Agenda Item 7

January 15,2013

Public Hearing

MEMORANDUM

TO:

FROM:

County Council

$~chael

Faden, Senior Legislative Attorney

~cob

Sesker, Senior Legislative Analyst

SUBJECT:

Public Hearing:

Bill 36-12, Taxation - Hotel/Motel Tax - Use of Revenues

Bill 36-12, Taxation - Hotel/Motel Tax

Use of Revenues, sponsored by

Councilmember Floreen, Council Vice-President Rice, Councilmember Berliner and Council

President Navarro, was introduced on November 27,2012. A Planning, Housing and Economic

Development/Government Operations and Fiscal Policy Committee worksession is tentatively

scheduled for January 28,2013 at 2:00 p.m.

Bill 36-12 would increase from 3.5% to 7% the share of the revenue from the hotel tax

that is designated for the Conference and Visitors Bureau each year. The FY13 operating budget

for the Conference and Visitors Bureau NDA is $666,806, which represents 3.5% of projected

room rental and transient tax receipts. The CVB does have other sources of revenue, but the

County room rental and occupancy tax represents about two-thirds of CVB resources.

This packet contains:

Bill 36-12

Legislative Request Report

F:\LAW\BILLS\1236 Taxation-Hotel Motel Tax-Use Of Revenue\Public Hearing Memo.Doc

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Bill No.

36-12

Concerning: Taxation - Hotel/Motel Tax

- Use of Revenues

Revised: 11-20-12

Draft No. 1

Introduced:

November 27, 2012

Expires:

May 27,2014

Enacted: _ _ _ _ _ _ _ _ __

Executive: _ _ _ _ _ _ _ __

Effective:

July 1, 2013

Sunset Date: _N!..!.o:=.:n.!.:e=--_ _ _ _ __

Ch, _ _, Laws of Mont. Co. _ __

COUNTY COUNCIL

FOR MONTGOMERY COUNTY, MARYLAND

By: Councilmember Floreen, Council Vice-President Rice, Councilmember Berliner and Council

President Navarro

AN

ACT to:

(1)

(2)

increase the funding from the hotel/motel tax that is designated annually for the

Conference and Visitors Bureau; and

generally amend the provisions governing the use of revenue from the hotel/motel

tax.

By amending

Montgomery County Code

Chapter 52, Taxation

Section 52-16

Boldface

Underlining

[Single boldface brackets]

Double underlining

[[Double boldface brackets]]

* *

*

Heading or defined term.

Added to existing law by original bill.

Deletedfrom existing law by original bill.

Added by amendment,

Deletedfrom existing law or the bill by amendment.

Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:



BILL No. 36-12

1

Sec.

1.

Section 52-16 is amended as follows

52-16.

Room rental and transient tax.

2

3

4

*

*

*

U)

At least [3.5]

1%

of the revenue from the tax levied under this Section

must be used for the Conference and Visitors Bureau, Inc., as

designated by the Council in a budget resolution to promote travel to

the County. The County Executive must report to the Council on the

use of these funds by March 15 each year.

5

6

7

8

9

Sec. 2. Effective date.

This Act takes effect on July 1,2013.

Approved:

10

11

Nancy Navarro, President, County Council

12

Date

Approved:

13

Isiah Leggett, County Executive

14

Date

This is a correct copy ofCouncil action.

15

Linda M. Lauer, Clerk of the Council

Date

(j)

f:\law\bills\1236 taxation-hotel motel tax-use of revenue\bill 1.doc



LEGISLATIVE REQUEST REPORT

Taxation

DESCRIPTION:

Bill 36-12

HotellAlotel Tax Use ofRevenues

Increases from 3.5% to 7% the share ofthe revenue from the hotel

tax that is designated for the Conference and Visitors Bureau each

year.

Need for more funding to County programs to attract tourism.

To increase the level of funding for County programs to attract

tourism that are run by the Conference and Visitors Bureau.

Department of Economic Development, Department

ofEjD'.lJl~~.

To be requested.

To be requested.

To be requested.

To be researched.

Michael Faden, Senior Legislative Attorney, 240-777-7905

Hotel tax applies County-wide.

PROBLEM:

GOALS AND

OBJECTIVES:

C<\>ORDINATION:

FISCAL IMPACT:

ECONOMIC

IMPACT:

EVALUATION:

EXPERIEN CE

ELSEWHERE:

SOURCE OF

INFORMATION:

APPLICATION

WITHIN

MUNICIPALITIES:

PENALTIES:

Not applicable

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Of

Revenue\LRRDoc