NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORMANDY PARK, WASHINGTON, DO ORDAIN AS FOLLOWS: Membership,

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1 CITY OF NORMANDY PARK ORDINANCE NO. 928 AN ORDINANCE OF THE CITY OF NORMANDY PARK, WASHINGTON, ENACTING A NEW NPMC 3.15 IN ORDER TO ESTABLISH A LODGING TAX ADVISORY COMMITTEE PURSUANT TO RCW ; ESTABLISHING PROCEDURES FOR OPERATION OF THE LODGING TAX ADVISORY COMMITTEE; PROVIDING FOR THE SUBMITTAL OF ALL PROPOSALS TO IMPOSE A LODGING TAX, INCREASE THE AMOUNT OF THE TAX, REPEAL AN EXEMPTION FROM THE TAX, OR CHANGE THE USE OF REVENUES GENERATED BY THE TAX, TO THE LODGING TAX ADVISORY COMMITTEE BEFORE ACTION BY THE CITY COUNCIL; PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW l80 authorizes cities to impose a tax on the sale of or charge for the furnishing of lodging that is subject to sales tax under RCW 82.08; and WHEREAS, RCW requires that prior to proposing the imposition of a new lodging tax, an increase in an existing lodging tax, the repeal of an exemption from a lodging tax, or a change in the use of revenues generated from a lodging tax, a city with a population in excess of 5000 must create a lodging tax advisory committee and submit any proposal to that committee for review and comment; and WHEREAS, lodging that would be subject to such a tax is being furnished in the City of Normandy Park and the Normandy Park City Council desires to submit a proposal for a lodging tax to a lodging tax advisory committee as provided in RCW NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORMANDY PARK, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Lodging Tax. A new NPMC 3.15 is hereby adopted to read as follows: CHAPTER 3.15 LODGING TAX Membership, De?nitions Lodging Tax Advisory Committee Established Terms Imposition of Lodging Tax, Increases and Repeal of Exemptions Exemptions from the Lodging Tax Credits Lodging Tax Fund Collection Agent Proposals for Expenditure Reporting. {JEHI DOCX;1/()O / ) Page 1 of 9

2 De?nitions. A. As used in this chapter: 1. City means the City of Normandy Park, Washington. 2. Lodging means the furnishing of lodging and other services 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 renting or leasing real property. 3. Lodging tax" means the tax authorized by RCW on the furnishing of lodging if imposed by the City under this chapter. 4. Lodging Tax Advisory Committee or Committee means the Normandy Park Lodging Tax Advisory Committee as established by this chapter. 5. Operation means and includes, but is not limited to operation, management and marketing. 6. Person means the federal government or any agency thereof, the state or any ggency, subdivision taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual. 7. Tourism means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. 8. Tourism promotion means activities and expenditures designed to increase tourismpincluding but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; qoerating tourism promotion agencies and funding marketing of special events and festivals designed to attract tourists. 9. 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. 9. 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. (JEHI3759()2.DOCX;1/ / ) Page 2 of 9

3 B. Also as used in this chapter the terms selling price seller, buyer consumer and such other relevant terms de?ned in RCW Chapter shall have the meanings set forth in that chapter, as the same now exists or as it may be amended hereafter Lodging Tax Advisory Committee Established - Membership: Terms. A. The Normandy Park Lodging Tax Advisory Committee is hereby established for the purposes set forth in RCW B. The Lodging Tax Advisory Committee shall consist of six members appointed by the Mayor and con?rmed by the City Council as follows: 1. Two members shall be representatives of businesses gguired to collect lodging taxes imposed under this chapter; 2. Two members shall be persons involved in activities authorized to be funded by revenue received from lodging taxes imposed under this chapter. 3. Two members shall be members of the Normandy Park City Council. One of the Councilmembers shall act as chair of the Lodging Tax Advisory Committee and shall be a voting member of the Committee. The other Councilmember shall be a nonvoting member of the Committee. 4. Persons who are eligible for appointment under subsection (1) of this subsection are not eligible for appointment under subsection (2) of this subsection. Persons who are eligible for appointment under subsection (2) of this subsection are not eligible for appointment under subsection (1) of this subsection. C. Vacancies in the positions established in subsections (A)( 1) and (2) of this section shall be publicized and?lled as provided in the Normandy Park City Council s Rules of Procedure. Vacancies in the positions to be filled by Normandy Park Councilmembers under subsection (A)(3) of this section shall be?lled by Mayoral appointment and con?rmation by the City Council without the need to be publicized. D. Members of the Lodging Tax Advisory Committee shall serve four year terms or until their successors are appointed and confirmed, provided that the initial members shall serve staggered terms as follows: 1. One of the initial two members appointed under subsection Q\)( 1) of this section and one of the initial members appointed under subsection (A)(2) of this section shall serve two year terms. with their successors thereafter appointed to four year terms; and {JEHI DOCX:1/ /) Page 3 of 9

