -a unit of lodging provided by a Hotel (as defined herein) and located within the
borders of Augusta-Richmond County.
Transportation Fee - means the per-night Room fee imposed pursuant to this Article for
providing and enhancing transportation services and tourism services in Augusta-
Richmond County.
Hotel - means an Inn, Hotel, Motel, or other business subject to taxation that offers
overnight accommodations, rooms, or lodging to the public for value.
Room Occupant - means the person or persons listed on the Hotel registry as obtaining
overnight accommodations at a Hotel.
Historic Heritage District - The areas of Augusta-Richmond County identified as:
Bethlehem, East Augusta, Harrisburg, Laney Walker, May Park, Olde Town, Turpin Hill
and Uptown.
Transportation, Tourism and Historic Heritage Committee (hereinafter "Committee") - A
Committee that shall recommend for approval by the Commission the management of the
Transportation and Tourism Fund as provided herein. The Committee shall consist of the
Mayor, Mayor Pro-Tern, two private citizens appointed by the Mayor and Mayor Pro-
Tem, and the Director of Housing and Neighborhood Development as an ex-officio
member.
Commission - means the Augusta-Richmond County Commission.
~2-2-33.4 TRANSPORTATION AND TOURISM FEE.
To provide enhanced public transportation services and to enhance the tourism opportunities
in the Historic Heritage District, it shall be a policy of Augusta to charge a Transportation and
Tourism Fee (hereinafter ''Transportation Fee") on all Hotel Rooms as defined herein. The
Transportation Fee shall be set in an amount that is fair and reasonable, bearing substantial
relationship to the transportation and tourism services provided to all individuals or entities paying
the Transportation Fee. In exchange for the Transportation Fee, the Commission shall establish a
system whereby payers of the Fee shall be entitled to free use of the public transportation systems
for the duration of their hotel stay in Augusta to obtain greater access the tourism destinations in
Augusta. The revenues generated by the Transportation Fee shall be used to fund and enhance public
transportation operations, management of the Trade Exhibit and Event Center, and to revitalize the
Historic Heritage Districts of Augusta to enhance the transportation and tourism services available
in Augusta.
~2-22-33.5 TRANSPORTATION FEE RATES.
The Transportation Fee shall be set pursuant to this Section and may be modified by the
Commission as needed to fund the continued services provided herein. In setting or modifying the
rates, the Commission shall establish rates that are fair and reasonable and reflect the value of the
services provided to the individuals or entities paying the Transportation Fee.
Augusta shall impose upon every Room a fee of $1. 00 per overnight accommodation. This
Fee shall be collected by the owner or operator of each Hotel or Motel in addition to any rates
charged by the Hotel or Motel owner or operator and in addition to any other governmental taxes
assessed to each Room.
Each Hotel collecting the Transportation Fee shall, on or before the 20th day of each month,
submit to the Finance Director of Augusta a return indicating the number of occupied Room nights
and the amount of Transportation Fees collected for the immediately preceding calendar month.
Hotels will use a return form as prescribed by the Finance Director and will remit, along with the
Return form, payment of the fees as calcu1ated on the Return.
Penalties and Interest. When any Hotel required to collect and remit the Transportation Fee
fails to file a Return or to remit the total amount due by the due date and in the manner provided
herein, the Hotel shall be subject to a penalty of 5% of the amount due or $50.00, whichever is
greater. Interest shall also be charged at the rate of 1% per month from the last day of the month
from which the fee is due until the date the Transportation Fee is paid.
Examination of Records. For the purposes of determining the accuracy of any Return filed
or required to be filed under this provision, or to determine the correct amount of Transportation
Fees due, the Finance Director or a designated representative is entitled to request access to any
books, records or other information to determine the correct amount of Transportation Fees due.
~2-2-33.6 TRANSPORTATION PROVIDED.
All Room Occupants shall be entitled to utilize Augusta's public transportation system at no
additional charge for the duration oftheir hotel room occupancy. The Room Occupant shall present
to the bus driver for admission onto the bus for transportation in lieu of paying the bus fair. Non-
Hotel Room Occupants must pay all regular fares, and the right to utilize the public transportation
services under this provision is non-transferable.
It shall be unlawful for any Hotel, individual, or other entity to knowingly distribute hotel
room keys or items designed to resemble hotel room keys to non-Room Occupants for the purpose
of providing the non-Room Occupant with free transportation services. It shall also be unlawful for
a non-Room Occupant to present a Hotel Room key to utilize the public transportation services in
any manner other than that prescribed herein. Violators guilty violating this Ordinance will be
subject to a fme of not less than $50.00 per violation.
~2-2-33.7 TRANSPORTATION AND TOURISM FUND ESTABLISHED.
Pursuant to this Ordinance, there is established a Transportation Fund, that shall be utilized
to enhance the transportation services provided under the Article and to provide for the enhancement
ofthe tourism facilities in Augusta-Richmond County. All of the Transportation Fees deposited in
this fund shall be dedicated for the purposes articulated herein and administered by the
Transportation, Tourism and Historic Heritage Committee, with approval of the Commission. The
Transportation Fees collected and deposited in the Transportation Fund may be transferred from time
to time to other funds as approved by the Commission to effectuate the purpose ofthe Transportation
Fee for providing and enhancing transportation and tourism opportunities consistent with the uses
provided herein.
