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HomeMy WebLinkAbout2612 Implementing Lodging TaxOrainance AN ORDINANCE OF THE CITY OF PORT TOWNSEND REPEALING CHAPTER 3.20, TRANSIENT OCCUPANCY TAX, OF THE PORT TOWNSEND MUNICIPAL CODE, AND ADOPTING A NEW CHAPTER 3.20, LODGING TAX, TO IMPLEMENT CHANGES IN STATE LAW PURSUANT TO SSB 5867; AUTHORIZING A TAX LEVY OF TWO PERCENT ON THE SALE OR CHARGE MADE FOR THE FURNISHING OF LODGING; ESTABLISHING A SPECIAL FUND FOR THE TAX; PROVIDING FOR RECOMMENDATION ON LODGING TAX LEVIES AND EXPENDITURES BY THE LODGING TAX ADVISORY COMMITTEE; PROVIDING PENALTIES FOR NONPAYMENT OF THE TAX; AND ESTABLISHING AN EFFECTIVE DATE OF JANUARY 1, 1998 WHEREAS, SSB 5867, enacted as Ch. 452, Laws of 1997, provides that cities are 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, enacted as Ch. 452, Laws of 1997, 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, the City Council desires to establish and levy such tax for the purposes provided by statute; and WHEREAS, in Ordinance No. 1845, enacted in 1979, and codified in Chapter 3.20 PTMC, the Port Townsend City Council established the authority to collect a "transient occupancy tax" on all lodging transactions in Port Townsend. However, in enacting SSB 5867, the State Legislature intended to repeal the state taxing authority upon which Ordinance No. 1845 was based, replacing the taxing authority with a new lodging tax authority; 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 establishes a uniform grant of lodging tax authority for all cities, towns and counties; and WHEREAS, by Ordinance No. 2607, adopted on September 15, 1997, the Port Townsend City Council established a Lodging Tax Advisory Committee, as required by SSB 5867. At its regularly-scheduled November 3, 1997 meeting, the City Council appointed members of the Committee; and WHEREAS, on November 12, 1997 the Lodging Tax Advisory Committee met and reviewed this Ordinance, and recommended that the City Council adopt the Ordinance, to enable the City of Port Townsend to avail itself of all advantages in tourism promotion established by the State Legislature in the 1997 Session; and WHEREAS, the City Council hereby intends to take advantage of the new authority provided in SSB 5867, to promote the best interests of the community, by repealing Ordinance No. 1845 and enacting a new Chapter 3.20 PTMC in conformance with SSB 5867, NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: SECTION 1. Chapter 3.20, "Transient Occupancy Tax", of the Port Townsend Municipal Code is hereby repealed. SECTION 2. A new Chapter 3.20, "Lodging Tax," of the Port Townsend Municipal Code is hereby adopted and shall be codified to read as follows: Chapter 3.20 LODGING TAX Sections: 3.20.010 3.20.020 3.20.030 3.20.040 3.20.050 3.20.060 3.20.070 Tax levied. Del'tuitions. Deduction from state of Washington sales tax. Lodging tax fund; Use of tax revenues. Designation of department of revenue as agent. Lodging tax advisory committee recommendation. Non-compliance; Penalty. 3.20.010 Tax levied. From and after January 1, 1998, there is levied a special excise tax of two percent (2%) 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, rooming house, tourist court, motel, or trailer camp, 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 or enjoy the same. -2- Ord. No. 6, / ;Z 3.20.020 Definitions. The definitions of "selling price, .... seller," "buyer," "consumer," and all other definitions as are now contained in RCW 82.08.010 and RCW 67.28.080, and subsequent amendments thereto, are adopted as the definitions for the tax levied in this chapter. 3.20.030 Deduction from state of Washington sales tax. 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; provided, the first two percent of the tax shall be deducted from the amount of tax the seller would otherwise be required to collect and pay to the department of revenue under Chapter 82.08 RCW. 3.20.040 Lodging tax fund; Use of tax revenues. There is created a special fund in the treasury of the city and all taxes collected under this chapter shall be placed in this special lodging tax fund to be used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities or to pay for any other uses as authorized in Chapter 67.28 RCW, as now adopted or hereafter amended. 3.20.050 Designation of Department of Revenue as agent. For the purposes of the tax 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 82.08.140 and in Chapter 82.32 RCW as now adopted and hereafter amended, shall apply to administration and collection of the tax by the Department of Revenue. C. All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are adopted by reference. D. The Department of Revenue is authorized to prescribe and utilize such forms and reporting procedures as the department may deem necessary and appropriate. 3.20.060 Lodging tax advisory committee recommendation. A. l_xxtging tax proposal review. Not less than 45 days before taking final action on any lodging tax proposals as enumerated below, and in accordance with Chapter 2.74 PTMC, the -3- Ord. No. ~ & / g~ city council shall submit to the lodging tax advisory committee, for its review and comment, proposals regarding the following: 2. 3. 4. The imposition of a proposed lodging tax; Any increase in the rate of such tax; Repeal of an exemption from such a tax; or A change in the use of the revenue received from such a tax. B. Report from the lodging tax advisory committee. Upon receiving a proposal from the city council, the lodging tax advisory committee shall analyze the extent to which the proposal will accommodate activities for tourists, or increase tourism, and the extent to which the proposal will affect the long-range stability of the city's lodging tax fund. The committee shall submit a written recommendation to the Port Townsend city council within 30 days of receiving the proposal from the city council. The report shall be advisory to the Port Townsend city council, and shall not be binding upon the council. Failure of the committee to submit its report to the city council in a timely fashion prior to passage of the proposal shall not prevent the city council from acting on the proposal. 3.20.070 Non-compliance; Penalty. It is unlawful for any person, firm, or corporation to fail to collect or remit the tax in compliance with the provisions of this chapter. Violation of this Section shall constitute a civil penalty. Every person convicted of failing or refusing to collect or remit the tax in 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. SECTION 3. Repealer. Effective January 1, 1998, the following is hereby repealed: Ordinance No. 1845, enacted 1979. SECTION 4. Severability. The invalidity of any article, subsection, provision, clause, or portion of this ordinance or of the statutes adopted by reference herein, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this ordinance or the validity of its application to other persons or circumstances, and all other articles, sections, subsections, provisions, clauses, or portions of this ordinance or the statutes adopted by reference herein not expressly held to be invalid, shall continue in full force and effect. -4- O~.No. Z~/~ SECTION 5. Effective Date. This ordinance shall take effect and be in force on January 1, 1998. Read for the first, second, and third times and passed by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this /'~ day of /)/~'2/---', 1997. Attest: Juli~cCulloch, Mayor Approved:toForm.'f/ Tim/CA 11/12/97 [Code/CH3.20] Ord\{ch3-20.doc} -5- Ord. No. ~612