4 2. One of the initial two members appointed under subsection (A)( 1) of this section and one of the initial members appointed under subsection (A)(2) of this section shall serve four year terms with their successors therea?er appointed to four-year terms; and 3. The Nonnandy Park City Councilmembers initially appointed to the Lodging Tax Advisory Committee shall serve for the remainder of their current terms of elective office and their successors thereafter shall serve four yeartenns. E. Members of the Lodging Tax Advisory Committee may be removed at any time with or without cause by maiority vote of the entire membership of the Normandy Park City Council. F. The Normandy Park City Council shall review the membership of the Lodging Tax Advisory Committee on an annual basis and may make changes in the number of members at any time. provided that 1. There shall always be at least two members who are eligible for appointment under subsection (A)( 1) of this section and at least two members who are eligible for gmointment under subsection (A)(2) of this section; an 2. The number of members who are appointed from businesses required to collect the lodging tax shall always be equal to the number of members who are involved in activities eligible to be funded from revenues received from the lodging tax; and 3. There shall be no more than two positions to be filled by Normandy Park Councilmembers. G. The Lodging Tax Advisory Committee may adopt by-laws or rules of procedure to govern its business, provided that such by laws and rules are consistent with the provisions of this chapter Imposition of Lodging Tax, Increases and Repeal of Exemptions. A. Before imposing the lodging tax authorized by RCW 67.28, the Normandy Park City Council shall submit a proposal for the same to the Lodging Tax Advisory Committee for review and comment. The Lodging Tax Advisory Committee shall submit its comments on the proposal to the Normandy Park City Council in a timely manner, but in no event later than 45 days after receipt of the prgposal. The Normandy Park City Council shall not take final action on the proposal for the 45 day comment period, but the failure of the Lodging Tax Advisory Committee to provide comments prior to?nal action on or passage of {JEHl37S902.DOCX;l/ ()/; Page 4 of9

5 the proposal shall not prevent the City Council from acting on the proposal. If the Council decides to impose the tax this subsection shall be amended to re?ect such imposition. B. Before enacting any increase in the rate of the lodging tax and before repealing any exemption from the lodging tax. the Normandy Park City Council shall submit a proposal for the same to the Lodging Tax Advisory Committee for review and comment. The Lodging Tax Advisory Committee shall submit its comments on the promsal to the Normandy Park City Council in a timely manner, but in no event later than 45 days after receipt of the mgposal. The Normandy Park City Council shall not take?nal action on the proposal for the 45 day comment period, but the failure of the Lodging Tax Advisory Committee to provide comments mior to?nal action on or passage of the proposal shall not prevent the City Council from acting on the proposal. If the Council decides to increase the rate of the tax or repeal an exemption, this chapter shall be amended to re?ect the change Exemptions from the Lodging Tax. The following activities are exempt from payment of the tax imposed by this chapter: A. The rental or leasing of real property. For purposes of this de?nition, it is presumed that the occupancy of real property for a continuous period of one month or more and the sale of and charge made for the furnishing of lodging for a continuous period of one month or more is a rental or lease of real property and not the furnishing of lodging on which the tax set forth in this chapter is imposed. B. Emergency lodging provided for homeless persons for a period of less than thirty consecutive days under a shelter voucher program administeredby a city town, or county, or by their respective agencies. or groups providing emergency food and shelter services; and C. Sales of temporary medical housing exempt under RCW Credits. A. Except as provided in this section, the tax imposed by this chapter shall be in addition to any license fee or other tax imposed or levied under any state or federal law or any other ordinance of the City. B. Taxes collected under this chapter shall be credited against the amount of the sales tax due to the state under RCW Chapter on the same sale of lodging. {JEHi3759o2.D0cx;1/ooo92.9ooooo/ ) Page 5 of 9

