Brief Description: Funding arts, cultural and heritage institutions, and publicly owned sports and entertainment facilities.

Sponsors: Representatives Pettigrew and Haler.

Hearing Date: 3/15/05

Staff: Rick Peterson (786-7150).

Background:

Numerous tax sources provide funding for retiring debt incurred for the construction of publicly owned stadiums. For stadiums in King County these sources include a 2 percent hotel/motel tax that is credited against the state sales tax (Kingdome and Quest Field), a 0.017 percent sales tax that is credited against the state sales tax (Safeco Field), a 0.016 percent sales tax that is credited against the state sales tax (Quest Field), dedicated state lottery revenue (Safeco Field and Quest Field), a 0.5 percent tax on food and beverage service at restaurants and taverns (Safeco Field), a car rental tax (Safeco Field), admissions taxes (Safeco Field and Quest Field), and a parking tax (Quest Field).

Until 2013, a portion of the King County hotel-motel tax revenue above $5.3 million per year is dedicated to arts and heritage programs in King County. Seventy percent of the excess revenue may be used for museums and arts. Forty percent of the museums and arts revenue is placed in an endowment fund. Only the earnings of the endowment fund may be spent. The principal cannot be reduced. The remaining 30 percent of the revenue in excess of $5.3 million is dedicated first to retiring the Kingdome debt, then to acquisition of open space lands, youth sports activities, and tourism promotion. After 2012 the full portion of the local hotel-motel tax in King County is dedicated to retiring any remaining debt on the Kingdome and through 2020 retiring the debt on Qwest Field.

Summary of Bill:

The bill states the Legislature's intent to:

1. provide a stable source of funding for art museums, cultural museums, heritage museums, the arts, and the performing arts in counties with populations over one million;
2. protect investments in publicly owned multipurpose arenas located in counties with populations over one million; and
3. not authorize taxes to finance an expansion of a publicly owned multipurpose arena in a county with population of more than one million.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.