The Transportation Fees shall be eligible for the following uses:
I. Transportation Services
(a) Funding the increased demand for public transportation services created by
implementation of this fee and offering transportation services at no cost to Hotel
Guests paying the Transportation Fee.
(b) Funding additional public transportation services for tourists and residents of
Augusta-Richmond County to encourage the utilization ofthe tourism services and
destinations in Augusta-Richmond County.
(c) The Augusta Transit Department shall be allocated all Transportation Fee funds
collected but not otherwise allocated to Tourism Enhancement or TEE Center
operations.
II. . Tourism Enhancement
A. Fund Uses
The Committee shall make recommendations for enhancement oftourism destinations within
the Historic Heritage District through the following uses. The Committee shall first fund the needs
of the areas designated as Bethlehem and Laney-Walker prior to funding other areas of the Historic
Heritage District.
(a) Planning activities that consist of all costs of data gathering, studies, analysis, and
preparation of plans and the identification of actions that will implement such plans,
including, but not limited to:
(1) Comprehensive plans;
(2) Community development plans;
(3) Functional plans, in areas ~uch as:
(i) Housing, including the development of a consolidated plan;
(ii) Land use and urban environmental design;
(iii) Economic development;
(iv) Open space and recreation;
(v) Energy use and conservation;
(vi) Floodplain and wetlands management;
(vii) Transportation;
(viii) Utilities; and
(ix) Historic preservation.
(4) Other plans and studies such as:
(i) Small area and neighborhood plans;
(ii) Capital improvements programs;
(iii ) Individual project plans (but excluding engineering and design costs
related to a specific activity);
(iv) The reasonable costs of general environmental, urban environmental
design and historic preservation studies;
(v) Strategies and action programs to implement plans, including the
development of codes, ordinances and regulations;
(5) Policy-planning-management-capacity building activities which will
enable the recipient to:
(1) Determine its needs;
(2) Set long-term goals and short-term objectives, including those related
to urban environmental design;
(3) Devise programs and activities to meet these goals and objectives;
(4) Evaluate the progress of such programs and activities in
accomplishing these goals and objectives; and
(5) Carry out management, coordination and monitoring of activities
necessary for effective planning implementation, but excluding the
costs necessary to implement such plans.
(b) Development hard costs. The actual cost of constructing or rehabilitating historic
structures. These costs include the following:
(1) For new construction, costs to meet the applicable new construction
standards.
(2) For rehabilitation costs:
(i) To meet the property standards of applicable County, historic
preservation, State, and Federal codes.
(ii) To make essential improvements, including energy-related
repairs or improvements, improvements necessary to permit
use by persons with disabilities, and the abatement of
hazardous conditions.
(3) For both new construction and rehabilitation costs:
(i) To demolish existing structures.
(ii) To make utility connections including off-site connections
from the property line to the adjacent street.
(iii) To make improvements to the project site that are keeping
with improvements of surrounding projects. Site
improvements may include on-site roads and sewer and water
lines necessary to the development ofthe project. The project
site is the property owned by the project owner, upon which
the project is located.
(4) Costs to make utility connections or to make improvements to the
project sites.
(c) Refinancing Costs. The cost to refinance existing debt secured by real property that
is being rehabilitated or improved with Tourism Funds.
(d) Acquisition Costs. Costs of acquiring improved or unimproved real property.
(e) Related soft costs. Other reasonable and necessary costs incurred by property owners
or Augusta-Richmond County and associated with the financing or development (or
both) of new construction, rehabilitation or acquisition of real property with Tourism
Funds. These costs include, but are not limited to:
(1) Architectural, engineering or related professional services required to
prepare plans, drawings, specifications, or work write-ups.
(2) Costs to process and settle the financing for a project, such as private
lender origination fees, credit reports, fees for title evidence, fees for
recordation and filing oflegal documents, building permits, attorneys
fees, private appraisal fees and fees for an independent cost estimate,
builders or developers fees.
(3) Costs of a project audit that Augusta-Richmond County may require
with respect to the development of the project.
(4) Costs to provide information services such as affirmative marketing
and information to prospective investors and tourists.
(5) Staff and overhead costs directly related to carrying out the project,
such as work specifications preparation, loan processing inspections,
and other services related to assisting potential owners, and investors.
(6) For both new construction and rehabilitation, costs for the payment
of impact fees that are charged for all projects within Augusta-
Richmond County.
(7) Costs of environmental review directly related to the project.
B. Amount Allocated.
For fifty (50) years following implementation ofthese provisions, unless extended hereafter,
$750,000.00 per year of the funds generated shall be allocated to the enhancement of the Laney-
Walker and Bethlehem Historic Heritage District.
III. Trade Exhibit and Event (TEE) Center
For fifty years following adoptions of these provlSlons, unless extended hereafter,
$350,000.00 per year ofthe Transportation Fund shall be allocated to the TEE Center. This amount
shall be used for the management and operating expenses of the TEE Center, including the cost of
promoting use of public transportation in conjunction with TEE Center events and to encourage
utilization of the enhanced tourism services by TEE Center patrons. This amount may be adjusted
annually to reflect increases in accepted inflation rates.