S-1535.3          _______________________________________________

                            SUBSTITUTE SENATE BILL 5551

                  _______________________________________________

State of Washington              54th Legislature             1995 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Sellar and Snyder)

Read first time 02/23/95.

Authorizing special taxation of lodging.

     AN ACT Relating to the excise taxation of lodging; 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 any city with a population of at least three thousand but less than four thousand located in a county east of the crest of the Cascade mountains with a population of at least fifty thousand but less than sixty thousand is authorized to levy and collect a special excise tax not to exceed three 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) The tax authorized in subsection (1) of this section is in addition to any other tax authorized by law.

     (3) 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 city as provided in RCW 67.28.200.  The deduction from state taxes under RCW 67.28.190 does not apply to the tax imposed under this section.

     (4) All taxes levied and collected under this section shall be credited to a special fund in the treasury of the city.  Such taxes shall only be used for tourism promotion.

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