AN ACT Relating to
convention and trade centers; amending RCW 67.28.182, 67.28.240, 67.40.020,
67.40.040, 67.40.045, and 67.40.090; reenacting and amending RCW 67.28.180;
adding new sections to chapter 67.40 RCW; repealing RCW 67.28.250; and
declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. (1) The governing body of
a city, while not required by legislative mandate to do so, may, after July 1,
1995, by resolution or ordinance for the purposes authorized under sections 5
and 7 of this act, fix and impose a sales tax on the charge for rooms to be
used for lodging by transients in accordance with the terms of chapter . . .,
Laws of 1995 (this act). Such tax shall be collected from those persons who
are taxable by the state under RCW 67.40.090, but only those taxable persons
located within the boundaries of the city imposing the tax. The rate of such
tax imposed by a city shall be two percent of the charge for rooms to be used
for lodging by transients. Any such tax imposed under this section shall not
be collected prior to January 1, 2000. The tax authorized under this section
shall be levied and collected in the same manner as those taxes authorized
under chapter 82.14 RCW. Penalties, receipts, abatements, refunds, and all
other similar matters relating to the tax shall be as provided in chapter 82.08
RCW.
(2) The tax levied
under this section shall remain in effect and not be modified for that period
for which the principal and interest obligations of state bonds issued to
finance the expansion of the state convention and trade center under RCW
67.40.030 remain outstanding.
(3) As used in this
section, the term "city" means a municipality that has within its
boundaries a convention and trade facility as defined in RCW 67.40.020.
NEW SECTION. Sec.
2. When remitting sales tax
receipts to the state under RCW 82.14.050, the city treasurer, or its designee,
shall at the same time remit the sales taxes collected under section 1 of this
act for the municipality. The sum so collected and paid over on behalf of the
municipality shall be credited against the amount of the tax otherwise due to
the state from those same taxpayers under RCW 82.08.020(1).
NEW SECTION. Sec.
3. (1) The cities shall
contract, prior to the effective date of a resolution or ordinance imposing a
sales tax under section 1 of this act, the administration and collection of the
local option sales tax to the state department of revenue at no cost to the
municipality. The tax authorized by chapter . . ., Laws of 1995
(this act) which is collected by the department of revenue shall be deposited
by the state into the account created under RCW 67.40.040 in the state
treasury.
(2) The sales tax
authorized under section 1 of this act shall be due and payable in the same
manner as those taxes authorized under RCW 82.14.030.
NEW SECTION. Sec.
4. The state sales tax on
construction performed under section 5 of this act collected by the department
of revenue under chapter 82.08 RCW shall be deposited by the state into the
account created under RCW 67.40.040 in the state treasury.
NEW SECTION. Sec.
5. All taxes levied and
collected under section 1 of this act shall be credited to the state convention
and trade center account in the state treasury and used solely by the
corporation formed under RCW 67.40.020 for the purpose of paying all or any
part of the cost associated with: The financing, design, acquisition,
construction, equipping, operating, maintaining, and reequipping of convention
center facilities related to the expansion recommended by the convention center
expansion and city facilities task force created under section 148, chapter 6,
Laws of 1994 sp. sess.; the acquisition, construction, and relocation costs of
replacement housing; and the repayment of loans and advances from the state,
including loans authorized previously under this chapter, or to pay or secure
the payment of all or part of the principal of or interest on any state bonds
issued for purposes authorized under this chapter.
NEW SECTION. Sec.
6. Upon the effective date
of this act, the corporation may proceed with preliminary design and planning
activities, environmental studies, and real estate appraisals for convention
center improvements. No other expenditures may be made in support of the expansion
project recommended by the convention center expansion and city facilities task
force created under section 148, chapter 6, Laws of 1994 sp. sess. prior to
acceptance by the board of directors of the corporation of an irrevocable
commitment for funding from public or private participants consistent with the
expansion development study task force recommendations report dated December
1994.
