Title
Ordinance to Amend and Reenact the City Code of the City of Hampton, Virginia by Amending Chapter 37, Titled “Taxation,” Article VIII, Titled "Transient Lodging Tax and Hotel Fee,” Section 37-251, Titled “Definitions” and Section 37-252, Titled “Levied; Amount”
Purpose
PURPOSE/BACKGROUND:
Ordinance to Amend and Reenact the City Code of the City of Hampton, Virginia by Amending Chapter 37, Titled “Taxation,” Article VIII, Titled "Transient Lodging Tax and Hotel Fee,” Section 37-251, Titled “Definitions” and Section 37-252, Titled “Levied; Amount."
Discussion:
Cities are authorized to impose certain excise taxes pursuant to Code of Virginia Sec.58.1-3840, including a tax on transient room rentals. The City of Hampton imposes such a tax pursuant to the provisions of Hampton City Code Sec. 37-251 et. seq., the Transient Lodging Tax and Hotel Fee. The ordinance proposes to change the City's Hotel/Motel (Transient) Lodging Tax and Fee (Flat Tax) from 8.00%, plus $1.00 per room, per night to 8.00%, plus $2.00 per room. This ordinance revision also includes a few clerical edits for consistency with our neighboring localities in the manner in which this levy is described.
If adopted, and for ease in application and administration, this change will apply to all lodging nights which occur on or after July 1, 2019. The public hearings necessary to approve the budget and this proposed tax change were duly advertised in the Daily Press on April 14, 2019 and April 21, 2019. Pursuant to Hampton City Code Sec. 2-50, no ordinance imposing taxes shall be passed on the same day of its introduction. This ordinance is being introduced on May 1, 2019. Final approval will be requested at the City Council meeting on May 8, 2019.
Impact:
Changing the City's Hotel/Motel (Transient) Lodging Tax and Fee (Flat Tax) from 8.00%, plus $1.00 per room, per night to 8.00%, plus $2.00 per room, per night will result in estimated additional annual revenues of $500,000 to be paid by trans...
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