HomeMy WebLinkAbout09 1207 98
M-~ ~.O.I:¿.
. .t!7.ry 0. F..P.", )/J- . ~ .11
--' íÇeå<5.
11 (.{þ-
'A-'7'Se~6C¡V
State of Washington
County of Jefferson
In the Matter of Amending Ordinance No.
02-0622-98, the Excise Tax on the sale and
charge made for the furnishing of lodging
that is subject to tax under Chapter 82.08 RCW
authorizing the collection of said tax within the
City of Port Townsend.
}
}
}
}
}
}
ORDINANCE NO. 09-1207-98
WHEREAS, the Board of Commissioners enacted Ordinance No. 3-81 to levy a
tax for lodging on hotels, rooming houses, tourist courts, motels and trailer camps and granting
any similar license to use real property, setting the rate of the tax and providing for the collection
and distribution of such on June 15, 1981, for the purposes authorized in RCW 67.28; and,
WHEREAS, the Washington State Legislature in amending chapter 67.28 RCW
allows the local option of increasing the excise tax on the sale and charge made for the furnishing
of lodging that is subject to tax under Chapter 82,08 RCW. Said the tax is to be used exclusively
for the tourism promotion, acquisition oftourism facilities, and/or operation of tourism facilities;
and
WHEREAS, the Board of Commissioners of the County of Jefferson increased
said tax rate through the passage of Ordinance 02-0622-98, subject only to lodging
establishments in the unincorporated area of Jefferson County, and
WHEREAS, the City of Port Townsend City Council, by formal request action has
requested the authorization to levy said tax on lodging establishments within the municipal
boundaries of the City of Port Townsend.
NOW, THEREFORE, IT IS HEREBY ORDAINED, by the Board of County
Commissioners of Jefferson County, that Ordinance No, 02-0622-98 be amended to authorize the
levy and collection of Lodging Tax at a rate of 4% on all applicable establishments within the
corporate limits of the City of Port Townsend and that the following sections of Ordinance 02-
0622-98 be amended as follows:
ADD new section before Section 1 Definitions --
Section lA - Applicability
The ordinance 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 ordinance shall not apply, nor be
Page 1 of 2
. VOL
24 f~Π- 3187
..
09-1207-98
Ordinance No, - Amending Ordinance No. 02-0622-98, the Excise Tax on the sale and charge made
for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW authorizing the collection
of said tax within the City of Port Townsend,
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.
Replace wording in Section 4 --
Section 4 - Geoeraphic 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.
ADD new section after Section 8 --
Section 9 - Effective Date of Amendments to Ordinance
The effective date of the tax imposed by this amendment to ordinance pertaining to the City of
Port Townsend shall bej:~~ pt day of January, 1999,
SEAL:
: ~ ,
'. .
t. .
\ /I. . - í,."
\ ,/,.t -' ...,J' ,
, '--..... t: ~ ,¡ . ,
.,',1'1' ,,>"
- ¿þTEST: Itá
~~~y, CMC ~
Clerk of the Board
:VOL
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
Page 2 of 2
24 r-'Π- 3188
City of Port Townsend
Office of the City Attorney
540 Water Street
Port Townsend, WA 98368
(360) 385-5991 Fax: (360) 385-5248
Timothy 1. McMahan
City Attorney
Mary A. Winters
Assistant City Attorney
November 16, 1998
Mr. David Goldsmith
Deputy Director, Public Services
Jefferson County Courthouse
PO Box 1220
Port Townsend, W A 98368
00 ~lC~n/~~
NOV 1 '8 1998 .
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
RE:
City and Jefferson County Lodging Tax
Dear David:
Thank you for your telephone call of Friday, November 13, 1998. Enclosed is a
photocopy of Ordinance 2663, adopted October 5, 1998, amending City code to increase the
City's lodging tax to 4 percent. It is my understanding that the Board of County Commissioners
will need to take action to enable the City to collect the additional 2 percent special tax. I would
appreciate the County taking that action, and making explicit in its ordinance that all such
revenues will be passed through to the City of Port Townsend.
Please note that the effective date of Ordinance 2663 is January 1, 1999. It was necessary
to delay the effectiveness in order to give the Department of Revenue an opportunity to implement
the new tax. This date should likewise provide the County with the time to take this action.
Thank you for your help.
