Item 07 - Public Meeting Regarding Renewing the Santa Ana Tourism Marketing District

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SATMD Management District Plan 13 May 14, 2025 Gross short-term sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state or local taxes collected, including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SATMD assessment is identified separately it shall be disclosed as the “SATMD Assessment.” As an alternative, the disclosure may include the amount of the SATMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes. The California Department of Tax and Fee Administration (CDTFA) issued a written opinion that state sales tax applies to the revenue generated from Tourism Business Improvement District (TBID) assessments on items where state sales tax is levied. In light of CDTFA’s opinion, businesses that pay both state sales tax and TBID assessments on sales are advised to collect sales tax on the assessment revenue. Bonds shall not be issued. TSA shall not issue debt of any kind; and shall only fund expenses with recurring assessment revenue collected or the reserve balance. E. Interest and Overdue Charges The SATMD shall reimburse the City for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SATMD assessment are sought to be recovered in the same collection action by the City, the SATMD shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency Overdue Charge: Any lodging business which fails to remit any assessment within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency Compounding Overdue Charge: Any lodging business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay an additional delinquency overdue charge of ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge first imposed. Any lodging business which fails to remit any delinquent remittance on or before a period of sixty (60) days following the date on which the remittance first became delinquent shall pay an additional delinquency overdue charge of ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge first imposed together with the additional ten percent (10%) overdue charge imposed. 3. Audit Deficiency Compounding Overdue Charge: If, upon audit by the City, a lodging business is found to be deficient in either its return or its remittance or both, the City shall immediately assess the lodging business the amount of the net deficiency plus an audit deficiency overdue charge of ten percent (10%) of the amount of the net deficiency. If said lodging business’s remittance was deficient for a period of greater than thirty (30) days following the date on which remittance was first delinquent, said lodging business shall pay an additional audit