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News arrow News arrow Local News arrow CITY OKS BUDGET, TARGETS BED TAX




The Brookings City Council Monday night voted to adopt its 2002-2003 budget and took steps to straighten up its bed tax policies.

By a unanimous vote, the council adopted the $15,129,350 budget for the next fiscal year. It also resolved that the city impose a tax rate of $3.76 per $1,000 of assessed value property tax.

The council also voted to alter city ordinance No. 80-0-342, which defines the city's Transient Occupancy Tax.

The steps were taken to get the TOT (bed tax) to comply with provisions of the short-term rental ordinance passed late last year.

In trying to facilitate the vacation home rental market, the city passed a short-term rental ordinance in December. That ordinance conflicted with a section of the bed tax ordinance, City Manager Leroy Blodgett told the council.

Subsection C of Section 5 of the transient room tax ordinance waives the bed tax for "a private home, vacation cabin or like facility from any owner who rents such facilities incidental to his own use thereof."

"This is exactly the situation the short-term rental ordinance covers and imposes the tax," Blodgett read from the staff report.

Instead of waiving the bed tax for vacation rentals, the amendment will read: "Any occupant whose rent is paid by a local agency, either directly or through a voucher, in response to a local disaster or declared emergency."

So instead of waiving bed tax for vacation rentals, it will include short-term home rentals on the tax rolls. The amendment also brings both ordinances into alignment, Blodgett said.


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