HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. SB SSB 5903

Use of hotel-motel taxes/performing arts facilities       Public Hrg:  4/2/97

Brief Title

Comm. Govt Op. (Sen. Hale/Morton/Wood)          Staff Contact: S. Lundin

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7127

BACKGROUND:

Counties and cities are authorized to impose a wide range of excise taxes on hotel/motel room rental charges.

Every county and city may impose a basic excise tax on hotel/motel room rental charges of up to 2 percent, that is credited against the state=s sales tax, with receipts earmarked for a variety of uses, including the construction and maintenance of stadia and performing arts facilities and to promote tourism.

In addition, individual cities and counties have been authorized to impose a variety of other special excise taxes on hotel/motel room rental charges, with the proceeds earmarked for a variety of different purposes.  Unlike the basic local government excise tax on hotel/motel room rental charges, these special excise taxes are in addition to the sales and use taxes, and any other hotel/motel tax, that are imposed on hotel/motel room rental charges.

Any city with a population of at least 30,000, that is located in a county with a population of at least 100,000 but less than 145,000, may impose a special excise tax on hotel/motel room rental charges of not to exceed 2 percent.  Proceeds from this tax may only be used to finance the construction and operation of convention center facilities.  At present only Richland and Kennewick meet this description.

SUMMARY:

Receipts from the special excise tax on hotel/motel room rental charges that a city with a population of at least 30,000, that is located in a county with a population of at least 100,000 but less than 145,000, may impose are expanded to include the construction and operation of performing and cultural arts facilities.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.