S-4422               _______________________________________________

                                                   SENATE BILL NO. 6659

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senator Conner

Read first time 1/29/88 and referred to Committee on Ways & Means.

AN ACT Relating to the hotel-motel tax imposed by cities and counties; amending RCW 67.28.210, 67.28.190, and 67.28.200; and adding a new section to chapter 67.28 RCW.

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

        Sec. 1.  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:

(1) All taxes levied and collected under RCW 67.28.180 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expansion when a county or city has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county or city treasurer in any manner authorized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.

(2) No revenues derived under RCW 67.28.180 may be used for the acquisition, construction, conversion, or operation of any facility unless all uses of the facility are directly related to a purpose authorized under this section.

NEW SECTION. Sec. 2.  A new section is added to chapter 67.28 RCW to read as follows:

          In addition to the special excise tax authorized in RCW 67.28.180, any county or city is authorized to levy and collect a special excise tax of not to exceed one 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:  PROVIDED, That 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 enjoy the same.  Revenues derived from the tax authorized in this section shall be used exclusively 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 purposes.  Counties or cities levying such tax may expend revenues derived from this tax in cooperation with other counties, cities, and the state for the purposes set forth in this section.

        Sec. 3.  Section 12, chapter 236, Laws of 1967 and RCW 67.28.190 are each amended to read as follows:

          Any seller, as defined in RCW 82.08.010, who is required to collect any tax under RCW 67.28.180 or section 2 of this 1988 act, for any municipality shall pay over such tax to such municipality as provided in RCW 67.28.200 and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and to pay over to the department of revenue under chapter 82.08 RCW.

        Sec. 4.  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 2 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.