H-3731              _______________________________________________

                                                   HOUSE BILL NO. 2552

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Braddock and Schoon

Read first time 1/15/90 and referred to Committees on Local Government/Revenue.

AN ACT Relating to the motel/hotel tax; 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 city council of any city with a population of forty thousand or more located in a second class county on the Canadian border is authorized to levy and collect a special excise tax of up to 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 the purposes of this tax, it shall be 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) 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 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.

          (3) The tax authorized in subsection (1) of this section is in addition to any other tax authorized by law.

          (4) All taxes levied and collected under this section shall be credited to a special fund in the treasury of the city.  Such taxes shall be levied only for fine arts activities including the operation, maintenance, construction, repair, or renovation of facilities.

          (5) No more than ten percent of the moneys received from the taxes imposed under this section may be used for construction, repair, or renovation of facilities.

          (6) The city council of any city authorized to impose a tax under this section may establish reasonable exemptions and may adopt such reasonable rules and regulations as may be necessary for the levy and collection of the tax authorized under this section.  The department of revenue shall perform the collection of such taxes on behalf of such city at no cost to the city.