Chapter 3.21
TOURISM PROMOTION AREA
Sections:
3.21.010 Tourism promotion area established.
3.21.030 Imposition of lodging charge.
3.21.040 Exemption for lodging charge.
3.21.050 Uses of lodging charge revenue.
3.21.060 Collection and administration.
3.21.070 Hotel/motel tourism promotion area commission.
3.21.080 Spokane Valley tourism promotion area annual work plan/budget.
3.21.090 Contracts authorized for operation of tourism promotion area.
3.21.010 Tourism promotion area established.
There is hereby established pursuant to RCW 35.101.080 a tourism promotion area to be known as the Spokane Valley tourism promotion area, the boundaries of which shall be the jurisdictional boundaries of the City as they currently exist or as they may be expanded in the future through annexation. (Ord. 22-016 § 1, 2022).
3.21.020 Definitions.
Other than definitions specifically set forth herein, the definitions for Chapter 3.21 SVMC shall be the same as those used in Chapter 35.101 RCW, which are incorporated herein by reference. (Ord. 22-016 § 2, 2022).
3.21.030 Imposition of lodging charge.
There shall be one classification upon which a charge can be imposed, to be uniformly applied as follows:
A. There is imposed, pursuant to RCW 35.101.050, a lodging charge on the furnishing of lodging by lodging businesses located within the tourism promotion area established by Chapter 3.21 SVMC in the amount of $2.00 per night.
B. There is imposed, pursuant to RCW 35.101.057, an additional lodging tax of $2.00 on the furnishing of lodging by lodging businesses located within the tourism promotion area established by Chapter 3.21 SVMC in the amount of $2.00 per night. SVMC 3.21.030(B) and the additional charges authorized by it shall expire July 1, 2027, unless prior to that date the Washington State Legislature extends the expiration date found in RCW 35.101.057(2), in which case the expiration date in SVMC 3.21.030 shall be extended to the new expiration date, if any, set forth in RCW 35.101.057. (Ord. 22-016 § 3, 2022).
3.21.040 Exemption for lodging charge.
Pursuant to RCW 35.101.055, the lodging charge imposed by SVMC 3.21.030 shall not apply to temporary medical housing exempt pursuant to RCW 82.08.997. (Ord. 22-016 § 4, 2022).
3.21.050 Uses of lodging charge revenue.
A. The uses described in SVMC 3.21.050 are limited to tourism promotion pursuant to RCW 35.101.010(4) and may include payment of administrative costs associated with operation of the tourism promotion area as determined by the city council.
B. Revenue from lodging charges collected from the charges under Chapter 3.21 SVMC shall only be used for the following purposes:
1. The general promotion of tourism within Spokane Valley and the Spokane metropolitan area as specified in the annual tourism promotion area work plan/budget, to be adopted annually;
2. The marketing of convention and trade shows that benefit local tourism and the lodging business in Spokane Valley;
3. The marketing of Spokane Valley and the Spokane metropolitan area to the travel industry to benefit local tourism and the lodging businesses in Spokane Valley; and
4. The marketing of Spokane Valley and the Spokane metropolitan area to recruit sporting events in order to benefit local tourism and the lodging businesses in Spokane Valley.
C. Pursuant to RCW 35.101.130, the city council shall have sole discretion as to how the revenue derived from the lodging charge imposed pursuant to Chapter 3.21 SVMC is to be used for tourism promotion. In exercising its discretion on use of these funds, city council shall consider the recommendation(s) of the Spokane Valley hotel/motel tourism promotion area commission established pursuant to SVMC 3.21.070. (Ord. 22-016 § 5, 2022).
3.21.060 Collection and administration.
The lodging charge shall be collected and administered by the Washington State Department of Revenue and State Treasurer pursuant to Chapter 35.101 RCW. The city manager is authorized to execute any contracts with the state that are necessary to provide for the collection or administration of the lodging charge. All funds disbursed by the state to the City shall be deposited into a City tourism promotion area fund. (Ord. 22-016 § 6, 2022).
