(a) The portion of monies collected pursuant to the tax imposed by Section 502 of this Article 7 representing a tax of 1.5%, including any penalties, interest, and fees related to such 1.5% tax (“Allocable Hotel Tax Revenues”) shall be deposited to the credit of the Hotel Room Tax Fund, established in Administrative Code Section 10.100-80, and shall be allocated as specified in subsections (b) and (c).
(b) Subject to subsection (c), the monies in the Hotel Room Tax Fund shall be appropriated and used solely as follows:
(1) Allocation Number 1 (Grants for the Arts): $16,300,000 to the City Administrator to distribute general operating and other support to nonprofit cultural organizations in the City, including any administrative costs associated with this grant-making process. Any unexpended balance remaining in Allocation Number 1 at the close of any fiscal year shall be deemed to be provided for a specific purpose within the meaning of Section 9.113 of the Charter and shall be carried forward and accumulated in said allocation for the purposes recited herein.
(2) Allocation Number 2 (Cultural Equity Endowment): $6,400,000 to the Arts Commission for programs that move San Francisco arts funding toward cultural equity, including any associated administrative costs. Any unexpended balance remaining in Allocation Number 2 at the close of any fiscal year shall be deemed to be provided for a specific purpose within the meaning of Section 9.113 of the Charter and shall be carried forward and accumulated in said allocation for the purposes recited herein.
(3) Allocation Number 3 (Cultural Centers): $3,800,000 to the Arts Commission to support the operation, maintenance, and programming of City-owned community cultural centers to assure that these cultural centers remain open and accessible and remain vital contributors to the cultural life of the City, including any associated administrative costs. Any unexpended balance remaining in Allocation Number 3 at the close of any fiscal year shall be deemed to be provided for a specific purpose within the meaning of Section 9.113 of the Charter and shall be carried forward and accumulated in said allocation for the purposes recited herein.
(4) Allocation Number 4 (Cultural Districts): $3,000,000 to the Mayor’s Office of Housing and Community Development for Cultural Districts in the City’s neighborhoods, including any associated administrative costs. Allocations for Cultural Districts shall be used solely to address the effects of destabilization on residents and businesses in the City’s Cultural Districts. For purposes of this Section 515.01, “Cultural District” means a geographic area or location within the City, designated by the Board of Supervisors by ordinance, as an area or location that embodies a unique cultural heritage. Any unexpended balance remaining in Allocation Number 4 at the close of any fiscal year shall be deemed to be provided for a specific purpose within the meaning of Section 9.113 of the Charter and shall be carried forward and accumulated in said allocation for the purposes recited herein.
(5) Allocation Number 5 (Arts Impact Endowment): $2,500,000 to the Arts Commission to address needs in the arts community, including any associated administrative costs, to be determined by a cultural services allocation plan prepared no later than March 1, 2019, and every five years thereafter, by the Director of Cultural Affairs with community input and approved by the Arts Commission and the City Administrator. Any unexpended balance remaining in Allocation Number 5 at the close of any fiscal year shall be deemed to be provided for a specific purpose within the meaning of Section 9.113 of the Charter and shall be carried forward and accumulated in said allocation for the purposes recited herein.
(6) Allocation Number 6 (Refunds): All amounts necessary to the Tax Collector for refunds of any overpayment of the 1.5% portion of the tax imposed under Section 502, including any related penalties, interest, and fees.
(c) The amounts described in subsections (b)(1) through (b)(5) as Allocation Numbers 1, 2, 3, 4, and 5, shall be subject to the following adjustments:
(1) Fiscal Year 2018-2019 Adjustment: For fiscal year 2018-2019, each amount in subsections (b)(1) through (b)(5) shall be half of the amount stated.
(2) Annual Adjustment: Commencing in fiscal year 2019-2020, subject to subsection (c)(3), each amount in subsections (b)(1) through (b)(5) shall be adjusted annually by the percentage increase or decrease in Allocable Hotel Tax Revenues collected in the current fiscal year compared with the prior fiscal year; provided, however, that such percentage increase or decrease shall not exceed 10% annually.
(3) Grants for the Arts and Cultural Equity Endowment: For fiscal years 2019-2020 and 2020-2021, one-half of the amount of the adjustment to Allocation Number 1 (Grants for the Arts) under subsection (c)(2) due to any increase in Allocable Hotel Tax Revenues shall be allocated instead to Allocation Number 2 (Cultural Equity Endowment).
(d) Commencing with a report filed no later than February 15, 2020, covering the fiscal year ending on June 30, 2019, the Controller shall file annually with the Board of Supervisors, by February 15 of each year, a report containing the amount of monies collected in and expended from the Hotel Room Tax Fund during the prior fiscal year, the status of any project required or authorized to be funded by this Section 515.01, and such other information as the Controller, in the Controller’s sole discretion, shall deem relevant to the operation of this Section 515.01.
(Added by Ord. 300-97, App. 7/25/97; amended by Ord. 301-97, App. 7/25/97; Ord. 302-97, App. 7/25/97; Ord. 360-97, App. 9/5/97; Ord. 2-98, App. 1/16/98; Ord. 254-98, App. 7/31/98; Ord. 183-01, File No. 011174, App. 8/17/2001; Ord. 166-13
, File No. 130541, App. 8/2/2013, Eff. 9/1/2013; Ord. 170-13
, File No. 130545, App. 8/2/2013, Eff. 9/1/2013; Proposition E, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)
Editor’s note:
As stated in Section 6 of Proposition E, 11/6/2018: “The 50% adjustment for fiscal year 2018-2019 provided in Section 515.01(c)(1) of the Business and Tax Regulations Code takes into account the mid- fiscal year operative date of this ordinance.”
As stated in Section 6 of Proposition E, 11/6/2018: “The 50% adjustment for fiscal year 2018-2019 provided in Section 515.01(c)(1) of the Business and Tax Regulations Code takes into account the mid- fiscal year operative date of this ordinance.”
(Added by Ord. 227-94, App. 6/9/94; amended by Ord. 170-13
, File No. 130545, App. 8/2/2013, Eff. 9/1/2013; repealed by Proposition E, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)