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HomeMy WebLinkAboutCommittee of the Whole Packet for 03/07/2016cawbi rmvl- CITY OF enton 4th Y "n AGENDA Committee of the Whole Meeting 6:00 PM - Monday, March 7, 2016 TBD - PLEASE EDIT ACCORDINGLY, 7th Floor, City Hall —1055 S. Grady Way 1. LODGING TAX FUNDING ALLOCATION RECOMMENDATIONS a) Agenda Bill SUBJECT/TITLE: RECOMMENDED ACTION i11W_1C31►rihl►lg STAFF CONTACT: EXT.: AGENDA ITEM #1, a) L�SY O.o V I y} fiNTO? 2016 Lodging Tax Fund Allocations Council Concur Community & Economic Development Cliff Long, Economic Development Director 6591 _.------------- ._.. - - Expenditure Req uired:$ Exp e n d iture _ _ ____ _ .. ----- -- 217;000 - --------- Transfer Amendment $ N/A Amount Budgeted: $ 217,000 Revenue Generated: _... $ N/A - Total Protect Budget $ 217,000 _ Caty Share Total Project ^' $ N/A The Lodging Tax Advisory Committee met on June 30, 2015, to approve a new application process for the allocation of lodging tax funding for 2016 ensuring consistency, fairness, and compliance with state regulations. The Committee met again on October 9, 2015, setting a timeline for the application process and directing staff to hold a workshop for interested applicants on October 28, 2015. Applications were due on November 20, 2015, and 19 applications were received. The Committee heard presentations from all applicants on December 4, 2015, and met on again on December 16, 2015, to finalize its recommendations. The Lodging Tax Advisory Committee recommends Renton City Council approve 2016 expenditures from the Lodging Tax Fund as follows: • Renton Technical College, Reading Apprenticeship Conference, $2,500 • Renton Technical College, Reading Apprenticeship in STEM, $2,500 • Renton Civic Theater, 2016 Season, $2,500 • Seattle International Film Festival, 2016 Renton, $20,000 • Renton Chamber of Commerce, 2016 Oktoberfest, $12,500 • City of Renton, Renton Community Marketing Campaign, $50,000 • City of Renton, Seahawks Rally, $10,000 • Renton Chamber of Commerce, Visitor's Center, $75,000 • Renton Chamber of Commerce, Return to Renton Car Show, $5,000 • Tasveer, South Asian Film Festival, $7,000 • Olympic Peninsula Fishing Innovations, Atlantic Salmon Fly Expo, $10,000 • City of Renton, Multi -Cultural Festival, $20,000 Total Recommendation: $217,000 A. Issue Paper B. LTAC 121615 Minutes & Matrix AGENDA ITEM #1, a) Approve allocations for the 2016 Lodging Tax Fund as recommended by the Lodging Tax Advisory Committee and authorize the Mayor and City Clerk to execute contracts with the successful applicants to expend budgeted funds on the proposed additional marketing initiatives. AGENDA ITEM #1. a) DEPARTMENT OF COMMUNITYcity of & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: January 25, 2016 TO: Randy Corman, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: Cliff Long, Economic Development Director (x6591) SUBJECT: Allocation of Lodging Tax Funding for 2016 ISSUE Should money from Lodging Tax funds be allocated to applicants to support tourism marketing and operations as recommended by Renton's Lodging Tax Advisory Committee (LTAC)? RECOMMENDATION Support the recommendation of the Lodging Tax Advisory Committee to allocate $217,000 in lodging tax funding for 2016 as detailed in the attached matrix and summarized below. Additionally, staff recommends that the Mayor and City Clerk be allowed to execute contracts with the successful applicants to expend budgeted funds on the proposed additional marketing initiatives outlined below. BACKGROUND SUMMARY In accordance with RCW 67.28.1817, the City of Renton has established a Lodging Tax Advisory Committee to recommend the allocation of lodging tax funds to Renton City Council. The Committee was chaired by Councilmember Palmer and members include: • Michael Schabbing, Marriott Hotels • Katie Hunter, Hilton Hotels • Brent Camann, Renton Chamber of Commerce • Preeti Shridhar, City of Renton Council "may only choose recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee." However, Council does not have to fund the full list as recommended by the LTAC and can choose to make awards in the recommended amounts to all, some, or none of the candidates on this list. The selected recipients must be awarded the amounts recommended by the LTAC. AGENDA ITEM #1, a) Randy Corman, Council President Page 2 of 2 January 25, 2015 The Lodging Tax Advisory Committee met on June 30, 2015, to approve a new application process for the allocation of lodging tax funding for2016 ensuring consistency, fairness, and compliance with state regulations. The Committee met again on October 9, 2015, setting a timeline for the application process and directing staff to hold a workshop for interested applicants on October 28, 2015. Applications were