HB 1531-S2 - DIGEST

(DIGEST AS ENACTED)

     Revises provisions relating to the taxation of lodging.

     Declares that, for the purposes of this act, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same.

     Applies retroactively to events occurring on and after September 1, 2001.

VETO MESSAGE ON HB 1531-S2

                   March 27, 2002

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval as to section 3, Second Substitute House Bill No. 1531 entitled:

"AN ACT Relating to the taxation of lodging;"

     Second Substitute House Bill No. 1531 makes the application of the sales tax to extended lodging more flexible, and allows it to more easily accommodate real world business practices and needs.

     Section 3 of the bill was intended to allow a municipality located in more than one county to impose the special local lodging tax in each county at the maximum rate.  However, due to a drafting error, it had no effect.  In addition, other statutes would need to be changed in order to achieve the intent of section 3.

     I am directing the Department of Revenue to work with the concerned parties to perfect language for legislation that can be introduced by those parties in the next legislative session.

     For these reasons, I have vetoed section 3 of Second Substitute House Bill No. 1531.

     With the exception of section 3, Second Substitute House Bill No. 1531 is approved.

                   Respectfully submitted,

                   Gary Locke

                   Governor