Ordinance 15-008 Lodging TaxCITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO. 15-008
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON, AMENDING SPOKANE VALLEY MUNICIPAL CODE CHAPTER 3.20
TO LEVY AND IMPOSE AN ADDITIONAL 1.3% SPECIAL EXCISE TAX ON THE SALE
OR CHARGE MADE FOR THE FURNISHING OF LODGING WITHIN THE CITY OF
SPOKANE VALLEY PURSUANT TO RCW 67.28.181, TO BE USED FOR CERTAIN
CAPITAL PURPOSES FOR TOURISM PROMOTION, CREATING A SPECIAL FUND
FOR THE TAX, AND OTHER MATTERS RELATING THERETO.
WHEREAS, pursuant to RCW 67.28.180, in 2003, the City levied a 2% special excise tax on the sale
or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW (the "state -credit
lodging tax") within the City of Spokane Valley (the "City") to be used for tourism promotion purposes,
acquisition of tourism -related facilities, or operation of a tourism -related facility; and
WHEREAS, pursuant to RCW 67.28.1801, the state -credit lodging tax is credited against the existing
Washington State sales tax, resulting in no net increase in the amount of sales taxes imposed upon the
furnishing of lodging; and
WHEREAS, pursuant to RCW 67.28.181, the City is authorized to levy an additional special excise
tax on the sale or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW
("additional lodging tax") at a rate not to exceed the lesser of two percent or a rate that, when combined with
all other taxes imposed upon sales of lodging within the municipality under chapter 67.28 RCW and chapters
36.100, 67.40, 82.08, and 82.14 RCW, equals 12 percent; and
WHEREAS, pursuant to RCW 67.28.1817, any municipality that proposes imposition of a tax or an
increase in the rate of tax under chapter 67.28 RCW shall submit the proposal to the City's Lodging Tax
Advisory Committee ("LTAC") for review and comment and shall not take any final action or pass the
proposal until at least 45 days after submission of the proposal to the LTAC; and
WHEREAS, on February 25, 2015, the LTAC conducted a public meeting, at which meeting the
LTAC discussed an increase to the additional lodging tax and moved and approved unanimously to request
City Council "to pass an additional 1.3% lodging tax to be put into a fund dedicated for a large sporting venue
or venues for tourism facilities that generate overnight guests"; and
WHEREAS, City Council desires to establish and levy such additional lodging tax in the amount of
1.3% to be put into a fund dedicated for a large sporting venue or venues for tourism facilities that generate
overnight guests, as provided by law.
NOW, THEREFORE, the City Council of the City of Spokane Valley ordains as follows:
Section 1. Amendment. Chapter 3.20 of the Spokane Valley Municipal Code is hereby amended
as follows:
3.20.010 Imposition of tax on the furnishing of lodging.
A. Imposition.
1. There is levied a special excise tax of two percent on the sale of or charge made for the
furnishing of lodging that is subject to tax under Chapter 82.08 RCW, pursuant to RCW 67.28.180.
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2. There is levied a separate special excise tax of 1.3 percent on the sale of or charge made for
the furnishing of lodging that is subject to tax under Chapter 82.08 RCW, pursuant to RCW 67.28.181.
B. Tax Imposed. 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 license to temporarily use and enjoy the same.
C. 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 taxes levied pursuant to Chapter 3.20 SVMC.
D. Imposition of Tax in Addition to Other Taxes and Fees. The tax levied pursuant to SVMC
3.20.010(A)(1) shall be a credit against the amount of sales tax (Chapter 82.08 RCW) due the state of
Washington on the sale of lodging as set forth herein.
3.20.020 Creation of tourism -promotion fund.
A. There is created a special fund in the treasury of the City of Spokane Valley termed the
"hotel/motel tax fund" into which all taxes collected pursuant to SVMC 3.20.010(A)(1) shall be placed and
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 the same now exists or may hereafter be amended.
B. There is created a special fund in the treasury of the City of Spokane Valley termed the
"hotel/motel tax — tourism facilities fund" into which all taxes collected pursuant to SVMC 3.20.010(A)(2)
shall be placed and used solely for capital expenditures for acquiring, constructing, making improvements to or
other related capital expenditures for large sporting venues, or venues for tourism -related facilities, which
facilities generate overnight guests at lodging facilities subject to the taxes imposed pursuant to Chapter 3.20
SVMC, as allowed and provided by law.
3.20.030 Administration.
For the purposes of Chapter 3.20 SVMC, the tax as levied shall be administered as follows:
A. The Department of Revenue is designated as the agent of the City of Spokane Valley for the
purposes of collection and administration of the taxes levied pursuant to SVMC 3.20.010(A)(1) and SVMC
3.20.010(A)(2).
B. The administrative provisions contained in RCW 82.08.050 through 82.08.060 and in Chapter 82.32
RCW shall apply for administration and collection of the tax by the Department of Revenue.
C. All rules and regulations adopted by the Department of Revenue for the administration of Chapter
82.08 RCW are adopted by reference.
D. The Department of Revenue is authorized to prescribe and utilize such forms and reporting
procedures as the department may deem necessary and appropriate.
3.20.040 Lodging tax advisory committee.
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The City Council shall establish a lodging tax advisory committee consisting of five members. Two
members of the committee shall be representatives of businesses required to collect the tax, and at least two
members shall be persons involved in activities authorized to be funded pursuant to Chapter 3.20 SVMC. The
City shall solicit recommendations from organizations representing businesses that collect the tax and
organizations that are authorized to receive funds pursuant to Chapter 3.20 SVMC. The committee shall be
comprised equally of members who represent businesses required to collect the tax and members who are
involved in funded activities. One member of the committee shall be from the City Council. Annually, the
membership of the committee shall be reviewed.
The Mayor shall nominate persons and the Councilmember for the lodging tax advisory committee
with Council confirmation of the nominees. Nominations shall state the term of committee membership.
Appointments shall be for either a one or a two-year term.
3.20.050 Violation — Penalty.
It is unlawful for any person, firm, or corporation to violate or fail to comply with any of the
provisions of Chapter 3.20 SVMC and such violation shall constitute a misdemeanor. Each day of violation
shall be considered a separate offense.
Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held
to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this
Ordinance.
Section 3. Effective Date. This Ordinance shall be in full force and effect five days after
publication of this Ordinance or summary thereof in the official newspaper of the City of Spokane Valley as
provided by law.
Passed by the City Council this 14th of April, 2015.
ATTEST:
le City Clerk, Christine Bainbridge
Approved as to Form:
Offic of the
Date of Publication:
Effective Date:
Ordinance 15-008
LI- 17-iS
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Dean Grafos, Mayor
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