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(1) Yerba Buena Center Project Area, as described in the Redevelopment Plan adopted by the Board of Supervisors on April 25, 1966, as amended on July 26, 1971, October 9, 1973, September 13, 1976, August 8, 1977, August 13, 1979, November 2, 1981 and December 1, 1986;
(2) Embarcadero-Lower Market (Golden Gateway) Project Area, as described in the Redevelopment Plan adopted by the Board of Supervisors on May 25, 1959, as amended on July 31, 1961, July 13, 1964, November 23, 1964, May 15, 1967, July 22, 1968, November 29, 1976 and December 1, 1986;
(3) Western Addition Project Area A-1, as described in the Redevelopment Plan adopted by the Board of Supervisors on May 28, 1956, as amended on January 30, 1961, July 31, 1961, January 14, 1963, February 25, 1963, July 3, 1964, October 26, 1981 and May 3, 1985;
(4) Western Addition Project Area A-2, as described in the Redevelopment Plan adopted by the Board of Supervisors on October 13, 1964, as amended on August 3, 1970, June 6, 1976, December 15, 1986, November 9, 1987 and August 10, 1992;
(5) South of Market Earthquake Recovery Redevelopment Plan (South of Market Project Area), as described in the Redevelopment Plan adopted by the Board of Supervisors on June 11, 1990; and
(6) Chinese Cultural and Trade Center Redevelopment Project Area, as described in the Redevelopment Plan adopted by the Board of Supervisors on November 8, 1965.
Each of the foregoing project areas shall hereinafter be individually referred to as a "SFRA Project Area."
(b) Duration. The foregoing suspension of Sections 502, 502.5 and 502.6 shall continue and remain in effect so long as Section 502.8 remains in effect. Immediately upon Section 502.8 no longer being effective, Sections 502, 502.5 and 502.6 shall again apply to all the SFRA Project Areas. In the event any portion of the transient occupancy tax levied by the City pursuant to Section 502.8 hereof is found to be invalid, illegal or unconstitutional, the suspension of Sections 502, 502.5 and 502.6 shall be rescinded by operation of law and the taxes and surcharges levied under such Sections shall be deemed to have been in full force and effect during the period the City collected the transient occupancy tax found to be invalid, illegal or unconstitutional.
(Added by Ord. 246-94, App. 6/30/94)
(a) Imposition and Rate of Tax. Pursuant to Section 7280 of the California Revenue and Taxation Code, the City hereby imposes a tax of 12 percent on the rent for every occupancy of a guest room in any hotel located within the boundaries of a SFRA Project Area. The foregoing tax shall be effective on October 1, 1994. The tax so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter. The tax shall be subject to all the provisions of this Article and shall be administered accordingly by the Tax Collector.
(b) Apportionment of Tax. When rent is paid, charged, billed or falls due on either a weekly, monthly or other term basis, the rent so paid, charged, billed or falling due shall be subject to the tax of 12 percent herein imposed to the extent that it covers any portion of the period after October 1, 1994, and such payment, charge, bill or amount due shall be apportioned on the basis of the ratio of the number of days falling after October 1, 1994, to the total number of days covered thereby. Where any tax has been paid hereunder upon any rent without any right of occupancy therefor the Tax Collector may by regulation provide for credit or refund of the amount of such tax upon application therefor as provided in this Code.
(c) Credit for Taxes Paid to San Francisco Redevelopment Agency. In the event a transient occupancy tax is levied by the San Francisco Redevelopment Agency on the rent for the occupancy of a guest room in a hotel located within a SFRA Project Area, a credit in the amount set forth in Subsection (d) below shall be applied against the amounts otherwise due and payable to the City under Section 502.8(a). The foregoing credit is only applicable to a transient occupancy tax levied by the San Francisco Redevelopment Agency pursuant to the California Revenue and Taxation Code Section 7280.5 for the purpose of paying debt service (as defined below) on bonded indebtedness issued by the San Francisco Redevelopment Agency (the "agency bonds") for redevelopment purposes.
(d) Amount of Credit. The aggregate amount of the credit for each fiscal year shall not exceed the debt service on the agency bonds due and payable for that fiscal year. "Debt service" means (i) all payments of principal of and interest on the agency bonds, (ii) any required payment made by the Agency to a bond reserve account established under the agency bond indenture for the exclusive benefit of the agency bonds and (iii) any fee charged by the Tax Collector or the Controller pursuant to Subsection (e) below.
(e) Administration of Agency Tax. The Tax Collector and the Controller are hereby authorized to enter into a tax administration agreement with the San Francisco Redevelopment Agency to administer any transient occupancy tax levied by the San Francisco Redevelopment Agency, including collection of taxes and assessment of penalties and interest and any other tax collection functions associated with such levy. Monies collected on behalf of the San Francisco Redevelopment Agency shall be transmitted to the San Francisco Redevelopment Agency for use in accordance with the requirements of the agency bonds and the tax administration agreement. The Tax Collector and the Controller may charge the San Francisco Redevelopment Agency a reasonable fee to compensate for its actual costs of collection and administration services.
(f) Limitations on Effectiveness. Section 502.8 shall be of no further force or effect on December 31, 2027 or, in the event of a default on the agency bonds, on the date that such bonds are discharged.
