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service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the <br /> payor as a consequence of providing the specific government service to the payors° <br /> 3. Reasonable Cost <br /> TVTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of <br /> such services. The full amount assessed will be used to provide the services described herein. Funds <br /> will be managed by the VTV, and reports submitted on an annual basis to the City. Only assessed <br /> lodging businesses will be featured in marketing materials,receive sales leads generated from TVTMD- <br /> funded activities, be featured in advertising campaigns, and benefit from other TVTMD-funded <br /> services. Non-assessed lodging businesses will not receive these, nor any other, TVTMD-funded <br /> services and benefits. <br /> The TVTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, <br /> however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed <br /> lodging businesses receive incremental room nights, that portion of the promotion or program <br /> generating those room nights shall be paid with non-TVTMD funds. TVTMD funds shall only be <br /> spent to benefit the assessed businesses,and shall not be spent on that portion of any program which <br /> directly generates incidental room nights for non-assessed businesses. <br /> D. Assessment <br /> The annual assessment rate is three dollars and twenty-five cents ($3.25) of gross short-term room <br /> rental revenue. Based on the benefit received,assessments will not be collected on: stays of more than <br /> thirty (30) consecutive days, nor on stays by any Federal or State of California officer or employee _ <br /> when on official business who makes a claim that they are exempt, nor on stays by any officer or <br /> employee of a foreign government who is exempt by reason of express provision of federal law or <br /> international treaty. The annual assessment rate may be subject to an increase each year starting in <br /> the third year, the amount of which shall be determined by the VTV Board, as described in Section <br /> V. The total assessment rate may not exceed four dollars ($4.00). <br /> The term "gross room rental revenue" as used herein means: the consideration charged,whether or <br /> not received,for the occupancy of space in a lodging business valued in money,whether to be received <br /> in money,goods,labor or otherwise,including all receipts,cash,credits and property and services of <br /> any kind or nature,without any deduction therefrom whatsoever.Gross room rental revenue shall not <br /> include any federal, state or local taxes collected, including but not limited to transient occupancy <br /> taxes. <br /> The assessment is levied upon and a direct obligation of the assessed lodging business. However,the <br /> assessed lodging business may,at its discretion,pass the assessment on to transients. The amount of <br /> assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the <br /> amount of rent charged and any other applicable taxes,and each transient shall receive a receipt for <br /> payment from the business. If the TVTMD assessment is identified separately it shall be disclosed as <br /> the"TVTMD Assessment." As an alternative,the disclosure may include the amount of the TVTMD <br /> assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing <br /> Act, Government Code §13995 et seq. and shall be disclosed as the "Tourism Assessment." The <br /> assessment is imposed solely upon,and is the sole obligation of the assessed lodging business even if <br /> it is passed on to transients. The assessment shall not be considered revenue for any purpose, <br /> including calculation of transient occupancy taxes. <br /> 6 Government Code§53758(b) <br /> TVTMD Management District Plan VISIT 13 <br /> October 19,2021 A <br /> california <br />