HomeMy WebLinkAbout1998-056 Lodging Tax ORDINANCE NO. 98- 56
AN ORDINANCE of the City of Yakima, Washington, relating to taxation of
charges made for the furnishing of lodging, reenacting such taxes, and
providing for an effective date.
WHEREAS, ESSB 5867, enacted as Chapter 452, Laws of 1997 (the "1997 Legislation "),
provided that cities are authorized to levy and collect a special excise tax on the sale of or charge
made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW; and
WHEREAS, the 1997 Legislation repealed a portion of the existing statutory authority of
the City of Yakima to levy taxes on the furnishing of lodging, which authority has been
exercised by the City pursuant to Chapters 3.92 and 3.93 of the City of Yakima Municipal Code
(the "Code "), but provided, and stated the Legislature's intent, that the City's authority to levy
lodging taxes be continued under the 1997 Legislation;
WHEREAS, the City Council adopted Ordinance No. 97 -48, which reenacted and
replaced the taxes on such sales or charges authorized by law prior to the 1997 Legislation with a
special excise tax of five percent on such sales and charges;
WHEREAS, HB 2698, enacted as Chapter 35, Laws of 1998 (the "1998 Legislation "),
resolved conflicts in the 1997 Legislation, and validated any taxes imposed and collected by the
City of Yakima pursuant to Ordinance No. 97 -48 on or after July 27, 1997;
WHEREAS, the 1998 Legislation provides that the City of Yakima is authorized to levy
and collect a special excise tax, at the rate authorized prior to the 1997 Legislation on such sales
or charges through January 1, 1999;
WHEREAS, the 1998 Legislation further provides that the City of Yakima is authorized,
after January 1, 1999 to levy and collect a special excise tax at a rate not exceeding the rate
actually imposed on January 1, 1999;
WHEREAS, it is essential that,the City maintain in effect a total lodging tax of not less
than five percent to ensure against the impairment of the obligation of the City of Yakima to pay
and secure the outstanding general obligation bonds of the City for which purposes the lodging
taxes of the City have been pledged; and
WHEREAS, it is the recommendation of the Lodging Tax Advisory Committee and the
intent of the City Council to reenact and replace the taxes on such sales and charges authorized
by the 1997 Legislation with a special excise tax of five percent on such sales and charges as
authorized by the 1998 Legislation; and
WHEREAS, the provisions of this Ordinance are authorized by State law including, but
not limited to RCW 67.28.180 and RCW 67.28.181;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Section 1 (part) of Ordinance No. 1624, as previously amended by Section
1 of Ordinance No. 97 -48, and Section 3.93.010 of the Code are amended and reenacted to read
as follows:
3.93.010 Special excise tax imposed.
Commencing January 2, 1999, for the purposes permitted
under state law, there is imposed and levied a special excise tax of
five percent on the sale of or charge made for the furnishing of
lodging that is subject to tax under Chapter 82.08 RCW, including,
but not limited to, the furnishing of lodging by a hotel,
roominghouse, tourist court, motel, trailer camp, and granting of
any similar license to use real property, as distinguished from
renting or leasing of real property, in the City of Yakima;
provided, that it shall be presumed that the occupancy of real
property for a continuous period of one month or more constitutes
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a rental or lease of real property and not a mere license to use or to
enjoy the same.
Section 2. Section 1 of Ordinance No. 1624 (part), as previously reenacted by
Section 2 of Ordinance No. 97 -48, and Section 3.93.020 of the Code are reenacted to read as
follows:
3.93.020 Definitions.
The definitions of "selling price," "seller," "buyer,"
"consumer," and all other definitions as are now contained in
RCW 82.08.010, and subsequent amendments thereto, are adopted
as the definitions for the tax levied under this chapter.
Section 3. Section 1 (part) of Ordinance No. 1624, as previously reenacted by
Section 3 of Ordinance No. 97 -48, and Section 3.93.030 of the Code are reenacted to read as
follows:
3.93.030 Administration and collection of tax.
For the purposes of the tax levied under this chapter:
A. The Department of Revenue of the State of
Washington is designated as the agent of the City of Yakima for
the purposes of collection and administration.
B. The administrative provisions contained in RCW
82.08.050 through 82.08.070 and in Chapter 82.32 RCW shall
apply with respect to administration and collection by the
department.
C. All rules and regulations adopted by the Department
of Revenue for the administration of Chapter 82.08 RCW are
adopted.
D. The Department of Revenue is empowered, on
behalf of the City of Yakima, to prescribe such special forms and
reporting procedures as the department may deem necessary.
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Section 4. Section 1 (part) of Ordinance No. 1624, as previously amended by
Section 1 of Ordinance No. 2016, Section 1 of Ordinance No. 1980, and Section 4 of Ordinance
No. 97 -48, and Section 3.93.040 of the Code, are amended and reenacted to read as follows:
3.93.040 Capital improvement fund for convention center
and performing arts center facilities.
A. There has heretofore been created a special fund
known as the capital improvement fund for convention center and
performing arts center facilities.
