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.
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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
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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.
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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}
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