South Lake Tahoe Lodging Association

Introduction of Board and Guests

Meeting Called to Order:

Diane Sherhorn, Superintendent of Schools invited the community to several forums, the first of which will be Tuesday, September 23rd, 6 p.m. at the middle school. The meetings should last about an hour and address some of the concerns regarding declining enrollment, school maintenance, etc.
Bylaw change: The ballots for the bylaw change were handed out, and reviewed. Members were asked to vote and turn in the ballots as they left the meeting. (The Amendment was approved unanimously.)
Transient Occupancy Tax: Debbie McIntrye and Jackie Perryswell represented the City of South Lake Tahoe. They indicated they were unsure as to what the questions the group might have for them, but had prepared two handouts as presentations.
“How to Survive an Audit: One of the Key factors to surviving an audit is “Flawless Documentation”

The City of South Lake Tahoe’s City Code § 28A-24. Records to be kept states:
It shall be the duty of every owner and/or operator liable to the collection and payment of tax imposed by the city pursuant to this article to keep and preserve for a period of at least three (3) years all such records as the city may deem necessary to determine the amount of tax. The city shall have the right to inspect all such records at any time and place. All records which may be necessary to inspect shall be kept within the city r shall be produced upon ten (10_ working days’ written notice at the business location within the city.

As an audit is inevitable for each and very motel in the city limits, here are a few examples of what will be required to perform and complete the audit.

Pre-Numbered Daily Registration Cards
Sign-in Registers and receipt books if applicable
Daily Summary Logs
Monthly Summary Logs
Bank Statements and deposit slips
General Ledger or revenue ledgers and financial statements
Long Term Rental Agreements between motel and non-transient occupants
Federal income tax returns
Records of transfers to the motel bank account from other sources
Records supporting the allocation of room charges, meals and or package deals if offered
Paid laundry bills and housekeeping records

It is beneficial to the auditor and to the Motel Owner/Operator to have any and all records that are made available for the audit neat and organized. This will help expedite the audit process.

The most common cause of audit findings is the failure of the Motel Onwer/Operator to maintain adequate documentation to support exempt rentals. All documentation, preferably originals that support exempt revenues should be available.

Additional causes of an audit finding resulting in TOT assessments is registration cards lacking detailed information from the owner/operator specifically indicating the amount collected for room revenue and the amount of TOT collected.

The amount of tax charged to each transient shall be separately stated from the amount of the rent charged and each transient shall receive a receipt for payment from the operator. A duplicate of the receipt given to each transient shall be kept by the operator for a period of three (3) years from the date of issuance.

“Rent claimed on the return as exempt from the tax shall be fully itemized and explained on the return.”

All taxes collected by the operator pursuant to the city of South Lake Tahoe’s city ordinance, shall be held in trust for the account of the city until payment thereof is made to the tax collector or revenue technician.

Presentations:

Austin Soss – Heavenly: Reported on the upgrades for Heavenly, including high speed chairs, Gondola changes, new food service, etc. For properties there will be new Children / Teen tickets and family packages available this year. As well there will be 2 day promo rates, “Learn to Ski Packages”, etc. Heavenly staff will come by and explain all the programs. There are several large groups coming this year, including the Special Olympics which will be held at Heavenly this year, as well as the Big Chill events. The rate structure is available now, earlier than ever before.
Andy Chapman – North Lake Tahoe Resort Association: The Call Center will be moving to the corporate offices, which will result in a rent savings of approx. $50,000. Andy reported that the NLTRA is reviewing their operations, getting an idea of where they will be going in the future, what will help drive business and make the NLTRA a viable operation. One of their focuses is “online booking” and they have been reviewing proposals from all of the country for online booking engine. At this point Inntopia is in the forefront. Virtual Tahoe, as well as many other properties in the Tahoe basin use Inntopia, which would make it possible for properties to update their availability only once, resulting in a huge savings in time. NLTRA would change their processes to the way Inntopia does, when the reservation is made, the guest gives Inntopia the credit card, which the property runs through their system. The commission would then drop to 10%. Phone side will stay the same. NLTRA is sending a questionnaire to the properties for their input.
Duane Wallace – South Lake Tahoe C of C: Thanked the SLTLA for adding their name to the letter sent to TRPA. He feels that the financial problems can best be solved by growing the economy. Asked members to keep involved and informed regarding the State Chamber’s fight to reduce Workers’ Comp, and help with the ADA suits. Mentioned that David Kelly, with the Tahoe Area Council for the Disabled, feels that some of the ADA suits are frivolous, and has offered to come to an ADA meeting to present the council’s view. Golf Tournament is next Wednesday if anyone was interested. – Meeting will be held to discuss Olympics in 2014. Presentation will be made by the group.
Bill Chernock – LTVA: Taking a look at Celebrity Golf, the PR Value, etc. Asked the lodging members to fill out a questioner to compare revenue for the last two years during the golf tournament, both occupancy percentage and rates.
Tom Davis – City of South Lake Tahoe: The Parking Garage at Ski Run is open and there will be a locals week in October (TBA). Reported that the Ice Skating Rink is ahead of where it was projected to be. Pointed out the handout with a list of upcoming games for Sac State Ice Hockey Team. Jim Morris asked Tom if the city had laid off employees, since his business has had to. He also said the planning commission is meeting with a proposal to eliminate vacation rentals within 4 years. Asked everyone to attend the next planning commission meeting.
Ken Daley – Consolidate Transit System: All kiosks are updated and functioning. Busses have the new “Chernock Blue” Blue Go Logos. Casino service is on hold due to the casinos requiring a new signed agreement. Ken thinks the routes and schedules are the same, and if you are having trouble with casino service, please contact the casinos directly.
Pete MacRoberts – Thanked the Ice Rink for hosting the meeting. Also asked that everyone attend the Water Trail Association’s BBQ to be held at Camp Richardson Saturday 3-6 p.m.
Rich Hodge: Leadership Lake Tahoe – will be holding a Tahoe Winter Expo at Caesars, November 20. Booth space is $175, the public will be charged $10 advance, $15 at the door, front line employees are free. If you are interested in a booth, please contact Rich. 400-4766.
Chuck Moss: Trade show in Reno February, 2004. Good way to meet tour operators and see if this would be a good fit for your business. For information call 543-4135.

NEXT MEETING WILL BE HELD October 9th @ 9:30 A.M. at the Camp Richardson Resort Great Room.

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