(Added by Ord. 227-94, App. 6/9/94; amended by Ord. 19-98, App. 1/16/98)
(a) Imposition of Surcharge. Effective August 1, 1996, there shall be a surcharge of two percent, in addition to the 12 percent tax specified in Section 502.8, on the rent for every occupancy of the guest rooms in a hotel located within the boundaries of a SFRA Project Area (as such area is defined in Section 502.7). The surcharge so collected shall be deposited in the General Fund subject to appropriation pursuant to the budget and fiscal provisions of the Charter.
(b) Prorata Allocation of Tax and Surcharge. When rent is paid, charged, billed or falls due on either a weekly, monthly or other term basis, the rent so paid, charged, billed or falling due shall be subject to a tax of 12 percent to the extent that it covers any portion of the period prior to August 1, 1996, and to the tax of 12 percent plus the two percent surcharge herein imposed to the extent that it covers any portion of the period on or after August 1, 1996, and such payment, charge, bill or rent due shall be apportioned on the basis of the ratio of the number of days falling within said periods to the total number of days covered by such payment. Where any surcharge has been paid hereunder upon any rent without any right of occupancy therefor, the Tax Collector may by regulation provide for credit or refund of the amount of such tax upon application therefor as provided in this Code.
(c) No Credit for Transient Occupancy Taxes Paid to the San Francisco Redevelopment Agency. The credit in Section 502.8(c) for a transient occupancy tax levied by and paid to the San Francisco Redevelopment Agency shall not be applicable to the surcharge levied pursuant to this Section.
(d) Limitations of Effectiveness. Section 502.8-1 shall be of no further force or effect on and after December 31, 2027 or, in the event of a default on the agency bonds (as defined in Section 502.8 above), on the date that such bonds are discharged.
(Added by Ord. 290-96, App. 7/12/96; amended by Ord. 19-98, App. 1/16/98)
Unless prohibited by the laws of the United States or the State of California, or exempted by the provisions of this Article, every occupant occupying a guest room in a hotel in this City and County shall be required to pay the tax imposed herein to the operator along with the rent for the occupancy. This obligation is not satisfied until the tax has been paid to this City and County, except that a receipt indicating payment of the rent from an operator maintaining a place of business in this City and County or from an operator who is authorized by the Tax Collector to collect the tax shall be sufficient to relieve the occupant from further liability for the tax to which the receipt refers.
(Amended by Ord. 395-84, App. 9/20/84)
Every operator maintaining a place of business in this City and County as provided in Section 503 herein, and renting guest rooms in this City and County to an occupant, not exempted under Section 506 of this Article shall, at the time of collecting the rent from the occupant, also collect the tax from the occupant and on demand shall give to the occupant a receipt therefor. In all cases in which the tax is not collected by the operator, as aforesaid, the operator shall be liable to the Tax Collector of the City and County for the amount of the tax due on the amount of taxable rent collected from the occupant under the provisions of this Article, the same as though the tax were paid by the occupant. In all cases of transactions upon credit or deferred payment, the payment of tax to the Tax Collector may be deferred in accordance therewith, and the operator shall be liable therefor at the time and to the extent that such credits are paid or deferred payments are made in accordance with the rate of tax owing on the amount thereof.
The Tax Collector shall have the power to adopt rules and regulations prescribing methods and schedules for the collection and payment of the tax and such methods and schedules shall eliminate fractions of one cent.
(Amended by Ord. 395-84, App. 9/20/84)
It is unlawful for any operator to advertise or hold out or state to the public or to any guest, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator or that it will not be added to the rental of the guest room, or that, if added, it or any part thereof will be refunded.
(Added by Ord. 87-61, App. 4/26/61)
No tax shall be imposed hereunder:
(a) Upon a permanent resident;
(b) Upon a corporation or association having a formally recognized exemption from income taxation pursuant to Section 501(c) or 501(d) or 401(a) of Title 26 of the United States Code as qualified by Sections 502, 503, 504 and 508 of Title 26 of the United States Code; or
(c) Where the rent is less than at the rate of $60 a day or $149 per week. For multiple-occupancy guest rooms where the hotel determines who will share the rooms, the exemption shall be based on the rent charged per person.
(d) At some point between September 1, 2027 and September 1, 2029, the Controller’s Office shall review the exemption amounts in subsection (c), and make a written report and recommendation to the Mayor as to whether the amounts should be adjusted to take into account, among other things, changes in the economy; the cost of living; impact on the City’s revenue; and affordability and overall impact on the market for hotel guest rooms subject to the transient occupancy tax.
(Amended by Ord. 395-84, App. 9/20/84; Ord. 368-86, App. 8/29/86; Ord. 19-98, App. 1/16/98; Ord. 113-98, App. 4/2/98; Ord. 291-00, File No. 001676, App. 12/22/2000; Ord. 4-15
, File No. 141146, App. 1/20/2015, Eff. 2/19/2015; Ord. 189-19, File No. 190549, App. 8/9/2019, Eff. 9/9/2019, Oper. 10/1/2019; Ord. 175-24, File No. 240639, App. 7/12/2024, Eff. 8/12/2024, Oper. 9/1/2024)
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