,.-
~
othy L. McMahan
City Attorney
Enc: Ord. 2663
copy: Mayor Julie McCulloch
Michael Legarsky, Finance Director
[97-32]Let {Goldl116.1tr}
Ordinance No. ~ {p to 3
AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING CHAPTER
3.20, LODGING TAX, OF THE PORT TOWNSEND MUNICIPAL CODE TO
AurHORIZE THE IMPOSITION OF A SPECIAL TAX LEVY OF TWO PERCENT
ON THE SALE OR CHARGE MADE FOR THE FURNISIllNG OF WDGING,
THEREBY INCREASING THE WDGING TAX LEVY TO A TOTAL OF FOUR
PERCENT; ADOPTING THE RECOMMENDATIONS OF THE WDGING TAX
ADVISORY COMMI'ITEE; AND ESTABLISHING AN EFFECI'IVE DATE
SECTION 1. FINDINGS & RECITALS
1. 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; and
2. 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 or "basic" 2% lodging tax rate, and
amended RCW 67.28.181 to authorize local governments to impose an additional 2% "special"
lodging tax, for a maximum total of 4% combined "basic" and "special" rates; and
3. Under the state lodging tax scheme, the basic 2% tax is retained by the State of
Washington for state tourism promotion and accommodation needs, unless local governments
themselves ,collect the basic 2 % rate as a local lOdging tax. Where local governments impose
and collect the basic 2 % rate, that tax is credited to the local government for local tourism
promotion and accommodation needs. Therefore, the basic 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
4. 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, choosing to take advantage of the new authority provided in
SSB 5867, to promote the best interests of the community; and
5. Port Townsend. is remote from areas of Washington state which are
experiencing substantial economic growth and development. At present, the tourist trade is a
central component of Port Townsend's economy. Port Townsend's ability to attract and serve
tourism-related economic growth and development necessitates that the City look for all
appropriate opportunities to promote tourism, to accommodate tourism, and to enable the City
to provide the facilities and services for tourists, including services and facilities which
mitigate the impacts upon the City's residents associated with tourist traffic and use of public
amenities and facilities; and
6. The Port Townsend City Council has recently used lodging tax revenues to
promote tourism and to assist'the local lodging community, including appropriating funds to
the Chamber of Commerce to operate the Visitor's Center (Resolution No. 98-43) and
appropriating funds beyond the current annual anticipated revenues, thereby using accumulated
reserves of the Fund, and signing a contract for hiring a marketing coordinator as an
independent contractor of the City, who will work in cooperation with the Chamber of
Commerce and the lodging community to effectively market and promote Port Townsend as a
tourist destination (Resolution No. 98-51); and
7. In ESB 5867 and HB 2698, the State Legislature has expanded local lodging tax
collection and spending authority in recognition of the fact that tourism promotion is only one
component of the needs local governments face in developing and serving a local tourism
economy. Equally important is the need to accommodate tourists once they arrive to their
destination. The legislature has expanded the authority of local governments -- particularly in
smaller communities -- to accommodate tourists, enabling all cities and counties to use lodging
tax revenues for the acquisition and operation of tourism-related facilities; and
8. The City Council recognizes that the City faces a significant need to better
accommodate tourists through the acquisition, repair, improvement and operation of tourism-
related facilities, both to help promote Port Townsend for tourists, and to accommodate
tourists and address the impacts of tourist traffic upon the arrival of tourists to Port Townsend.
Tourists travel to Port Townsend for many reasons, including but not limited to enjoyment of
the City's spectacular natural setting, well-preserved Victorian buildings, maritime and seaport
character and atmosphere, world-class arts and entertainment opportunities, and the charming
and welcoming character of our hotels, motels and Bed & Breakfast establishments; and
9. Also included in the reasons tourists travel to Port Townsend is the use and
enjoyment of public amenities built to attract and accommodate touristS. These amenities
include the City's docks, wharves, water walks, paths, bike trails, restrooms serving tourists,
convention facilities, performing arts facilities, cultural facilities, and other publicly-owned
and publicly-maintained facilities and amenities. These facilities and amenities, which serve
both our own residents as well as our visitors, are critical to the City's successful efforts to
promote and accommodate tourists. These facilities and amenities are costly to build, operate
and maintain, and compete for limited tax revenues needed for facilities and amenities which
predominately serve our local residents; and
10. With the assistance of State of Washington grant funds, the City recently rebuilt
and opened Union Wharf, a publicly-owned and maintained facility serving and promoting
visitors to Port Townsend. The City recently adopted rules and regulations for the use of
Union Wharf (Ordinance No. 2631). Through this process, the City Council has become
-2-
Old. No.
