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HomeMy WebLinkAboutR-2008-158 Lodging Tax Advisory CommitteeRESOLUTION NO. R-2008-158 A RESOLUTION providing for both repeal of prior Resolution No. R-97-84 relating to establishing a Lodging Tax Advisory Committee; and further providing for establishing a Lodging Tax Advisory Committee for the City of Yakima, establishing procedures for appointment of the members of the Advisory Committee and for meetings of the Advisory Committee, and specifying the duties of the Advisory Committee. WHEREAS, pursuant to RCW 67.28.1817, a Lodging Tax Advisory Committee is required to review and comment on any proposed imposition of a lodging tax, any proposed increase in the lodging tax rate, any proposed repeal of an exemption from a lodging tax, or any change in the use of revenue received from the lodging tax, as set forth in Chapter 67.28 RCW ("the chapter"); and WHEREAS, pursuant to RCW 67.28.1817, the Lodging Tax Advisory Committee must include one member who is an elected official of the municipality who shall serve as chair of the committee; and the remaining members must comprise representatives of businesses required to collect tax under Chapter 67.28 RCW, and persons involved in activities authorized to be funded by revenue received under Chapter 67.28 RCW; WHEREAS, pursuant to RCW 67.28.1817, the number of members who are representatives of businesses required to collect tax shall equal the number of members who are involved in activities authorized to be funded by revenue received under the chapter; WHEREAS, Resolution No. 97-84 was adopted on June 10, 1997, over eleven years ago, and it is in the best interests of the City that the Resolution establishing the Lodging Tax Advisory Committee and establishing its membership, procedures, and duties be updated by repeal of Resolution No. 97-84 and the adoption of a more comprehensive Resolution; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. Repeal of Resolution No. R-97-84 Resolution No. R-97-84, enacted on June 10, 1997, by the City Council of the City of Yakima, and each and every section thereof, is hereby repealed. Section 2. Simultaneous with the repeal of Resolution No. R-97-84 as effected by Section 1 of this resolution, the following is hereby enacted: Section 3. Purpose The purpose and intent of this resolution is to establish a Lodging Tax Advisory Committee to review and comment on any proposed imposition of a lodging tax, any proposed increase in the lodging tax rate, any proposed repeal of an exemption from a lodging tax, or any change in the use of revenue received from the lodging tax, all as set forth in Chapter 67.28 RCW as it currently exists or may hereafter be amended. 1 Section 4. Lodging Tax Advisory Committee Created There is created within the City of Yakima a Lodging Tax Advisory Committee (the "Advisory Committee"). The Advisory Committee will be composed of seven members appointed by the City Council. The Advisory Committee membership shall include: (a) one member shall be the Mayor of the City of Yakima or his or her designated City Council member who is an elected official of the City and who shall serve as chair on the Advisory Committee; (b) three members who are representatives of businesses required to collect lodging tax under Chapter 67.28 RCW, of whom one such member shall be appointed initially to a one-year term and two members shall be appointed to a two-year term; and (c) three members who are persons involved in activities authorized to be funded by lodging tax revenue received under Chapter 67.28 RCW, of whom one such member shall be appointed initially to a one-year term and two members shall be appointed to a two-year term. Persons who are eligible for appointment under (b) of this section are not eligible for appointment under (c) of this section. Persons who are eligible for appointment under (c) of this section are not eligible for appointment under (b) of this section. In order to,assure continuity of the Advisory Committee after the initial appointments, the membership shall be appointed to staggered two-year terms. The members of the Advisory Committee shall be selected without regard to political affiliation and shall serve without compensation. Selection of members shall follow the requirements for members as specified in RCW 67.28.1817. Section 5. Removal -Vacancies The City Council, by majority vote, may remove a member upon such grounds as may be deemed appropriate by the City Council. The City Council, by majority vote, may remove any appointed member of the Advisory Committee and declare the position vacant. Unexcused absences from any two (2) consecutive