Durango RV Resort Fights City’s Occupancy Tax
Collecting transient occupancy tax from recreational vehicle parks and campgrounds will be back on the Red Bluff, Calif., City Council agenda tonight.
The second reading of an ordinance that will amend the city’s transient occupancy tax to specifically list RV parks is coming back for council consideration after it was decided to table the issue during a July 19 meeting, the Red Bluff Daily News reported.
The council asked for the delay in order to get input from the State Department of Housing and Community Development and more information on the applicability of Proposition 218 in adopting the ordinance.
The housing department does not have any authority over the city’s TOT ordinance, a department administrator wrote in a letter to City Manager Martin Nichols.
The proposed amendment is an attempt by the city to collect TOT from Durango RV Resort after failing to get to the RV park to comply.
Durango owner Gary Breen and employees spoke against the proposed amendment during the July meeting when Breen raised the question of the council’s authority to impose what he said would be a new tax.
In a memo to Nichols, City Attorney Richard Crabtree reaffirmed his position from the July meeting that Proposition 218 is not applicable to the proposed amendment. The city has consistently interpreted the TOT ordinance to apply to RV parks.
The city’s TOT ordinance was adopted around 1965.
Proposition 218 was adopted in 1996, and does not apply retroactively.
Changes to clearly note application of TOT to campsites and RV parks are merely for clarification and do not expand the tax base.