B. Source of Funds.
All proceeds of the special excise tax imposed and
administered as provided by Sections 3.93.010, 3.93.020 and
3.93.030 of the City of Yakima Municipal Code, or any portion of
such tax not otherwise appropriated in any annual budget or
otherwise for expenditure from some other appropriate fund, shall
be deposited in the capital improvement fund for convention center
and performing arts center facilities, together with all proceeds to
the city consisting of excess profits derived from the operation of
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the Capitol Theatre and funds from other sources as may be
determined from time to time by the Yakima city council.
C. Purpose -- Expenditures.
(1) Expenditures from the capital improvement
fund for convention center and performing arts center facilities
shall be made only to pay or secure the payment of all or any
portion of general obligation bonds or revenue bonds issued for the
purposes authorized by Chapter 67.28 RCW, and for the purposes
of paying all or any part of the cost of tourism promotion and the
cost of acquisition and operation of tourism - related facilities;
provided proceeds to the city consisting of excess profits derived
from the operation of the Capitol Theatre shall be spent only for
the repair and restoration of the Capitol Theatre building and
fixtures and appurtenances thereto and for other capital
expenditures incurred by the city arising from the ownership of the
Capitol Theatre premises, and to maintain and preserve the Capitol
Theatre premises and improvements thereto.
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(2) No expenditure shall be made from the
capital improvement fund unless the city council shall approve
such expenditure by passing an ordinance appropriating money
within the fund for the purpose for which the expenditure is to be
made or by including an appropriation for such purpose in any
annual budget.
Section 5. Section 6 of Ordinance No. 97 -48 and Section 3.93.050 of the Code are
amended and reenacted to read as follows:
3.93.050 Taxes Replaced.
The taxes levied by this ordinance are in addition to all
other taxes imposed by the City, and shall replace, and are not in
addition to, the taxes heretofore levied by Chapter 3.93 of the City
of Yakima Muriicipal Code, which taxes shall remain in effect and
continue to accrue in all respects through and including January 1,
1999.
To ensure against the impairment of the obligation of the
City of Yakima to pay and secure the outstanding general
obligation bonds of the City for which purposes the lodging taxes
of the City have been pledged, it is essential that the City maintain
in effect a total lodging tax of five percent, as now levied by the
City prior to the passage of this ordinance. To that end, nothing in
this ordinance shall be construed to cause the City to levy or
collect a total tax that is less than or more than five percent.
Section 6. 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.
Section 7. Effective Date
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The effective date of this ordinance and the tax imposed herein shall be January 2, 1999.
PASSED. by the Council of the City of Yakima at a regular meeting thereof, held this
17 t ' day of November , 1998.
CITY OF YAKIMA, WASHINGTON
ce' Mayor Pro Tem
ATTEST
City Clerk Gw ``
First Reading: N/A
Publication Date: 11
Effective Date: 01 - 02 - 99
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CERTIFICATE
I, the undersigned, clerk of the City of Yakima, Washington (the "City ") and keeper of
the records of the City Council (the "Council DO HEREBY CERTIFY:
1. That the attached ordinance is a true and correct copy of Ordinance No. 98 of
the Council (hereinafter called the "Ordinance "), duly passed at a regular meeting thereof held on
the 17 of November , 1998.
2. That said meeting was duly convened and held in all respects in accordance with
the law, and to the extent required by law, due and proper notice of such meeting was given; that
a legal quorum was present throughout the meeting and a legally sufficient number of members
of the Council voted in the proper manner for passage of said Ordinance; that all other
requirements and proceedings incident to the proper passage of said Ordinance have been duly
fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City this day of , 1998.
City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1 (o
For Meeting Of November 17, 1998
ITEM TITLE: Consideration of Ordinance reenacting lodging taxes.
SUBMITTED BY: Glenn Rice, Assistant City Manager
Raymond L. Paolella, City Attorney
CONTACT PERSON/TELEPHONE: Raymond L. Paolella, 575 -6030
SUMMARY EXPLANATION: On May 20, 1997, Governor Locke vetoed portions of a bill passed
by the 1997 Legislature relating to local option excise taxes on lodging. While the Governor's
action was taken with good intent, it had the effect of placing at risk the bonds that had been
issued for construction and expansion of the Yakima Convention Center as well as funds for
future operation and maintenance. In order to compensate for the potentially serious effects of
the Governor's partial veto, the City Council had to reenact the City's lodging taxes on an
expedited basis at a special meeting on July 25, 1997. On March 12, 1998, the State Legislature
passed House Bill 2698 to correct the problems caused by the partial veto of the 1997 legislation.
This new 1998 statute also provides that the City must again reenact the same local option
lodging taxes prior to the end of 1998. In order to accomplish this with a 30 -day ordinance
effectiveness provision, it will be necessary to pass the attached ordinance no later than the
November 17, 1998 meeting.
The attached ordinance simply maintains the status quo with respect to local option taxation of
lodging and makes no substantive changes in the tax rate or structure. The proposed ordinance
was transmitted to the City of Yakima Lodging Tax Advisory Committee on October 2, 1998 for
review as required by state law, and no comments have been received.
Resolution Ordinance X Contract Other(Specify)
Funding Source
APPROVED FOR SUBMITTAL: =+\ z \
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City Manager
STAFF RECOMMENDATION: Pass Ordinance
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
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(1k)agenda/lodging taxes /rip