NEW SECTION. Sec.
7. (1) Moneys received from
any tax imposed under section 1 of this act shall be used for the purpose of
providing funds to the corporation for the costs associated with paying all or
any part of the cost associated with: The financing, design, acquisition,
construction, equipping, operating, maintaining, and reequipping of convention
center facilities; the acquisition, construction, and relocation costs of
replacement housing; and repayment of loans and advances from the state,
including loans authorized previously under this chapter, or to pay or secure
the payment of all or part of the principal of or interest on any state bonds
issued for purposes authorized under this chapter.
(2) If any of the
revenue from any local sales tax authorized under section 1 of this act shall
have been encumbered or pledged by the state to secure the payment of any state
bonds as authorized under RCW 67.40.030, then as long as that agreement or
pledge shall be in effect, the legislature shall not withdraw from the
municipality the authority to levy and collect the tax or the tax credit authorized
under sections 1 and 2 of this act.
Sec. 8. RCW 67.28.180 and 1991 c
363 s 139 and 1991 c 336 s 1 are each reenacted and amended to read as follows:
(1) Subject to the
conditions set forth in subsections (2) and (3) of this section, the
legislative body of any county or any city, is authorized to levy and collect a
special excise tax of not to exceed 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: 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 to enjoy the same.
(2) Any levy authorized
by this section shall be subject to the following:
(a) Any county
ordinance or resolution adopted pursuant to 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 pursuant to this section upon the same taxable event.
(b) In the event that
any county has levied the tax authorized by this section and has, prior to June
26, 1975, either pledged the tax revenues for payment of principal and interest
on city revenue or general obligation bonds authorized and issued pursuant to
RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general
obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160,
such county shall be exempt from the provisions of (a) of this subsection, to
the extent that the tax revenues are pledged for payment of principal and
interest on bonds issued at any time pursuant to the provisions of RCW
67.28.150 through 67.28.160: PROVIDED, That so much of such pledged tax
revenues, together with any investment earnings thereon, not immediately
necessary for actual payment of principal and interest on such bonds may be
used: (i) In any county with a population of one million or more, for
repayment either of limited tax levy general obligation bonds or of any county
fund or account from which a loan was made, the proceeds from the bonds or loan
being used to pay for constructing, installing, improving, and equipping
stadium capital improvement projects, and to pay for any engineering, planning,
financial, legal and professional services incident to the development of such
stadium capital improvement projects, regardless of the date the debt for such
capital improvement projects was or may be incurred; or (ii) in other counties,
for county-owned facilities for agricultural promotion. A county is exempt
under this subsection in respect to city revenue or general obligation bonds
issued after April 1, 1991, only if such bonds mature before January 1, 2013.
As used in this
subsection (2)(b), "capital improvement projects" may include, but not
be limited to a stadium restaurant facility, restroom facilities, artificial
turf system, seating facilities, parking facilities and scoreboard and
information system adjacent to or within a county owned stadium, together with
equipment, utilities, accessories and appurtenances necessary thereto. The
stadium restaurant authorized by this subsection (2)(b) shall be operated by a
private concessionaire under a contract with the county.
(c) No city within a
county exempt under subsection (2)(b) of this section may levy the tax
authorized by this section so long as said county is so exempt: PROVIDED, That
in the event that any city in such county has levied the tax authorized by this
section and has, prior to June 26, 1975, authorized and issued revenue or
general obligation bonds pursuant to the provisions of RCW 67.28.150 through
67.28.160, such city may levy the tax so long as ((and to the extent that))
the tax revenues are pledged for payment of principal and interest on bonds
issued at any time pursuant to the provisions of RCW 67.28.150 through
67.28.160.
