(a) Commencing on January 1, 2006, or as soon thereafter as permitted by law, 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) Five percent (5%) of the funds received shall be retained in the general fund.
(2) The remaining balance of tax receipts shall be deposited in a fund designated as Lodging Tax for distribution to agencies so designated by City Council to be used for the purposes of tourism destination marketing and tourism destination development to be granted to qualifying area not-for-profit organizations and projects.
(3) Each not-for-profit organization receiving Lodging Tax funding shall be responsible for reporting to City Council on a regular, but no less than an annual basis (report filed no later than February 1 after the close of the year) outlining the used of the funds and the performance of the organization based on the expectations outlined in the grant contract between the organization and the City of Mount Vernon.
(4) The City Council authorizes the Safety Service Director to enter into a grant contract with each of the following not-for-profit organizations for the Lodging Excise Tax fund to be distributed in the method and period of time designated:
A. Mount Vernon Parking Company - The contract period for the Mount Vernon Parking Company shall be for the period of January 1, 2024 through December 31, 2025. The Mount Vernon Parking Company will receive ten percent (10%) of the total tax collected payable on a monthly basis.
B. Heritage Centre Association, Inc. of Mount Vernon, Ohio - The contract period for the Heritage Centre Association, Inc. shall be for the period of January 1, 2024 through December 31, 2025. The Heritage Centre Association, Inc., dba: Main Street Mount Vernon will receive thirty percent (30%) of the total tax collected payable on a monthly basis.
C. Knox Partnership for Arts & Culture, Inc., dba: The Woodward Opera House Conservancy - The contract period for Knox Partnership for Arts & Culture, Inc., dba: The Woodward Opera House Conservancy shall be for the period of January 1, 2024 through December 31, 2025. The Knox Partnership for Arts & Culture, Inc., dba: The Woodward Opera House Conservancy will receive twenty-five percent (25%) of the total tax collected payable on a monthly basis.
D. Knox County Convention & Visitors Bureau - The contract period for the Knox County Convention & Visitors Bureau shall be for the period of January 1, 2024 through December 31, 2025. The Knox County Convention & Visitors Bureau will receive twenty percent (20%) of the total tax collected payable on a monthly basis.
E. The remaining balance of tax receipts, ten percent (10%) shall be deposited in a fund created and designated as Available Petition Fund for distribution to not-for-profit agencies to be used for the purposes of tourism destination marketing and tourism destination development through an application process. The Greater Downtown Management Council (GDMC) will accept, review and give recommendation to the applications. The Mayor and the Auditor of the City of Mount Vernon, Ohio will have the authority to accept, modify, or reject the GDMC's recommendation of each application received. (Ord. 2023-44. Passed 12-11-23.)
(b) This tax constitutes a debt owned 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 Auditor may require that the tax be paid directly to the Auditor. (Ord. 2005-22. Passed 10-24-05.)