Chapter 3.15
LODGING TAX
Sections:
3.15.020 Lodging tax advisory committee established – Membership, terms.
3.15.030 Imposition of lodging tax, increases and repeal of exemptions.
3.15.040 Exemptions from the lodging tax.
3.15.080 Proposals for expenditure.
3.15.010 Definitions.
(1) As used in this chapter:
(a) “City” means the city of Normandy Park, Washington.
(b) “Lodging” means the furnishing of lodging and other services by a hotel, motel, rooming house, tourist court, or trailer camp, and the granting of any similar license to use real property, as distinguished from renting or leasing real property.
(c) “Lodging tax” means the tax authorized by Chapter 67.28 RCW on the furnishing of lodging, if imposed by the city under this chapter.
(d) “Lodging tax advisory committee” or “committee” means the Normandy Park lodging tax advisory committee as established by this chapter.
(e) “Operation” means and includes, but is not limited to, operation, management, and marketing.
(f) “Person” means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual.
(g) “Tourism” means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.
(h) “Tourism promotion” means activities 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 marketing of special events and festivals designed to attract tourists.
(i) “Tourism-related facility” means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities.
(j) “Tourist” means a person who travels from a place of residence to a different town, city, county, state or country, for purposes of business, pleasure, recreation, education, arts, heritage, or culture.
(2) Also as used in this chapter, the terms “selling price,” “seller,” “buyer,” “consumer,” and such other relevant terms defined in Chapter 82.08 RCW shall have the meanings set forth in that chapter, as the same now exists or as it may be amended hereafter. (Ord. 928 § 1, 2015).
3.15.020 Lodging tax advisory committee established – Membership, terms.
(1) The Normandy Park lodging tax advisory committee is hereby established for the purposes set forth in RCW 67.28.1817.
(2) The lodging tax advisory committee shall consist of six members appointed by the mayor and confirmed by the city council as follows:
(a) Two members shall be representatives of businesses required to collect lodging taxes imposed under this chapter.
(b) Two members shall be persons involved in activities authorized to be funded by revenue received from lodging taxes imposed under this chapter.
(c) Two members shall be members of the Normandy Park city council. One of the councilmembers shall act as chair of the lodging tax advisory committee and shall be a voting member of the committee. The other councilmember shall be a nonvoting member of the committee.
(d) Persons who are eligible for appointment under subsection (2)(a) of this section are not eligible for appointment under subsection (2)(b) of this section. Persons who are eligible for appointment under subsection (2)(b) of this section are not eligible for appointment under subsection (2)(a) of this section.
(3) Vacancies in the positions established in subsections (2)(a) and (b) of this section shall be publicized and filled as provided in the Normandy Park city council’s rules of procedure. Vacancies in the positions to be filled by Normandy Park councilmembers under subsection (2)(c) of this section shall be filled by mayoral appointment and confirmation by the city council without the need to be publicized.
(4) Members of the lodging tax advisory committee shall serve four-year terms or until their successors are appointed and confirmed, provided that the initial members shall serve staggered terms as follows:
(a) One of the initial two members appointed under subsection (2)(a) of this section and one of the initial members appointed under subsection (2)(b) of this section shall serve two-year terms, with their successors thereafter appointed to four-year terms; and
(b) One of the initial two members appointed under subsection (2)(a) of this section and one of the initial members appointed under subsection (2)(b) of this section shall serve four-year terms, with their successors thereafter appointed to four-year terms; and
(c) The Normandy Park city councilmembers initially appointed to the lodging tax advisory committee shall serve for the remainder of their current terms of elective office and their successors thereafter shall serve four-year terms.
(5) Members of the lodging tax advisory committee may be removed at any time with or without cause by majority vote of the entire membership of the Normandy Park city council.
(6) The Normandy Park city council shall review the membership of the lodging tax advisory committee on an annual basis and may make changes in the number of members at any time; provided, that:
(a) There shall always be at least two members who are eligible for appointment under subsection (2)(a) of this section and at least two members who are eligible for appointment under subsection (2)(b) of this section; and
(b) The number of members who are appointed from businesses required to collect the lodging tax shall always be equal to the number of members who are involved in activities eligible to be funded from revenues received from the lodging tax; and
(c) There shall be no more than two positions to be filled by Normandy Park councilmembers.
(7) The lodging tax advisory committee may adopt by-laws or rules of procedure to govern its business; provided, that such by-laws and rules are consistent with the provisions of this chapter. (Ord. 928 § 1, 2015).
3.15.030 Imposition of lodging tax, increases and repeal of exemptions.
(1) Before imposing the lodging tax authorized by Chapter 67.28 RCW, the Normandy Park city council shall submit a proposal for the same to the lodging tax advisory committee for review and comment. The lodging tax advisory committee shall submit its comments on the proposal to the Normandy Park city council in a timely manner, but in no event later than 45 days after receipt of the proposal. The Normandy Park city council shall not take final action on the proposal for the 45-day comment period, but the failure of the lodging tax advisory committee to provide comments prior to final action on or passage of the proposal shall not prevent the city council from acting on the proposal. If the council decides to impose the tax, this subsection shall be amended to reflect such imposition.