due on November 20, 2015, and 19 applications were received. The Committee heard presentations from all applicants on December 4, 2015, and met on again on December 16, 2015, to finalize its recommendations. The Lodging Tax Advisory Committee recommends Renton City Council approve 2016 expenditures from the Lodging Tax Fund as follows: • Renton Technical College, Reading Apprenticeship Conference, $2,500 • Renton Technical College, Reading Apprenticeship in STEM, $2,500 • Renton Civic Theater, 2016 Season, $2,500 • Seattle International Film Festival, 2016 Renton, $20,000 • Renton Chamber of Commerce, 2016 Oktoberfest, $12,500 • City of Renton, Renton Community Marketing Campaign, $50,000 • City of Renton, Seahawks Rally, $10,000 • Renton Chamber of Commerce, Visitor's Center, $75,000 • Renton Chamber of Commerce, Return to Renton Car Show, $5,000 • Tasveer, South Asian Film Festival, $7,000 • Olympic Peninsula Fishing Innovations, Atlantic Salmon Fly Expo, $10,000 • City of Renton, Multi -Cultural Festival, $20,000 Total Recommendation: $217,000 These expenditures are recommended at a level less than anticipated in the 2015-2016 Renton City Budget as adopted by Council. Furthermore, they are consistent with the goals of the City's Business Plan and Economic Development Strategic Plan. cc: Jay Covington, Chief Administrative Officer Wen Wang, Administrative Services Administrator Terry Higashiyama, Community Services Administrator Chip Vincent, Community & Economic Development Administrator AGENDA ITEM V. a) CITY OF G\t'Y Oma` wwww�Renton �f N,t O MINUTES Renton Lodging Tax Advisory Committee 1:00 PM — Wednesday, December 16, 2015 Council Conference Room, 7th Floor, City Hall —1055 S. Grady Way (.Opening Chairperson Palmer called the Renton Lodging Tax Advisory Committee (LTAC) meeting to order. LTAC Members Present: City Staff Present. Marcie Palmer, Chair Cliff Long, CED Brent Camann, Renton Chamber of Commerce Michael Schabbing, SpringHill Suites Preeti Shridhar, City of Renton 11. Review of Applications for 2016 Lodging Tax Funds Presentations by applicants were made to the Committee on Friday, December 4, 2015. The Committee met today to discuss each application and a summary of their recommendations is attached. The Committee unanimously agreed upon the amounts awarded (or declined) the applicants. MOVED BY CAMANN, SECONDED BY SHRIDHAR, TO FORWARD COMMITTEE RECOMMENATIONS TO RENTON CITY COUNCIL FOR APPROVAL. ALL AYES. MOTION CARRIED. ADJOURN The Committee adjourned at 3:33 PM December 16, 2015 LTAC Meeting Minutes page 1 LTAC 2016 Approved Funding Recommendations December 16, 2015 Applicant Name & Presenter Event/Project Name & Description Requested Recommended Notes 1 Renton Technical College Reading Apprenticeship Conference $ 11,025 $ 2,500 The applicant is encouraged to Presenter. Liz Falconer (Application Part 1) Second annual track and report information on regional conference hosted by RTC and attendees and their economic the RTC Foundation, focusing on impact, particularly to the local strengthening literacy development of lodging industry. The Committee faculty at regional colleges, to be also encourages the applicant to applied in classrooms and professional work with local hoteliers to learning communities. package lodging opportunities for multi -day stays. 2 Renton Technical College Reading Apprenticeship in STEM $ 28,565 $ 2,500 (see above) Presenter. Liz Falconer Training (Application Part 2) A 3 -day seminar on Reading Apprenticeship for community college teachers in science technology, engineering, and mathematics. Participants will learn ways to engage students in powerful ways of reading academic and technical texts, and deepen their understanding of the pedagogy of their disciplines. 3 Renton Civic Theatre Presenter., 2016-2017 Season $5,000 $ 2,500 The Committee encourages the Bill Huls Six (6) main stage shows per year, plus applicant to use funds to enhance a variety of special events and marketing to attract visitors from productions. outside the community and to work with local hotels to package overnight stays. LTAC 2016 Approved Funding Recommendations December 16, 2015 4 Seattle International Film Festival Presenter: Nancy Kennedy SIFF-Renton Film Festival 42nd annual international film festival to be held at the IKEA Renton Performing Arts Center, with 18-20 films screened over seven days. $20,000 $ 20,000 The Committee encourages SIFF to enhance collection of Renton specific data through in-house surveys and to provide links to Renton lodging information from their website. 