Lodging Tax (Hotel/Motel Tax)
2008 City of Poulsbo Hotel/Motel Tax Funds
First 2% Tax
The City levies a 2% tax on charges for the furnishing of lodging such as: hotels, motels, rooming houses, private campgrounds, RV parks and similar facilities rented for continuous of less than one month. The charge is authorized by RCW 67.28.180.
This first 2% tax is credited against the sales tax that would normally be charged for these services. In other words, if the City were to discontinue collecting this first 2% tax, hotels, motels, etc would still collect and consumers would still pay a 2% tax, it would just be collected as a sales tax rather than as a hotel/motel tax.
This first 2% tax is not subject to recommendations by the lodging tax advisory committee. By Council's authorization, the City currently distributes this 2% tax to the Greater Poulsbo Chamber of Commerce and the Kitsap Peninsula Visitors & Convention Bureau.
Second 2% Tax
The City also levies a second 2% tax on charges for the same lodging services. This is authorized by RCW 67.28.181.
This 2% is not credited against the sales tax. In other words, this tax in an additional charge to the consumer. This second 2% tax is subject to recommendations by the lodging tax advisory committee.
Once a year, organizations involved with the tourism promotion of Poulsbo are invited to complete a grant application for the use of the second 2% tax for a tourism-related Special Project. The Lodging Tax Advisory Committee makes recommendations on the use of this money to the Community Services Committee and ultimately the full City Council. The application process begins in June of each year for the next calendar year.
RCW 67.28.1815 outlines how these two taxes can be used. It states, "revenue from (these) taxes shall be used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities."
RCW 67.28.08 defines Tourism:
Tourism - economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.
Tourism Promotions - activities, operations, 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 of or the operation of special events and festivals designed to attract tourists.
Tourism-related facility - 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 to accommodate tourist activities.
Tourist - 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.
Lodging Tax Advisory Committee (2008)
Mayor Kathryn Quade
PO Box 98
Poulsbo, WA 98370
(360) 779-3901
Kitsap Peninsula Visitor and Convention Bureau
Attn: Grant Griffin
P.O. Box 270
Port Gamble, WA 98364
(360) 297-8200
Greater Poulsbo Chamber of Commerce
Attn: Adele Heinrich
P.O. Box 1063
Poulsbo, WA 98370
(360) 779-4999
Holiday Inn Express
Attn: Micah Kim
19801 7th Ave NE
Poulsbo, WA 98370
(360) 697-4400
Poulsbo Inn
Attn: Terri Douglas
18680 State Hwy 305 NE
Poulsbo, WA 98370
(360) 779-3921
Special Projects
Click here to see the Lodging Tax Special Projects for 2006
Click here to see the Hotel/Motel (Lodging Tax) Special Projects for 2007
Click here to see the Hotel/Motel (Lodging Tax) Special Projects for 2008
