BP BHEAD INT H

AN ACT Relating to county, city, or town taxes imposed on lodging; amending RCW 67.28.200; reenacting and amending RCW 67.28.210; adding new sections to chapter 67.28 RCW; and repealing RCW 67.28.182, 67.28.240, 67.28.250, 67.28.260, 67.28.270, 67.28.280, and 67.28.290.

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, city, or town is authorized to impose a special excise tax of not exceeding three percent 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. For purposes of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes the rental or lease of real property and not a mere license to use or to enjoy the real property.

(2) The legislative body of a county, city, or town may not impose the tax authorized in this section if a tax is imposed in the county, city, or town under RCW 67.40.090 or if a public facilities district imposes the tax authorized under RCW 36.100.040 in the county, city, or town.

(3) Any county ordinance levying the tax authorized in this section shall include a provision allowing a credit against the county tax for the full amount of any city or town tax imposed under this section upon the same taxable event.

(4) Proceeds from any tax authorized in this section shall be credited to a special fund or account in the county, city, or town treasury and used to finance facilities or activities related to the promotion and development of tourism or conventions, or for costs of siting, acquiring, constructing, operating, or maintaining capital facilities primarily used by tourists, visitors, or persons attending conventions, sporting events, entertainment, festivals, fairs, or cultural events, including, but not limited to, convention centers, stadia, performing arts centers, visual arts centers, trade recreation agricultural centers, movable tall ships tourist attractions, steam railways, ocean beach boardwalks, public restroom facilities available and intended for use by visitors, tourist rest areas and tourist emergency facilities, picnic areas and viewpoints, tourist parking areas, and aquatic facilities. In addition, proceeds from this tax may be used to finance the activities or facilities that were authorized to be financed by the former taxes authorized under RCW 67.28.180, 67.28.182, 67.28.240, 67.28.250, 67.28.260, 67.28.270, 67.28.280, or 67.28.290.

(5) The ordinance imposing the taxes authorized under this section shall specifically identify the purpose or purposes, or project or projects, to be financed with receipts from these taxes. Prior to adopting this ordinance, or amending the ordinance to alter the purposes or projects, the legislative body of the county, city, or town shall create an advisory group of persons associated with lodging businesses and other interested citizens and receive recommendations from this advisory group on possible projects or purposes to be financed with these tax receipts.

(6) After the effective date of this act, any taxes that were imposed under RCW 67.28.182, 67.28.240, 67.28.250, 67.28.260, 67.28.270, 67.28.280, or 67.28.290 shall be considered to have been imposed under this section and shall continue in effect until the ordinance imposing any of these taxes is altered.

NEW SECTION. Sec. 2. A new section is added to chapter 67.28 RCW to read as follows:

Chapter . . ., Laws of 1994 (this act) may not impair the obligation of a contract. Any tax that was imposed under RCW 67.28.182, 67.28.240, 67.28.250, 67.28.260, 67.28.270, 67.28.280, or 67.28.290 to make redemption payments on bonds issued before the effective date of this act may continue to be imposed under section 1 of this act for this purpose.

Sec. 3. RCW 67.28.200 and 1993 c 389 s 2 are each amended to read as follows:

The legislative body of any county ((or)), city, or town may establish reasonable exemptions and may adopt such reasonable rules and regulations as may be necessary for the levy and collection of the taxes authorized under this chapter. The department of revenue shall perform the collection of such taxes on behalf of ((~~such~~)) the county ((or)), city, or town at no cost to ((~~such~~)) the county ((or)), city, or town.

Sec. 4. RCW 67.28.210 and 1993 c 197 s 1 and 1993 c 46 s 1 are each reenacted and amended to read as follows:

All taxes levied and collected under RCW 67.28.180((~~, 67.28.240, and 67.28.260~~)) shall be credited to a special fund in the treasury of the county ((or)), city, or town imposing such tax. Such taxes shall be levied only for the purpose of paying all or any part of the cost of acquisition, construction, or operating of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes under this chapter, or to pay for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion when a county ((or)), city, or town has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county ((or)), city, or town treasurer in any manner authorized by law. In addition such taxes may be used to develop strategies to expand tourism: PROVIDED, That any county, and any city or town within a county, bordering upon Grays Harbor may use the proceeds of such taxes for construction and maintenance of a movable tall ships tourist attraction in cooperation with a tall ships restoration society, except to the extent that such proceeds are used for payment of principal and interest on debt incurred prior to June 11, 1986: PROVIDED FURTHER, That any county, city, or ((~~county~~)) town may use the proceeds of such taxes for the refurbishing and operation of a steam railway for tourism promotion purposes: PROVIDED FURTHER, That any city bordering on the Pacific Ocean with a population of not less than one thousand and the county in which such a city is located may use the proceeds of such taxes for funding special events or festivals, or promotional infrastructures including but not limited to an ocean beach boardwalk: ((PROVIDED FURTHER, That any county which imposes a tax under RCW 67.28.182 may use the proceeds of the tax levied and collected under RCW 67.28.180 to provide public restroom facilities available to and intended for use by visitors:)) PROVIDED FURTHER, That any county, city or town, if the city or town has a population less than five thousand, may use the proceeds of the tax levied and collected under RCW 67.28.180 to provide public restroom facilities available to and intended for use by visitors.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) RCW 67.28.182 and 1987 c 483 s 2;

(2) RCW 67.28.240 and 1993 sp.s. c 16 s 3, 1991 c 363 s 140, & 1988 ex.s. c 1 s 21;

(3) RCW 67.28.250 and 1992 c 156 s 2 & 1988 ex.s. c 1 s 22;

(4) RCW 67.28.260 and 1991 c 331 s 1;

(5) RCW 67.28.270 and 1991 c 357 s 4;

(6) RCW 67.28.280 and 1993 c 389 s 1; and

(7) RCW 67.28.290 and 1993 sp.s. c 16 s 1.