H-671                _______________________________________________

                                                   HOUSE BILL NO. 1116

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Zellinsky, Schmidt, Nutley, Pruitt, Sayan, Kremen, Haugen, Ballard, Vekich, Peery, Cooper, R. Meyers, Betrozoff, Rayburn, Doty and Morris

Read first time 1/16/89 and referred to Committees on Local Government/Revenue (2/17/89).

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 Chelan, Clark, Douglas, Grays Harbor, Jefferson, Kitsap, or Snohomish county, or any city within any of these counties, 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. 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 increase the tax authorized by RCW 67.28.180 by more than two and one-half percent.

          (3) The proceeds of this tax shall be used solely for the promotion of tourism and conventions by a nonprofit organization devoted exclusively to this purpose.   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 or city 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 or city. Until withdrawn for use, the moneys accumulated in the special fund may be invested in interest-bearing securities by the county or city treasurer in any manner authorized by law.