meetings shall be grounds from removal. Vacancies shall be filled in the manner used by the City Council for regular appointments to the Advisory Committee. Section 6. Meetings, Officers, Records, and Quorum A. The City Council member shall serve as the Advisory Committee's chairperson. The vice chairperson and all other officers shall be filled as the Advisory Committee determines it requires. The Advisory Committee shall meet initially for the purpose of establishing its operating procedures. It will then meet as determined by the Advisory Committee. A record shall be kept of the Advisory Committee's meetings, findings and determinations, which records shall be open to public inspection. B. Five members of the Advisory Committee, consisting of the one member from the City Council, two representatives from a business required to collect lodging tax, and two representatives involved in activities eligible for funding by lodging tax revenue, shall constitute a quorum for purposes of voting. A member not present at the time of a meeting shall not participate in a decision. Section 7. Duties of the Lodging Tax Advisory Committee The Advisory Committee shall perform the following duties: A. The Advisory Committee shall serve as an Advisory Committee for the City Council as it relates to lodging tax funds. 2 B. The Advisory Committee shall review and comment on any proposed imposition of a lodging tax, any proposed increase in the lodging tax rate, any proposed repeal of an exemption from a lodging tax, or any change in the use of revenue received from the lodging tax. C. When the City Council proposes (a) the imposition of a tax under Chapter 67.28 RCW, (b) an increase in the rate of tax imposed under Chapter 67.28 RCW, (c) the repeal of an exemption from a tax imposed under Chapter 67.28 RCW, or (d) a change in the use of revenue received under Chapter 67.28 RCW, such proposal shall be submitted to the Lodging Tax Advisory Committee for review and comment at least 45 days before final action on or passage of the proposal by the City Council. For a proposed change in the use of revenue received under Chapter 67.28 RCW, the City Council authorizes the City Manager to submit the proposed change in use to the Lodging Tax Advisory Committee for review and comment; Provided, however, such submission must be made to the Advisory Committee at least 45 days before final action on or passage of the proposal by the City Council. The Advisory Committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under RCW 67.28.1815 used for paying the cost of tourism promotion, acquisition of tourism -related facilities, or operation of tourism -related facilities. Failure of the Advisory Committee to submit comments before final action on or passage of the proposal shall not prevent the City Council from acting on the proposal. Pursuant to RCW 67.28.1817(2), the City Council is not required to submit an amended proposal to the Advisory Committee under this section. D. All meetings shall be open to the public following publication of a notice for such meeting in the legal newspaper for the City of Yakima. E. All meetings shall be recorded and the recordings shall be maintained in the files of the City Clerk's office. Section 8. Staff Assistance The Department of Community and Economic Development and/or the Department of Finance shall provide staff assistance to the Advisory Committee and shall serve to facilitate communications by the Advisory Committee to the City Council. Section 9. Resolution Effective Immediately This resolution shall take effect immediately upon adoption. ADOPTED BY THE CITY COUNCIL this 18`h City Clerk of Novembe , 2008. 3 David Edler, Mayor • • • LODGING TAX ADVISORY COMMITTEE MEMBERS Statutory Requirements for Member Organization Membership pursuant to RCW 67.28.1817(1) "Elected official of the municipality who shall serve as chair of the committee" Kathy Coffey kcoffey@ci.yakima.wa.us Yakima City Council Member; Chair of the Advisory Committee "Members who are representatives of businesses required to collect tax" under Chapter 67.28 RCW Sara Allen saran@aspenmanagement.com General Manager, Ledgestone Hotel Colette Keeton Colette@hojoyakima.com General Manager, Howard Johnson Hotel Jerome ("Jay") Wildgen jlywildgen@yakimaclarion.com General Manager, Clarion Hotel & Conference Center "Members who are persons involved in activities authorized to be funded by revenue received" under Chapter 67.28 RCW John Cooper john@visityakima.com President and CEO, Yakima Valley Visitors & Convention Bureau Angie Girard agirard@pnwu.org Board Member, Public Facilities District, Yakima Convention Center Dennis Hogenson