_______________________________________________

                                ENGROSSED SUBSTITUTE SENATE BILL NO. 6653

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Deccio and Newhouse)

Read first time 2/8/88.

AN ACT Relating to the local excise tax on lodgings for purposes of stadium, convention, performing arts, and visual arts facilities in counties currently imposing the county-option tax upon transactions simultaneously subject to the lodgings tax of a city or cities; amending RCW 67.28.200 and 67.28.210; and adding a new section to chapter 67.28 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 67.28 RCW to read as follows:

          (1) The legislative body of a county that qualified under RCW 67.28.180(2)(b) other than a class AA county and the legislative bodies of cities in such a county are each authorized to levy and collect a special excise tax of two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property.  For the purposes of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

          (2) No city may impose the special excise tax authorized in subsection (1) of this section during the time the city is imposing the tax under RCW 67.28.180, and no county may impose the special excise tax authorized in subsection (1) of this section until such time as those cities within the county containing at least one-half of the total incorporated population have imposed the tax.

          (3) Any county ordinance or resolution adopted under this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed under this section upon the same taxable event.

          (4) Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section shall pay over such tax to the county or city as provided in RCW 67.28.200.  The deduction from state taxes under RCW 67.28.190 does not apply to taxes imposed under this section.

        Sec. 2.  Section 13, chapter 236, Laws of 1967 as last amended by section 3, chapter 483, Laws of 1987 and RCW 67.28.200 are each amended to read as follows:

          The legislative body of any county or city may establish reasonable exemptions and may adopt such reasonable rules and regulations as may be necessary for the levy and collection of the taxes authorized by RCW 67.28.180 ((and)), 67.28.182, and section 1 of this 1988 act.  The department of revenue shall perform the collection of such taxes on behalf of such county or city at no cost to such county or city.

        Sec. 3.  Section 14, chapter 236, Laws of 1967 as last amended by section 1, chapter 308, Laws of 1986 and RCW 67.28.210 are each amended to read as follows:

          All taxes levied and collected under RCW 67.28.180 and section 1 of this 1988 act shall be credited to a special fund in the treasury of the county or city imposing such tax.  Such taxes shall be levied only for the purpose of paying all or any part of the cost of acquisition, construction, or operating of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes under this chapter, or to pay for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion when a county or city has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county or city treasurer in any manner authorized by law.  In addition such taxes may be used to develop strategies to expand tourism in distressed areas, as defined in RCW 43.165.010: PROVIDED, That any county, and any city within a county, bordering upon Grays Harbor may use the proceeds of such taxes for construction and maintenance of a movable tall ships tourist attraction in cooperation with a tall ships restoration society, except to the extent that such proceeds are used for payment of principal and interest on debt incurred prior to June 11, 1986:  PROVIDED FURTHER, That any city or county may use the proceeds of such taxes for the refurbishing and operation of a steam railway for tourism promotion purposes.