HomeMy WebLinkAbout2024-09-10 Ltr & Email to Warners Regarding Approval and Lodging Tax Condition Julie Hultman
From: Julie Hultman
Sent: Tuesday, September 10, 2024 10:20 AM
To: 'Kimberly Warner'
Subject: CUP -Airbnb Home Occupation
Attachments: SKMBT_C55424091009070.pdf; SKMBT_C55424070212250.pdf
Importance: High
Good-morning Kimberly—
Attached please find the August 27, 2024 City Council Resolution approving your CUP for your Airbnb home
occupation. I am getting the Home Occupation permit ready for you today, noted the City Council resolution has an
condition to your approval that needs to be addressed by the end of the month and wanted to make sure it was on your
to do list.
Condition 7 states:
Within 30 days of the approval of this Permit, the Applicants shall provide documentation of and account to the City for
all past gross revenues obtained by the use of the Property for transient lodging purposes since inception of such
activities by the Applicants and remit to the City all past due lodging taxes and fees associated with those past lodging
rentals. The Applicants shall further account and remit to the City on an ongoing basis all future lodging taxes as
required by State Statute, City code policies and procedures.
I have attached the ordinance and the lodging tax forms from my email to you of this past July. Let me know if you have
any questions.
Wishing you both a wonderful day!
451* Julie Hultman I Building Official
Planning & Code Enforcement
Office: 651.351.1661
1
CO.
RESOLUTION NO.24-08-26
CITY COUNCIL
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MINNESOTA
A RESOLUTION ESTABLISHING FINDINGS OF FACT AND
RESOLUTION OF THE CITY COUNCIL THAT THE
REQUEST BY KEITH AND KIMBERLY WARNER AT 13891 56Th
STREET NORTH FOR A CONDITIONAL USE PERMIT TO
ALLOW FOR TRANSIENT LODGING/SHORT TERM RENTAL AS
A HOME OCCUPATION, BE APPROVED WITH CONDITIONS
WHEREAS, the City of Oak Park Heights has received a request from Keith and
Kimberly Warner for a Conditional Use Permit to allow for transient lodging/short term
rental as a home occupation at 13891 56th Street North; and after having conducted a
public hearing relative thereto,the Planning Commission of Oak Park Heights
recommended the application with conditions. The City Council of the City of Oak Park
Heights makes the following findings of fact and resolution:
1. The real property affected by said application is legally described as
follows,to wit:
SEE ATTACHMENT A
and
2, The applicant has submitted an application and supporting documentation
to the Community Development Depat talent consisting of the following items:
SEE ATTACHMENT B
and
3. The property is zoned R-1 Single Family Residential District. The
transient lodging/short term rental requires a Conditional Use Permit as a home
occupation under Section 401.15.M.4 of the Zoning Ordinance; and
4. The subject property is owner occupied and the transient lodging/short
term rental unit is in the lower level of the single family structure; and
5. The applicants offer a unit for a maximum of four guests who are screened
before booking. There are no other services provided except for lodging; and
6. City staff prepared a planning report dated July 31,2024,reviewing the
request for transient lodging/short term rental as a home occupation at 13891 56th Street
North; and
7. Said report recommended approval of the Conditional Use Permits subject
to the fulfillment of conditions; and
8. The Planning Commission held a public hearing at the August 8, 2024,
meeting, took comments from the applicants and public, closed the public hearing, and
recommended the application with conditions.
NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR
THE CITY OF OAK PARK HEIGHTS THAT THE CITY COUNCIL APPROVES
THE FOLLOWING:
A. The application submitted by Keith and Kimberly Warner for a Conditional Use
Permit to allow for transient lodging/short term rental as a home occupation at 13891 56th
Street North, and affecting the real property as follows:
SEE ATTACHMENT A
Be and the same as hereby approved by the City Council of the City of Oak Park Heights
with the following conditions:
1. The owner shall occupy the subject property while operating the transient
lodging/short term rental unit and shall be required to maintain all required
licensing, including a home occupation permit from the City of Oak Park
Heights.
2. There shall be a limit of three (3) transient guests per bedroom for the
transient lodging/short term rental unit.