(2) Before enacting any increase in the rate of the lodging tax and before repealing any exemption from the lodging tax, the Normandy Park city council shall submit a proposal for the same to the lodging tax advisory committee for review and comment. The lodging tax advisory committee shall submit its comments on the proposal to the Normandy Park city council in a timely manner, but in no event later than 45 days after receipt of the proposal. The Normandy Park city council shall not take final action on the proposal for the 45-day comment period, but the failure of the lodging tax advisory committee to provide comments prior to final action on or passage of the proposal shall not prevent the city council from acting on the proposal. If the council decides to increase the rate of the tax or repeal an exemption, this chapter shall be amended to reflect the change. (Ord. 928 § 1, 2015).
3.15.040 Exemptions from the lodging tax.
The following activities are exempt from payment of the tax imposed by this chapter:
(1) The rental or leasing of real property. For purposes of this definition, it is presumed that the occupancy of real property for a continuous period of one month or more and the sale of and charge made for the furnishing of lodging for a continuous period of one month or more is a rental or lease of real property and not the furnishing of lodging on which the tax set forth in this chapter is imposed.
(2) Emergency lodging provided for homeless persons for a period of less than 30 consecutive days under a shelter voucher program administered by a city, town, or county, or by their respective agencies, or groups providing emergency food and shelter services; and
(3) Sales of temporary medical housing exempt under RCW 82.08.997. (Ord. 928 § 1, 2015).
3.15.050 Credits.
(1) Except as provided in this section, the tax imposed by this chapter shall be in addition to any license fee or other tax imposed or levied under any state or federal law or any other ordinance of the city.
(2) Taxes collected under this chapter shall be credited against the amount of the sales tax due to the state under Chapter 82.08 RCW on the same sale of lodging. (Ord. 928 § 1, 2015).
3.15.060 Lodging tax fund.
(1) There is hereby created a special fund in the treasury of the city, to be known as the “lodging tax fund.” All taxes collected under this chapter shall be placed in the fund.
(2) All tax revenues collected under this chapter shall be used directly by the city or indirectly by the city through a convention and visitor’s bureau or a direct marketing organization. Tax revenues shall be used solely for the purposes set forth in Chapter 67.28 RCW, as the same now exists or as it may hereafter be amended, including but not limited to the following:
(a) Tourism marketing;
(b) The marketing and operations of special events and festivals designed to attract tourists;
(c) Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under Chapters 35.57 and 36.100 RCW;
(d) Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the Internal Revenue Code of 1986, as amended. (Ord. 928 § 1, 2015).
3.15.070 Collection agent.
For purposes of the tax imposed by this chapter:
(1) The Washington State Department of Revenue is designated as the agent of the city for the purposes of collection and administration of the tax.
(2) The administrative provisions contained in RCW 82.08.050 through 82.08.070 and in Chapter 82.32 RCW shall apply to administration and collection of the tax by the Department of Revenue.
(3) All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are adopted by reference.
(4) The Department of Revenue is authorized to prescribe and utilize such forms and reporting procedures as the Department may deem necessary and appropriate. (Ord. 928 § 1, 2015).
3.15.080 Proposals for expenditure.
(1) Periodically, as monies are accumulated in the lodging tax fund, the city may make proposals to expend such monies for the purposes set forth in NPMC 3.15.060. The city may also solicit proposals from applicants eligible to receive monies for activities authorized to be funded by lodging tax revenues under NPMC 3.15.060.
(2) If the city solicits proposals from applicants, the proposals shall be submitted on application forms approved by the city manager. The application shall, at a minimum, provide the following information:
(a) The name of the proposal or project;
(b) The name of the applicant organization;
(c) The applicant organization’s tax status as an Internal Revenue Code Section 501(c)(3) or 501(c)(6) organization, if applicable, together with the applicant’s tax identification number;
(d) The name, address, telephone number, and e-mail address of a primary contact for the applicant organization;
(e) A detailed description of the proposal, together with a statement as to whether the proposal is applied for under NPMC 3.15.060(2)(a), (b), (c), or (d);
(f) Estimates of how any monies received will result in increases in the 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 50 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.
(g) Upon receipt of all applications, the lodging tax advisory committee shall consider the city’s proposals and the proposals made by applicants and shall select candidates from amongst the city and the applicants applying for the use of the lodging tax revenues and provide a list of such candidates and recommended amounts of funding to the city council. The city council will choose only recipients from the list of candidates and recommended amounts provided by the lodging tax advisory committee.
(h) The city council will not take action on any city proposal or any other application for funding for at least 45 days after the proposals are provided to the lodging tax advisory committee, but the failure of the lodging tax advisory committee to make a recommendation within 45 days shall not prevent the city council from taking action. (Ord. 928 § 1, 2015).
3.15.090 Reporting.
(1) All recipients of funding under NPMC 3.15.080 shall be required to submit a report to the city manager describing the actual number of people traveling for business or pleasure as the result of the funded proposal on a trip:
(a) Away from their place of residence or business and staying overnight in paid accommodations;
(b) To a place 50 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) The city manager will transmit a copy of the report to the city council, the lodging tax advisory committee, and the Joint Legislative Audit and Review Committee of the Washington State Legislature. The report will also be made available for public review and inspection. (Ord. 928 § 1, 2015).