(3) Any levy authorized
by this section by a county that has levied the tax authorized by this section
and has, prior to June 26, 1975, either pledged the tax revenues for payment of
principal and interest on city revenue or general obligation bonds authorized
and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and
issued revenue or general obligation bonds pursuant to the provisions of RCW
67.28.150 through 67.28.160 shall be subject to the following:
(a) Taxes collected
under this section in any calendar year in excess of five million three hundred
thousand dollars shall only be used as follows:
(i) Seventy-five
percent from January 1, 1992, through December 31, 2000, and seventy percent
from January 1, 2001, through December 31, 2012, for art museums, cultural
museums, heritage museums, the arts, and the performing arts. Moneys spent
under this subsection (3)(a)(i) shall be used for the purposes of this
subsection (3)(a)(i) in all parts of the county.
(ii) Twenty-five
percent from January 1, 1992, through December 31, 2000, and thirty percent
from January 1, 2001, through December 31, 2012, for the following purposes and
in a manner reflecting the following order of priority: Stadium capital
improvements, as defined in subsection (2)(b) of this section; acquisition of
open space lands; youth sports activities; and tourism promotion.
(b) At least seventy
percent of moneys spent under (a)(i) of this subsection for the period January
1, 1992, through December 31, 2000, shall be used only for the purchase,
design, construction, and remodeling of performing arts, visual arts, heritage,
and cultural facilities, and for the purchase of fixed assets that will benefit
art, heritage, and cultural organizations. For purposes of this subsection,
fixed assets are tangible objects such as machinery and other equipment
intended to be held or used for ten years or more. Moneys received under this
subsection (3)(b) may be used for payment of principal and interest on bonds
issued for capital projects. Qualifying organizations receiving moneys under
this subsection (3)(b) must be financially stable and have at least the
following:
(i) A legally
constituted and working board of directors;
(ii) A record of
artistic, heritage, or cultural accomplishments;
(iii) Been in existence
and operating for at least two years;
(iv) Demonstrated
ability to maintain net current liabilities at less than thirty percent of
general operating expenses;
(v) Demonstrated
ability to sustain operational capacity subsequent to completion of projects or
purchase of machinery and equipment; and
(vi) Evidence that
there has been independent financial review of the organization.
(c) At least forty
percent of the revenues distributed pursuant to (a)(i) of this subsection for
the period January 1, 2001, through December 31, 2012, shall be deposited in an
account and shall be used to establish an endowment. Principal in the account
shall remain permanent and irreducible. The earnings from investments of
balances in the account may only be used for the purposes of (a)(i) of this
subsection.
(d) School districts
and schools shall not receive revenues distributed pursuant to (a)(i) of this
subsection.
(e) Moneys distributed
to art museums, cultural museums, heritage museums, the arts, and the
performing arts, and moneys distributed for tourism promotion shall be in
addition to and may not be used to replace or supplant any other funding by the
legislative body of the county.
(f) As used in this
section, "tourism promotion" includes activities intended to attract
visitors for overnight stays, arts, heritage, and cultural events, and
recreational, professional, and amateur sports events. Moneys allocated to
tourism promotion in a class AA county shall be allocated to nonprofit
organizations formed for the express purpose of tourism promotion in the
county. Such organizations shall use moneys from the taxes to promote events
in all parts of the class AA county.
(g) No taxes collected
under this section may be used for the operation or maintenance of a public
stadium that is financed directly or indirectly by bonds to which the tax is
pledged. Expenditures for operation or maintenance include all expenditures
other than expenditures that directly result in new fixed assets or that
directly increase the capacity, life span, or operating economy of existing
fixed assets.
(h) No ad valorem
property taxes may be used for debt service on bonds issued for a public
stadium that is financed by bonds to which the tax is pledged, unless the taxes
collected under this section are or are projected to be insufficient to meet
debt service requirements on such bonds.
(i) If ((a
substantial part of the operation and management of a public stadium that is
financed directly or indirectly by bonds to which the tax is pledged is
performed by a nonpublic entity or if)) a public stadium is sold that is
financed directly or indirectly by bonds to which the tax is pledged, any bonds
to which the tax is pledged shall be retired.