3. Dining, if provided, and other facilities shall not be opened to the public
but shall be used exclusively by the registered guests of the facility.
4. The guests shall be directed to utilize the driveway only and not park on
the street.
5. Any excessive occupant noise reported to the City and in violation of City
Code shall receive a warning on the first offense and a citation on the
second. Continued citations shall be grounds for the suspension or
revocation of use permits by the City Council.
6. All transient lodging conditional use permits may be reviewed, including
site inspections, by the Building Official at any time. Any violations of
the City Ordinance, Building Code, Fire Code or conditions will result in
the owner, at minimum, receiving a written warning. Depending upon the
2
nature and circumstances of the violation(s), the City Administrator shall
be authorized to schedule a public hearing of the City Council to review
the conditional use permit and conditions. Upon review, the City Council
may revise or cancel the conditional use permit.
7. Within 30 days of the approval of this Permit, the Applicants shall provide
documentation of and account to the City for all past gross revenues
obtained by use of the Property for transient lodging purposes since
inception of such activities by Applicants and remit to the City all past due
lodging taxes and fees associated with those past lodging rentals. The
Applicants shall further account and remit to the City on an ongoing basis
all future lodging taxes as required by State statute, City Code, policies,
and procedures.
Approved by the City Council of the City of Oak Park Heights this 27t day of
August 2024.
OP )
Ma :-omber, Mayor
ATTEST:
Jacob Rif , C' Administrator
3
ATTACHMENT A
Conditional Use Permit
To Allow For
Transient Lodging/Short Term Rental
As A Home Occupation
At
13891 56th St. N.
Legal Description: Lot 23, Block I, River Hills Second Addition
Washington County Property PIN: 05.029.20,14.013
ATTACHMENT B
• Y
e
Conditional Use Permit
To Allow For
Transient Lodging/Short Term Rental
As A Home Occupation
At
13891 561h St. N.
Application Materials
• Application Form
• Fees
• Written Narrative and Graphic Materials Explaining Proposal
• Proof of Ownership or Authorization to Proceed
Planning Commission Public Hearing& Recommendation: August 8, 2024
Required Approvals: CUP Amendment
City Council 4/5
Conditional Use Permit - Lapse of Approval:
Unless the City Council specifically approves a different time when action is officially taken on
the request, the conditional use permit shall become null and void twelve(12) months after the
date of approval, unless the property owner or applicant has substantially started the construction
of any building, structure, addition or alteration, or use requested as part of the conditional use.
An application to extend the approval of a conditional use permit shall be submitted to the
Zoning Administrator not less than thirty(30)days before the expiration of said approval.
(401.03.C.4.a and b)
1411
AN ORDINANCE OF THE CITY OF OAK PARK HEIGHTS ENACTED TO ESTABLISH A
LOCAL LODGING TAX
THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS, WASHINGTON
COUNTY,MINNESOTA DOES ORDAIN:
1411.010 Purpose.
In order to increase commerce and to provide for a vibrant City atmosphere that
will attract tourism and convention business to the City, it is essential that the City be marketed
and promoted by a local convention and tourist bureau.
1411.020 Lodging Tax Establishment.
In furtherance of that purpose, and pursuant to Minnesota Statutes §469.190, a tax
of 3% is hereby imposed on the gross receipts generated within the City from the furnishing for
consideration of lodging at hotels, motels, rooming houses, tourist courts or resorts, other than
the renting or leasing of lodging for a continual period of 30 days or more.
(1) Collection. Any person, business entity, corporation, partnership or
association (Operator) that provides lodging to others must collect the tax
at the time lodging charges are paid. The amount of tax must be
separately stated from the lodging charges and held in trust for the City
until remitted to the City.
(2) Payments and Returns. The taxes imposed by this Ordinance must be paid
by the Operator to the City quarterly not later than thirty (30) days after
the end of the calendar quarter in which the taxes were collected. At the
time of payment, the Operator must submit a return upon forms provided
by the City. The return must contain the following minimum information:
a. The total amount of rent collected for lodging during the
period covered by the return.
b. The amount of tax required to be collected and due for the
period.
c. The signature of the person filing the return or that of his
agent duly authorized in writing.
d. The period covered by the return.
e. The amount, if any, of uncollectible rental charges subject
to the lodging tax.
