HOUSE BILL REPORT

                 SSB 5035

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to public restroom facilities.

Brief Description:  Authorizing cities to use the hotel‑motel tax for public restroom facilities.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senator Haugen).

Brief History:

  Reported by House Committee on:

Local Government, March 23, 1993, DPA.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass as amended.  Signed by 10 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; R. Fisher; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Staff:  Steve Lundin (786-7127).

Background:  Any county or city may impose the basic local option excise tax on hotel/motel room rental charges of up to 2 percent.  This tax is a credit against the state sales tax that is imposed on such room rental charges.  Receipts from this tax may only be spent on a variety of purposes, including the construction and operation of stadiums and convention centers and the promotion of tourism.

With certain exceptions, every county that imposes this basic tax is required to provide a credit for same tax that is imposed by any city within the county.

Summary of Amended Bill:  Any county, city, or town may use the proceeds of the basic local option excise tax on hotel/motel room rental charges for public restrooms available and intended for use by visitors.

Amended Bill Compared to Substitute Bill:  Counties were given the authority to use the proceeds of the basic local option excise tax on hotel/motel room rental charges for public restrooms available and intended for use by visitors.

Fiscal Note:  Not requested.

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

Testimony For:  Many cities and towns need restroom facilities for tourists.  Counties have the need too.

Testimony Against:  The purpose of the hotel/motel tax is to finance tourist and visitor bureaus.  This could detract from this purpose.

Witnesses:  (In favor):  Senator Mary Margaret Haugen, prime sponsor; Senator Rasmussen; Stan Finkelstein, Association of Washington Cities; Becky Bogard, Washington State Hotel and Motel Association; George Walk, Pierce County; Rick Adams, city of Elbe; and (con) Sonnia Bean, citizen.