(j) The county shall
not lease a public stadium that is financed directly or indirectly by bonds to
which the tax is pledged to, or authorize the use of the public stadium by, a
professional major league sports franchise unless the sports franchise gives
the right of first refusal to purchase the sports franchise, upon its sale, to
local government. This subsection (3)(j) does not apply to contracts in
existence on April 1, 1986.
If a court of competent
jurisdiction declares any provision of this subsection (3) invalid, then that
invalid provision shall be null and void and the remainder of this section is
not affected.
Sec. 9. RCW 67.28.182 and 1987 c
483 s 2 are each amended to read as follows:
(1) The legislative
body of ((Pierce)) any county with a population of over five
hundred thousand but less than one million, within which is a national park,
and the ((councils)) legislative bodies of cities in ((Pierce
county)) these counties are each authorized to levy and collect a
special excise tax of not to exceed ((two)) five 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) 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.
(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 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.
(4) All taxes levied
and collected under this section shall be credited to a special fund in the
treasury of the county or city. Such taxes shall be levied ((only)) as
follows: (a) At least two percent for the purpose of visitor and
convention promotion and development, including marketing of local
convention facilities; and (b) at least three percent for the acquisition,
construction, expansion, marketing, management, and financing of convention
facilities, and facilities necessary to support major tourism destination
attractions that serve a minimum of one million visitors per year. Until
withdrawn for use, the moneys accumulated in such fund may be invested in
interest bearing securities by the county or city treasurer in any manner
authorized by law.
Sec. 10. RCW 67.28.240 and 1993
sp.s. c 16 s 3 are each amended to read as follows:
(1) The legislative
body of a county that qualified under RCW 67.28.180(2)(b) other than a county
with a population of one million or more and the legislative bodies of cities
in the qualifying county are each authorized to levy and collect a special
excise tax of 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) 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.
NEW SECTION. Sec.
11. RCW 67.28.250 and 1992 c
156 s 2 & 1988 ex.s. c 1 s 22 are each repealed.
Sec. 12. RCW 67.40.020 and 1993 c
500 s 9 are each amended to read as follows:
(1) The governor is
authorized to form a public nonprofit corporation in the same manner as a
private nonprofit corporation is formed under chapter 24.03 RCW. The public
corporation shall be an instrumentality of the state and have all the powers
and be subject to the same restrictions as are permitted or prescribed to
private nonprofit corporations, but shall exercise those powers only for
carrying out the purposes of this chapter and those purposes necessarily
implied therefrom. The governor shall appoint a board of nine directors for
the corporation who shall serve terms of six years, except that two of the
original directors shall serve for two years and two of the original directors
shall serve for four years. After January 1, 1991, at least one position on
the board shall be filled by a member representing management in the hotel or
motel industry subject to taxation under RCW 67.40.090. The directors may
provide for the payment of their expenses. The corporation may ((cause a
state convention and trade center with an overall size of approximately three
hundred thousand square feet to be designed and constructed on a site in the
city of Seattle. In acquiring, designing, and constructing the state
convention and trade center, the corporation shall consider the recommendations
and proposals issued on December 11, 1981, by the joint select committee on the
state convention and trade center)) acquire, construct, expand, and
improve the state convention and trade center within the city of Seattle.
Notwithstanding the provisions of subsection (2) of this section, the
corporation may acquire, lease, sell, or otherwise encumber property rights,
including but not limited to development or condominium rights, deemed by the
corporation as necessary for facility expansion.