6 Lodging Tax Fund. A. There is hereby created a special fund in the treasury of the City, to be known as the Lodging Tax Fund. All taxes collected under this chapter shall be placed in the?.1nd. B. All tax revenues collected under this chapter shall used directly by the City or indirectly by the City through a convention and visitor s bureau or a direct marketing organization. Tax revenues shall be used solely for thepurposes set forth in RCW 67.28, as the same now exists or as it may hereafter be amended, including but not limited to the following; 1. Tourism marketing; 2. The marketing and operations of special events and festivals desigped to attract tourists; 3. Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters and RCW; 4. Supporting the operations of tourism-related facilities owned or operated by nonpro?t organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended Collection Agent. For pygposes of the tax imposed by this chapter: agent A. The Washington State Department of Revenue is designated as the of the city for theppui-posesof collection and administration of the tax. B. The administrative provisions contained in RCW through and in RCW shall apply to administration and collection of the tax by the Department of Revenue. C. All rules and retmlationsadopted by the Department of Revenue for the administration of Chapter 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 Proposals for Expenditure. {JEHI DOCX; l /0009Z / ) Page 6 of 9

7 A. Periodically, as monies are accumulated in the Lodging Tax Fund, the City may make prop_osalsto expend such monies for the purposes set forth in NPMC The City may also solicit proposals from applicants eligible to receive monies for activities authorized to be funded by lodging tax revenues under NPMC B. If the City solicits proposals from applicants. the proposals shall be submitted on application forms approved by the City Manager. The application shall, at a minimum, provide the following information: 1. The name of the promisal or proiect; 2. The name of the applicant organization; 3. The applicant organizations tax status as a Internal Revenue Code Section 501(c)(3) or 501(c)(6) organization if applicable, together with the applicant s Tax Identi?cation Number 4. The name address, telephone number, and address of a primary contact for the applicant organization; 5. A detailed description of the proposal, together with a statement as to whether the proposal is applied for under NPMC 3.l5.060(B)( 1) g2),g3g, 0114}; 6. Estimates of how any monies received will result in increases in the number of people travelirpg for business or pleasure on a trip_: a. Away from their place of residence or business and staying overnight in paid accommodations b. To a place??y miles or more one way from their place of residence or business for the day or staying overnight; or c. From another country or state outside of their place of residence or their business. 7. Upon receipt of all applications, the Lodging Tax Advisory Committee shall consider the City s proposals and the proposals made by applicants and shall select candidates from amongst the City and the applicants applying for the use of the lodging tax revenues and provide a list of such candidates and recommended amounts of funding to the City Council. The City Council will choose only recipients from the list of candidates and recommended amounts provided by the Lodging Tax Advisory Committee. 8. The City Council will not take action on any City pgposal or any other application for funding for at least forty~?ve days after theproposals {JEHI DOCX;l/ / } Page 7 of 9

8 are provided to the Lodging Tax Advisory Committee but the failure of the Lodging Tax Advisory Committee to make a recommendation within forty five days shall not prevent the City Council from taking action Reporting. A. All recipients of funding under NPMC shall be required to submit a report to the City Manager describing the actual number of people traveling for business or pleasure as the result of the funded proposal on a trip; 1. Away from their place of residence or business and staying overnight in paid accommodations; 2. To a place?fty miles or more one way from their place of residence or business for the day or staying overnight; or 3. From another country or state outside of their place of residence or their business. B. The City Manager will transmit a copy of the report to the City Council.the Lodging Tax Advisory Committee, and the iointlegislative audit and review committee of the Washington state legislature. The report will also be made available for public review and inspection. Section 2. Severabilig/_. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutionalby 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 become effective?ve days following its passage and publication. PASSED BY THE CITY COUNCIL OF THE CITY OF NORMANDY PARK THIS 10" DAY OF NOVEMBER, 2015; AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THIS 10" DAY OF NOVEMBER, S,_ctLmL Susan West, Mayor Attest: b._>.,l;.. (3>w~ ~J\ J Debbie Burke, City Clerk {JEH DOCX;1/O ()000/ } Page 8 of 9

9 APPROVED AS TO FORM: / James E. H, City Attorn y 1o_t_ West Osterman McEvoy Jenkins Bishoff Waters Munslow Ayes: / 4/ 4/ 1/ 2 1/ Nays: Abstentions: L Absent: 2 PUBLISHED: November 20, 2015 EFFECTIVE: November 25, 2015 {JEH DOCX;l/0OO / } Page 9 of 9

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