3.21.070 Hotel/motel tourism promotion area commission.
A. The hotel/motel tourism promotion area commission is created as an advisory body to make recommendations to the city council for use of the revenue derived from the charge. Appointments to or removals from the hotel/motel tourism promotion area commission shall be made by the mayor, with confirmation by a majority of council pursuant to the then-currently adopted governance manual.
B. The hotel/motel tourism promotion area commission shall be composed of five voting representatives from the following hotel chain scales, as defined by Smith Travel Research (STR). If no representative from a hotel in the corresponding chain scale is willing or able to serve on the hotel/motel tourism promotion area commission, that position may be made available to a representative of any lodging business within the boundaries of the tourism promotion area:
1. One economy hotel;
2. One midscale hotel;
3. One upper midscale hotel;
4. One upscale hotel;
5. One full-service hotel over 200 rooms.
A commission member may only represent one type of property identified in SVMC 3.21.070(B)(1) through (5) at any given time, and an ownership group may only represent one such property on the commission at any given time.
C. In addition to the above voting commission members, there shall be one nonvoting ex officio member as assigned by the city manager, who will function as a liaison between the city council and the hotel/motel tourism promotion area commission.
D. For appointment of the initial hotel/motel tourism promotion area commission, three members shall have a three-year term, and two members shall have a two-year term. Upon the expiration of the initial three-year term, the term for those three positions shall thereafter convert to a two-year term.
E. Members of the hotel/motel tourism promotion area commission shall serve without compensation.
F. All meetings of the hotel/motel tourism promotion area commission are subject to Washington’s Open Public Meetings Act, Chapter 42.30 RCW, and Washington’s Public Record Act, Chapter 42.56 RCW. (Ord. 22-016 § 7, 2022).
3.21.080 Spokane Valley tourism promotion area annual work plan/budget.
A. The hotel/motel tourism promotion area commission shall develop a recommended annual work plan/budget for use of Spokane Valley TPA revenues, including recommended activities and programs for funding from the charge authorized by Chapter 3.21 SVMC, and including a complete list of projects for which application was made for funding for that year. The recommended work plan/budget shall be submitted to the city council in written form no later than September 30th of each calendar year for inclusion in the City’s annual budget adoption process.
B. The city council may by motion approve the proposed work plan/budget, or instead return the proposed work plan/budget to the hotel/motel tourism promotion area commission for further recommendations.
C. The city council may not add a project to the annual work plan/budget that was not previously considered by the hotel/motel tourism promotion area commission. If such action is proposed by city council, the proposed work plan/budget shall be returned to the hotel/motel tourism promotion area commission for further discussion and recommendation, providing at least 20 days for comment unless the comment period is waived by the hotel/motel tourism promotion area commission. After the comment period, the city council may exercise its sole discretion as to how the revenue derived from the charge is to be used to promote tourism, pursuant to RCW 35.101.130(1).
D. After the annual work plan/budget is adopted by city council, it shall govern the use of revenue derived from the charges during the calendar year in which annual work plan/budget was approved. The city council may make amendments to the annual work plan/budget by motion, subject to compliance with the requirements of SVMC 3.21.080(C) regarding review and comment period by the hotel/motel tourism promotion area commission.
E. The hotel/motel tourism promotion area commission shall provide a written report to the city council at least 45 days prior to when the annual work plan/budget is due to the city council. The report shall include information on the previous year’s operations of the tourism promotion area such as (but not limited to):
1. The number of hoteliers paying the tourism promotion area fee;
2. A summary of key factors influencing Spokane Valley’s visitor industry in the past year;
3. An outline of major initiatives including visitor marketing and promotion, recruitment of group meetings or sporting events occurring in the past year;
4. The level of hotel occupancy and associated room demand contrasted to previous year;
5. The level of TPA per-room night proceeds contrasted to previous year;
6. The number of group meetings or sporting events that were booked, or in which significant support services were provided by the booking organization. This would include the number of participants and estimated economic impacts;
7. Other relevant efforts and impacts of the TPA activities. (Ord. 22-016 § 8, 2022).
3.21.090 Contracts authorized for operation of tourism promotion area.
Pursuant to RCW 35.101.130(2), the City may contract with a tourism destination marketing organization or other similar organization to administer the operation of the tourism promotion area. (Ord. 22-016 § 9, 2022).