(2) The corporation may
acquire and transfer real and personal property by lease, sublease, purchase,
or sale, and further acquire property by condemnation of privately owned
property or rights to and interests in such property pursuant to the procedure
in chapter 8.04 RCW. However, acquisitions and transfers of real property,
other than by lease, may be made only if the acquisition or transfer is
approved by the director of financial management in consultation with the
chairpersons of the appropriate fiscal committees ((on ways and means))
of the senate and house of representatives. The corporation may accept gifts
or grants, request the financing provided for in RCW 67.40.030, cause the state
convention and trade center facilities to be constructed, and do whatever is
necessary or appropriate to carry out those purposes. Upon approval by the
director of financial management in consultation with the chairpersons of the
((ways and means)) appropriate fiscal committees of the house of
representatives and the senate, the corporation may enter into lease and
sublease contracts for a term exceeding the fiscal period in which these lease
and sublease contracts are made. The terms of sale or lease of properties
acquired by the corporation on February 9, 1987, pursuant to the property
purchase and settlement agreement entered into by the corporation on June 12,
1986, including the McKay parcel which the corporation is contractually
obligated to sell under that agreement, shall also be subject to the approval
of the director of financial management in consultation with the chairpersons
of the ((ways and means)) appropriate fiscal committees of the
house of representatives and the senate. No approval by the director of
financial management is required for leases of individual retail space, meeting
rooms, or convention-related facilities. In order to allow the corporation
flexibility to secure appropriate insurance by negotiation, the corporation is
exempt from RCW 48.30.270. The corporation shall maintain, operate, promote,
and manage the state convention and trade center.
(3) In order to allow
the corporation flexibility in its personnel policies, the corporation is
exempt from chapter 41.06 RCW, chapter 41.05 RCW, RCW 43.01.040 through
43.01.044, chapter 41.04 RCW and chapter 41.40 RCW.
Sec. 13. RCW 67.40.040 and 1991
sp.s. c 13 s 11 are each amended to read as follows:
(1) The proceeds from
the sale of the bonds authorized in RCW 67.40.030, proceeds of the ((tax))
taxes imposed under RCW 67.40.090 and section 1 of this act, and
all other moneys received by the state convention and trade center from any
public or private source which are intended to fund the acquisition, design,
construction, expansion, exterior cleanup and repair of the Eagles building,
conversion of various retail and other space to meeting rooms, purchase of the
land and building known as the McKay Parcel, development of low-income housing,
or renovation of the center, and those expenditures authorized under section
5 of this act shall be deposited in the state convention and trade center
account hereby created in the state treasury and in such subaccounts as are
deemed appropriate by the directors of the corporation.
(2) Moneys in the
account, including unanticipated revenues under RCW 43.79.270, shall be used
exclusively for the following purposes in the following priority:
(a) For reimbursement
of the state general fund under RCW 67.40.060;
(b) After appropriation
by statute:
(i) For payment of
expenses incurred in the issuance and sale of the bonds issued under RCW
67.40.030;
(ii) For
expenditures authorized in section 5 of this act;
(iii) For
acquisition, design, and construction of the state convention and trade center;
and
(((iii))) (iv)
For reimbursement of any expenditures from the state general fund in support of
the state convention and trade center; and
(c) For transfer to the
state convention and trade center operations account.
(3) The corporation
shall identify with specificity those facilities of the state convention and
trade center that are to be financed with proceeds of general obligation bonds,
the interest on which is intended to be excluded from gross income for federal
income tax purposes. The corporation shall not permit the extent or manner of
private business use of those bond-financed facilities to be inconsistent with
treatment of such bonds as governmental bonds under applicable provisions of
the Internal Revenue Code of 1986, as amended.
(4) In order to
ensure consistent treatment of bonds authorized under RCW 67.40.030 with
applicable provisions of the Internal Revenue Code of 1986, as amended, and
notwithstanding RCW 43.84.092, investment earnings on bond proceeds deposited
in the state convention and trade center account in the state treasury shall be
retained in the account, and shall be expended by the corporation for the
purposes authorized under chapter . . ., Laws of 1995 (this act) and
in a manner consistent with applicable provisions of the Internal Revenue Code
of 1986, as amended.
