Ord 99-335
/
ORDINANCE NO. 99-.lJ2.....
A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, LEVYING A SPECIAL
EXCISE TAX OF ONE PERCENT ON THE SALE OR
CHARGE MADE FOR THE FURNISHING OF LODGING BY
ANY HOTEL, MOTEL, ROOMING HOUSE, TOURIST
COURT, OR TRAILER CAMP, AND THE GRANTING OF
ANY SIMILAR LICENSE TO USE REAL PROPERTY;
EST ABLISHING A SPECIAL REVENUE FUND
(HOTELIMOTEL TAX NO. 109) FOR THE TAX; PROVIDING
FOR THE ALLOCATION OF TAX REVENUES IN THE 1999-
2000 BIENNIUM; PROVIDING PENAL TIES FOR
NONPAYMENT OF THE TAX OR VIOLATION OF THE
REQUIREMENTS OF THE TAX; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, SSB 5867, enacted as Chapter 452, Laws of 1997, provides that cities
are authorized to levy and collect a special excise tax not to exceed four percent on the sale of or
charge made for the furnishing oflodging that is subject to tax under Chapter 82.08 RCW; and
WHEREAS, SSB 5867, enacted as Chapter 452, Laws of 1997, proyides that such
tax shall be levied only to pay all or any part of the cost of tourism promotion, acquisition of
tourism-related facilities, or operation of a tourism-related facility; and
WHEREAS, Ordinance No. 98-322 establishing the City of Federal Way Lodging
Tax Advisory Committee was passed by the Federal Way City Council on November 17, 1998; and
WHEREAS, Lodging Tax Advisory Committee, after a 45-day review period,
provided a report to the City for implementation of an additional one percent lodging tax; and
ORD. NO. 99-~ Page I
WHEREAS, the City Council desires to establish and levy such tax for the purposes
provided by statute;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO HEREBY RESOLVE AS FOLLOWS:
Section I. There is hereby created a special excise tax of one percent on the sale of
or charge made for the furnishing oflodging that is subject to tax under Chapter 82.08 RCW. The
tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of
lodging 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 the renting or leasing of real property. 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 enjoy the same.
Section 2. The definitions of "selling price," "seller," "buyer," "consumer," and all
other definitions as are now contained in RCW 82.08.0 I 0, and subsequent amendments thereto, are
adopted as the definitions for the tax levied in this chapter.
Section 3. There is created a special revenue fund (HotellMotel Tax No. 109) in the
City and all taxes collected under this chapter shall be placed in this fund to be used solely for the
purpose of paying all or any part of the cost of tourist promotion, acquisition of tourism-related
facilities, or operation of tourism-related facilities or to pay for any other uses as authorized in
Chapter 67.28 RCW, as now or hereafter amended.
ORD. NO. 99-~ Page 2
Section 4. For the purposes of the tax levied in this chapter:
A.
The Department of Reyenue is designated as the agent of the City for the
purposes of collection and administration of the tax.
B.
The administrativeprovisionscontainedin RCW 82.08. 050through 82.08.060
and in Chapter 82.32 RCW shall apply to administration and collection of the tax by the Department
of Reyenue.
C.
All rules and regulations adopted by the Department of Reyenue for the
administration of Chapter 82.08 RCW are adopted by reference.
D.
The Department of Revenue is authorized to prescribe and utilize such fonns
and reporting procedures as the Department may deem necessary and appropriate.
Section 5. 1999-2000 HotellMotel Tax Revenue Allocation. The anticioated total
hotel/motel tax reyenues durin¡¡ the 1999-2000 biennium are $140.000. The allocation for the tax
revenues for 1999-2000 biennium shall be orooortioned as follows:
17.86%. uo to a maximum of $25.000. in 1999 to the Federal Way Arts
Commission for contracts to oerfonnin¡¡ arts ¡¡rouos:
17.86%. uo to a maximum of $25.000. in 2000 to the Federal Way Arts
Commission for contracts to oerfonnin¡¡ arts ¡¡roups:
10.70%. uoto a maximum of$15.000. in 1999 fortourismoromotionaland/or
marketin¡¡ materials:
26.79%. uo to a maximum of $37.500. in 2000 for staff for tourism
promotion: and
ORD. NO. 99-~ Page 3
23.22%. UD to a maximum of $32.500. in 1999-2000 for a
conventionlDerfonning arts center feasibilitv studv: and
3.57%. UD to a maximum of $5.000. in 1999-2000 to the Federal Way
Historical Societv for tourism Dromotion.
Anv monies collected in excess of the exDressallocation set forth above and all future
annual tax revenue collected after 2000 allocations shall be disbursed UDon the City Council's
direction.
Section 56. It is unlawful for any person, finn, or corporation to violate or fail to
comply with any of the provisions of this chapter. Every person convicted of a violation of any
proyision of this chapter shall be punished by a fine in a sum not to exceed $500.00. Each day of
violation shall be considered a separate offense.
Section 67. Seyerability. The proyisions of this ordinance are declared separate and
severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this
ordinance or the invalidity of the application thereof to any person or circumstance, shall not affect
the Yalidity of the remainder of the ordinance, or the validity of its application to other persons or
circumstances.
Section -18. Ratification. Any act consistent with the authority and prior to the
effective date of this ordinance is hereby ratified and affmned.
Section g9. Effective Date. This ordinance shall take effect on February 28. 1999.
IIild be in Foree fi.e (5) dll)3 Hem IIfI.d ¡¡fteï it31'1I33age and pttblieatiðn, 113 plc.ided by Ill...
ORD. NO. 99-~ Page 4
PASSED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, at a Regular Meeting thereof this 16th day of February, 1999.
CITY OF FEDERAL WAY
%H~
MA YOk, RON GINTZ
ATTEST:
'?JCŒ~~
APPROVED AS TO FORM:
~ C.~~4~M~\~..
LONDI K. LINDELL, CIT ATTORNEY
FILED WITH THE CITY CLERK: 2/1/99
PASSED BY THE CITY COUNCIL: 2/16/99
PUBLISHED: 2/19/99
EFFECTIVE DATE: 2/28/99
ORDINANCE NO. 99-~
K:\ORDINIHOTELTAX.MG
ORD. NO. 99-~ Page 5