Dennis.hogenson@usbank.com Past President and Board Member, The Capitol Theatre Page 2 of 3 Westlaw_ Page 1 West's RCWA 67.28.080 C West's Revised Code of Washington Annotated Currentness Title 67. Sports and Recreation --Convention Facilities (Refs & Annos) 9-2. Chapter 67.28. Public Stadium, Convention, Arts, and Tourism Facilities (Refs & Annos) .4.67.28.080. Definitions (Expires June 30, 2013) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. (1) "Acquisition" includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expan- sion, repair, and improvement, including paying or securing the payment of all or any portion of general obliga- tion bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter. (2) "Municipality" means any county, city or town of the state of Washington. (3) "Operation" includes, but is not limited to, operation, management, and marketing. (4) "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, as- sociation, or individual. (5) "Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. (6) "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. (7) "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 organiza- tion 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 associ- ation, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities. (8) "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. (9) Amendments made in section 1, chapter 497, Laws of 2007 expire June 30, 2013. CREDIT(S) [2007 c 497 § 1, eff. July 22, 2007; 1997 c 452 § 2; 1991 c 357 § 1; 1967 c 236 § 1.] © 2008 Thomson Reuters/West. No Claim to Orig. US Gov. Works. http://web2.westlaw.com/print/printstream. aspx?utid=%7b7D 14D283-7346-4232-BCB 8-... 11/10/2008 Page 2 of 2 • Westlaw. West's RCWA 67.28.1815 • • C West's Revised Code of Washington Annotated Currentness Title 67. Sports and Recreation --Convention Facilities (Refs & Annos) Chapter 67.28. Public Stadium, Convention, Arts, and Tourism Facilities (Refs & Annos) ♦ 67.28.1815. Revenue --Special fund --Uses for tourism promotion and tourism facility acquisition and operation Page 1 Except as provided in RCW 67.28.180, all revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism -related facilities, or operation of tourism -re- lated facilities. Municipalities may, under chapter 39.34 RCW, agree to the utilization of revenue from taxes im- posed under this chapter for the purposes of funding a multijurisdictional tourism -related facility. CREDIT(S) [2008 c 264 § 3, eff. July 1, 2008; 1997 c 452 § 4.] HISTORICAL AND STATUTORY NOTES Findings--Intent--Effective date --2008 c 264: See notes following RCW 67.28.180. Intent--Severability--1997 c 452: See notes following RCW 67.28.080. Savings --1997 c 452: See note following RCW 67.28.181. West's RCWA 67.28.1815, WA ST 67.28.1815 Current with all 2008 legislation END OF DOCUMENT © 2008 Thomson Reuters/West. © 2008 Thomson Reuters/West. No Claim to Orig. US Gov. Works. http://web2.westlaw.com/print/printstream.aspx?utid=%7b7D 14D283-7346-4232-BCB8-... 11/10/2008 Page 2 of 3 Westlaw. Page 1 West's RCWA 67.28.1817 West's Revised Code of Washington Annotated Currentness Title 67. Sports and Recreation --Convention Facilities (Refs & Annos) 'gyp Chapter 67.28. Public Stadium, Convention, Arts, and Tourism Facilities (Refs & Annos) ,4 67.28.1817. Lodging tax advisory committee in large municipalities-- Submission of proposal for im- position of or change in tax or use --Comments (1) Before proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue re- ceived under this chapter, a municipality with a population of five thousand or more shall establish a lodging tax advisory committee under this section. A lodging tax advisory committee shall consist of at least five members, appointed by the legislative body of the municipality, unless the municipality has a charter providing for a dif- ferent appointment authority. The committee membership shall include: (a) At least two members who are rep- resentatives of businesses required to collect tax under this chapter; and (b) at least two members who are per- sons involved in activities authorized to be funded by revenue received under this chapter. Persons who are eli- gible for appointment under (a) of this subsection are not eligible for appointment under (b) of this subsection. Persons who are eligible for appointment under (b) of this subsection are not eligible for appointment under (a) of this subsection. Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies in- volved in tourism promotion may submit recommendations for membership on the committee. