HomeMy WebLinkAbout08 0801 22 J STATE OF WASHINGTON
COUNTY OF JEFFERSON
IN THE MATTER OF AMENDING
JEFFERSON COUNTY CODE ORDINANCE NO. 08-0801-22
CHAPTER 3.25
WHEREAS, Chapter 3.25 Jefferson County Code (JCC), Lodging Tax relates to the
lodging tax; and
WHEREAS, one element of Chapter 3.25 JCC is potentially inconsistent with the state
statute governing the lodging tax (RCW 67.28.1817), leading some to believe a certain use of
lodging tax revenues are eligible when RCW 67.28.1817 makes clear they are not eligible; and
WHEREAS, State law always controls over an inconsistent local ordinance; and
WHEREAS, certain sections of the chapter need to better synchronized with the state
statute and
WHEREAS, Chapter 3.25 JCC should to be amended to accordingly;
NOW, THEREFORE, BE IT ORDAINED by the Jefferson County Board of
Commissioners (Board) as follows:
Section 1. Amendment of Chapter 3.25 JCC. The Board hereby adopts the changes to Chapter 3.25
JCC shown in Appendix A, attached.
Section 2. Findings. The Board adopts the above recitals (the "WHEREAS" statements) as its
findings of fact in support of this ordinance.
Section 3. Severability. The provisions of this ordinance are declared separate and severable. If
any provision of this ordinance or its application to any person or circumstances is held invalid,
then the remainder of this ordinance or application of its provisions to other persons or
circumstances shall remain valid and unaffected.
Section 4. SEPA Compliance. This resolution is categorically exempt from the State
Environmental Policy Act under WAC 197-11-800(19).
Section 5. Effective Date: This Ordinance shall take effect immediately.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
ADOPTED this 1st day of August 2022, at 11:26 a.m.
rf JEFFERSON COUNTY
•. BO RD OF COUNTY COMMISSIONERS
$ AL.
Heidi Eisenhour, Chair
•' el! Approv-d Telephonically
y K to D !k ember
M.
ATTEST:
Greg Brotherton, Member
APPROVED AS TO FORM:
ei 6460/41 j 0 c August 1, 2022
Carol yr allaway, Nate Philip C. Hunsucker, Date
Clerk of the Board Chief Civil Deputy Prosecuting Attorney
APPENDIX A
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. 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. [Ord. 2-
98 § 1]
(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.
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 JCC 3.25.060 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. 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. 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 and maintenance of tourist-
related facilities and their costs for local promotional activities, including but not limited to
Jefferson County Historical Society, Tourism Coordinating Council, Olympic Peninsula Gateway
Visitor Center.
(2) Not more than 25 percent for thedevelopment of tourism development strategies and/or
theacquisition 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, Olympic Peninsula Gateway Visitor Center.
(3)Not less than 25 percent fortargete andl regional tourism promotion. [Ord. 2 98 § 3(B)]
3.25.050 Selection and Reporting Requirements.
(1) Except as provided in(2) of this subsection, applicants applying for use of revenues in
this chapter must provide the county estimates of how any moneys 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 fifty 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 (1) of this subsection 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 fifty 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.
3.25.0503.25.060 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 does not exceed the amount in the fund
prior to the receipt of the first quarter tax distribution. [Ord. 2-98 § 3(C)]
3 0603.25.070 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. 2-98 § 3(D)]
3.25.0703.25.080 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. 9-98; Ord. 2-98 § 4]
30803.25.090 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. 2-98 § 5]
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
REGULAR AGENDA REQUEST
TO: Board of County Commissioners
FROM: Mark McCauley, County Administrator
DATE: August 1,2022
SUBJECT: Public Hearing: regarding amending Jefferson County Code (JCC) Chapter
3.25 to better synchronize the code with state statute and to improve clarity
STATEMENT OF ISSUE: During the 2021 Request for Proposals cycle for lodging tax funding it
became clear that JCC Chapter 3.25 was potentially inconsistent with the state statute governing the
lodging tax(RCW 67.28.1816). Because of this a local entity applied for funding for a project that
appeared by code to be eligible when it was clear from reading the applicable state statute that the project
wasn't eligible for funding.
ANALYSIS: During the effort to amend Chapter 3.25,JCC to improve clarity regarding the above item
it became clear that additional amendments were necessary to better synchronize county code with the
state statute governing the lodging tax(RCW 67.28.1816) and to further improve clarity.
Amending the code requires a public hearing.
Proposed code revisions related to this public hearing are attached.
FISCAL IMPACT: This request has no fiscal impact.
RECOMMENDATION: That the Board of County Commissioners conduct the public hearing to
consider amending Jefferson County Code Chapter 3.25.
E E BY. 62_ ,..7
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--7/25,A-2-
' Mark Mc uley, County Administrator Date