195.02 RATE OF TAX.

   (a)   Commencing on January 1, 2024 and expiring on December 31, 2026, there is levied a tax of three percent (3%) on all rents received by a hotel for lodging furnished to transient guests with total receipts applied as follows:

      (1)    Seven percent (7%) gross, shall be charged as an administrative-collection fee shall be deposited in the Transient Occupancy Tax Fund and transferred to the General Fund.

      (2)    Forty-three percent (43%) gross, of said tax receipts shall be deposited in the Transient Occupancy Fund and transferred to the General Fund.

      (3)    The remaining balance of said tax receipts shall be split between Destination Mansfield and Downtown Mansfield, Inc. fifty percent (50%) going to each organization.

      (4)   A financial review will be performed semi-annually, and if the tax receipts increase; the percentage shared between Destination Mansfield and Downtown Mansfield Inc. will be reviewed for a possible increase. The Mayor will ask Council for any adjustments at that time.

         (Ord. 23-218. Passed 12-5-23.)

   (b)   This tax constitutes a debt owed by the transient guest to the City, which is extinguished only by payment to the operator as trustee for the City, or to the City. The transient guest shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient guest ceasing to occupy space in the hotel.

   If for any reason the tax due is not paid to the operator of the hotel, the Director may require that the tax be paid directly to the Director.

(Ord. 87-291. Passed 11-17-87.)