Tuesday, 22 June 2010 06:01

Plymouth Looks to Waive TOT Increase On RV Parks

slide4-plymouth_looks_to_waive_tot_increase_on_rv_parks.pngAmador County – The Plymouth City Council this week could finalize a move to exempt recreation vehicles and trailers rentals from its Transient Occupancy Tax increase, after voting to seek the increase earlier this month. The council voted 4-0 June 10th to set a municipal election to raise the city TOT tax on hotels from 6 percent to 10 percent, and also moved to have the city attorney draft an ordinance that would waive that tax on the RV parks. 49er Village mobile home park owner Chuck Hayes spoke against the increase at the meeting June 10th. The council asked the city attorney to look into the legality of differentiating between levels of service, between hotel rooms and renting a space for mobile homes and campers. They also asked the attorney to draft an ordinance that would exempt RV parks in Plymouth from the TOT increase. The council on Thursday will consider a draft ordinance by City Attorney Laura Hollender. The ordinance would amend city code on the Transient Occupancy Tax “to provide that occupancy of recreational vehicles in recreational vehicle parks shall remain subject to a Transient Occupancy Tax of 6 percent of the rent charged by recreational vehicle park operators. The TOT increase proposed for a citywide vote would otherwise apply to cabins that are rented by 49er Village. Hollander in the agenda recommended council introduce the ordinance and waive its first reading. Staff reported that the county does not have a TOT tax, and the council instructed staff to write a letter to the board of supervisors suggesting they consider a TOT tax in unincorporated areas. The council also approved letters to Assemblywoman Alyson Huber and Senator Dave Cox asking them to oppose potential legislation, SB 625 “that would undermine local TOT collection.” City Manager Dixon Flynn said “online travel companies are proposing to gut and amend a bill and insert language that would undercut TOT collection.” Flynn said Plymouth receives 11.5 percent of its general fund revenue from TOT. He said online travel companies collect TOT on room rent but only remit the tax to the city based on “the discounted wholesale room rate the online travel company pays to the hotelier.” Online companies “retain a portion of the tax they collect, claiming that it’s part of the fees.” Flynn said “in reality, the online hotel company is retaining tax dollars that are owed to the local agency.” Flynn said the dispute “is already in the courts,” while online companies are trying to change the law through legislation. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.