SHB 3206

SENATE BILL REPORT
SHB 3206

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported By Senate Committee On:
Economic Development, Trade & Management, February 22, 2008

Title: An act relating to the information required to be reported in the annual economic impact report on lodging tax revenues.

Brief Description: Concerning the information required to be reported in the annual economic impact report on lodging tax revenues.

Sponsors: House Committee on Community & Economic Development & Trade (originally sponsored by Representatives Kenney, Haler, Rolfes and Santos).

Majority Report: Do pass.Signed by Senators Kastama, Chair; Kilmer, Vice Chair; Zarelli, Ranking Minority Member; Kauffman, King and Shin.

Background: Lodging tax revenue can be used by local jurisdictions for activities and expenditures designed to increase tourism. Lodging tax revenue may also be used to support tourism-related facilities owned by nonprofit organizations.

Local jurisdictions that use lodging taxes for these purposes must submit an annual report to Community, Trade and Economic Development (CTED). This report must include the total tax revenue, total expenditures, and a list of events and nonprofits that received funding from lodging taxes.

The report must also include the amount of funds expended, the estimated increase in tourism, and the estimated increase in sales and use tax generated by each event or tourism-related facility owned by a nonprofit.

Summary of Bill: The reporting provisions are expanded to require reporting on tourism activities or facilities sponsored or owned by local jurisdictions. The provision requiring an estimate of the increase in sales and use taxes is removed. Reporting must begin with the 2008 calendar year.

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

Staff Summary of Public Testimony on Substitute Bill: PRO: The bill is a technical fix requiring lodging tax revenue reports to include information from local jurisdictions.