Inquiry of the Week (8/24/98)

Question:

Does a city need to seek Lodging Tax Advisory Committee review of every project for which it wants to use hotel-motel tax money?

Answer:

Yes. According to RCW 67.28.1817(2), the city needs to seek committee review of proposals for use of the tax. However, its decision is only advisory and not final. It does not have final authority to decide how to use the tax. Final authority rests with the city council.

RCW 67.28.1817(2) provides as follows:

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.

(Emphasis supplied.)

For further information on the Hotel-Motel or Lodging Tax and the 1998 legislative amendments, see the AWC Factsheet on the Hotel-Motel Tax.