Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Finance

HB 1531

Brief Description:  Modifying the taxation of lodging.

Sponsors:  Representatives Morris and Cairnes.

Brief Summary of Bill

$Exempts lodging furnished for continuous period of one month or more from sales taxes.

Hearing Date:  2/7/01

Staff:  Bob Longman (786‑7139).

Background: 

State and local sales taxes apply to lodging rentals by  hotels, motels, rooming houses, private campgrounds, RV parks, and similar facilities.  "Hotel-motel" taxes are special sales taxes on lodging rentals.

Lodging rentals are subject to sales and hotel-motel taxes when the period of occupancy is less than 30 days.  When the period of occupancy is 30 days or more, the transaction is considered a rental or lease of real property and is exempt from tax.

Summary of Bill: 

The furnishing of lodging and all other services for a continuous period of one month or more constitutes a rental or lease of real property and is exempt from tax.  Continuous occupancy of a specific lodging unit by the same person is no longer required.

Appropriation:  None.

Fiscal Note:  Requested on January 30, 2001.

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