H. B. 3212
(By Delegate Yeager)
[Introduced March 30, 2001; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend and reenact sections two, nine and fourteen,
article eighteen, chapter seven of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating to
the hotel occupancy tax and the expenditure of revenues
collected therefrom; providing municipalities the power to
increase rate of the tax to an amount up to six percent;
requiring that a minimum percentage of the revenue collected
from the tax be expended for the promotion of conventions and
tourism; providing that balance of revenues collected from the
tax may be expended on the establishment, planning,
construction and improvement of arenas, auditoriums, civic
centers, convention facilities and projects from proceeds of
revenue bonds; providing that hotel occupancy tax revenues may
be used to repay the bonds; and permitting the pledge by a
municipality of all or portion of such balance to secure the payment of debt service in connection with any financing
obtained for contributions for facilities and projects
financed from proceeds of revenue bonds.
Be it enacted by the Legislature of West Virginia:
That sections two, nine and fourteen, article eighteen,
chapter seven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, to read
as follows:
ARTICLE 18. HOTEL OCCUPANCY TAX.
§7-18-2. Rate of tax.
(a) The rate of tax imposed shall be three percent of the
consideration paid for the use or occupancy of a hotel room.
Such
This consideration
shall may not include the amount of tax imposed
on the transaction under article fifteen, chapter eleven of this
code, or charges for meals, valet service, room service, telephone
service or other charges or consideration not paid for use or
occupancy of a hotel room.
(b) On and after the first day of July, two thousand one, a
municipality may, upon enactment of an ordinance in accordance with
the provisions of article eleven, chapter eight of this code,
increase the rate of tax under this article up to an amount not to
exceed six percent of the consideration paid for the use or
occupancy of a hotel room. The consideration may not include the
amount of tax imposed on the transaction under article fifteen, chapter eleven of this code, or charges for meals, valet service,
room service, telephone service or other charges or consideration
not paid for use or occupancy of a hotel room.
§7-18-9. Total amount collected to be remitted.
No profit
shall may accrue to any person as a result of the
collection of the tax authorized under this article.
Notwithstanding that the total amount of
such the
taxes collected
by a hotel operator may be in excess of the amount for which a
consumer would be liable by the application of the levy of three
percent for the occupancy of a hotel room or rooms, or in the case
of a municipality that imposes and levies up to an additional three
percent for the occupancy of a hotel room or rooms under this
article, by the application of the additional percentage, the total
amount of all taxes collected by any hotel operator shall be
remitted to the taxing authority as hereinafter provided.
§7-18-14. Proceeds of tax; application of proceeds.
(a) Application of proceeds. -- The net proceeds of the tax
collected and remitted to the taxing authority pursuant to this
article shall be deposited into the general revenue fund of such
the municipality or county commission and, after appropriation
thereof, shall be expended only as provided in subsections (b) and
(c) of this section: Provided, That any portion of the tax
collections may be deposited into a special revenue fund as the
municipality or county commission may direct.
(b) Required expenditures. -- At least fifty percent of the
From the net revenue receivable during the fiscal year by a county
or a municipality pursuant to this article, a county or
municipality shall expend at least fifty percent of the revenue
calculated on the basis of a maximum rate of tax equal to three
percent shall be expended in the following manner set forth in
subdivisions (1) and (2) of this section for the promotion of
conventions and tourism;
(1) Municipalities. -- If a convention and visitor's bureau is
located within the municipality, county or region, the governing
body of such the municipality shall appropriate the percentage
required by this subsection to that bureau. If a convention and
visitor's bureau is not located within such the
municipality,
county or region, then the percentage appropriation required by
this subsection shall be appropriated as follows:
(i) Any hotel within such the
municipality, county or region
may apply to such the
municipality for an appropriation to such
hotel of a portion of the tax authorized by this article and
collected by such the hotel and remitted to such the
municipality,
for uses directly related to the promotion of tourism and travel,
including advertisement, salaries, travel office expenses,
publications and similar expenses. The portion of such the
tax
allocable to such the
hotel shall may
not exceed seventy-five
percent of that portion of such the
tax collected and remitted by such the
hotel which is required to be expended pursuant to this
subsection: Provided, That prior to appropriating any moneys to
such the hotel such the
municipality shall require the submission
of, and give approval to, a budget setting forth the proposed uses
of such the
moneys.
(ii) If there is more than one convention and visitor's bureau
located within a municipality, county or region, the city council
may allocate the tax authorized by this article to one or more of
such the
bureaus in such portion as the city council in its sole
discretion determines.
(iii) The balance of net revenue required to be expended by
this subsection shall be appropriated to the regional travel
council serving the area in which the municipality is located.
(2) Counties. -- If a convention and visitor's bureau is
located within a county or region, the county commission shall
appropriate the percentage required by this subsection to that
convention and visitor's bureau. If a convention and visitor's
bureau is not located within such the county or region, then the
percentage appropriation required by this subsection shall be
appropriated as follows:
(i) Any hotel located within such the
county or region may
apply to such the
county for an appropriation to such the
hotel of
a portion of the tax authorized by this article and collected by
such the
hotel and remitted to such the
county, for uses directly related to the promotion of tourism and travel, including
advertising, salaries, travel, office expenses, publications and
similar expenses. The portion of such the
tax allocable to such
the
hotel shall may
not exceed seventy-five percent of that portion
of such the
tax collected and remitted by such the
hotel which is
required to be expended pursuant to this subsection: Provided,
That prior to appropriating any moneys to such the
hotel such the
county shall require the submission of, and give approval to, a
budget setting forth the proposed uses of such the
moneys.
(ii) If there is more than one convention and visitor's bureau
located within a county or region, the county commission may
allocate the tax authorized by this article to one or more of such
the
bureaus in such portion as the county commission in its sole
discretion determines.
