Brief Description: Modifying the definition of "lodging business" for tourism promotion areas.

Sponsors: Representatives Wood, Ahern and Ormsby.

Hearing Date: 2/3/04

Staff: Tracey Taylor (786-7196).

Background:

In 2003, the Legislature passed Engrossed Substitute Senate Bill 6026 creating a special assessment to fund convention and tourism promotion. Counties with populations between 40,000 and one million, and the incorporated cities and towns within them, may establish a tourism promotion area if the legislative authority receives an initiation petition by the most impacted lodging businesses. Within a tourism area, the city or county legislative authority may impose a charge of up to $2 per night from persons who are taxable by the state for retail sales. The charge may vary in an area, based on number of rooms, room revenue, and location in the area. The assessment only applies at lodging businesses with at least 40 rooms.

Summary of Bill:

The definition of a "lodging business" specifies that the business hold itself out to the public as an inn, hotel, motel or public lodging house and furnishes forty or more rooms for hire to accommodate transient guests.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.