Minutes 09/13/2022 - Laserfiche WebLink

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September 13, 2022  The lodging industry has changed since the Code language was originally adopted, and website intermediaries such as hotels.com and travelocity now facilitate transactions and derive a fee from lodging.  In 2021 and 2022 the General Assembly amended the Virginia Code to ensure that website intermediaries collecting a fee from lodgers are also required to pay the transient rental tax.  Some of the Virginia Code changes take effect on October 1, 2022. It is necessary to amend the City Code prior to October to implement the changes. Discussion:  The proposed Code amendment revises Article X of Chapter 35 of the City Code by expanding the scope of those required to collect the transient rental tax from lodging operators (such as hotels) only to lodging operators and facilitators (such as website intermediaries).  The proposed Code amendment does not change the transient rental tax rate or otherwise materially impact the obligation of hotels and other lodging facilities operating within the city. Financial impact:  The amendment is anticipated to slightly increase transient rental tax revenues. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  The Commissioner of the Revenue will take the appropriate steps to implement the Code change. Motion by Mr. Barnes, and seconded by Mr. Moody, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND AND REORDAIN ARTICLE X OF CHAPTER 35 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (2006) (TRANSIENT RENTAL TAX) BY AMENDING SECTIONS 35-441, 35-442, AND 35-443 FOR THE PURPOSE OF COMPLYING WITH AMENDMENTS TO THE STATE CODE REGARDING THE COLLECTION OF THE TRANSIENT RENTAL TAX BY INTERMEDIARIES.” Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover Nays: None 22 - 267 - Adoption of an ordinance accepting Mental Health General Funds in the amount of $222,589 from the Virginia Department of Behavioral Health and Developmental Services and appropriating said amount in the FY 2023 Behavioral Healthcare Service Fund for mental health services. Background:  The Crisis Intervention Team Assessment Center (CITAC) site is utilized to conduct prescreening assessments for individuals experiencing a psychiatric crisis. Discussion:  The Virginia Department of Behavioral Health and Developmental Services awarded $222,589 in FY23 Mental Health General Funds to the Department of Behavioral Healthcare Services.  The Crisis Intervention Team Assessment Center (CITAC) site located at Maryview Medical Center allows law enforcement to transfer custody of an individual while a psychiatric assessment is conducted. Financial Impact:  No additional local funding is required.