4.16.010 Imposition of Special Excise Tax.
A. There is imposed a special excise tax of 2 percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, or the granting of any similar license to use real property, as distinguished from the renting or leasing of real property; provided, that 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 to enjoy the same.
B. In addition to that tax imposed and levied at subsection 4.16.010 A. above, the Council of Pierce County, acting pursuant to the authority of and with the purposes stated at Chapter 483, Washington Laws of 1987, hereby imposes and levies a special excise tax of 2 percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, or the granting of any similar license to use real property, as distinguished from the renting or leasing of real property; provided, that 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 to enjoy the same.
C. The Council of Pierce County, acting pursuant to the authority of and with the purposes stated at Chapter 452, Laws of 1997, Chapter 35, Laws of 1998, and Chapter 67.28 RCW there is imposed an excise tax of 7 percent on the sale or charge made for the furnishing of lodging by a hotel, motel or trailer camp or the granting of any similar license to use real property; provided, that 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 to enjoy the same. This tax is imposed in lieu of the tax imposed pursuant to PCC 4.16.010 A. and B.
D. Lodging facilities having 25 or fewer units shall be exempt from the collection of 3 percent of the tax imposed under this Chapter.
E. The tax paid pursuant to this subsection shall be credited against the amount of sales tax due to the State under Chapter 82.08 RCW on the same sale of lodging, but the credit for taxes imposed under this Section shall not exceed 2 percent. The revenue raised pursuant to this subsection shall be used for tourism promotion or funding tourism-related facilities within unincorporated Pierce County or other jurisdictions where lodging taxes are collected pursuant to this Chapter and the revenues are placed in the fund created at PCC 4.16.080 C.
F. Definitions.
1. "Tourism" as used in this subsection is defined as economic activity in geographical areas where the tax imposed in this Section is collected, resulting from tourists, which may include overnight lodgings, meals, tours, gifts, and souvenirs.
2. "Tourism promotion" as used in this subsection 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 the marketing and/or operations of special events and festivals designed to attract tourists.
3. "A 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) owned by a 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 accommodate tourist activities.
G. Whenever the County proposes the imposition of a new tax under Chapter 452, Washington Laws of 1997, an increase in the rate of said tax, the repeal of said tax, or a change in the use of revenue received from said tax, the County shall submit the proposal to the Lodging Tax Advisory Committee (Committee), established pursuant to Chapter 2.93 PCC, for review and comment. The submission shall occur at least 45 days before final action on the proposal by the Council.
The Committee’s comments shall be submitted to the Council in a timely manner and 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 Tourism Promotion and Capital Facilities Fund.
Failure of the Committee to submit comments before final action by the Council on a new proposal shall not prevent the municipality from acting on the proposal. The County is not required to submit an amended proposal to the Committee.