A. 
In accordance with Ordinance No. 1645, adopted by City Council on December 7, 1964, which is currently codified at Chapter 3.20 of the Napa Municipal Code ("this code"), the City has historically imposed a transient occupancy tax ("TOT") as a general tax, with TOT revenue allocated to the general fund to be expended for any proper municipal purpose, in accordance with Section 3.36.020 of this code.
B. 
In accordance with Ordinance No. O93-024, adopted by City Council on July 27, 1993, the general tax TOT (imposed pursuant to Chapter 3.20 of this code) has been and is imposed on each transient in the amount of 12% of the rent charged by the operator of each hotel. (See Section 3.20.020.)
C. 
The transient occupancy special tax that is imposed pursuant to this Chapter 3.22 ("Special Tax") is imposed on each transient in the amount of 1% of the rent charged by the operator of each hotel.
D. 
The 1% Special Tax is in addition to the 12% general tax TOT, for a total effective tax on each transient in the amount of 13% of the rent charged by the operator of each hotel.
E. 
The revenue generated from the Special Tax imposed in accordance with this chapter shall be spent for the sole purpose of providing programs and services that increase, improve, or preserve the availability of Affordable and Workforce Housing to Affordable and Workforce Households.
(O2018-010, 7/17/18)
A. 
Unless otherwise specified herein, all terms used in this chapter related to the imposition and collection of the Special Tax (including the processes for payment; the registration, records, and reporting; calculation of exemptions, refunds, penalties, and interest; processes for appeals and challenges; and enforcement of violations) shall be interpreted in accordance with their use in Chapter 3.20 of this code. All terms defined in Chapter 3.20 shall apply to the interpretation of terms used in this Chapter 3.22, specifically including "hotel," "occupancy," "operator," "person," "rent," and "transient."
B. 
Unless otherwise specified herein, all terms used in this chapter related to the provision of programs and services for Affordable and Workforce Housing shall be interpreted in accordance with their use in Chapter 15.94 and Title 17 of this code. All terms defined in Chapter 15.94 shall apply to the interpretation of terms used in this Chapter 3.22, specifically including "affordable rent," "affordable sales price," "affordable unit," "annual household income," "area median income," "dwelling unit," and "market rate units" (including "median income households" and "moderate income households").
C. 
As used in this chapter:
"Affordable and Workforce Household"
is each household with an annual household income of up to 120% of area median income. An "Affordable and Workforce Household" specifically includes a "moderate income household" (up to 120% of area median income), a "median income household" (up to 100% of area median income), a "low-income (or "lower income") household" (up to 80% of area median income), a "very low-income household" (up to 50% of area median income), or an "extremely low income household" (up to 30% of area median income).
"Affordable and Workforce Housing"
includes each dwelling unit that is required to be rented or sold to an Affordable and Workforce Household, including any of the following:
1. 
A dwelling unit for sale to a moderate income household or a median income household, at a maximum monthly owner-occupied housing payment (including mortgage, taxes, and insurance) that is equal to or less than one-twelfth of 35% of the specified target annual household income.
2. 
A dwelling unit for sale at an affordable sales price in accordance with the requirements of Chapter 15.94.
3. 
A dwelling unit for rent to a moderate income household or a median income household, at a maximum monthly rent that is equal to or less than one-twelfth of 30% of 110% of the annual area median income.
4. 
A dwelling unit for rent at an affordable rent in accordance with the requirements of Chapter 15.94.
"Special tax"
means the one percent transient occupancy special tax imposed and implemented in accordance with this chapter, for the sole purpose of providing programs and services that increase, improve, or preserve Affordable and Workforce Housing for Affordable and Workforce Households.
(O2018-010, 7/17/18)
A. 
For the privilege of occupancy in any hotel, each transient is subject to and shall pay the Special Tax in the amount of 1% of the rent charged by the operator.
B. 
The City will impose and collect the Special Tax in accordance with the processes used by the City to impose and collect the general tax TOT, as set forth in Chapter 3.20.
C. 
Each transient must pay the Special Tax in accordance with the requirements, processes, and definitions that apply to the general tax TOT set forth in Chapter 3.20.
D. 
Each operator must collect, register, report, and pay the Special Tax in accordance with the requirements, processes, and definitions that apply to the general tax TOT set forth in Chapter 3.20.
(O2018-010, 7/17/18)
A. 
All Special Tax revenue received by the City shall be deposited in a special fund for Affordable and Workforce Housing ("Housing Special Tax Fund"). All revenue deposited in the Housing Special Tax Fund, along with any interest earned thereon, must be used for the sole purpose of providing programs and services to Affordable and Workforce Households to obtain Affordable and Workforce Housing, as defined in this chapter.
B. 
Revenue in the Housing Special Tax Fund shall be used for the sole purpose of providing programs and services which the City Council determines increase, improve, or preserve the availability of Affordable and Workforce Housing to Affordable and Workforce Households, including
1. 
Construction of new Affordable and Workforce Housing.
2. 
Conversion of existing market rate dwelling units to Affordable and Workforce Housing.
3. 
Preservation, rehabilitation, or maintenance of Affordable and Workforce Housing.
4. 
Any expenditure that is an authorized expenditure of affordable housing impact fee revenue, under Chapter 15.94.
5. 
Acquisition of real property to achieve any of the purposes set forth in this section.
(O2018-010, 7/17/18)
A. 
This chapter shall take effect on January 1, 2019.
B. 
The finance director shall file an annual report with the City Council, in accordance with the requirements of California Government Code Section 50075.3, documenting the amount of funds collected and expended, and the status of any project required or authorized to be funded in accordance with this chapter.
(O2018-010, 7/17/18)