(iii) The balance of net revenue required to be expended by
this subsection shall be appropriated to the regional travel
council serving the area in which the county is located.
(3) Legislative findings. -- The Legislature finds and
declares that in order to attract new business and industry to this
state and to retain existing business and industry all to provide
the citizens of the state with economic security and to advance the
business prosperity and economic welfare of this state it is
necessary to enhance recreational and tourism opportunities.
Therefore, in order to promote recreation, and tourism the Legislature finds that public financial support should be provided
for constructing, equipping, improving and maintaining projects,
agencies and facilities which promote recreation and tourism. The
Legislature hereby further finds that the support of convention and
visitor's bureaus, hotels and regional travel councils is a public
purpose for which funds may be expended. Local convention and
visitor's bureaus, hotels and regional travel councils receiving
funds under this subsection may expend such funds for the payment
of administrative expenses, and for the direct or indirect
promotion of conventions and tourism, and for any other uses and
purposes authorized by subdivisions (1) and (2) of this subsection.
(c) Permissible expenditures. -- After making the
appropriation required by subsection (b) of this section, the
remaining portion of the net revenues receivable during the fiscal
year by such the
county or municipality, pursuant to this article,
may be expended by the county or municipality, or transferred to
any other public body or agency of the state or other person and
expended by the body, agency or person, for one or more of the
purposes set forth in this subsection, but for no other purpose.
The purpose for which expenditures may be made pursuant to this
subsection are as follows:
(1) The planning, construction, reconstruction, establishment,
acquisition, improvement, renovation, extension, enlargement,
equipment, maintenance, repair and operation of publicly owned convention facilities, including, but not limited to, arenas,
auditoriums, civic centers and convention centers;
(2) The payment of principal or interest or both on revenue
bonds issued to finance such convention facilities any expenditure
for authorized purposes for any of the projects described in
subdivision (1) of this subsection;
(3) The promotion of conventions;
(4) The construction, operation or maintenance of public
parks, tourist information centers and recreation facilities
(including land acquisition);
(5) The promotion of the arts;
(6) Historic sites;
(7) Beautification projects; or
(8) Medical care, in an amount not exceeding one hundred
thousand dollars, in any county where: (i) There is an urgent
necessity to preserve the delivery of acute medical care services;
(ii) there is an increase in need for delivery of acute medical
care services related to tourism; (iii) recurrent flooding in the
county significantly disrupts, on a periodic basis, the delivery of
acute medical care services; (iv) there is an inadequate economic
base within the county from any source other than tourism to
preserve the delivery of acute medical care services; (v) there is
an inadequate economic base directly related to low population in
the county, specifically, a population of less than ten thousand persons according to the census of the year one thousand nine
hundred ninety; and (vi) there is one and only one hospital within
the county; and the county commission makes specific findings, by
resolution, that all of the foregoing conditions within the county
exist.
(d) Pledge of net revenues by municipality. -- A county or
municipality may, after making the appropriation required by
subsection (b) of this section, pledge all or a portion of net
revenues receivable during the fiscal year or receivable in any
succeeding fiscal year, pursuant to this article, as security for
the payment of principal or interest or both in connection with any
financing obtained for any expenditure authorized under
subdivisions (1) and (2) of subsection (c) of this section.
(d) (e) Definitions. -- For purposes of this section, the
following terms are defined:
(1) Convention and visitor's bureau and visitor's and
convention bureau. -- "Convention and visitor's bureau" and
"visitor's and convention bureau" are interchangeable and either
shall mean means a nonstock, nonprofit corporation with a full-time
staff working exclusively to promote tourism and to attract
conventions, conferences and visitors to the municipality, county
or region in which such the convention and visitor's bureau or
visitor's and convention bureau is located or engaged in business
within.
(2) Convention center. -- "Convention center" means a
convention facility owned by the state, a county, a municipality or
other public entity or instrumentality and shall include includes
all facilities, including armories, commercial, office, community
service and parking facilities and publicly owned facilities
constructed or used for the accommodation and entertainment of
tourists and visitors, constructed in conjunction with the
convention center and forming reasonable appurtenances thereto.
(3) Fiscal year. -- "Fiscal year" means the year beginning the
first day of July and ending the thirtieth day of June of the next
calendar year.
(4) Net proceeds. -- "Net proceeds" means the gross amount of
tax collections less the amount of tax lawfully refunded.
(5) Promotion of the arts. - "Promotion of the arts means
activity to promote public appreciation and interest in one or more
of the arts. It includes the promotion of music for all types, the
dramatic arts, dancing, painting and the creative arts through
shows, exhibits, festivals, concerts, musicals and plays.
(6) (5) Recreational facilities. -- "Recreational facilities"
means and includes any public park, parkway, playground, public
recreation center, athletic field, sports arena, stadium, skating
rink or arena, golf course, tennis courts and other park and
recreation facilities, whether of a like or different nature, that
are owned or leased by a county or municipality.
(7) (6) Region. -- "Region" means an area consisting of one or
more counties that have agreed by contract to fund a convention and
visitor's bureau to promote those counties.
(8) (7)
Regional travel council. -- "Regional travel council"
means a nonstock, nonprofit corporation, with a full-time staff
working exclusively to promote tourism and to attract conventions,
conferences and visitors to the regions of this state.
(9) (8)
Historic site. ---"Historic site" means any site
listed on the Unites States national register of historic places,
or listed by a local historical landmarks commission, established
under state law, when such sites are owned by a city, a county or
a nonprofit historical association and are open from time to time
to accommodate visitors.
NOTE: The purpose of this bill is to allow municipalities to
collect an extra 3% hotel occupancy tax. This money may be used
for financing projects which promote recreation and tourism.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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