The Operator may offset against the taxes payable with respect to any reporting
period, the amount of taxes imposed by this Ordinance previously paid as a result of any lodging
transaction, the consideration for which became uncollectible, and exclude from charges subject
to the tax, any person whose occupancy is beyond the power of the City to tax by reason of the
federal law or international treaty.
1411.030 Examination of Return,Adjustments,Notices and Demands.
The City shall, after a return is filed, examine the return and make any
examination of the records and accounts of the Operator making the return deemed necessary for
determining its correctness. The tax computed on the basis of the examination is the tax to be
paid. If the tax due is found to be greater than that paid, the excess must be paid to the City
within ten(10) days after receipt of a notice thereof given either personally or sent by registered
mail to the address shown on the return. If the tax paid is greater than the tax found to be due,
the excess must be refunded by the City to the Operator who paid the tax within ten (10) days
after determination of the refund.
1411.040 Failure to File a Return,
Subd. 1. If any Operator required by this Ordinance to file a return fails to do so
within the time prescribed, or makes willfully or otherwise an incorrect, false or fraudulent
return, upon written notice and demand, the Operator must file a return or a corrected return
within ten (10) days of receipt of written notice and must at the same time pay any tax due
together with any administrative and staff expenses incurred by the City in the processing and
collection of the late payment. If a person fails to file a return or corrected return, the City may
make a return or corrected return for the person based upon the knowledge and information and
assess a tax on the basis thereof, which tax (less any payments theretofore made on account of
the tax for the taxable period covered by the return) must be paid due together with any
administrative and staff expenses incurred by the City within ten (10) days of the receipt of
written notice and demand for payment. The amounts due shall become a lien on the property of
the Operator from where the lodging event(s) took place Any return or assessment made by the
City is prima facie correct and valid, and the burden of proving to the contrary rests with any
person in any action or proceeding in respect thereto.
Subd. 2. Upon a showing of good cause, the City may grant an Operator one
thirty (30) day extension of time within which to file a return and make payment of taxes as
required by this Ordinance, provided that interest during the period of extension must be added
to the taxes due at the rate of eight(8)percent per annum.
1411.040 Penalties.
Subd. 1. If any tax imposed by this Ordinance is not paid within the time required
for payment, or an extension, there shall be added a penalty equal to ten (10) percent of the
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amount remaining unpaid plus administrative and City staff time in pursuing and obtaining the
collection of the tax.
Subd. 2. If any person willfully fails to file any return or make any payment
required by this Ordinance, or willfully files a false or fraudulent return or willfully attempts in
any manner to evade or defeat the tax or payment thereof, there shall also be imposed a penalty
an amount equal to fifty (50) percent of any tax (less any amounts paid on the basis of the false
or fraudulent return due together with any administrative and staff expenses incurred by the City)
found due for the period to which the return related. The penalty imposed by this section shall
be collected as part of the tax and are in addition to any other penalties provided by this
Ordinance. All such amounts shall be liens against the property of the operator and may be
collected by the city in the manner prescribed by Minnesota Statute 514.67.
Subd. 3. All payments received will be credited first to penalties, next to interest
and then to the tax due.
Subd. 4. The amount of tax not timely paid, together with any penalty provided
by this Section, will bear interest at the rate of eight(8)percent per annum from the time the tax
should have been paid until payment is made. Any interest and penalty will be added to the tax.
Subd. 5. In the event that any tax remains unpaid for 30 days after it is due, in
addition to the right to institute legal action to collect the amounts due, the City may certify the
tax, together with any penalty, interest and costs, to the County Auditor for collection with the
real estate taxes.
1411.060 Examination of Business Records.
Persons acting on behalf of the City and authorized in writing by the City may
periodically examine the books, papers and records of any Operator in order to verify the
accuracy of any return made or, if no return was made, to ascertain the tax as provided in this
Ordinance. Every such Operator shall give to the City the means, facilities and opportunity for
examinations and investigations as are hereby authorized.