5 Renton Chamber of Commerce Renton Oktoberfest $12,500 $ 12,500 The applicant is encouraged to Presenter: John Thornburn Fifth annual, 2 -day family -focused track and report information on event held at the Pavilion Event Center attendees and their economic in honor of Bavaria's Oktoberfest in impact, particularly to the local Germany, under the direction of Bold lodging industry. The Committee Hat Productions. also encourages the applicant to work with local hoteliers to package lodging opportunities for overnight stays. 6 City of Renton Renton Marketing Campaign $50,000 $ 50,000 The Committee appreciated the Presenter: Cliff Long Partnering with the lodging industry, partnership and previous efforts to the Renton Community Marketing market Renton opportunities. The Campaign partners plan to highlight Committee encouraged the new Renton's unique features which set it strategy to include a strong apart from other cities, with methods element of tourism promotion. such. as brand development, advertising and public relations, events promotion, and collateral development. LTAC 2016 Approved Funding Recommendations December 16, 2015 7 City of Renton Presenter. Preeti Shridhar Seahawks Rally A community celebration to either send the Seattle Seahawks to the playoffs (January) or mark the start of the next season (September). Offerings to fans include meeting Sea Gals and former players, free lunch, and vendor giveaways. $10,000 $ 10,000 While the Committee felt the individual rally events were primarily local celebrations, it recognized the value of the associated media outreach and the valuable contribution the Seahawks organization brings to Renton and the lodging industry thoughout the year. 8 Renton Chamber of Commerce Operation of Visitor Center $75,000 $ 75,000 The Committee encourages the Presenter. Vicky Baxter The Renton Visitor Center is open to applicant to move away from the public and accommodates visitor printed materials and rack cards to information needs and promotion of more electronic media promotion. Renton as a visitor destination in The applicant is encouraged to person, over the phone, and via partner with the Renton various forms of media (print, website, Community Marketing Campaign etc.). whenever possible. The Committee reserves the right to terminate funding if the Chamber relocates and ceases operation of the visitor center. 9 Renton Chamber of Commerce Aloha Weekend $15,000 $ - The Committee encourages the Presenter: Vicky Baxter A celebration of the diversity applicant to work together with Polynesian and other cultures in the the City of Renton to integrate this Renton area through performing arts, event into the proposed multi - music, dance, ethnic foods, visual arts, cultural festival. interactive and educational exhibits, and a global marketplace. G) Z m 3 LTAC 2016 Approved Funding Recommendations December 16, 2015 10 Renton Chamber of Commerce Return to Renton Car Show $5,000 $ 5,000 The Committee encourages the Presenter: Ryan Runge As one of the most celebrated car applicant to use funds to enhance shows in western Washington, this marketing to attract visitors from event has grown by 10% yearly with an outside the community and to expected attendance of 5,000 people. work with local hotels to package overnight stays. 11 Arts Unlimited of Renton Arts Unlimited 2016 Arts Events $18,000 $ - The Committee encourages the Presenter. Paul Hebron Art events planned in 2016 and 2017 applicant to work together with include Sketch Night, Art Walks at the the City of Renton to integrate Farmers Market, Arts Unlimited booth these events into the proposed at the Renton River Days Art Market, multi -cultural festival. and Music at the Chamber. 12 Tasveer Seattle South Asian Film Festival $10,000 $ 7,000 The Committee encourages the Presenter: Rita Meher Largest South Asian Film Festival in the applicant to work with local Pacific Northwest. 11th annual hoteliers to package lodging festival, with screenings in Renton on opportunities for overnight stays Oct 14-16, 2016, at Carco Theatre. and to link Renton hotel information from their website. 13 City of Renton Renton Farmers Market $10,000 $ - The Committee recognized the Presenter. Carrie Olson For 17 weeks in 2016, the Renton positive impact the Farmer's Farmers Market will feature vendors Market brings to the community offering a variety of local products, but didn't feel the events bring informaion from non-profit groups, lodging opportunities to local cooking demonstrations, and master hotels and therefore this isn't a gardener clinics. The Renton Farmers good match for LTAC funding. Market has been in operation for 14 years. LTAC 2016 Approved Funding Recommendations December 16, 2015 14 Carco Theatre w/ NW Film Forum Presenter. Ken Saunderson Renton FilmFrenzy The Renton FilmFrenzy is a 50 -hour filmmaking event, where competing filmmakers have from 5:00 p.m. through 7 p.m. on Sunday to write, shoot, edit, and submit a four -minute film. The entire film must be shot in Renton. $10,000 $ The Committee appreciated the applicant's contribution to supporting the local film industry but didn't see a direct benefit to the local lodging and tourism industry as currently presented. 