Chapter 3.38
HOTEL-MOTEL TAX FUND
Sections:
3.38.010 Statutory authorization.
3.38.060 Administration and collection.
3.38.090 Lodging tax advisory committee.
This chapter, effective October 1, 2002, per Ordinance C-518, passed 8/19/2002.
3.38.010 Statutory authorization.
The provisions of this chapter shall be deemed to be an exercise of the power of the City to levy and collect a special excise tax on the sale or charge made for the furnishing of lodging that is subject to tax as provided for under RCW 67.28.180. (Ord. C-508, 2002)
3.38.020 Definitions.
For the purpose of this chapter, the definitions of “selling price,” “seller,” “buyer,” “consumer,” and all other definitions as are now contained in RCW 82.08.010, and subsequent amendments thereto, are adopted as the definitions for the tax levied in this chapter. (Ord. C-508, 2002)
3.38.030 Rate of tax.
There is levied a special excise tax of 1.9 percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of lodging by a hotel, motel, camp ground, rooming house, tourist court, or trailer camp (RV park), and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. It shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use and enjoy the same.
The tax levied in this chapter shall be in addition to any license fee or any other tax imposed or levied under any law or any other ordinance of the City. (Ord. C-526, 2002; Ord. C-508, 2002)
3.38.040 Fund created.
There is created a special fund in the treasury of the City to be known as the “hotel-motel tax fund,” and all taxes collected under this chapter shall be placed in this special fund. (Ord. C-508, 2002)
3.38.050 Expenditures.
All taxes collected under this chapter shall be used only for:
A. Paying for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion.
B. Acquisition, construction or operating of tourism-related facilities.
C. The moneys accumulated in this fund may be invested in interest-bearing securities by the Clerk-Treasurer in the manner authorized by law. (Ord. C-508, 2002)
3.38.060 Administration and collection.
For the purposes of the tax as levied in this chapter:
A. The Department of Revenue is designated as the agent of the City for the purposes of collection and administration of the tax.
B. The administrative provisions contained in RCW 82.08.050 through 82.08.060 shall apply for administration and collection of the tax by the Department of Revenue.
C. The Department of Revenue is authorized to prescribe and utilize such forms and reporting procedures as the Department may deem necessary and appropriate. (Ord. C-508, 2002)
3.38.070 Records to be kept.
Each taxpayer taxable under the provisions of this chapter shall keep records reflecting the amount of all gross operating revenues, and such records shall be open at all reasonable times to the inspection of the Clerk-Treasurer, or his/her duly authorized representative, for verification of said tax. (Ord. C-508, 2002)
3.38.080 Annexation copies.
Whenever the boundaries of the City are extended by annexation, all persons, firms and corporations subject to this chapter shall be provided copies of all annexation ordinances by the City. (Ord. C-508, 2002)
3.38.090 Lodging Tax Advisory Committee.
The City Council shall establish a Lodging Tax Advisory Committee consisting of five members. Two members of the Committee shall be representatives of businesses required to collect the tax and at least two members shall be persons involved in activities authorized to be funded by the collected revenue. The City shall solicit recommendations for membership on the Committee from organizations representing businesses that collect the tax and organizations that are authorized to receive funds under this chapter. The fifth member of the Committee shall be a City Council member.
A Committee member shall forfeit his/her position by failing to attend three consecutive regular meetings of the Committee without being excused by the Committee. Members of the Committee may be excused from a meeting by contacting the Clerk-Treasurer or designee prior to the meeting and stating the reason for his/her inability to attend the meeting. The Clerk-Treasurer shall inform the Committee of the member’s absence, state the reason for such absence and inquire if there is a motion to excuse the member. Upon passage of such motion by a majority of members present, the absent member shall be considered excused and the appropriate notation will be made in the minutes. If the motion is not passed or the above procedure is not followed, the minutes will reflect that the absence is unexcused. If the Clerk-Treasurer is contacted and fails to inform the Committee, the Committee should inquire into the member’s absence and, if appropriate, excuse the same. The minutes shall reflect the same and previous minutes will be revised if necessary. Annually, the membership of the Committee shall be reviewed.
The Mayor shall nominate, and the Council shall confirm, the persons and the Council member serving on the Lodging Tax Advisory Committee. Nominations shall state the term of Committee membership. Appointments shall be for one- and two-year terms.
The Lodging Tax Advisory Committee shall conduct its business under the Open Public Meetings Act, with notice of its meeting(s) posted at City Hall and on the City website.
The Committee shall follow Robert’s Rules of Order, with minutes identifying the matters and action taken by the Advisory Committee. The meeting shall be public, with an opportunity to hear from persons who are interested in the use and expenditure of the tourism promotion fund. The Advisory Committee may adopt rules and an agenda for the conduct of its business. The City Council member appointed to the Advisory Committee shall serve as Chair.
Following its meeting(s) and action, the Advisory Committee shall submit its written recommendations on the use and expenditure of the tourism promotion fund to the City Council. The Advisory Committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the City for final determination. The City may choose only recipients from the list of candidates and recommended amounts provided by the Advisory Committee as outlined in RCW 67.28.1816. (Ord. C-845 § 1, 2014; Ord. C-837 § 1, 2014; Ord. C-680 § 1, 2008)
3.38.100 Penalty.
It is unlawful for any person, firm, or corporation to violate or fail to comply with any of the provisions of this chapter and shall constitute a misdemeanor. Every person convicted of a violation of any provision of this chapter shall be punished by a fine in a sum not to exceed $500.00. Each day of violation shall be considered a separate offense. (Ord. C-508, 2002. Formerly 3.38.090)