Brief Description: Concerning the leasehold excise tax exemption for certain amphitheater property.

Sponsors: By Representative Fromhold.

House Committee on Finance
Senate Committee on Ways & Means

Background:

The leasehold excise tax applies to publicly owned property which is leased to private entities. The purpose of the tax is to recognize that public property is not subject to property taxes; without the in-lieu excise tax, such lessees would enjoy a tax advantage over competitors located on real property which they own. The combined state and local government leasehold excise tax rate is 12.84 percent of the contract rental payment (or fair market value of the lease).

In 2005 the Legislature enacted a leasehold excise tax exemption, targeted toward an amphitheater facility located in Clark County. The facility must be located in a county with a population of at least 350,000 but no greater than 425,000.

This facility opened in the city of Ridgefield in July of 2003 at which time the population of Clark County was 372,3000. The current population of Clark County is 415,000 as of April 1, 2007. The population of the county will likely exceed the 425,000 population limitation by 2008 or 2009.

Summary:

The leasehold excise tax exemption for an amphitheater is amended to specify that the county population had to be within the indicated population range at the time the facility first opened to the public.

Votes on Final Passage:

House   96   0
Senate   47   0

Effective: June 12, 2008