H-1802              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1116

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By House Committee on Local Government/Revenue (originally sponsored by Representatives Zellinsky, Schmidt, Nutley, Pruitt, Sayan, Kremen, Haugen, Ballard, Vekich, Peery, Cooper, R. Meyers, Betrozoff, Rayburn, Doty and Morris)

Read first time 2/17/89 and referred to Committee on Revenue.

AN ACT Relating to tourism; and adding a new section to chapter 67.28 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 67.28 RCW to read as follows:

          (1) The legislative body of any county and any city or town within any county, may levy and collect an additional tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property if a county-wide organization has been established in the county as of June 1, 1989, solely for the promotion of tourism and conventions, unless a tax is authorized to be imposed in the county under RCW 67.28.182, 67.28.240, 67.28.250, 67.40.090, or 36.100.040.  A city authorized to impose a tax under RCW 67.28.230 may not impose a tax under this section.  It is presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

          (2) The additional tax authorized by subsection (1) of this section shall not exceed two and one-half percent of the sale or charge made for furnishing lodging.  Any county ordinance or resolution imposing the tax authorized under this section must include a provision allowing a credit against the county tax for the full amount of any city or town tax imposed under this section or under RCW 67.28.230 upon the same taxable event.

          (3) The proceeds of this tax shall be used solely for the promotion of tourism and conventions.  Receipts from the tax authorized to be imposed under this section may not be expended by a county and the cities or towns in that county, if two or more of these local governments impose this tax, unless all the local governments in the county that impose this tax enter into an agreement providing for a single entity to expend these tax receipts, which may include contracting with a nonprofit organization created solely for the promotion of tourism and conventions in the county.  The promotion of tourism and conventions, for the purposes of this section, includes advertising, publishing, or otherwise distributing information for the purpose of attracting conventions and visitors and encouraging tourist expansion.

          (4) Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section shall pay over such tax to the county, city, or town as provided in  RCW 67.28.200.  The deduction from state taxes under RCW 67.28.190 does not apply to taxes imposed under this section.

          (5) All taxes levied and collected under this section shall be credited to a special fund in the treasury of the county, city, or town. Until withdrawn for use, the moneys accumulated in the special fund may be invested in interest-bearing securities by the county, city, or town treasurer in any manner authorized by law.

NEW SECTION. Sec. 2.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.