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HomeMy WebLinkAbout1997-048 Lodging Taxes c • ORDINANCE NO. 97 -48 AN ORDINANCE of the City of Yakima, Washington, relating to taxation of charges made for the furnishing of lodging, reenacting such taxes, repealing § 3.92.030 of the City of Yakima Municipal Code, and providing for an effective date. WHEREAS, ESSB 5867, enacted as Ch. 452, Washington Laws of 1997 (the "Legislation "), provides 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 Ch 82.08 RCW; and WHEREAS, the Legislation repeals 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 provides, and states the Legislature's intent, that the City's authority to levy lodging taxes be continued under the Legislation; and WHEREAS, it is the intent of the City Council to reenact and replace the taxes on charges made for the furnishing of lodging, authorized by law prior to the Legislation, with taxes levied pursuant to the Legislation and that such taxes levied pursuant to the Legislation should take effect immediately upon the effective date of the Legislation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 1(part) of Ordinance No 1624 and Section 3.93.010 of the Code are amended and reenacted to read as follows: 3.93.010 Special excise tax imposed. Commencing July 27, 1997, 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 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 a rental or lease of real property and not a mere license to use or to enjoy the same. Provided, however, that if as finally determined by a court of competent jurisdiction, the provisions of Ch. 452, Washington Laws of 1997, lawfully place a limitation on the rate of tax which can be so levied by the City of Yakima which limitation is less than five percent, the tax imposed by this section shall be deemed levied at such lesser rate. Section 2. Section 1 of Ordinance No. 1624 (part) and § 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 and § 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: 1. 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. 2. 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. 3. All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are adopted. 4. The department is empowered, on behalf of the City of Yakima, to prescribe such special forms and reporting procedures as the department may deem necessary. • Section 4. Section 1 (part) of Ordinance No. 1624, as previously amended by Section 1 of Ordinance No. 2016 and § 1 of Ordinance No. 1980, and § 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. -2- r:iF 2573sao.001 58R OOc 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 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 of the Revised Code of Washington, 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. (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. 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. -3- J ,ss73s.ao.00, .Doc Section 6. There is added to the Code a new Section 3.93.050 to read as follows: 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 Ch. 3.92 and 3.93 of the City of Yakima Municipal Code, which taxes shall remain in effect and continue to accrue in all respects until July 27, 1997. 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 including, but not limited to, Section 8 hereof, shall be construed to cause the City to levy or collect a total tax that is less than or more than five percent, unless otherwise determined by the final decision of a court of competent jurisdiction. Section 7. Effective Date of Tax. The effective date of the tax imposed by this ordinance shall be July 27, 1997. Section 8. Repealer. Section 3 of Ordinance 95 -12 and § 3.92.030 of the Code is repealed. Section 9. Effective Date - Declaration of Emergency. Pursuant to the terms of the Legislation, as partially vetoed by the Governor of the State of Washington, the existing statutory authority of the City to levy lodging taxes is substantially modified and portions are repealed. Under the Legislation, the City of Yakima must reenact its lodging taxes, pursuant to procedures provided for by the Legislation, by July 27, 1997, when its statutory power to levy and collect such taxes is changed. The loss of revenue from such taxes would damage the ability of the City to provide for the immediate preservation of the public peace, property, health and safety. Therefore, an emergency is declared under Article VI, Section 2, of the City Charter and this ordinance shall take effect on July 27, 1997. -4- J: FWW\5739- 8O.0O1 3N58R.DOC PASSED BY THE CITY COUNCIL , signed and approved this 25 of July, 1997. City of Yakima, Washington By eV/41 John Puccinelli, Mayor Pro -Tem ` ATTEST: City Clerk Publication Date: 7- 27 -97. • Effective Date: 7 -27 -97 -5- JAFVOM25739-80.001103N58R.00c 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. 97 -48 of the Council (hereinafter called the "Ordinance "), duly passed at an adjourned meeting thereof held on the 25th day of July, 1997. 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 25th day of July, 1997. Karen S. Roberts _. BUSINESS OF THE CITY COUNCIL 7. • YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of 7/25/97 ITEM TITLE: Consideration of Ordinance Reenacting Lodging Taxes SUBMITTED BY: Dick Zais, City Manager Ray Paolella CONTACT PERSON/TELEPHONE: Dick Zais /575 -6040 SUMMARY EXPLANATION: The attached ordinance reenacts the City's lodging taxes. This action is earnestly recommended by the City's bond counsel and became necessary because of Governor Locke's partial veto of SSB 5867. The City of Yakima Lodging Tax Advisory Committee met on July 15, 1997 and adopted a resolution recommending that the City Council pass this lodging tax reenactment ordinance. Resolution _ Ordinance X Contract _ Other (Specify) Committee minutes and resolution Funding Source APPROVED FOR SUBMITTAL: ` ��' A c m- City Manager STAFF RECOMMENDATION: Pass Ordinance BOARD /COMMISSION RECOMMENDATION: Pass Ordinance COUNCIL ACTION: • Legal /BD rev. effective 7/21/92