TO: Mayor and City Council
THROUGH: Krishna Namburi, Acting City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Request from the Holman Hotel for a 60-day extension for Transient Occupancy Tax (TOT) and the Salem Tourism Promotion Area (STPA) fee payments and waiver of penalties.
Ward(s): Ward 1
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Strong and Diverse Economy.
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SUMMARY:
summary
The Holman Hotel has submitted a letter requesting a 60-day extension on the payment of the TOT and STPA fee for the months of December and January and waiver of penalties.
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ISSUE:
Shall City Council;
1. Approve a 60-day extension to pay December and January Transient Occupancy Tax (TOT) and the Salem Tourism Promotion Area (STPA) and waive associated penalties?
2. Do not approve a 60-day extension to pay December and January Transient Occupancy Tax (TOT) and the Salem Tourism Promotion Area (STPA) and waive associated penalties?
RECOMMENDATION:
recommendation
1. Approve a 60-day extension to pay December and January Transient Occupancy Tax (TOT) and the Salem Tourism Promotion Area (STPA) and waive associated penalties?
2. Do not approve a 60-day extension to pay December and January Transient Occupancy Tax (TOT) and the Salem Tourism Promotion Area (STPA) and waive associated penalties?
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FACTS AND FINDINGS:
Salem Revised Code (SRC) authorizes the Finance Officer to allow a 30-day extension and waiver of penalties for good cause. The City Council can grant an additional extension and waiver of penalties.
The Holman Hotel submitted a letter (Attachment 1) to request a 60-day extension and waiver of penalties. In the letter, the Holman Hotel cited their inability to refinance their construction loan at a lower rate as the main driver for their request. The letter describes their inability to secure conventional financing is due to a higher than anticipated property tax assessment.
The current balance due from the Holman Hotel for TOT and STPA for December is $30,933.55 plus penalties of $3,093.18 and interest of $309.33. The January tax return is due on February 28th and has not been filed. If the extension and waiver are granted, the December payment of $30,933.55 (plus interest) would be due April 1, 2025. The January payment of taxes owed, and interest would be due April 29, 2025 if the extension and waiver are granted.
BACKGROUND:
Attachments:
1. Holman Hotel Letter