CERTIFICATION OF ENROLLMENT

 

                        HOUSE BILL 2698

 

 

                    Chapter 35, Laws of 1998

 

 

 

 

                        55th Legislature

                      1998 Regular Session

 

 

LODGING TAX STATUTES--RESOLUTION OF STATUTORY CONFLICTS

 

 

 

                    EFFECTIVE DATE:  3/12/98

Passed by the House January 20, 1998  Yeas 92   Nays 3

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

Passed by the Senate March 3, 1998

  Yeas 47   Nays 0

             CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2698  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

               BRAD OWEN

President of the Senate

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

Approved March 12, 1998 Place Style On Codes above, and Style Off Codes below.    

                                FILED          

 

 

           March 12, 1998 - 4:12 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                          HOUSE BILL 2698

          _______________________________________________

 

             Passed Legislature - 1998 Regular Session

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives B. Thomas, Dunshee, Wensman, Gardner and Ballasiotes; by request of Governor Locke

 

Read first time 01/19/98.  Referred to Committee on .

Resolving conflicts in lodging tax statutes enacted in 1997. 


    AN ACT Relating to resolving conflicts in lodging tax statutes enacted in 1997; amending RCW 67.28.181 and 67.28.1817; adding a new section to chapter 67.28 RCW; creating a new section; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 67.28.181 and 1997 c 452 s 3 are each amended to read as follows:

    (1) The legislative body of any municipality may impose an excise tax on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW.  The rate of tax shall not exceed the lesser of ((four)) two percent or a rate that, when combined with all other taxes imposed upon sales of lodging within the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals twelve percent.  A tax under this chapter shall not be imposed in increments smaller than tenths of a percent.

    (2) Notwithstanding subsection (1) of this section:

    (a) If a municipality ((imposed)) was authorized to impose taxes under this chapter ((and)) or RCW 67.40.100 or both with a total rate exceeding four percent ((on January 1, 1998, the rate of tax imposed under this chapter by the municipality shall not exceed the total rate imposed by the municipality under this chapter and RCW 67.40.100 on January 1, 1998)) before July 27, 1997, such total authorization shall continue through January 1, 1999, and thereafter the municipality may impose a tax under this section at a rate not exceeding the rate actually imposed by the municipality on January 1, 1999.

    (b) If a city or town, other than a municipality ((described in)) imposing a tax under (a) of this subsection, is located in a county that imposed taxes under this chapter with a total rate of four percent or more on January 1, 1997, the ((rate of tax imposed under this chapter by the city or town shall not exceed two percent)) city or town may not impose a tax under this section.

    (c) If a city has a population of four hundred thousand or more and is located in a county with a population of one million or more, the rate of tax imposed under this chapter by the city shall not exceed the lesser of four percent or a rate that, when combined with all other taxes imposed upon sales of lodging in the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals fifteen and two-tenths percent.

    (d) If a municipality was authorized to impose taxes under this chapter or RCW 67.40.100, or both, at a rate equal to six percent before January 1, 1998, the municipality may impose a tax under this section at a rate not exceeding the rate actually imposed by the municipality on January 1, 1998.

    (3) ((Except as provided in RCW 67.28.180,)) Any county ordinance or resolution adopted under this section shall contain a provision allowing a credit against the county tax for the full amount of any city or town tax imposed under this section upon the same taxable event.

    (((4) Tax imposed under this section on a sale of lodging shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging, but the total credit for taxes imposed by all municipalities on a sale of lodging shall not exceed the amount that would be imposed under a two percent tax under this section.  This subsection does not apply to taxes which are credited against the state sales tax under RCW 67.28.180.))

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 67.28 RCW to read as follows:

    Tax collected under RCW 67.28.180 on a sale of lodging shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging.

 

    Sec. 3.  RCW 67.28.1817 and 1997 c 452 s 5 are each amended to read as follows:

    (1) Before ((imposing a tax under RCW 67.28.181)) proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter,  or a change in the use of revenue received under this chapter, a municipality with a population of five thousand or more shall establish a lodging tax advisory committee under this section.  A lodging tax advisory committee shall consist of at least five members, appointed by the legislative body of the municipality, unless the municipality has a charter providing for a different appointment authority.  The committee membership shall include:  (a) At least two members who are representatives of businesses required to collect tax under this chapter; and (b) at least two members who are persons involved in activities authorized to be funded by revenue received under this chapter.  Persons who are eligible for appointment under (a) of this subsection are not eligible for appointment under (b) of this subsection.  Persons who are eligible for appointment under (b) of this subsection are not eligible for appointment under (a) of this subsection.  Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee.  The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter.  One member shall be an elected official of the municipality who shall serve as chair of the committee.  An advisory committee for a county may include one nonvoting member who is an elected official of a city or town in the county.  An advisory committee for a city or town may include one nonvoting member who is an elected official of the county in which the city or town is located.  The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate.

    (2) Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter shall submit the proposal to the lodging tax advisory committee for review and comment.  The submission shall occur at least forty-five days before final action on or passage of the proposal by the municipality.  The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures.  The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under RCW 67.28.1815.  Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal.  A municipality is not required to submit an amended proposal to an advisory committee under this section.

 

    NEW SECTION.  Sec. 4.  If a municipality was authorized to impose taxes under chapter 67.28 RCW or RCW 67.40.100 or both with a total rate exceeding four percent before July 27, 1997, any taxes imposed and collected by the municipality on or after July 27, 1997, are validated by this act to the extent the taxes were imposed at rates that would be permitted under chapter 67.28 RCW as amended by this act.  All actions taken in connection with the collection and administration of taxes validated under this section, including crediting the taxes against the amount of sales taxes due to the state under chapter 82.08 RCW, are also validated by this act to the extent the actions taken would be permitted under chapter 67.28 RCW as amended by this act.

 

    NEW SECTION.  Sec. 5.  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 takes effect immediately.


    Passed the House January 20, 1998.

    Passed the Senate March 3, 1998.

Approved by the Governor March 12, 1998.

    Filed in Office of Secretary of State March 12, 1998.