1411.070 Disposition of Proceeds.
95% of the proceeds must be used to fund a local convention and tourist bureau
for the purpose of marketing and promoting the City as a convention and tourist center and for
that purpose, the City is authorized to enter into an agreement with the Greater Stillwater Area
Convention and Visitor's Bureau.
1411.080 Violations.
Any person who willfully fails to make a return by this Ordinance or who fails to
pay the tax after written demand for payment, or who fails to remit the taxes collected or any
penalty or interest imposed by this Ordinance after written demand for payment, or who refuses
to permit the City's authorized agents to examine the books, records and papers under their
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control, or who willfully makes any incomplete, false or fraudulent return is guilty of a
misdemeanor.
1411.090 Appeal.
Subd. I. Any Operator aggrieved by any notice, order or detennination made by
the City under this Ordinance, except for the criminal penalties, must file a petition for review of
such notice, order or determination with the City. The petition shall contain the name of
petitioner, petitioner's address and the location of the lodging subject to the notice, order or
determination. The appeal will be first heard by the City Administrator. Review of the decision
of the City Administrator may be requested of the City Council by the aggrieved party filing a
written notice of review with the City Clerk within ten (10) days after the Administrator's
determination is made to the appellant.
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City of Oak Park Heights
14168 Oak Park Blvd N.•Oak Park Heights,MN 55082•Phone(651)439-4439•Fax 439-0574
City of Oak Park Heights - Local Lodging Tax — 3%
The City of Oak Park Heights City Council approved a three percent Local Lodging Tax effective January 1,
2008 that applies to the sales of transient lodging accommodations and related services for a lodging period of
less than 30 continuous days at an establishment (such as but not limited to hotels, motels and bed &
breakfasts) located within the City limits. (See the City's Ordinance Number 1411 as attached for further
details).
The Local Lodging Tax is separate and in addition to the State Sales Tax and Transit Tax. Amount paid for
transient lodging accommodations provided within the City limits are subject to tax regardless of where the
payments or reservations are made. Payments or reservations made in the City of Oak Park Heights for
lodging outside the City limits are not subject to the City's Local Lodging Tax.
A Local Lodging Tax Return Form must be completed quarterly (calendar quarter) by each establishment
providing transient lodging accommodations even if there were no sales during the period. The completed
form and payment of the Local Lodging Tax are due to the City of Oak Park Heights no later than 30 days after
the end of the quarter. See City Ordinance Number 1411 for failure to file.
Instructions for Lodging Tax Return
The following instructions are to assist preparers in completing the City of Oak Park Heights Lodging Tax
Return form:
Line 1 Gross Lodging Sales
List the total of all transient lodging sales that occurred during the period.
Line 2 Less: Exclusions
List all sales that are exempt from the Local Lodging Tax. See attached for a list of sales that are
exempt from lodging tax during the period.
Line 3 Less: Lodging Bad Debts
List all lodging sales that were uncollectible during the period.
Line 4 Plus: Collected Bad Debts
List all lodging sales that were previously uncollectible and were subsequently collected during the
period.
Line 5 Total Taxable Lodging Sales
Line 1 (Gross Lodging Sales) less Line 2 (Exclusions), less Line 3 (Lodging Bad Debts) and add
Line 4 (Collected Bad Debts).
Line 6 Lodging Tax Due
Multiply Line 5 (Total Taxable Lodging Sales) by 3% (City Lodging Tax).
Line 7 Penalty
If the payment is not made by the due date, multiply Line 6 (Lodging Tax Due) by 10%.
Line 8 Interest
If the payment is not made by the due date, add Line 6 (Lodging Tax Due) to Line 7 (Penalty), then
multiply the result by 8%. The result is the yearly interest amount. Then divide the yearly interest
amount by 365 (days of the year). This result is the daily interest amount. Then multiply the daily
interest by the number of days the payment is late.