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter. One member shall be an elected official of the municipality who shall serve as chair, of the committee. An advisory committee for a county may include one nonvoting member who is an elected official of a city or town in the county. An advisory committee for a city or town may include one nonvoting member who is an elected official of the county in which the city or town is located. The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate. (2) Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax im- posed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter shall submit the proposal to the lodging tax advisory committee for review and comment. The submission shall occur at least forty-five days before final action on or passage of the propos- al by the municipality. The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under RCW 67.28.1815. Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipal- ity from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section. CREDIT(S) [1998'c 35 § 3; 1997 c 452 § 5.] HISTORICAL AND STATUTORY NOTES © 2008 Thomson Reuters/West. No Claim to Orig. US Gov. Works. http://web2.westlaw.com/print/printstream.aspx?utid=%7b7D 14D283-7346-4232-BCB8-... 11/10/2008 • • RESOLUTION NO. R-97- 8 4 A RESOLUTION establishing a Lodging Tax Advisory:Committee for the City of Yakima and appointing members thereof. WHEREAS, on April 26, 1997, the Washington State Legislature passed Substitute Senate Bill 5867, enacted as Chapter 452, Laws of 1997, relating to uniform standards for local option excise taxation of lodging, which modifies or repeals some previous lodging tax authority, but also adds new lodging tax authority, and WHEREAS, the City of Yakima currently levies lodging taxes pursuant to RCW Chapter 67.28; and WHEREAS, on May 2Q 1997, Governor Locke vetoed Sections 12 and 25 of Substitute Senate Bill 5867, and WHEREAS, as a result of those sections being vetoed, this state legislation will become effective on July 27, 1997 instead of April 1, 1998, and will, in addition, necessitate an immediate reenactment of the City's lodging taxes, and WHEREAS, Substitute Senate Bill 5867, which amends certain portions of RCW Chapter 67.28, requires the establishment of a lodging tax advisory committee, and appointment of at least five members thereof, and WHEREAS, Substitute Senate Bill 5867 requires that any new imposition of a lodging tax enacted under RCW Chapter 67.28 be first submitted for consideration to the lodging tax advisory committee not less than 45 days in advance of final action on the lodging tax by the City, and WHEREAS, this new state legislation replaces the current lodging tax authority with a new statutory scheme, and WHEREAS, the City Council has received recommendations for membership on the Lodging Tax Advisory Committee and, to ensure continued authorization for the imposition of the lodging tax, the City Council deems it to be in the best interests of the City of Yakima to establish the committee, make the committee appointments provided for in this resolution, and to submit a proposal to the committee regarding continuation of the lodging tax, now, therefore; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: $ection'l. Pursuant to RCW Chapter 67.28 and Substitute Senate Bill 5867 (Chapter 452, Laws of 1997), there is hereby established a Lodging Tax Advisory Committee of the City of Yakima. The Lodging Tax Advisory Committee shall consist of seven members appointed by the City Council. The committee membership shall include: (a) Three members who are representatives of businesses required to collect the lodging tax; and (b) three members who are persons involved .inactivities authorizedto be funded by revenue received from the lodging tax. In addition, the Mayor or Assistant Mayor shall be a member of the committee and shall serve as chair. The number of members of the committee who are representatives of businesses required to collect the lodging tax shall equal the number of members who are involved in activities authorized to be funded by revenue received from the lodging tax. The City Council shall revi w h m mbershipf`_advisory committee annuals and make changes as appro rp late. Vacancies on the committee shall be filled by the City Council. Section 2. When the City Council proposes (a) the imposition of a tax under RCW Chapter 67.28, (b) an increase in the rate of tax imposed under RCW Chapter 67.28, (c) the repeal of an exemption from a tax imposed under RCW Chapter 67.28, or (d) a change in the use of revenue received under RCW Chapter 67.28, such proposal shall be submitted to the Lodging Tax Advisory Committee for review and comment at least 45 days before final action on the passage of the proposal by the City Council. The Advisory Committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect long-term stability of the fund used for paying the cost of tourism promotion, acquisition oftourism-related facilities, or operation of tourism -related facilities. Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the City Council from acting on the proposal. Section 3. In -accordance with Section 2 of this Resolution, the City Council hereby submits to the Lodging Tax Advisory Committee the following proposal for its review and comments: To ensure the continued levy of lodging taxes as authorized by RCWChapter 67.28, the City should reenact an ordinance levying a special excise tax on the sale or charge made for furnishing of lodging that is subject to tax under RCW Chapter 82.08. The proposed ordinance is attached hereto and incorporated herein by reference. (IkInaloclgihs tax kavtlory romm, •rp • • • Section 4. In order to take all steps necessary or indicated by Substitute Senate Bill 5867 with regard to reenactment of lodging taxes levied by the City, the Lodging Tax Advisory Committee is requested to report back to the City Council its comments with respect to the tax proposal set forth in Section .3 of this resolution no later than July 25, 1997. Section 5. The initial appointments to the Lodging Tax Advisory Committee shall be as follows: 1. Owner of the Holiday Inn (or his or her designee); 2. General Manager of Cavanaugh's Hotel (or his or her designee); 3. General Manager of the Double Tree Hotel (or his or her designee); 4. The chair of the Yakima Visitors and Convention Bureau (or his or her designee); 5. The chair of the. Yakima Center Advisory Board (or his or her designee); 6. The chair of the Capitol Theatre Committee (or his or her designee); and 7. The Mayor or Assistant Mayor. Section 6. This resolution shall take effect immediately upon passage. ADOPTED BY THE CITY COUNCIL this 10th day of June, 1997. S/ LYNN K. BUCHANAN Lynn Buchanan, Mayor ATTEST: City Clerk • • ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. /6 For Meeting of November 18, 2008 Consideration of a Resolution providing for both repeal of prior Resolution No. R-97-84 relating to establishing a Lodging Tax Advisory Committee; and further providing for establishing a Lodging Tax Advisory Committee for the City of Yakima, establishing procedures for appointment of the members of the Advisory Committee and for meetings of the Advisory Committee, and specifying the duties of the Advisory Committee; and Consideration of a Motion to reappoint the members of the Lodging Tax Advisory Committee. SUBMITTED BY: Kathy Coffey, City Council Member Dick Zais, City Manager CONTACT PERSON/TELEPHONE: Kathy Coffey, 575-6050 and Dick Zais, 575-6040 SUMMARY EXPLANATION: This Resolution repeals prior Resolution R-97-84 that was adopted more than a decade ago, and provides and updates current guidelines for the City's Lodging Tax Advisory Committee, which is established pursuant to RCW 67.28.1817. In 1997, the Washington State Legislature amended the lodging tax state statute and added a new provision requiring the establishment of a lodging tax advisory committee under certain circumstances. Pursuant to RCW 67.28.1817, the Lodging Tax Advisory Committee s a review and commen on any proposed imposition of Continued on Page 2 Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: The Council Chair of the Lodging Tax Advisory Committee and staff respectfully request the City Council to: (1) Adopt the Resolution; and (2) Pursuant to RCW 67.28.1817(1), pass a Motion to reappoint the seven members of the Lodging Tax Advisory Committee. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Page 2 — Continued a lodging tax, any proposed increase in the lodging tax rate, any proposed repeal of an exemption from a lodging tax, or any change in the use of revenue received from the lodging tax, which submission shall occur at least 45 days before final action on or passage of the proposal. The statute requires that one member of the Advisory Committee shall be an elected official of the City who shall serve as chair. The other members must include an equal number of members who are representatives of businesses required to collect the lodging tax under Chapter 67.28 RCW and an equal number of members who are persons involved in activities authorized to be funded by revenue received under the Chapter. After the Resolution is adopted, a Motion to reappoint the seven members of the Lodging Tax Advisory Committee would be appropriate pursuant 'to RCW 67.28.1817(1). The names of the seven members of the Lodging Tax Advisory Committee are attached. •