18 - Adoption of a Hotel Occupancy Venue TaxItem No. 18
memorandum
TO: City Council
John Godwin, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Ordinance adopting the hotel occupancy venue tax approved by voters in a special
election held on May 4, 2019
DATE: June 19, 2019
BACKGROUND: On May 4, 2019, the city held a city-wide special election to consider a
proposition authorizing the renovation, repair, and other improvement on the Love Civic Center
as a "venue project" under Chapter 334 of the Texas Government Code and imposing an
additional 2% hotel occupancy tax to fund the venue project. That proposition passed, and over
30 days having passed since the canvassing of the election, and to effectuate the election results,
the city must now formally adopt the new tax via ordinance.
STATUS OF ISSUE: The hotel occupancy tax is set forth in Chapter 30, Article III of our code
of ordinances. The draft ordinance adopts the new tax, specifies that it may only be used towards
the venue project, and revises Chapter 30, Article III accordingly.
BUDGET: Additional HOT revenues to be used towards the renovation, repair, and other
improvement on the Love Civic Center.
RECOMMENDATION: Approve the ordinance adopting the hotel occupancy venue tax.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
ADOPTING A HOTEL OCCUPANCY TAX FOR THE RENOVATION, REPAIR,
AND OTHER IMPROVEMENT OF THE LOVE CIVIC CENTER AND
AMENDING CODE OF ORDINANCES CHAPTER 30, "TAXATION," ARTICLE
III, "HOTEL OCCUPANCY TAX," SECTIONS 30-36, "DEFINITIONS," 30-37,
"TAX LEVIED," AND 30-38, "USE OF REVENUE LIMITED," TO PROVIDE
FOR SAME; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE,
A SAVINGS CLAUSE; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, in Resolution No. 2019-003 the City Council of the City of Paris, Texas
(the "City") designated the Love Civic Center, and in particular the making of renovations,
repairs and other improvements thereto, a "Venue Project" (referred to herein as the
"Venue Project") and declared its intention to finance and to provide for the undertaking of
the Venue Project, all pursuant to the authority granted by Chapter 334, Texas Local
Government Code (the "Act"); and
WHEREAS, the City has received a determination from the Comptroller of Public
Accounts that the Venue Project will not have a significant negative fiscal impact on state
revenue, as required by the Act; and
WHEREAS, in Resolution No. 2019-007, pursuant to the Act, the City Council called a
special election on the question of authorizing the Venue Project and authorizing an
additional hotel occupancy tax at a rate not to exceed two percent (2%); and
WHEREAS, said special election occurred on May 4, 2019, Proposition A authorizing
the Venue Project and imposing a new hotel occupancy tax at the rate of 2% for the
purpose of financing the Venue Project passed by a vote of 252 votes for the proposition
and 51 votes against;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. The findings set out in the preamble to this ordinance are hereby in all
things approved and adopted.
Section 2. In accordance with the results of the May 4, 2019 special election, a hotel
occupancy tax at the rate of two percent (2%) is hereby adopted for the purposes of the
Venue Project; said tax is in addition to the hotel occupancy tax of seven percent (7%)
provided for in Section 30-37 of the Code of Ordinances.
Section 3. Section 30-36, "Definitions," of the Code of Ordinances is and shall be
amended to add the following definition:
"Venue Pro ,'iect shall mean the renovation, repair, and other improvement of the
Love Civic Center, a venue project of the type described and defined in Section
334.001(4)(B) of, and authorized by, Chapter 334, Texas Local Government Code."
Section 4. Sections 30-37, "Tax Levied," and 30-38, "Use of Revenue Limited," of the
Code of Ordinances is and shall be amended to read in its entirety as follows:
"Sec. 30-37 Tax levied.
"(a) There is hereby imposed and levied a tax upon the occupant of any
room or space furnished by any hotel where the cost of occupancy is at the rate of
two dollars ($2.00) or more per day, such tax to be equal to seven percent (7%)of
the consideration paid by any such occupant of any such room or space in any such
hotel, exclusive of other occupancy taxes imposed by other units of government.
The tax revenue derived from the levy of said tax may only be used for the purposes
enumerated in Sec. 30-38(a) and shall not be used for general revenue purposes or
general governmental operations of the City.
"(b) There is hereby imposed and levied an additional tax upon the occupant
of any room or space furnished by any hotel where the cost of occupancy is at the
rate of two dollars ($2.00) or more per day, such tax to be equal to two percent
(2%) of the consideration paid by any such occupant of any such room or space in
any such hotel, exclusive of other occupancy taxes imposed by other units of
government. The tax revenue derived from the levy of said tax may only be used to
fund the venue project comprising the restoration, repair, and other improvement
of the Love Civic Center (the Venue Project) and shall not be used for general
revenue purposes or general governmental operations of the City.
"(c) Federal employees traveling on official business shall be exempt from
the tax imposed in paragraph (a) above.
"(d) No more than one percent (1%) of the consideration paid by an
occupant of a hotel or motel room may be spent on the arts as authorized by section
30-38(4).
"Sec. 30-38 Use of revenue limited.
"(a) The revenue derived from the hotel occupancy tax herein levied under
Sec. 30-37(a) hereinabove may only be used to promote tourism and the
convention and hotel industry, and such use is limited to the uses permitted under
Texas Tax Code Chapter 351, Sec. 351.101 et seq., as such exists now and as may be
hereinafter amended.
"(b) The revenue derived from the hotel occupancy tax herein levied under
Sec. 30-37 (b) above shall be limited to expenditures in connection with the Venue
Project as set forth hereinabove."
Section S. That all provisions of the ordinances of the City of Paris, Texas in conflict
with the provisions of this ordinance are hereby repealed, and all other provisions of the
ordinances of the City of Paris not in conflict with the provisions of this ordinance shall
remain in full force and effect.
Section 6. That the repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending
under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering
any penalty accruing or to accrue, or as affecting any rights of the municipality under any
section or provisions of any ordinance at the time of passage of this ordinance.
Section 7. That it is the intention of the City Council of the City of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
Section 8. That any person violating any provision of this ordinance shall be guilty
of a Misdemeanor, and upon conviction, shall be subject to a fine in accordance with
provisions of Sec. 1-6 of Chapter One of the City of Paris Code of Ordinances, and each and
every day's continuance of any violation of the above -enumerated sections shall constitute
and be deemed a separate offense.
Section 9. This ordinance shall become effective from and after its passage and
publication as required by law, and the tax adopted herein shall be collected beginning on
July 1, 2019.
PASSED AND APPROVED this 24th day of June, 2019
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney