The Washougal City Council established a lodging tax advisory committee Monday evening, which fulfills one recommendation from the state auditor’s office and brings the city in compliance with state law.

Washington state law requires cities with populations of 5,000 or more that collect a lodging tax to establish an advisory committee before imposing a new tax, increasing the tax rate, repealing an exemption from the tax or changing the use of revenue.

The city of Washougal began collecting a 2 percent tax in 1988. In 1997, the city council increased that rate to 4 percent but never established an advisory committee.

When the state auditor’s office conducted an accountability audit in October, the auditor recommended the city establish the committee before spending any additional money.

On Monday night, the council approved an ordinance to form the seven-member committee, and Mayor Sean Guard appointed — and the council affirmed — five of the members.

“It’s one of those things that should have been a housekeeping thing done years ago,” Guard said.

Increased income

Guard and Mayor Pro Tem Jon Russell will serve on the committee along with two representatives from businesses collecting the tax, two people who are involved in activities authorized to receive funding from the tax and one community member at large.

Guard appointed Harry Hajari, owner of the Best Western Parkersville Inn & Suites; Brent Erickson, executive director of the Camas-Washougal Chamber of Commerce; and Peter Anderson, with the Washougal Lions Club, to the committee.

The final two members will be appointed at a later date.

The tax is charged for lodging at any hotel, motel, bed-and-breakfast or recreational vehicle park within the city.

The city has only two businesses that fall in that category — the Rama Inn and Best Western hotels, Guard said.

The revenue from the lodging tax is to be used for tourism promotion and the operation of tourism-related facilities. The money cannot be used to cover the costs of staging events or festivals.

The tax is expected to bring in about $25,000 per year, said RJ Stevenson, Washougal’s interim finance director. Prior to the Best Western opening last year, the tax generated only about $6,000 to $7,000 per year.

In 2008 and 2009 the revenue from the tax, as well as money from the city’s general fund, was spent at Washougalfest and Riverfest.

In 2008, the city spent $42,094 from the lodging tax fund at Washougalfest, and in 2009, it used $6,126 from the fund at Riverfest, Stevenson said. City records do not detail how the money was spent at the festivals.

Marissa Harshman: 360-735-4546 or marissa.harshman@columbian.com.

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