HomeMy WebLinkAboutCity Council Ordinance 2024-13 CITY OF PLYMOUTH
ORDINANCE N0. 2024-13
ORDINANCE AMENDING PLYMOUTH CITY CODE FOR CHAPTER IV CONCERNING
HOSPITALITY ACCOMMODATIONS AND SECTION 1 185
CONCERNING LODGING TAX
THE CITY OF PLYMOUTH, MINNESOTA ORDAINS:
SECTION 1. Section 435.07 of the Plymouth City Code is amended, with existing text,
, and as follows:
435.07. - Definitions.
Annual Calls for Service. The aggregate total of all calls for service to a hospitality accommodation
property in a calendar year divided by the total number of lodging units in the hospitality
accommodation as determined by the City.
Call for Service. Any verified report made to the City of criminal activity, violation of the City Code,
or general call for service,from or concerning a hospitality accommodation property, requiring a police
response, in connection with an incident occurring at that property, except medicals, domestics,
proactive policing measures, and calls originating from the owner or other employee of the hospitality
accommodation property unless they knew or reasonably should have known that such an incident
would occur based upon prior experience with the person or group and with that knowledge they
nevertheless allowed the person or group to return to the hospitality accommodation property.
Hospitality Accommodation Property. Any land containing a facility for hospitality accommodations
including any lodging unit, associated parking areas, recreation areas, loading areas, rooms not utilized
for overnight accommodations such as banquet rooms, meeting rooms, business centers, pool areas,
workout rooms or other amenities located on the same parcel of property.
Hospitality Accommodations. Any facility offering the furnishing for a consideration of lodging and
related services by a hotel, rooming house, resort, campground, motel, or trailer camp, including
furnishing the guest of the facility with access to telecommunication services, and the granting of any
similar license to use real property in a specific facility, other than the renting or leasing of it for a
continuous period of 30 days or more under an enforceable written agreement that may not be
terminated without prior notice. . • - - •- - , - - , - - , - -- - - - - :, e . • - •-
accommodation offering six or more lodging units to guests, but For the purposes of this section,
Hospitality Accommodation does not include short-term rentals as defined in City Code Section 411.05,
subd. 1,not including jails, hospitals, care facilities,senior living centers, residential treatment facilities,
prisons, detention homes, and similar facilities.
Level I Hospitality Accommodation. Any hospitality accommodation who when checked, has no
more than three violations of the Minimum Hospitality Accommodation Standards (Section 435.21) in
the preceding calendar year or whose annual calls for service are less than 0.50 calls per lodging unit.
Level II Hospitality Accommodation. Any hospitality accommodation who when checked, does not
comply with the Minimum Hospitality Accommodation Standards (Section 435.21) four times in the
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Page 2
preceding calendar year or whose annual calls for service are at least 0.50 calls per lodging unit, but less
than 0.75 calls per lodging unit.
Level III Hospitality Accommodation. Hospitality Accommodation. Any hospitality accommodation
who when checked, does not comply with the Minimum Hospitality Accommodation Standards(Section
435.21)five times in the preceding calendar year or whose annual calls for service are at least 0.75 calls
per lodging unit or greater.
Lodging Unit. One self-contained unit within a hospitality accommodation designated by number,
letter, or some other method of identification that is designed or used for overnight accommodations.
Property Safety Inspection. An inspection of all hospitality accommodation properties conducted by
the City.
SECTION 2.Section 435.13 of the Plymouth City Code is amended, with existing text,deleted
text, and new text as follows:
435.13.- Property Safety Inspection.
The City hereby reserves the right toshall conduct property safety inspections in accordance with
the provisions of this Section.
A. The City may conductshall make annual safety inspections to determine the condition of
hospitality accommodations for the purpose of enforcing the property maintenance code and
the standards stipulated in this Section. The City may enter, examine, and survey at all
reasonable times all hospitality accommodation lodging units, common areas, and operational
areas. Safety inspections of the lodging units will only occur after obtaining consent from the
occupants of the lodging units. In the event that an occupant does not consent to entry by the
City,and if there is probable cause to believe that an inspection is warranted, then application
may be made to the court for an administrative or other search warrant for the purpose of
inspecting the lodging unit and premises.
B. Property safety inspections shall include the following:
1. The determination of which lodging units and how many to be inspected will be made by
the City to ensure that all lodging units will be inspected periodically.
2. All common and operational areas of a hospitality accommodation shall be inspected as
part of each property safety inspection.
3. City staff will inspect the items listed on the hospitality accommodations property safety
inspection checklist.