15 Olympic Peninsula Fishing Atlantic Salmon Fly International Expo $20,959 $ 10,000 The applicant is encouraged to Innovations The expo features a focus on Atlantic track and report information on Presenter. Megan Brocco Salmon flies, and is an international attendees and their economic event with attendees from 17+ impact, particularly to the local countries. The event will be held at the lodging industry. The Committee Renton Pavilion Event Center. also encourages the applicant to work with local hoteliers to package lodging opportunities for multi -day stays. 16 City of Renton City of Renton Multi -Cultural Festival $20,000 $ 20,000 The Committee ecourages the Presenter. Casey Stanley The one day event titled, "World Wide applicant to work with the Renton Day of Play" is planned by the City of Chamber of Commerce and Arts Renton Inclusion Task Force. Programs Unlimited to integrate their will include music, song, dance, programming into the festival. celebratory performance, crafts & cooking demonstrations, storytelling, illustrations of workers' culture, and narrative sessions for discussing cultural issues. LTAC 2016 Approved Funding Recommendations December 16, 2015 17 City of Renton Renton's Fabulous 4th of July $15,000 $ While the committee agreed this Presenter. Sonja Mejlaender The one day event is Renton's largest, was a wonderful community featuring stage entertainment, event, it didn't appear to multiple play stations and inflatables in contribute to increased lodging the free KidZone, free face painting & nights in Renton. hands-on activities, a volleyball tournament, and a 20+ minute fireworks display. 2016 will mark the event's 14th year. 18 City of Renton Renton River Days $35,000 $ - As presented, the Committee Presenter. Sonja Mejlaender The family-oriented community festival believed Renton River Days to be a includes arts & crafts, visual & nice community event but not one performing arts, recreation, food, that contributed to increased exhibitions, children's activites, stage lodging opportunities in the area. entertainment, and a parade with 85 The Committee did see great entries & 1,900 participants in 2015. potential for the event to have The partnership between Renton River more economic impact in the Days, Inc. and the City of Renton has future. been ongoing since 1986. 19 City of Renton Pop -Up Piazza 2016 $15,000 $ The Committee supported the Presenter. John Collum This event series focuses on goals of the Pop Up events to showcasing Renton's Downtown to attract more visitor traffic to the new and returning visitors. Located at downtown core but did not feel the City's Piazza Park, the all -ages the events were best funded outdoor evening event features food through the Lodging Tax process. trucks, entertainment, beer & wine garden, pop-up retail, and special guest appearances. TOTAL $ 386,049 1 $ 217,000 MSRC Lodging Tax Information What is the Lodging Tax? The lodging tax, also referred to as the hotel -motel tax, is a consumer tax on lodging charges for periods of less than 30 consecutive days for hotels, motels, rooming houses, private campgrounds, RV parks, and similar facilities. How Can the Lodging Tax Revenues Be Used? The guiding principle for the use of lodging taxes is that they must be used for activities, operations and expenditures designed to increase tourism. Specifically, lodging taxes can be used for: • Tourism marketing; • Marketing and operations of special events and festivals designed to attract tourists; • Operations and capital expenditures of tourism -related facilities owned or operated by a municipality or a public facilities district; or • Operations of tourism -related facilities owned or operated by nonprofit organizations. (RCW 67.28.1816) Note that, as of July 1, 2013, capital expenditures for tourism -related facilities owned by nonprofit organizations are no longer permitted expenditures of lodging tax funds. If you are considering using lodging tax revenues to fund staff support of the Lodging Tax Advisory Committee, see MRSC's blog post on the topic. What is Included in Tourism Marketing and Operations? It includes activities defined as "tourism promotion" in state law. (RCW 67.28.080) • 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 or operation of special events and festivals designed to attract tourists. What is a "Tourism -Related Facility"? A tourism -related facility isa, real or tangible personal property With..a :usable -life of three or more years, or constructed with, volunteer labor that is (a) owned by a public entity, nonprofit _organization (including, a non-profit business organization, destination marketing organization; main streetoroan ization, lodging associ(ation, or'chamber of commerce) and (b) used to support tourism, performing arts, or to accommodatetourist activities. (RCW 67.28.080) What Kinds of Facilities Does this Include? It depends: -The guiding principle here is that the -facilities should be used by tourists. So, for example, a municipal golf course would likely be a permitted expenditure W, Chelan, where it probably would not be if it were in a residential neighborhood in Spokane. Each situation is unique. Applications for Lodging Tax Funds -, In counties_or cities of at least 5;000 population, .applications_ must be,sub'mitted directly to the lodging"tax advisory- committee.(LTAC) In counties or cities of Iess than 5-000,_ _. applications. are submitted to the county -.6 r city The law. is silent on. how .often the - awards should be rade Some jurisdictions choose to make awards as part of their annual budget cycle,_Others also:make mid;:year awards to accoun:t.for unexpected increases=or decreases in projected revenue. Who Must Apply • Convention an'd visitors bureaus, • Destination marketing organizations;:: _ • Nonprofits, including main street organizations, lodging associations, or - chambers of commerce," _ • Municipalities = The State Auditor's Office is, interpreting the law -to mean that all users of funds, includingmunicipalitied_ s, are conside .eapplicants and must flaoW evanf:application procedures So, .cities:and counties should sub orelrriit __ applications_forthe ir-own projects to the LTAC. What is=Included in the Application?: All applications must include estimates of how funding the activity will result in increases to people staying overnight, travelling 50 miles or more, or coming from another state or country. To ensure this data is collected, jurisdictions should require this information on their lodging tax application forms. There is no requirement that priority for funding be given to applicants expected to generate the most travelers, and lodging tax revenue may still be awarded to recipients who generate few of these types of travelers. Examples of Funding and Application Guidelines • Mount Vernon Lodging Tax/Tourism Promotion Funding Application Guidelines and Information • San Juan County 2015 Lodging Tax Facilities Grant Program Examples of Applications for Lodging Tax Funds • Ellensburg Request for Proposals 2014 Lodging Tax Fund • Lacey Application for City of Lacey Lodging Tax Funds , 2013 • Lewis County LodgingTax ax Application , 2013 • Mountlake Terrace 2014 Lodging Tax Funds Application • Pacific County Lodging Tax Grant Application Packet, 2014 • Pierce County FY 2015 Pierce County Lodging Tax & Tourism Promotion Funds • Wenatchee Application for Wenatchee Lodging Tax Funds , 2013 Review and Selection of Applications In a municipality of at least 5,000 population, the LTAC receives all applications for lodging tax revenue and recommends a list of candidates and funding levels to the municipality's legislative body for final determination. If a municipality under 5,000 chooses to establish a LTAC, they may, but do not have to, follow these requirements. What Does the Municipality Do with the LTAC's Recommendations? The legislative body "may only choose recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee." However, a city or county does not have to fund the full list as recommended by the LTAC and can choose to make awards in the recommended amounts to all, some, or I • JLARC will not be providing advice on how to estimate tourism impacts. Good faith estimates of actuals can be reported provided applicants and users of funds indicate how those estimates will be developed. All information (including descriptions of how actual impacts were estimated) will be available for public review. • JLARC can be contacted for technical issues associated with the reporting portal by emailing ilarc@leq.wa.gov Reference Sources • Letter from JLARC regarding reporting requirements , 10/29/2014 • Lodging Tax Data Collection, Joint Legislative Audit & Review Committee (JLARC), Washington State Legislature • Lodging Tax Reporting System, JLARC webinar presentation slides, 12/15/2014 Lodging Tax Advisory Committee (LTAC) • This committee must have at least five members, appointed by the governing body. • The committee membership must include at least two representatives of businesses that are required to collect the lodging tax, at least two people who are involved in activities that are authorized to be funded by this tax, and one elected city official who serves as chairperson of the committee. The statute also provides that a person who is eligible