14 - Laserfiche WebLink

assessees. For example, non-assessed businesses will not receive room night sales leads from the TVTMD programs. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Further, the assessment may be utilized to provide specific government services directly to the payors that are not provided to those not charged, and which do not exceed the reasonable costs to the City of providing the services. The legislature has recognized that marketing and promotions services like those to be provided by the TVTMD are, in the context of assessment districts, government services. Further, the amount of the assessment is no more than necessary to cover the reasonable costs of the proposed activities, and the manner in which the costs are allocated to a business owner bear a fair share or reasonable relationship to the businesses' benefits received from the proposed activities. District services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. Funds will be managed by the Owners' Association, and reports submitted on an annual basis to the City. Only assessed businesses will receive room night sales leads generated from district-funded activities, receive room night sales from advertising campaigns, and directly receive the specific benefit of room night sales from other district-funded services. Non-assessed businesses will not directly receive these, nor any other, district-funded services and benefits. The legislature has recognized that tourism district assessments are not taxes "merely because they might generate indirect, secondary benefits for nonpayers, provided that those indirect, secondary benefits occur incidentally and without cost to the payors of the assessment." C. Assessment The annual assessment rate is $2.00 per paid occupied room per night. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days,nor on stays by any Federal or State of California officer or employee when on official business who makes a claim that they are exempt, nor on stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. The annual assessment rate may be subject to an increase each year starting in the third year, the amount of which shall be determined by the VTV Board. The annual assessment rate shall not exceed $3.00 per paid occupied room per night. For instance, the rate could be increased $0.10 (to $2.10) in year three, $0.80 (to $2.90) in year four, and $0.10 (to $3.00) in year five; thereafter it could not be increased further. Any increase in the assessment rate must be approved by the Visit TriValley Board of Directors, including a majority of the hotels then on the Board, and included in the annual report. The assessment is levied upon and is a direct obligation of the lodging businesses. The assessed lodging businesses may, at their 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. The assessment shall be disclosed as the "TVTMD Assessment." The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes. Bonds may not be issued. • Management District Plan 10 April 21, 2015