C. All corrective action stipulated as part of the property safety inspection shall be completed in
the timeframe stipulated in the corrective order issued by the City. The City shall conduct a
reinspection of the hospitality accommodation to confirm compliance. Failure to correct any of
the violations noted in the correction order within the established timeframe may result in the
suspension, revocation, or non-renewal of the hospitality accommodation business license.
SECTION 3.Section 1185.01 of the Plymouth City Code is amended, with existing text, deleted
text,and new text as follows:
1185.01. - Lodging Tax.
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A. Imposition of Tax. There is hereby imposed a tax of three percent on the gross receipts from the
furnishing for consideration of lodging.
B. Collection. Each operator shall collect the tax imposed by this Section at the time rent is paid.The
tax collections shall be held in trust by the operator for the City. The amount of tax shall be
separately stated from the rent charged for the lodging.
C. Payment and Returns. The taxes imposed by this Section shall be paid by the operator to the City not
later than 25 calendar days after the end of the month in which the taxes were collected. At the
information as the City may require.The return shall contain the following minimum information:
1. The total amount of rent collected for lodging during the period covered by the return.
2. The amount of tax required to be collected and due for the period.
1.The period covered by the return.
5. The amount of uncollectible rental charges subject to the lodging tax.
The operator may take a credit against taxes payable the amount of taxes previously paid for rent
that was not actually collected.
D. Examination of Returns,Adjustments, Notices, Demands and Audit. After a return is filed,the City
audit.The tax computed on the basis of such examination shall be the tax to be paid. If the tax due is
found to be greater than that paid, such excess sh. e :.•: _ •- • -• . - .. _.
shown on the return. If the tax paid is greater than the tax found to be due, the excess shall be
refunded to the person who paid the tax to the City within ten calendar days after determination of
such refund.
E. Refunds. Any person may apply to the City for a refund of taxes paid for a prescribed period in
excess of the amount legally due for that period, provided that no application for refund shall be
considered unless filed within one year after such tax was paid, or within one year from the filing of
the return, whichever period is the longer. The City shall examine the claim and make and file
written findings thereon denying or allowing the claim in whole or in part and shall mail a notice
thereof by registered mail to such person at the address stated upon the return. If such claim is
under this Section from the claimant and the balance of the allowance, if any, shall be paid by the
City to the claimant.
within the time prescribed, or shall make, willfully or otherwise, an incorrect, false, or fraudulent
return, the operator shall, upon written notice and demand, file such return or corrected return
on the basis thereof. If such person shall fail to file such return or corrected return, the City shall
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make a return or corrected return, for such person from such knowledge and information as the City
can obtain, and assess a tax on the basis thereof, which tax(less any payments theretofore made on
account of the tax for the taxable period covered by such return) shall be paid within five calendar
days of the receipt of written notice and demand for such payment. Any such return or assessment
. • . . . _ . .
pa+d, the City Attorney may institute such legal action as may be necessary to recover the amount
due plus interest, and costs and disbursements. Upon a showing of good cause, the City may grant
an operator one 30 day extension of time within which to file a return and make payment of taxes
the taxes due at the rate of one and one half percent per month.
G. Interest. The amount of tax not timely paid shall bear interest at the rate of one and one half
added to the tax and be collected as part thereof.
H. Violations. Any person who shall willfully fail to make a return required by this Section; or who shall
any interest imposed by this Section after written demand for such payment or who shall refuse to
permit the City to examine the books, records and papers under his or her control, or who shall
willfully make any incomplete, false or fraudulent return shall be guilty of a misdemeanor.
B. Definitions. The following words, terms and phrases have the meanings given them in this Section
unless the language or context clearly indicates a different meaning is intended. Minnesota Statutes
Section 270C.171 is incorporated for definitions in this Section. In any potential conflict between the
State and this Section, the State shall take precedence.
1. "Commissioner" means the Commissioner of Revenue of the State of Minnesota or a person
to whom the commissioner has delegated functions.
2. "City" means the City of Plymouth, Minnesota.
3. "Lodging and related services" means lodging and related services by a hotel, rooming house,
resort, campground, vacation rental, motel, or trailer camp, including furnishing the guest of
the facility with access to telecommunication services, and the granting of any similar license
to use real property in a specific facility, other than the renting or leasing of it for a continuous
period of 30 days or more under an enforceable written agreement that may not be
terminated without prior notice and including accommodations intermediary services
provided in connection with other services provided under this clause.
a. "Accommodations intermediary" means any person or entity, other than an
accommodations provider,that facilitates the sale of lodging and related services as
defined in B.3, and that charges a room charge to a customer.The term "facilitates the
sale" includes brokering, coordinating or in any way arranging for the purchase of or the
right to use accommodations by a customer. The term "room charge" means the total
sales price paid by the customer for the lodging and related services.
b. "Accommodations provider" means any person or entity that furnishes lodging and
related services, as defined in B.3., to the general public for compensation. The term
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"furnishes" includes the sale of use or possession, or the sale of the right to use or
possess.