Sec. 14. RCW 67.40.045 and 1993
sp.s. c 12 s 9 are each amended to read as follows:
(1) The director of
financial management, in consultation with the chairpersons of the ((ways
and means)) appropriate fiscal committees of the senate and house of
representatives, may authorize temporary borrowing from the state treasury for
the purpose of covering cash deficiencies in the state convention and trade
center account resulting from project completion costs. Subject to the
conditions and limitations provided in this section, lines of credit may be
authorized at times and in amounts as the director of financial management
determines are advisable to meet current and/or anticipated cash deficiencies.
Each authorization shall distinctly specify the maximum amount of cash
deficiency which may be incurred and the maximum time period during which the
cash deficiency may continue. The total amount of borrowing outstanding at any
time shall never exceed the lesser of:
(a) $58,275,000; or
(b) An amount, as
determined by the director of financial management from time to time, which is
necessary to provide for payment of project completion costs.
(2) Unless the due date
under this subsection is extended by statute, all amounts borrowed under the
authority of this section shall be repaid to the state treasury by June 30, ((1997))
1999, together with interest at a rate determined by the state treasurer
to be equivalent to the return on investments of the state treasury during the
period the amounts are borrowed. Borrowing may be authorized from any excess
balances in the state treasury, except the agricultural permanent fund, the
Millersylvania park permanent fund, the state university permanent fund, the
normal school permanent fund, the permanent common school fund, and the
scientific permanent fund.
(3) As used in this
section, "project completion" means:
(a) All remaining
development, construction, and administrative costs related to completion of
the convention center; and
(b) Costs of the McKay
building demolition, Eagles building rehabilitation, development of low-income
housing, and construction of rentable retail space and an operable parking
garage.
(4) It is the intent of
the legislature that project completion costs be paid ultimately from the
following sources:
(a) $29,250,000 to be
received by the corporation under an agreement and settlement with Industrial
Indemnity Co.;
(b) $1,070,000 to be
received by the corporation as a contribution from the city of Seattle;
(c) $20,000,000 from
additional general obligation bonds to be repaid from the special excise tax
under RCW 67.40.090;
(d) $4,765,000 for
contingencies and project reserves from additional general obligation bonds to
be repaid from the special excise tax under RCW 67.40.090;
(e) $13,000,000 for
conversion of various retail and other space to meeting rooms, from additional
general obligation bonds to be repaid from the special excise tax under RCW
67.40.090;
(f) $13,300,000 for
expansion at the 900 level of the facility, from additional general obligation
bonds to be repaid from the special excise tax under RCW 67.40.090;
(g) $10,400,000 for
purchase of the land and building known as the McKay Parcel, for development of
low-income housing, for development, construction, and administrative costs
related to completion of the state convention and trade center, including
settlement costs related to construction litigation, and for partially
refunding obligations under the parking garage revenue note issued by the
corporation to Industrial Indemnity Company in connection with the agreement
and settlement identified in (a) of this subsection, from additional general
obligation bonds to be repaid from the special excise tax under RCW 67.40.090. All
proceeds from any sale of the McKay parcel shall be deposited in the state
convention and trade center account and shall not be expended without
appropriation by law;
(h) $300,000 for Eagles
building exterior cleanup and repair, from additional general obligation bonds
to be repaid from the special excise tax under RCW 67.40.090; and
(i) The proceeds of the
sale of any properties owned by the state convention and trade center that are
not planned for use for state convention and trade center operations, with the
proceeds to be used for development, construction, and administrative costs
related to completion of the state convention and trade center, including
settlement costs related to construction litigation.
(5) The borrowing
authority provided in this section is in addition to the authority to borrow
from the general fund to meet the bond retirement and interest requirements set
forth in RCW 67.40.060. To the extent the specific conditions and limitations
provided in this section conflict with the general conditions and limitations
provided for temporary cash deficiencies in RCW 43.88.260 (section 7, chapter
502, Laws of 1987), the specific conditions and limitations in this section
shall govern.
