Chapter 3.25
LODGING TAX*
Sections:
3.25.020 Lodging tax advisory committee.
3.25.050 Selection and reporting requirements.
*Prior legislation: Ord. 3-81.
3.25.005 Applicability.
This chapter pertains to the collection of lodging tax within Jefferson County, including the city of Port Townsend and the use and distribution of lodging tax generated within the unincorporated area of Jefferson County as set forth. This chapter shall not apply, nor be construed to apply, to the use and/or distribution of lodging tax collected within the municipality of the city of Port Townsend. It is only to authorize the collection of said tax therein. [Ord. 8-22 § 1 (Appx. A); Ord. 9-98; Ord. 2-98 § 1A]
3.25.010 Definitions.
(1) “Acquisition” includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter.
(2) “Comprehensive tourism strategy” means a planning document used to guide recommendations concerning distribution of lodging tax revenues as provided herein.
(3) “Operation” includes, but is not limited to, operation, management, and marketing.
(4) “Tourism” means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.
(5) “Tourism promotion” means activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists.
(6) “Tourism-related facility” means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a)(i) owned by a public entity; (ii) owned by a nonprofit organization described under Section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended; or (iii) owned by a nonprofit organization described under Section 501(c)(6) of the federal Internal Revenue Code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce; and (b) used to support tourism, performing arts, or to accommodate tourist activities. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 1]
3.25.020 Lodging tax advisory committee.
(1) Scope, Authority. A Jefferson County lodging tax advisory committee (JCLTAC) is hereby formed for the purpose of developing a comprehensive tourism development strategy and assisting in the administration of the lodging tax fund, including recommending annual expenditures consistent with JCC 3.25.030 through 3.25.070 to the board of county commissioners through the annual budget cycle.
(2) Appointment. The JCLTAC shall consist of five members appointed by the board of county commissioners to serve three-year terms. Committee membership shall include two members from establishments required to collect the tax, two members representing activities authorized to be funded by said tax, and one member from the board of county commissioners, who shall serve as the chair of the committee.
(3) Supersedes. The JCLTAC shall supersede and replace the tourism coordination council established under Resolution No. 59.94. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 2]
3.25.030 Use.
(1) The use of the lodging tax shall only be authorized for those activities and facilities which clearly demonstrate the following:
(a) Pay all or a portion of the cost of tourism promotion;
(b) Acquire tourism-related facilities owned or operated by a municipality or a public facilities district created under Chapters 35.57 and 36.100 RCW; and/or
(c) Operate tourism-related facilities.
(2) The intent for the use of this tax is to generate or support the generation of additional overnight visitor stays and bolster the tourism economy in Jefferson County. These monies are not appropriate for the sponsorship of a specific event, even though said event may encourage the use of overnight accommodations. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 3(A)]
3.25.040 Distribution.
The Jefferson County lodging tax advisory committee shall recommend to the board of county commissioners and the board of county commissioners shall adopt a budget for the expenditure of lodging tax not to exceed the following percentages of categorical distribution:
(1) Not more than 50 percent for the operation of tourist-related facilities, including but not limited to Jefferson County Historical Society, Tourism Coordinating Council and Olympic Peninsula Gateway Visitor Center.
(2) Not more than 25 percent for the acquisition and development of tourism-related facilities owned or operated by a municipality or a public facilities district created under Chapters 35.57 and 36.100 RCW, including but not limited to the McCurdy Pavilion and Olympic Peninsula Gateway Visitor Center.
(3) Not less than 25 percent for tourism promotion. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 3(B)]
3.25.050 Selection and reporting requirements.
(1) Except as provided in subsection (2) of this section, applicants applying for use of revenues in this chapter must provide the county estimates of how any monies received will result in increases in the number of people traveling for business or pleasure on a trip:
(a) Away from their place of residence or business and staying overnight in paid accommodations;
(b) To a place 50 miles or more one way from their place of residence or business for the day or staying overnight; or
(c) From another country or state outside of their place of residence or their business.
(2) Applicants Must Submit Applications and Estimates.
(a) Applicants applying for use of revenues in this chapter must submit their applications and estimates described under subsection (1) of this section to the local lodging tax advisory committee.
(b) The local lodging tax 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 county for final determination. The county may choose only recipients from the list of candidates and recommended amounts provided by the JCLTAC.
(3) Required Report by All Recipients.
(a) All recipients must submit a report to the county describing the actual number of people traveling for business or pleasure on a trip:
(i) Away from their place of residence or business and staying overnight in paid accommodations;
(ii) To a place 50 miles or more one way from their place of residence or business for the day or staying overnight; or
(iii) From another country or state outside of their place of residence or their business.
The county must make such report available to the public and furnish copies of the report to members of the JCLTAC. [Ord. 8-22 § 1 (Appx. A)]
3.25.060 Operating reserve.
Within the lodging tax fund, a reserve equal to 25 percent of the anticipated yearly tax generation will be retained in order that the beginning year expenses do not exceed the amount in the fund prior to the receipt of the first-quarter tax distribution. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 3(C). Formerly 3.25.050]
3.25.070 Capital reserve.
The Jefferson County lodging tax advisory committee may recommend, and the board of commissioners may establish, a capital reserve fund for the purpose of acquiring and developing tourism-related facilities. Said capital reserve shall not exceed the total annual anticipated revenue generated by the lodging tax. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 3(D). Formerly 3.25.060]
3.25.080 Geographic area.
The lodging tax shall apply on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW within the geographic area of Jefferson County, including the city of Port Townsend. [Ord. 8-22 § 1 (Appx. A); Ord. 9-98; Ord. 2-98 § 4. Formerly 3.25.070]
3.25.090 Tax rate imposed.
The excise tax rate imposed herein shall be four percent on the sale or charge made for furnishing of lodging that is subject to tax under Chapter 82.08 RCW. [Ord. 8-22 § 1 (Appx. A); Ord. 2-98 § 5. Formerly 3.25.080]