acutely aware that the City needs to promote the use, of Union Wharf in creative ways to
provide maximum opportunities for public use and access and the best possible economic
"returns" to the community; and
11. The Council is aware that additional new facilities built to promote and
accommodate tourists are needed and will be needed in the future, and that maintenance and
operation of the City's facilities, particularly docks and wharves, will impose a substantial tax
burden upon Port Townsend's residents. Port Townsend has a limited local tax base. The
Council believes that costs incurred for tourism promotion and accommodation should be
offset in large part by revenues received from users of tourism-related facilities, and from
revenues received from the visitors who benefit from and use these facilities. This use of
lodging tax revenues was precisely what the Legislature intended in recently expanding lodging
tax authority for small communities such as Port Townsend; and
12. Jefferson County recently completed formation of its lodging tax advisory
committee, and conducted discussions with representatives of the lodging industry and
representatives of entities which may benefit from the use of lodging tax revenues. Based
upon this discussion, the County concluded that the County would benefit from imposing the
special 2 % additional lodging tax as authorized by RCW 67.28.181, targeted at operation of
tourist related facilities, local tourist accommodations promotion, adoption of comprehensive
tourism development strategies, acquisition of tourism related facilities, and regional tourism
promotion. Jefferson County has determined that it is in the best interests of residents and
visitors to Jefferson County to impose a combined basic and special lodging tax rate of 4%;
and
13. At its July 6,1998 regular meeting, the City Council adopted Resolution 98-083,
referring the proposal to add the two percent special lodging tax authorized in accordance with
RCW 67.28.181, as amended by the 1998 Legislature, for a total of four percent, to the City's
Lodging Tax Advisory Committee, and asked the LTAC to make recommendations to the City
Council regarding the expenditure of enhanced lodging tax revenues received by the special
two percent tax; and
14. The Lodging Tax Advisory Committee has held numerous meetings, sought
public input, and has consulted with representatives of the lodging industry, as well as
organizations which benefit from lodging tax revenues. The LTAC has signed a letter
addressed to the City Council outlining the Committee's view that additional lodging tax
revenues are needed to enhance tourism promotion~ enhance public facilities to accommodate
tourists, and establish a reserve fund for times of economic downturn. The LTAC has
unanimously recommended that the City Council levy the "special" two percent lodging tax,
for a total four percent tax; and
15. The City Council understands that all surrounding jurisdictions have come to the
same conclusion reached by Jefferson County -- that the total 4% lodging tax is necessary to
-3-
Ord. No. d ÚJ~3
fully fund needed tourism promotion and accommodation activities, facilities and amenities.
The City Council finds that the need exists for the City to impose the 2 % special (additional)
tax, in that there is merit to County-wide consistency in imposition of the tax and in
developing coordinated plans and programs with Jefferson County for use of the lodging tax
revenues in'a manner which best serves City and County residents and visitors. Further, the
Council believes it is important for the County and the City to enhance and improve their
competitive edge over other communities in promoting the County and the City as a tourist
destination, and in providing needed amenities to accommodate tourism-related needs; and
16. The City Council has reviewed the recommendations of LTAC, submitted to the
Council in accordance with PTMC 3.20.060. The Council hereby adopts the LTAC's
recommendations and amends Chapter 3.20 PTMC to adopt the additional two percent
"special"lodging tax, for a total of four percent. LTAC's expenditure recommendations will
be reviewed and implemented through the annual budget process,
NOW, THEREFORE, the City Council of the City of Port Townsend ordains as
follows:
SECTION 2. Section 3.20.010 of Chapter 3.20, "Lodging Tax," of the Port
Townsend Municipal Code is hereby amended to read as follows:
3.20.010 Tax levied.
nom and after JanuaIy 1, 1998, There is hereby levied a special excise tax of two fimI percent
(2-%}~ on the sale of or charge made for the furnishing of lodging that is subject to tax under
Chapter 82.08 RCW, said tax including the "basic" 2% lodging tax as authorized by RCW
67.28.180 and the "special" 2% lodging tax as authorized by RCW 67.28.181, as now adopted
and hereafter amended. 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. (Ord. - § 2, 1998; Ord. 2612 § 2, 1997).
SECTION 3. 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-
Ord. No. d (p(p3
SECTION 4. Effective Date. This ordinance shall take effect and be in force on
January 1, 1999.
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 S~day of October, 1998.
Attest:
~~
Culloch, Mayor
e~y~~
, City Attorney
09/30/98 [97-32] ard\ {3-2<U>1O.doc}
-5-
Ord. No. ~ wh3