(6) For expenditures
authorized under section 5 of this act, the corporation may use the proceeds of
the special excise tax authorized under RCW 67.40.090, the sales tax authorized
under section 1 of this act, contributions to the corporation from public or private
participants, and investment earnings on any of the funds listed in this
subsection.
Sec. 15. RCW 67.40.090 and 1991 c
2 s 3 are each amended to read as follows:
(1) Commencing April 1,
1982, there is imposed, and the department of revenue shall collect, in King
county a special excise tax on the sale of or charge made for the furnishing of
lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and
the granting of any similar license to use real property, as distinguished from
the renting or leasing of real property, except that no such tax may be levied
on any premises having fewer than sixty lodging units. It shall be presumed
that the occupancy of real property for a continuous period of one month or
more constitutes rental or lease of real property and not a mere license to use
or enjoy the same. The legislature on behalf of the state pledges to maintain
and continue this tax until the bonds authorized by this chapter are fully
redeemed, both principal and interest.
(2) The rate of the tax
imposed under this section shall be as provided in this subsection.
(a) From April 1, 1982,
through December 31, 1982, inclusive, the rate shall be three percent in the
city of Seattle and two percent in King county outside the city of Seattle.
(b) From January 1,
1983, through June 30, 1988, inclusive, the rate shall be five percent in the
city of Seattle and two percent in King county outside the city of Seattle.
(c) From July 1, 1988,
through December 31, 1992, inclusive, the rate shall be six percent in the city
of Seattle and two and four-tenths percent in King county outside the city of
Seattle.
(d) From January 1,
1993, and until ((the change date)) bonds and all other
borrowings authorized under RCW 67.40.030 are retired, the rate shall be
seven percent in the city of Seattle and two and eight-tenths percent in King
county outside the city of Seattle.
(e) Except as
otherwise provided in (d) of this subsection, on and after the change date,
the rate shall be six percent in the city of Seattle and two and four-tenths
percent in King county outside the city of Seattle.
(f) As used in this
section, "change date" means the October 1st next occurring after
certification occurs under (g) of this subsection.
(g) On August 1st of
1998 and of each year thereafter until certification occurs under this
subsection, the state treasurer shall determine whether seventy-one and
forty-three one-hundredths percent of the revenues actually collected and
deposited with the state treasurer for the tax imposed under this section
during the twelve months ending June 30th of that year, excluding penalties and
interest, exceeds the amount actually paid in debt service during the same
period for bonds issued under RCW 67.40.030 by at least two million dollars.
If so, the state treasurer shall so certify to the department of revenue.
(3) The proceeds of the
special excise tax shall be deposited as provided in this subsection.
(a) Through June 30,
1988, inclusive, all proceeds shall be deposited in the state convention and
trade center account.
(b) From July 1, 1988,
through December 31, 1992, inclusive, eighty-three and thirty-three
one-hundredths percent of the proceeds shall be deposited in the state
convention and trade center account. The remainder shall be deposited in the
state convention and trade center operations account.
(c) From January 1,
1993, until the change date, eighty-five and seventy-one-hundredths percent of
the proceeds shall be deposited in the state convention and trade center
account. The remainder shall be deposited in the state convention and trade
center operations account.
(d) On and after the
change date, eighty-three and thirty-three one-hundredths percent of the
proceeds shall be deposited in the state convention and trade center account.
The remainder shall be deposited in the state convention and trade center
operations account.
(4) Chapter 82.32 RCW
applies to the tax imposed under this section.
NEW SECTION. Sec.
16. Sections 1 through 7 of
this act are each added to chapter 67.40 RCW.
NEW SECTION. Sec.
17. If any provision of this
act or its application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other persons or
circumstances is not affected.
NEW SECTION. Sec.
18. This act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and shall take
effect immediately.
