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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 02/28/2012 (2) �-•/ KEN T W s , T.� AGENDA LODGING TAX ADVISORY COMMITTEE RETREAT February 28, 2012, 2-5 pm Hampton Inn, 21109 66, Ave. S., Kent 1. Introduction Jamie Perry • Council strategic goals & strategies 2. Legal requirements/roles & responsibilities Tom Bubaker/Group • What do you think is the role of a board member? • What responsibility does a board member hold? 3. Mission/purpose • Why does the board exists? 4. Objectives • What does the board want to accomplish? 5. What has worked in the past? Hoteliers, please be ready to address who is your target market, what events if any have filled your rooms, and data you could present about successful events whether funded by Kent or not. 6. Strategies to obtain the objectives 7. Implementation • What will the strategy cost? • How will we measure success for each strategy? 8. Budget • Does our current budget reflect the goals we want to accomplish? ���! i� i. Chapter 2.54 LODGING TAX ADVISORY COMMITTEE 2.54.010 Created. There is hereby created the lodging tax advisory committee. The committee shall serve in an advisory capacity to the mayor and city council. 2.54.020 Membership. The lodging tax advisory committee shall consist of seven (7) members as follows: A. Three members appointed by the city council who are representatives of businesses required to collect tax under Chapter 67.28 RCW; B. Three members appointed by the city council who are persons involved in activities authorized to be funded by revenue received under Chapter 67.28 RCW; and C. The council president shall appoint a member of council's operations committee to serve as a member of and to chair the lodging tax advisory committee. 2.54.030 Terms. All members appointed pursuant to KCC 2.54.020 above shall serve three (3) year terms. The initial appointment shall be staggered with two 2 year term, two a ( ) appointments serving a one (1) 2 ( ) appointments serving a two (2) year term, and two (2) appointments serving a three (3) year term. Organizations representing businesses required to collect tax under Chapter 67.28 RCW and organizations involved in activities authorized to be funded by revenue received under said tax as well as local agencies involved in tourism and promotion may submit recommendations for membership on the committee. 2.54.040 Responsibilities. The lodging tax advisory committee shall make reports and recommendations to the mayor and city council as follows: A. The committee shall consider proposals for imposition of a city lodging tax under Chapter 67.28 RCW. B. If such tax is adopted, the committee shall review any increases in the rate of tax imposed, repeal of any exemption from a tax imposed or a change in the use of revenue received under Chapter 67.28 RCW. The committee shall consider any such proposal, provide for public input, and submit comments in a timely manner to the mayor and city council. 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. �. __\ 1 �I Chapter 67.28 RCW Public stadium, convention, arts, and tourism facilities 67.28.1817 Lodging tax advisory committee in large municipalities — Submission of proposal for imposition 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 received 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 different appointment authority. The committee membership shall include: (a) At least two members who are representatives of businesses required to collect tax under this chapter; and (b) at least two members who are persons involved in activities authorized to be funded by revenue received under this chapter. Persons who are eligible for appointment under (a) of this subsection are not eligible for eligible for g appointment under (b) of this subsection. Persons who are eli 9 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 involved 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 appol,Ning 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 imposed 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 proposal 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 municipality from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section. 67.28.1815 Revenue — Special fund — Uses for tourism promotion and tourism facility acquisition and operation. 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-related facilities. Municipalities may, under chapter 39.34 RCW gund nree o the revenue tourismrrrelated taxes imposed under this chapter for the purpose of 9 o multijurisdictional facility. 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, expansion, repair, and improvement, including paying or on securing the payment of all or yortion of eneral in incurred gor such plugrpolse or purposes u�ndereth s bonds, or other obligations issued or 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, association, 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) public entity; (ii) owned by a nonprofit organization 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 association, 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. 2013. (9) Amendments made in section 1, chapter 497, Laws of 2007 expire June 30, 67.28.080 Definitions. (Effective 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, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation 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, association, 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 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. (7) "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. (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. 67.28.1816 Lodging tax — Tourism promotion. (Expires June 30, 2013.) (1) Lodging tax revenues under this chapter may be used, directly by local jurisdictions or indirectly through a convention and visitors bureau or destination marketing organization, for the marketing and operations of special events and festivals and to support the operations and capital expenditures of tourism-related facilities own o bhenonpro eternal organizations described under section 501(c)(3) and section 501(c)(6) revenue code of 1986, as amended. (2) Local jurisdictions that use the to he lodging xt of Commun ty,eTrade and ction must submit an annual economic impact report t DePartmen Economic Development for expenditures made beginning January 1, 2008. These reports must include the expenditures by the local jurisdiction for tourism promotion purposes and what is used by a nonprofit organization exempt from taxation under 26 U.S.C. Sec. 501(c)(3) or 501(c)(6). This economic impact report, at a minimum, must include: (a) The total revenue received under this chapter for each year; (b) the list of festivals, special events, or nonprofit 501(c)(3) or 501(c)(6) organizations that received funds under this chapter; (c) the list of festivals, special events, or tourism facilities sponsored or owned by the local jurisdiction that received funds under this chapter; (d) the amount of revenue expended on each festival, special event, or tourism-related facility owned or sponsored by a nonprofit 501(c)(3) or 501 c 6 organization or local jurisdiction; (e) the estimated O( ) number of tourists, persons traveling over fifty miles to the destination, persons remaining at the destination overnight, and lodging stays generated per festival, special event,(or tourism-related facility owned or sponsored by a nonprofit 501(c)(3) or organization or local jurisdiction; and (f) any other measurements the local government finds that demonstrate the impact of the increased sponsored by attributable nonprofit 501(c)(3) or special event, or tourism-related facility owned or 501(c)(6) organization or local jurisdiction. (3) The joint legislative audit and review committee must report to the legislature and the governor on the use and economic impact of lodging tax revenues by local jurisdictions since January 1, 2008, to support festivals, special events, and tourism-related facilities owned or sponsored by a nonprofit organization under section 501(c)(3) or 501(c)(6) of the internal revenue code of 1986, as amended, or a local jurisdiction, and the economic impact generated by these festivals, events, and facilities. This report shall be due September 1, 2012. (4) Reporting under this section must begin with calendar year 2008. (5) This section expires June 30, 2013.