4. "State sales and use tax laws and rules" means those provisions of the state revenue laws
applicable to state sale and use tax imposition, administration, collection, and enforcement,
including Minnesota Statutes, Chapters 270C, 289A, 297A,469A, and Minnesota Rules,
Chapter 8130, as amended from time to time.
C. Local lodging tax imposed;amount of tax;coordination with state sales and use tax laws and rules.A
local lodging tax is imposed in the amount of three percent on the gross receipts from sales of
lodging, as defined in B.3. of this Section, sourced within city limits which are taxable under the state
sales and use tax laws and rules. All of the provisions of the state sales and use tax laws and rules
apply to the local lodging tax imposed by this Section.The local lodging tax imposed by this Section
shall be collected and remitted to the Commissioner by the accommodations intermediary and the
accommodations provider on any sale when the state sales tax must be collected and remitted to
the Commissioner under the state sales and use tax laws and rules and in the same manner, and is
in addition to the state sales and use tax.
D. Advertising no tax. It shall be unlawful for any accommodations intermediary or accommodations
provider to advertise or hold out or state to the public or any customer, directly or indirectly,that
the tax or any part thereof will be assumed or absorbed by the accommodations intermediary or
accommodations provider, or that it will not be added to the rent or that, if added, it or any part
thereof will be refunded.
4-E. Use of Proceeds. Ninety-five percent of the proceeds obtained from the collection of taxes pursuant
to this Section shall be used in accordance with two-thirds of the revenues from this special tax will
be used for capital improvements to public recreational facilities and the remaining one-third will be
used to fund a local convention and tourism bureau.
F. Agreement with the Commissioner.The City may enter into an agreement with the Commissioner
regarding each party's respective roles and responsibilities related to the imposition, administration,
collection, enforcement, and termination of the lodging tax imposed by this Section. Any such
agreement shall not abrogate, alter, or otherwise conflict with the State Sales and Use Tax Laws and
Rules, this Section, or Minnesota Statutes Section 469.190.
G. Violations. Any establishment in violation of this Section may have their hospitality license or short-
term rental license revoked.
J. Appeals. Any operator aggrieved by any notice, order or determination made by the City under this
Section may file a petition for review of such notice, order or determination detailing the operator's
reasons for contesting the notice,order or determination.The petition shall contain the name of the
petitioner, the petitioner's address and the location of the lodging subject to the order, notice or
determination.The petition for review shall be filed with the City Clerk within ten calendar days
after the notice, order or determination for which review is sought has been mailed or served upon
the person requesting review. Upon receipt of the petition the City Manager,or the manager's
designee, shall set a date for a hearing and give the petitioner at least five calendar days' prior
written notice of the date,time and place of the hearing.At the h wring,the petitioner shall be
given an opportunity to show cause why the notice,order or determination should be modified or
withdrawn.The petitioner may be represented by counsel of petitioner's choosing at petitioner's
own expense.The hearing shall be conducted by the City Manager or the manager's designee,
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provided only that the person conducting the hearing shall not have participated in the drafting of
the order, notice or determination for which review is sought. The person conducting th ,g
6hall make written findings of fact and conclusions based upon the applicable sections of this
modify the notice, order or determination made by the City. Any decision rendered by the City
Manager or the Manager's designee, pursuant to this subdivision may be app aled to the City
Council. A petitioner seeking to appeal a decision must file a written notice of app al with the City
Clerk within ten calendar days after the decision has been mailed to the petitioner. The matter will
thereupon be placed on the Council agenda as soon as is practical. The Council shall then review the
findings of fact and conclusions to determine whether they were correct. Upon a determination by
the Council that the findings and conclusions were incorrect, the Council may modify, reverse or
affirm the decision of the City Manager or his designee upon the same standards as set forth in this
SECTION 4.This ordinance shall become effective July 1, 2024 upon transition of lodging tax collection
to the State of Minnesota.
ADOPTED by the City Council this 23rd day of April, 2024.
•
Jeffry Wosje, Mayor
ATTEST:
Jo i Gallup, City Clerk