Presenter/Contact
Presenter
Martie Simpson, Finance Director
Contact Info
(830) 221-4385 - msimpson@nbtexas.org
Subject Header
SUBJECT:
Title
Discuss and consider approval of the first reading of an ordinance amending the City of New Braunfels Code of Ordinances, Chapter 122-Taxation, Article II-Hotel Occupancy Tax Sections 122-26 and 122-29 to eliminate quarterly filing and to change the payment remittance date to the 20th of the subsequent month; amending section 122-31 to clarify that penalties will be assessed if hotel occupancy tax has been delinquent for at least one complete municipal fiscal quarter.
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BACKGROUND / RATIONALE:
The city currently collects and reconciles hotel/motel tax revenue using internal staff. In an effort to enhance and more effectively manage this revenue, staff received approval from Council to enter into a contract with Resource Professional Group (RPG) to administer these services. Staff has been working with RPG on a transition plan and will begin the process filings electronically in the 2017-18 fiscal year. Hotels will be phased in using a three tiered process.
RPG has also reviewed the City's ordinances regarding occupancy tax collection. These amendments to the ordinance are as a result of that review.
Modifications to the City’s current Hotel Motel Tax ordinance need to be approved to eliminate quarterly reporting and remittance, change the remittance date to better align with other taxing authorities, and modify the timing of when penalties are assessed to comply with Section 351.004, Paragraph (3) of the State of Texas Municipal Hotel Occupancy Tax Code.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
City Plan/ City Council Priority: |
Strategic Priorities: 8 - Maintain fiscal stability of City Operations |
FISCAL IMPACT:
Approval of these amendments will allow funds to be collected on a more timely basis.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of the ordinance adopting the modifications to the current Hotel Motel Ordinance.