SENATE BILL REPORT

SB 5429

BYSenators Kreidler, Metcalf and DeJarnatt

Adding park and recreational land facilities to the application of lodging tax revenue.

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):February 9, 1989

Senate Staff:Gary Wilburn (786-7453)

AS OF FEBRUARY 7, 1989

BACKGROUND:

Cities and counties are authorized to levy and collect a special excise tax not exceeding 2 percent upon transient overnight accommodations such as hotels, motels, rooming houses and trailer camps.  The levy shall be only for the purpose of paying for the acquisition, construction or operation of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities, or to pay for bonds issued for the same purposes.  Such taxes may also be used for tourism promotion purposes.

Where such tax is levied, the seller of the accommodations must deduct such amount from the sales tax which would otherwise be collected and paid to the state Department of Revenue.  Currently 28 counties and 98 cities impose the accommodations excise tax.

SUMMARY:

Cities and counties may acquire, construct and operate park and recreational land and facilities from taxes levied under the local accommodations excise tax.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested