HomeMy WebLinkAbout98-083Resolution No. 98-083
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND
REQUESTING THE LODGING TAX ADVISORY COMMITTEE TO REVIEW
INCREASING THE CITY'S LODGING TAX FROM TWO PERCENT TO FOUR
PERCENT
The City Council of the City of Port Townsend, Washington, does resolve as follows:
WHEREAS, SSB 5867, enacted as Ch. 452, Laws of 1997, codified at Chapter 67.28
RCW, provided that cities and counties were authorized to levy and collect a special excise tax
not to exceed four percent on the sale of or charge made for the furnishing of lodging that is
subject to tax under Chapter 82.08 RCW; and
WHEREAS, SSB 5867 provides that such tax shall be levied only to pay all or any part
of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of a
tourism-related facility; and
WHEREAS, in SSB 5867, the State Legislature clarified municipal authority to levy a
lodging tax and expanded permissible uses of lodging tax revenues to enable more effective
promotion of tourism and the construction, acquisition and operation of tourism-related facilities.
SSB 5867 further established a uniform grant of lodging tax authority for all cities, towns and
counties, authorizing cities and counties to impose a lodging tax to a maximum of 4 %; and
WHEREAS, in House Bill 2698, the 1998 State Legislature amended Chapter 67.28
RCW to remedy problems resulting from the Governor's veto of sections of SSB 5867. In
amending Chapter 67.28 RCW, the Legislature retained the base 2% lodging tax rate, and
amended RCW 67.28.181 to authorize local governments to impose an additional 2% "special"
lodging tax, for a total of a maximum of 4% combined base and special rates; and
WHEREAS, under the state lodging tax scheme, the base 2% tax is retained by the State
of Washington for state tourism promotion and accommodation needs, unless local governments
themselves collect the base 2% rate as a local lodging tax. Where local governments impose and
collect the base 2% ram, that tax is credited to the local government for local tourism promotion
and accommodation needs. Therefore, the base 2% tax is not an additional city tax, in that if not
collected by and credited to Port Townsend, this tax would be collected and expended by the State
of Washington. In situations when local governments impose the additional special 2 % tax (for
a total of 4%) only the additional 2% represents a local, additional tax imposed on lodging
revenues; and
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WHEREAS, in Ordinance No. 2612, codified in Chapter 3.20 PTMC, the Port Townsend
City Council established the authority to collect a 2 % base lodging tax on all lodging transactions
in Port Townsend; and
WHEREAS, by Ordinance No. 2607, adopted on September 15, 1997, the Port
Townsend City Council established a Lodging Tax Advisory Committee CLTAC"), as required
by SSB 5867; and
WHEREAS, the LTAC is composed of representatives of the lodging community and
organizations which may benefit from lodging tax revenues. The LTAC provides the City Council
with expert assistance and a valuable interface with affected parties for the discussion of tourism
promotion and accommodation issues. In accordance with State law and Port Townsend's local
code, LTAC is charged with the responsibility of reviewing proposals for imposition of the special
lodging tax rate, and appropriate expenditures of funds, and makes recommendations to the City
Council prior to council action. As such, LTAC serves an indispensable advisory role to the City
Council,
NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Port
Townsend that for the reasons stated in the above recitals and findings, the City Council believes
that the imposition of special lodging tax of up to 2%, in accordance with RCW 67.28.181, as
amended by the 1998 Legislature, has merit and would provide significant economic benefits to
the City in meeting tourism promotion and accommodation needs. The Council requests that the
City's LTAC study this proposal, in cooperation with representatives from the lodging industry
and entities benefiting from lodging tax revenues, and make a recommendation to the City Council
within 90 days from the date of this Resolution. Further, in the event the LTAC recommends
imposition of the special tax of up to 2 %, the City Council requests that the LTAC advise the
Council on a conceptual Spending plan for such additional revenues.
ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor
on this 6th day of July, 1998.
Attest:
Pam Kolacy, Caty Clerk
[97-32] CA§Res{tlm~res\21tac2 % .doe}
Approved as to Form:
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