SENATE BILL REPORT

HB 2475

BYRepresentatives Ferguson, Haugen, Horn and Nutley

Limiting license fees and taxes that impact certain convention and trade facilities.

House Committe on Local Government

Rereferred House Committee on Revenue

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 20, 1990

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Patrick, Sutherland.

Senate Staff:Rod McAulay (786-7754)

                  February 21, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 20, 1990

BACKGROUND:

Over the years, various statutes have authorized all or certain categories of counties, cities and towns to impose a variety of excise taxes on hotel/motel room rental charges.

One of these statutes permits such a special excise tax of up to 3 percent to be imposed by a city incorporated before January 1, 1982, with a population of over 60,000, that is located in a county with a population of over one million, other than the city of Seattle, i.e., Bellevue.  The proceeds from this excise tax only may be used for the acquisition, design, and construction of convention and trade facilities, or the retirement of debt issued for such facilities.

SUMMARY:

The permissible uses of the proceeds from the 3 percent special excise tax that Bellevue is authorized to impose on hotel/motel room rental charges are expanded to include maintenance and operation of convention and trade facilities.

The authority to use these tax receipts for the expanded purposes applies regardless of when the taxes were levied or collected.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1990

SUMMARY OF PROPOSED SENATE AMENDMENT:

The striking amendment authorizes marketing activities to be funded by special excise tax and requires tax receipts to be used for maintenance and operation only if debt service and marketing activities are funded.

Senate Committee - Testified: Becky Bogard, WA State Hotel and Motel Association; Chuck Mize, Asst. Manager, City of Bellevue