HomeMy WebLinkAbout4532 Resolution - WA ST DOR Agreement for TPA FeesResolution - Permanent Agreement for TPA Fees - 1
RESOLUTION NO. 4532
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE AN
AGREEMENT FOR THE STATE ADMINISTRATION OF TOURISM
PROMOTION AREA FEES BETWEEN THE CITY OF PASCO AND THE
WASHINGTON STATE DEPARTMENT OF REVENUE.
WHEREAS, the City of Pasco (City) along with the cities of Kennewick and Richland
established the Tri-Cities Regional Hotel/Motel Commission (Commission) in 2004 at the behest
of Visit Tri-Cities to create a Tourism Promotion Area (TPA); and
WHEREAS, this TPA aims to boost hotel usage in the Tri-Cities, funded by a special hotel
industry assessment; and
WHEREAS, this special hotel industry assessment was initially set at $1.50 per night in
2004, increased to $2.00 in 2014, and increased to $3.00 in late 2020, with each increase in
assessment supported by the Commission; and
WHEREAS, the Washington State Department of Revenue (DOR) collects TPA fees
monthly through an agreement with the City, which is then transferred to Visit Tri-Cities for
administration of the Regional TPA; and
WHEREAS, in September 2023, Pasco, along with numerous TPAs across the State and
including neighboring cities of Richland and Kennewick, was notified by the Washington State
Department of Revenue (DOR) of non-compliance with State law in its TPA municipal code; and
WHEREAS, the DOR proposed a temporary agreement to continue TPA charge collection
through 2024, giving jurisdictions time to make adjustments to bring their municipal codes to
compliance or seek legislative action to modify State law; and
WHEREAS, the City Council approved the temporary TPA agreement through Resolution
No. 4405 approved on December 4, 2023; and
WHEREAS, House Bill 2137 provided the technical changes to allowable exemptions
from charges for TPA assessments but requires a new agreement with DOR to facilitate ongoing
collection of TPA charges; and
WHEREAS, the City Council of the City of Pasco, Washington, has after due
consideration, determined that it is in the best interest of the City of Pasco to enter into an
agreement with the DOR.
Resolution - Permanent Agreement for TPA Fees - 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City Council of the City of Pasco approves the terms and conditions of the
Agreement for the State Administration of Tourism Promotion Area Fees with the City of Pasco
and Washington State Department of Revenue as attached hereto and incorporated herein as
Exhibit A.
Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby
authorized, empowered, and directed to execute said Agreement on behalf of the City of Pasco;
and to make minor substantive changes as necessary to execute the Agreement.
Be It Further Resolved, that this Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington, on this 18th day of
November, 2024.
_____________________________
Pete Serrano
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
AGREEMENT FOR THE STATE ADMINISTRATION OF
TOURISM PROMOTION AREA FEES WITH THE CITY OF PASCO
THIS AGREEMENT (“Agreement”) is entered into by and between the City of Pasco, a
political subdivision of the State of Washington (herein referred to as “City”) and the
State of Washington Department of Revenue (“Department”) for the administration of the
tourism promotion lodging charge imposed by the City of Pasco. This Agreement is
effective January 1, 2025.
RECITALS
WHEREAS, the Legislature of the State of Washington by RCW 35.101
authorizes a City to establish a Tourism Promotion Area to permit the levy of lodging
charges to be expended exclusively for tourism promotion, and;
WHEREAS, RCW 35.101.055 provides the lodging charge authorized in RCW
35.101.050 does not apply to temporary medical housing exempt under RCW 82.08.997,
or any lodging business, lodging unit, or lodging guest so designated by the legislative
authority; and;
WHEREAS, RCW 35.101 provides that a City imposing a lodging charge by
resolution or ordinance shall contract with the Department for the administration and
collection of the levy of lodging charges, and;
WHEREAS, The City has by ordinance, copy attached hereto, indicated its
intention to fix and impose a lodging charge of $3.00 per night/per room in addition to all
other sales and use taxes and any special assessments that may be levied (Ordinance No.
4507);
NOW, THEREFORE, to provide for the administration of lodging charges, the
parties agree as follows:
AGREEMENT
1. Incorporation of Recitals. The above recitals are true and correct and are
incorporated herein by this reference as if fully set forth.
2. Functions of the Department. The Department shall exclusively perform all
functions incident to the administration and collection for the lodging charges imposed by
the Ordinance. The Department shall collect the charges from lodging businesses that
furnish lodging taxable by the state under Chapter 82.08 RCW.
3. Collection Not Authorized. Pursuant to RCW 35.101.050, the Department is not
authorized or required to administer and collect on behalf of the City any charge for
which there are more than six classifications.
4. New or Additional Legislation. In addition to the Ordinance attached hereto, the
City shall provide the Department with copies of any new and/or additional ordinances
imposing any new charges or changing the rate of any charge. Such copies shall be
provided to the Department no later than 75 days prior to the effective date of the
resolution. Subject to the limitations under RCW 35.101.050, the Department shall
administer and collect those charges that are identified in the new and/or additional
ordinance pursuant to this Agreement under the same terms and conditions as for the
charges imposed under the Ordinance.