Line 9 Total Interest and Penalty Due
Add Line 7 (Penalty) and Line 8 (Interest)
Line 10 Total Amount Due
Add Line 6 (Lodging Tax Due) and Line 9 (Total Penalty and Interest Due)
If you need further assistance, please call Betty Caruso at the City of Oak Park Heights Finance
Department. 651-439-4439
Definitions of Certain Tax Exempt Revenues:
1. Local Lodging Tax exempt revenue includes revenue received for lodging accommodations for a period
greater than 30 days.
2. Local Lodging Tax exempt revenue includes the use of real property for a purpose other than lodging
(i.e. lease of a meeting room).
3. Local Lodging Tax exempt revenue includes lodging billed directly to and paid for by the federal (State
and local governments are taxable) government and its agencies. Federal employees also may pay for
their lodging directly through the use of a credit card. Sales charged on a federal employee's credit are
not taxable if the bill is paid directly by the federal government. If the bill goes directly to the federal
employee, the sale is taxable. In order to qualify for tax exempt status, it is not sufficient for a person to
identify themselves as a federal employee, produce a business card, or present a tax exempt
certificate.
4. Foreign Consular Officials
Supporting documentation (i.e. copies of credit cards, credit card numbers, IDs etc.) evidencing tax
exempt status should be retained for six years. This support must be produced during an audit
performed by City of Oak Park Heights staff to allow the exclusions.
CITY OF 2024 Local Lodging Tax Return
Oak Park Heights This tax is mandated by The City of Oak Park Heights-Ord 1411
Please make check payable to the"City of Oak Park Heights"
Mail this form along with a check for the amount due(Line 8)to the address below.
Establishment Name
(Not Corporate Name)
Mailing Address(Street): Minnesota Sales Tax Account Number(7digits)
City State Z p
Reporting Period From 1/1/2024 To 3/31/2024 Due Date- 4/30/2024
Reporting period is one of the calendar year quarters The due date is 30 days following the end of the calendar quarter
LODGING TAX
1 Gross Lodging Sales
Written leases for 30 days or more and other tax exempt
2 Less: Exclusions lodgings per City Code
3 Less: Lodging Bad Debts
4 Plus: Collected Bad Debts .�
5 Total Taxable Lodging Sales Line 1-Line 2-Line 3+Linea
6 Lodging Tax Due Line5X3%
PENALTY AND INTEREST(IF APPLICABLE)
7 Penalty If payment is not made by the due date,Line 6 X 10%
8 Interest
If payment is not made by due date,((Line 6+Line 7)X 8%).366)X
Days past due.
9 Total Penalty and Interest Due Line 7+Line a , - _
TOTAL LODGING TAX,PENALTY AND INTEREST
Please make
10 TOTAL AMOUNT DUE Line 6+Line 9 check payable to
Ciry of Oak Park
Heights
I declare and certify under penalty of law that I have examined this statement and that to the best
of my knowledge and belief, it is true and complete.
Signature Trtle(Print)
Name at Preparer(Pnnt) Date
Pnone E-mail
Finance Department: Finance Director
14168 Oak Park Blvd N
Oak Park Heights, MN 55082
651-439-4439
CITY OF 2024 Local Lodging Tax Return
Oak Park Heights This tax is mandated by The City of Oak Park Heights-Ord 1411
Please make check payable to the "City of Oak Park Heights"
Mail this form along with a check for the amount due(Line 8)to the address below.
Establishment Name
(Not Corporate Name)
Mailing Address(Street): Minnesota Sales Tax Account Number(7digits)
City State Zip
Reporting Period: From 4/1/2024 To 6/30/2024 Due Date. 7/31/2024
Reporting period is one of the calendar year quarters The due date is 30 days following the end of the calendar quarter
LODGING TAX
1 Gross Lodging Sales
Written leases for 30 days or more and other tax exempt
2 Less: Exclusions lodgings per City Code
3 Less: Lodging Bad Debts
4 Plus: Collected Bad Debts
5 Total Taxable Lodging Sales Line 1-Line 2-Line 3+Line 4
6 Lodging Tax Due Line 5X3%
PENALTY AND INTEREST(IF APPLICABLE)
7 Penalty If payment is not made by the due date,Line 6 X 10% X
8 Interest If payment is not made by due date,((Line 6+Line 7)X 8%)+365)X X
Days past due.
