Sparks City Council Meeting 7/14/2014 2:00:00 PM

    Monday, July 14, 2014 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

Public Hearing and Action Items Unrelated to Planning and Zoning: 7.1

Title: Second Reading, Public Hearing, discussion and possible action on Bill No. 2677 amending the Sparks Municipal Code to align the code with changes made by the RSCVA and with changes made in the Nevada Revised Statutes; and providing other matters properly related thereto.
Petitioner/Presenter: Jeff Cronk CPA/Jeff Cronk CPA
Recommendation: Adopt Bill No. 2677
Financial Impact: N/A
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: Proposed changes to Sparks Municipal Code Sections applicable to Transient Accommodation Tax (Chapter 3.04). Updates to the Sparks Municipal Code are necessary to align the Municipal Code with changes made by the County, and City of Reno as recommended by the RSCVA, whom the City has authorized to administer Transient Lodging Taxes, and to bring the Sparks Municipal Code in alignment with changes made in the Statutes of Nevada.


The City of Sparks imposes a Transient Accommodations Tax (also known as a room tax) on each operator of transient lodging in the City. The State Legislature assigned the Reno-Sparks Convention and Visitors Authority (RSCVA) with the duty of administrating and collecting these taxes in accordance with the RSCVA’s resolution and the Recreation Act, as they may be from time to time amended (SMC 3.04.080). NRS 268.0195 provides that each city shall adopt an ordinance that defines “transient lodging.”

At a recent meeting the RSCVA board acted to request a change by the local government entities of the applicability of the transient tax so as to extend the transient lodging tax to one or more individual units offered for rent for periods less than 28 days. Previous regulations assessed the taxes on those only renting three or more units for less than 28 days. The change is intended to neutralize the competitive advantage that individual unit-owners currently enjoy.

In order to facilitate the change, an update to the Sparks Municipal code Section 3.04.020(P) is needed as identified in the attached strike out copy. This change is likely to impact the Tahoe area where short term vacation rentals are common and have very little impact to the Sparks area. In addition, at the last legislative session Senate Bill No. 509 was approved which removed Room Tax expiration language from the Statutes of Nevada. In order to bring the Sparks Municipal Code Section 3.04.130(B) into alignment with the Statutes, the changes as identified in the attached strike out version of the code should be made.


NRS 268.0195 provides that each city shall adopt an ordinance that defines “transient lodging.” The amended language would bring all property owners within the reach of the transient lodging taxes regardless of whether the unit is offered for rent or managed by a rental management agency. Extending that tax to single units will neutralize the competitive advantage the individual unit-owners enjoy over the units manages by real estate rental services manage three or more units because everyone will pay alike. Attached for your review is the Washoe County Staff report that was presented to the County Commissioners addressing the code amendment for the Transient Room Tax.


The City Council could choose not to amend the Room Tax Ordinance but it would put the City at risk because we would not have the same taxing structure as the other taxing agencies who have been given the authority to collect and administer the Transient Lodging Taxes to the RSCVA.

Recommended Motion: I move to adopt Bill No. 2677 to amend Chapter 3 of the Sparks Municipal Code.

Attached Files:
     WC staff rpt room tax.pdf
     Room Tax Ordinance May 2014.pdf
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