5. Collection of Lodging Charges. The Department shall collect the lodging
charges by the end of the following month after the due date of the taxable period for
which lodging charges are imposed pursuant to the ordinance. In accordance with RCW
35.101.090, the charges so collected shall be deposited by the Department in the local
tourism promotion account in the custody of the state treasurer. The Department shall
provide the state treasurer with instructions on the proper monthly distribution of the
deposited funds in accordance with RCW 35.101.100.
6. Rules and Regulations Adopted by the Department. Any specific rules and
regulations adopted by the Department to facilitate the administration and distribution of
the lodging charges shall be in accordance with the State Administrative Procedure Act
and RCW 35.101. Until specific rules and regulations are adopted, the Department shall
apply the provisions contained in chapters 82.03, 82.08, 82.12, 82.14, and 82.32 RCW, as
the same exist or may hereafter be amended and insofar as the same are relevant to
lodging charges. Such provisions shall have full force and effect of Department rules
when applied to lodging charges.
7. Uniform Collection. The Department performs its duties hereunder so that as far
as possible the lodging charges shall be administered and collected uniformly with the
state’s sales and use taxes.
8. Refunds or Credits. Any refunds or credits the Department finds are owed
relating to the lodging charges shall be refunded to the taxpayer from the City’s portion
of the local tourism promotion account.
9. Notification of Error of Fund Distribution. Either party shall have six months
from the date funds are distributed by the state treasurer to notify the other party in
writing of any error in the amount of distributed funds. The party receiving such notice
shall have sixty (60) days to review the claim. Upon agreement of the parties, the
Department shall deposit any necessary additional funds with the state treasurer for
distribution to the City; or in the event of an over-distribution to the City, the City shall
return such over-distribution to the Department. If the City and the Department cannot
reach an agreement, the parties agree to attempt mediation or other dispute resolution
process prior to instigating litigation in Superior Court.
10. Disclosure of Taxpayer Information, Documentation and Reports. The
Department shall provide taxpayer information, documentation and reports to the City in
accordance with the disclosure limitations of RCW 82.32.330. The City shall require its
authorized representatives that have access to confidential taxpayer information to sign a
Department Secrecy Clause and shall ensure such representatives comply with RCW
82.32.330.
11. Parties’ Communication and Cooperation. The parties agree to establish and
maintain open lines of communication and to work cooperatively in order to improve
administration and public understanding of the City lodging charges (special
assessments). Either party may initiate a meeting, to be held at a mutually convenient
time and place, to share information and to discuss matters related to administration and
collection of the City lodging charges.
12. Disputes. In the event a dispute arises under this Agreement that cannot be
resolved by mutual agreement of the parties, either party may elect arbitration in which
the Department and City shall each individually appoint one member to a Dispute Board
and those members shall select a third member. The Dispute Board shall evaluate the
dispute and make a written determination after considering the relevant facts and legal
authorities. The Dispute Board’s determination shall be given significant weight by both
parties who will meet after the determination is issued to resolve the dispute. If a
resolution is not reached, the determination of the Dispute Board shall be admissible in
any future legal proceeding between the parties concerning the dispute. Each party shall
be responsible for a proportionate share of the costs of the member of the Dispute Board.
This remedy is not intended to be exclusive of other remedies existing in law, by statute,
or otherwise.
13. Indemnification. To the extent permitted by law, the City agrees to indemnify,
defend, and hold harmless the Department for the State of Washington from claims that
challenge the authority of the City to impose lodging charges pursuant to the Ordinance.
The City agrees that in the event there shall be a legal challenge to the Ordinance or
resolutions, the Department shall not be obligated to represent the City or otherwise
defend its position in any proceeding relating to such challenge.
14. Effective Date. This Agreement shall take effect at 12:01 AM, January 1, 2025
and shall thereafter be automatically renewed on December 31, of each year unless one of
the parties gives written notice of termination on or before November 1, or each year.
The parties to this Agreement will notify each other in a timely manner when they find it
necessary to request an amendment to this Agreement.
15. Waiver. Any failure by any party to insist upon strict performance of any
provision of this Agreement shall not be deemed a waiver of the right to require future
strict performance of such provision; No failure or delay in exercising any right or
remedy hereunder shall be deemed a waiver of such right or remedy. No term or
condition of this Agreement shall be waived, modified or deleted except by an
instrument, in writing, signed by personnel authorized to bind each of the parties.
16. Modification. This Agreement may be amended by mutual agreement of the
parties. Such amendments shall not be binding unless they are in writing and signed by
personnel authorized to bind each of the parties.
17. Entire Agreement. This Agreement contains all the terms and conditions agreed
upon by the parties. No other understandings, oral or otherwise, regarding the subject
matter of this Agreement shall be deemed to exist or to bind any of the parties hereto.
18. Counterparts. This agreement may be executed in two or more counterparts,
each of which shall be deemed an original and which together constitute one and the
same.
IN WITNESS WHEREOF, the State of Washington, Department of Revenue and the
City of Pasco have executed this contract as of the day and year written below.
___________________ __________________________________________
Date Sr. Assistant Director, Department of Revenue
___________________ __________________________________________
Date Name, Title, Jurisdiction
Attest:
___________________ __________________________________________
Date Name, Title, Jurisdiction
___________________ __________________________________________
Date Name, City Attorney, Jurisdiction
Approved as to Form only:
Nam Nguyen, Assistant Attorney General