9 Total Penalty and Interest Due Line 7+Line 6 X
TOTAL LODGING TAX,PENALTY AND INTEREST
�>...-.... .e ... _ „. a: Please make
check payable to
10 TOTAL AMOUNT DUE Line 6+Line 9
City of Oak Park
Heights
I declare and certify under penalty of law that I have examined this statement and that to the best
of my knowledge and belief,it is true and complete.
Signature Title(Pnnt)
Name of Freparer(Print) Date
Pnone E-mail
Finance Department: Finance Director
14168 Oak Park Blvd N
Oak Park Heights. MN 55082
651-439-4439
CITY OF 2024 Local Lodging Tax Return
Oak Park Heights This tax is mandated by The City of Oak Park Heights-Ord 1411
Please make check payable to the"City of Oak Park Heights"
Mail this form along with a check for the amount due(Line 8)to the address below.
Establishment Name
(Not Corporate Name)
Mailing Address(Street): Minnesota Sales Tax Account Number(7digits)
City State Zip
Reporting Period: From 7/1/2024 To 9/30/2024 Due Date: 10/31/2024
Reporting period is one of the calendar year quarters The due date is 30 days following the end of the calendar quarter
LODGING TAX
1 Gross Lodging Sales
Wratten leases for 30 days or more and other tax exempt
2 Less: Exclusions lodgings per City Code •
3 Less: Lodging Bad Debts
4 Plus: Collected Bad Debts 42%
xis-�.
5 Total Taxable Lodging Sales Line 1-Line 2-Line 3+Line 4
6 Lodging Tax Due Line 5X3r
PENALTY AND INTEREST(IF APPLICABLE)
7 Penalty If payment is not made by the due date,Line 6 X 10%
8 Interest if payment is not made by due date,((Line 6+Line 7)X 8%)+365)X
Days past due.
9 Total Penalty and Interest Due line 7+Line 8
TOTAL LODGING TAX, PENALTY AND INTEREST
wt Please make
10 TOTAL AMOUNT DUE Lone 6+Line 9 City of
of OopOyableto
ak Park
Heights
I declare and certify under penalty of law that I have examined this statement and that to the best
of my knowledge and belief,it is true and complete.
Signature Title(Pont)
Name of Preparer(Print) Date
Pnone E-mail
Finance Department: Finance Director
14168 Oak Park Blvd N
Oak Park Heights,MN 55082
651-439-4439
CITY OF 2024 Local Lodging Tax Return
Oak Park Heights This tax is mandated by The City of Oak Park Heights-Ord 1411
Please make check payable to the "City of Oak Park Heights
Mail this form along with a check for the amount due(Line 8)to the address below,
Establishment Name
(Not Corporate Name)
Mailing Address(Street). Minnesota Sales Tax Account Number(7digits)
City State Zip
Reporting Period: From 10/1/2024 To 1213112024 Due Date: 1/31/2025
Reporting period is one of the calendar year quarters The due date is 30 days following the end of the calendar quarter
LODGING TAX
1 Gross Lodging Sales
Written leases for 30 days or more and other tax exempt
2 Less: Exclusions lodgings per City Code
3 Less: Lodging Bad Debts
4 Plus: Collected Bad Debts
5 Total Taxable Lodging Sales Line 1-Line 2-Line 3+Line 4
6 Lodging Tax Due Line 5X3%
PENALTY AND INTEREST(IF APPLICABLE)
7 Penalty If payment is not made by the due date,Line 6 X 10%
8 Interest If payment is not made by due date,((Line 6+Line 7)X 8%)-365)X
Days past due
9 Total Penalty and Interest Due Line 7+Line a ,
TOTAL LODGING TAX,PENALTY AND INTEREST
Please make
check payable to
10 TOTAL AMOUNT DUE Line 6+Line 9 City of Oak Park
Heights
I declare and certify under penalty of law that I have examined this statement and that to the best
of my knowledge and belief, it is true and complete.
Signature _ Title(Pent)
Name of Preparer(Pont) Date
Pnone E-mail
Finance Department: Finance Director
14168 Oak Park Blvd N
Oak Park Heights, MN 55082
651-439-4439