HOUSE BILL REPORT

SB 6126

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

(As Amended by House)

Changes the 5 percent gross receipts tax on professional athletic events to an event fee.
Requires the professional athletics program administered by the Department of Licensing to be fully supported by fees.

Majority Report: Do pass as amended. Signed by 14 members: Representatives Linville, Chair; Ericks, Vice Chair; Cody, Conway, Darneille, Haigh, Hinkle, Hunt, Hunter, Kagi, Kenney, Kessler, Pettigrew and Sullivan.

Minority Report: Do not pass. Signed by 8 members: Representatives Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Chandler, Priest, Ross, Schmick and Seaquist.

Background:

The Department of Licensing (Department) regulates professional athletic events, which include boxing, martial arts, and wrestling events. Participants, promoters, inspectors, and others involved with the events must obtain a license from the Department. Promoters pay a tax of 5 percent on gross receipts. The 5 percent gross receipts tax is also paid on gross receipts on simulcast telecasts. Taxes and fees are deposited into the General Fund.

Nearly all other programs administered by the Department's Business and Professions Division are required to be self-supported by fees and are funded out of a specific dedicated account or the Business and Professions Account. Fees for the professional athletics program, however, do not have to offset the cost of the program.

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Summary of Amended Bill:

The gross receipts tax on professional athletic events is changed to an event fee. The Department must set event fees and license fees by rule and in amounts that are sufficient to defray the costs of administering the professional athletics program. The Department must deposit event fees and license fees into the Business and Professions Account rather than the General Fund.

Amended Bill Compared to Original Bill:

The bill as passed out of the House Ways & Means Committee eliminates provisions relating to complimentary tickets, to make statutory language consistent with other changes in the bill.