HOUSE BILL REPORT

                 SSB 5903

                       As Passed House

                       April 11, 1997

Title:  An act relating to the use of local special excise taxes for the operation of performing and cultural arts facilities.

Brief Description:  Authorizing the use of local hotel‑motel taxes for operation of performing and cultural arts facilities.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators Hale, Morton, Wood and Winsley).

Brief History:

Committee Activity:

Government Administration:  4/21/97, 4/4/97 [DP].

Floor Activity:

Passed House:  4/11/97, 77‑19.

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  Do pass.  Signed by 7 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Dunn; Reams; Smith; L. Thomas and Wensman.

Minority Report:  Do not pass.  Signed by 6 members:  Representatives Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunshee; Murray and Wolfe.

Staff:  Steve Lundin (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 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 of Bill:  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.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This language was inadvertently dropped from the legislation last year.  This allows Richland to finance construction and operation of a performing arts and cultural arts center.

Testimony Against:  The Richland hoteliers oppose the bill.

Testified:  Senator Hale, prime sponsor; and Jim Rowland, city of Richland (pro).  (Con) Becky Bogart, Washington State Hotel/Motel Association.