Pleasanton recoups $114, 421 in Hotel Occupancy Tax

The City of Pleasanton voted to renew a two-year contract with MuniServices who recently helped the city recover Hotel Occupancy Taxes not paid by a local hotel. The city entered a contract with Muni Services on June 1, 2013 to provide administration and audit of the Hotel Occupancy Tax (HOT).

Prior to contracting with MuniServices, Pleasanton generated an annual HOT amount of $315,157. Since the contract period Muni Services has collected approximately $422,027 for a positive difference of $106,869, which equates to a 34% increase.

MuniServices agreed to choose four hotels to audit. The hotels were Brush Country Lodge, Shale Lodge, Eddy’s Motel and Relax Inn. All hotels were in compliance except for Eddy’s Motel.

It was reported during the city council meeting that the basis for the deficiency was failure of Eddy’s to remit hotel tax on rent earned in the first 30 days of extended stays in the absence of documented prior intent from the guest. This resulted in an estimated $183,599 in total rent earned. That amount multiplied by the seven percent sales tax totaled $12,850. The net revenue collected since the inception of the contract for the administrative portion totaled $106,869. The cost of the audit was $12,852 for total revenue of $119,721. The total expenses were $5,300 for a net profit of $114,421.

MuniServices efforts have resulted in the generation of more than $4.5 million dollars in sales tax reallocations and business discovery for its municipal clients.

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