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Home My WebLink Aboutordinance.council.09-2023ORDINANCE NO. #9 SERIES OF 2023 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING TITLE 23 OF THE ASPEN MUNICIPAL CODE BY ADDING CHAPTER 23.54 ENTITLED "SHORT-TERM RENTAL TAX" TO INCLUDE THE NEW EXCISE TAX ON SHORT-TERM RENTALS APPROVED BY THE CITY ELECTORATE ON NOVEMBER 8, 2022 AND SETTING FORTH DETAILS IN REGARDS THERETO WHEREAS, at an election held on November 8, 2022, a majority of the voters of the City of Aspen voted YES to the following ballot question: CITY OF ASPEN — SHORT TERM RENTAL TAX. SHALL CITY OF ASPEN TAXES BE INCREASED NOT MORE THAN $9,140,000 COMMENCING MAY 1, 2023, AND BY WHATEVER AMOUNTS ARE GENERATED ANNUALLY THEREAFTER BY THE IMPOSITION OF AN EXCISE TAX OF NOT MORE THAN 10% ON THE AMOUNT CHARGED ON A NIGHTLY ROOM RATE AT ANY ACCOMMODATION OR BUSINESS THAT IS REQUIRED TO OBTAIN A SHORT-TERM RENTAL PERMIT FROM THE CITY; PROVIDED HOWEVER THAT: • SUCH TAX SHALL BE APPLIED TO "LODGE EXEMPT PERMIT PROPERTIES" AS HEREAFTER DEFINED IN AN ORDINANCE OF THE CITY COUNCIL, WITH A SHORT- TERM RENTAL PERMIT STR-LE, AT 5.0 %; • SUCH TAX SHALL BE APPLIED TO "OWNER OCCUPIED UNITS" AS HEREAFTER DEFINED IN AN ORDINANCE OF THE CITY COUNCIL, WITH A SHORT-TERM RENTAL OWNER OCCUPIED PERMIT STR-00 AT 5.0%; • AND 2ND HOMEOWNER, INVESTMENT PROPERTY UNITS AS HEREAFTER DEFINED IN AN ORDINANCE OF THE CITY COUNCIL, WITH A SHORT-TERM RENTAL PERMIT STR-CLASSIC AT 10%; AND SHALL AT LEAST 70% OF THE REVENUE GENERATED FROM SUCH TAX BE UTILIZED FOR THE PURPOSE FUNDING AFFORDABLE HOUSING AND SHALL THE REMAINDER OF THE REVENUE GENERATED FROM SUCH TAX NOT UTILIZED FOR AFFORDABLE HOUSING BE UTILIZED FOR INFRASTRUCTURE MAINTENANCE AND REPAIR AND FOR ENVIRONMENTAL INITIATIVES; AND SHALL THE CITY BE AUTHORIZED TO COLLECT, KEEP AND SPEND THE REVENUES FROM SUCH TAX AND ANY INVESTMENT INCOME THEREFROM NOTWITHSTANDING THE LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?; and WHEREAS, City Council for the City of Aspen now desires to amend the City Municipal Code by adding a new Chapter 23.54 to include the excise tax applicable to short-term rental properties as approved by the electorate and provide further instruction concerning the collection and enforcement of said tax. I IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII II I IIIIIIIIIIIII IIIII IIII IIIII IIII RECEPTION#: 695436, R: $28.00, D: $0.00 DOC CODE: ORDINANCE Pg 1 of 4, 06/09/2023 at 03:41:02 PM Ingrid K. Grueter, Pitkin County, CO NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT; Section 1. Title 23 of the Aspen Municipal Code is hereby amended by the addition of a new Chapter 23.54 entitled "Short Term Rental Tax". Chapter 23.54. SHORT-TERM RENTAL TAX Sec. 26.54.010. Legislative Intent. The City Council finds and determines that the short-term rental market in the City has increased the pressures on the community to provide essential services and affordable housing, and imposing a tax on short-term rentals as set forth herein is an equitable means of recovering costs to the community incurred through the deliver of essential services to residential and lodging exempt properties used as short-term rentals, including community policing, utilities services, transit, transportation, and pedestrian infrastructure, and affordable housing. Sec. 23.54.020. Definitions. Unless the context clearly indicates otherwise, the following words and phrases as used in this Chapter shall have the following meaning: Short -Term Rental ("STR') means the use or occupancy of a residential property or dwelling unit, in whole or in parry, by the general public for a fee, primarily for tourist accommodations, and for a period of less than thirty (30) days. Timeshare, hotel, motel, and bed and breakfast uses are not short-term rental uses. STR Permit means an STR permit issued pursuant to Chapter 26.530 of this Code. Sec. 23.54.030 Imposition and Collection; Distribution; Effective date a) STR Tax Levied. There is hereby levied a tax or an excise for the privilege of providing short-term rental accommodations within the City pursuant to an STR Permit. The rate levied shall be as follows: The rate levied upon Lodging Exempt Short Term Rental properties as defined in Section 26.530.030(b)(3) of this Code issued an STR-LE permit shall be five percent (5.0%) on the nightly room rate. The rate levied upon Owner Occupied Short -Term Rental properties as defined in Section 26.530.030(b)(2) of this Code issued a STR-00 permit shall be five and four -tenths percent (5.0%) on the nightly room rate. The rated levied upon Short -Term Rental Classic properties as defined in Section 26.530.030(b)(1)of this Code issued an STR-C permit shall be ten percent (10%) on the nightly room rate. b) Imposition and Collection. The tax specified in this Section is imposed upon any accommodation or business that is required to obtain an STR Permit pursuant to Chapter 26.530. Any person or business issued an STR Permit shall collect the tax and remit it to the City pursuant to Chapter 23.08 of this Code. c) Application of Funds. At least seventy percent (70%) of the funds received by the City shall be deposited in the City's Affordable Housing Fund and shall be used for purposes of funding affordable housing. Any funds not utilized for affordable housing maybe used for infrastructure, maintenance, and repair, and for environmental initiatives. d) Effective Date. The provisions of this Chapter shall be effective upon the first (1st) day of May, 2023 (May 1, 2023) and shall continue to be levied and collected until amended or repealed by ordinance. e) The tax imposed in this Chapter shall be in addition to all other taxes imposed by law. Sec. 23.54.040. Administration. The administration of this Chapter is hereby vested in the Finance Department. The Finance Director shall prescribe forms and administrative procedures for the ascertainment, assessment, and collection of the tax not inconsistent with this Chapter, and for the enforcement of this Chapter. Sec. 23.54.050. Violations and Penalty. Failure to comply with the terms of this Chapter by payment of taxes, filing of a return and otherwise complying with the terms of this Chapter shall constitute an offense in violation thereof, punishable, upon conviction, by a fine, imprisonment or both a fine and imprisonment, as set forth in Section 1.04.080 of this Code. Sec. 23.54.060. Civil Action for Recovery of Tax Due The City shall have the right to recover all sums due under the terms of this Chapter by judgment and execution thereon in a civil action in any court of competent jurisdiction. Such remedies shall be cumulative with all other remedies provided herein for the enforcement of this Chapter. Section 2• Any scrivener's errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 3• This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 4• If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. INTRODUCED AND READ, as provided by law, by the City Council of the City of Aspen on the 11 th day of April 2023. ATTEST: Nicole Henning, City Clerk Torre, Mayor FINALLY, adopted, passed and approved this 9th day of May 2023. ATT STr: '*—� 666C Nicole Henning, City Clerk APPROVED AS TO FORM: James R. True, City Attorney Torre, Mayor 4