Focus Area: Legal
Staff Contact: Ron Shaver and Bob Gallimore
Subject: Proposed Charter Ordinance No. 84 regarding transient guest tax.
________________________________________________________________________________
title:
title
Consideration of Charter Ordinance No. 84 regarding transient guest tax.
Body
________________________________________________________________________________
Summary:
On July 1, 2025, the City Council adopted Charter Ordinance No. 83, raising the transient guest tax to 9% and making technical changes to the definition of “Economic Development Promotion” and how funds are distributed to the Olathe Chamber of Commerce.
In accordance with state law, Charter Ordinance No. 83 was provided to the Kansas Department of Revenue (KDOR), who is responsible for administering the tax. After review, KDOR requested minor changes be made to the language used in the charter ordinance to allow KDOR to properly administer the tax.
Staff has prepared a new Charter Ordinance, proposed Charter Ordinance No. 84 (Attachment A), to make the requested changes and other technical changes. The requested changes do not affect the substantive changes made by Charter Ordinance No. 83, and the new tax rate should still be effective on January 1, 2026, as originally anticipated.
________________________________________________________________________________
Financial Impact:
Charter Ordinance No. 84 will not change the anticipated financial impact provided during consideration of Charter Ordinance No. 83.
________________________________________________________________________________
Action Needed:
Approve Charter Ordinance No. 84.
________________________________________________________________________________
Attachment(s):
A - Charter Ordinance No. 84