under the first category is not eligible for appointment under the second category, and vice versa. • Organizations representing hotels and motels and organizations involved in activities that can be funded by this tax may recommend people for membership. • The number of committee members from organizations representing the hotels and motels and the number from organizations involved in activities that can be funded must be equal. • A city's committee may include a non-voting elected county official and vice - versa. • The governing body must review the membership of the committee annually. In addition to reviewing applications for the use of the lodging tax, what does the committee do? Any proposal to impose.a new lodging tax, raise the rate of an existing tax, repeal an exemption from the. lodging -tax, or change the use of the tax proceeds, must be submitted to. the lodging tax advisory committee for review and comment. • This submission must occur at least 45 days before final action will be taken on the governing bo.dy's,proposal. Even if the committee finishes its work before the 45 days are up, the governing body still must wait 45 days. • The committee's comments must include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, an'd of the extent to which it will affect the long -run stability of the fund to which the hotel - motel taxes are credited. • If the advisory committee does not submit -comments before the time that final action is to be taken on the proposal, the governing may go ahead an'd take final. action. - Municipal Code Provisions • Kirkland Municipal :Code 'Ch. 5:19 - L'odging Excise Tax, • Olympia Lodging'Tax Advisory Committee Port -Townsend Municipal Code Ch. 2:74 -_Lodging Tax Advisory C_om_mittee ' Kitsap`County Lodging Tax Advisoty. Committee. San Juan County'Code Sec 3. -16.030'.080 ---Lodging -Tax Advisory Committee: ; o S -an' Juan County LodQtn4 Tai Advisory Board What Are the Tax Rates?. Any county and most cities may impose a "basic" -two percent tax under RCVV 67.28:180 on all -charges for furnishing -lodging at hotels, motels, and similar - establishments (including bed and breakfasts and RV parks) for a continuous period of less than one month..:This taxis taken as a. credit against the 6..5.percent state sales tax'so that the total tax that a patron pays in retail sales tax ad the hotel -motel tax combined is equal to the retail sales tax in the jurisdiction. -In most cases, when a city - and county both. impose this tax, the re. is a -credit for the amount ofthe city tax against the county tax so that two -taxes are hotlevied on -the same taxable event: In addition, most counties and cities may levy an additional tax of up"to two percent; -for a_total -rate of four percent, under RCW -67.28.1-8.1(1). This "special" tax is not credited against the state sales tax. Therefore, if a county or city levies this additional tax, the total tax on the lodging bill will increase by two percent. There are some exceptions established in RCW 67.28.181(2). RCW 67.28.181 (1) stipulates that this additional two percent tax may be levied as long as the total tax rate under Ch. 36.100 RCW (the public facilities district tax), Ch. 82.08 RCW (the state sales tax), Ch. 82.14 RCW (the city, county, and transit district sales taxes), Ch. 67.28 RCW (the hotel -motel tax chapter), and Ch. 67.40 RCW (the convention and trade center tax) does not exceed twelve percent. (Note that the sales tax rate for the Regional Transit Authority (Sound Transit) in portions of King, Pierce, and Snohomish counties is not included in making these calculations.) The limit for the total rate in Seattle is 15.2 percent, because the convention center tax is higher than in the rest of the county. This means that most cities in King County may only levy a one percent tax and Seattle cannot levy any tax. Counties (including the cities within the county) and cities that had authority to levy a "special" tax before July 27, 1997 that allowed a total rate higher than four percent, had that rate grandfathered in by the 1997 legislation. Grays Harbor and Pierce counties are in this category, plus Chelan, Leavenworth, Long Beach, Bellevue, Yakima, and Winthrop. Cities located in counties that had the authority to levy a total four percent tax county- wide before January 1, 1997, are limited to the "basic" two percent rate. This affects cities in Snohomish and Cowlitz counties. Due to some unique circumstances, there was a period of time at the end of 1997 and beginning of 1998 when the outstanding taxing authority was six percent, rather than the four percent the legislature intended. During this time, Wenatchee and East Wenatchee raised their total tax to six percent. These rates were grandfathered in by the 1998 legislature.