RCW 67.28.180
Lodging tax authorized -- Conditions. (Expires
July 1, 2009.)
(1) Subject to the conditions set forth in
subsections (2) and (3) of this section, the legislative body of
any county or any city, is authorized to levy and collect a
special excise tax of not to exceed two percent on the sale of or
charge made for the furnishing of lodging that is subject to tax
under chapter 82.08 RCW.
(2) Any levy authorized by this section shall be subject to
the following:
(a) Any county ordinance or resolution adopted pursuant to
this section shall contain, in addition to all other provisions
required to conform to this chapter, a provision allowing a
credit against the county tax for the full amount of any city tax
imposed pursuant to this section upon the same taxable event.
(b) In the event that any county has levied the tax
authorized by this section and has, prior to June 26, 1975,
either pledged the tax revenues for payment of principal and
interest on city revenue or general obligation bonds authorized
and issued pursuant to RCW 67.28.150 through 67.28.160 or has
authorized and issued revenue or general obligation bonds
pursuant to the provisions of RCW 67.28.150 through 67.28.160,
such county shall be exempt from the provisions of (a) of this
subsection, to the extent that the tax revenues are pledged for
payment of principal and interest on bonds issued at any time
pursuant to the provisions of RCW 67.28.150 through 67.28.160:
PROVIDED, That so much of such pledged tax revenues, together
with any investment earnings thereon, not immediately necessary
for actual payment of principal and interest on such bonds may be
used: (i) In any county with a population of one million or
more, for repayment either of limited tax levy general obligation
bonds or of any county fund or account from which a loan was
made, the proceeds from the bonds or loan being used to pay for
constructing, installing, improving, and equipping stadium
capital improvement projects, and to pay for any engineering,
planning, financial, legal and professional services incident to
the development of such stadium capital improvement projects,
regardless of the date the debt for such capital improvement
projects was or may be incurred; (ii) in any county with a
population of one million or more, for repayment or refinancing
of bonded indebtedness incurred prior to January 1, 1997, for any
purpose authorized by this section or relating to stadium repairs
or rehabilitation, including but not limited to the cost of
settling legal claims, reimbursing operating funds, interest
payments on short-term loans, and any other purpose for which
such debt has been incurred if the county has created a public
stadium authority to develop a stadium and exhibition center
under RCW 36.102.030; or (iii) in other counties, for
county-owned facilities for agricultural promotion until January
1, 2009, and thereafter for any purpose authorized in this
chapter.
A county is exempt under this subsection with respect to
city revenue or general obligation bonds issued after April 1,
1991, only if such bonds mature before January 1, 2013. If any
county located east of the crest of the Cascade mountains has
levied the tax authorized by this section and has, prior to June
26, 1975, pledged the tax revenue for payment of principal and
interest on city revenue or general obligation bonds, the county
is exempt under this subsection with respect to revenue or
general obligation bonds issued after January 1, 2007, only if
the bonds mature before January 1, 2021. Such a county may only
use funds under this subsection (2)(b) for constructing or
improving facilities authorized under this chapter, including
county-owned facilities for agricultural promotion, and must
perform an annual financial audit of organizations receiving
funding on the use of the funds.
As used in this subsection (2)(b), "capital improvement
projects" may include, but not be limited to a stadium restaurant
facility, restroom facilities, artificial turf system, seating
facilities, parking facilities and scoreboard and information
system adjacent to or within a county owned stadium, together
with equipment, utilities, accessories and appurtenances
necessary thereto. The stadium restaurant authorized by this
subsection (2)(b) shall be operated by a private concessionaire
under a contract with the county.
(c)(i) No city within a county exempt under subsection
(2)(b) of this section may levy the tax authorized by this
section so long as said county is so exempt.
(ii) No city within a county with a population of one
million or more may levy the tax authorized by this section.
(iii) However, in the event that any city in a county
described in (c)(i) or (ii) of this subsection (2) has levied the
tax authorized by this section and has, prior to June 26, 1975,
authorized and issued revenue or general obligation bonds
pursuant to the provisions of RCW 67.28.150 through 67.28.160,
such city may levy the tax so long as the tax revenues are
pledged for payment of principal and interest on bonds issued at
any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.
(3) Any levy authorized by this section by a county that has
levied the tax authorized by this section and has, prior to June
26, 1975, either pledged the tax revenues for payment of
principal and interest on city revenue or general obligation
bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general
obligation bonds pursuant to the provisions of RCW 67.28.150
through 67.28.160 shall be subject to the following:
(a) Taxes collected under this section in any calendar year
before 2013 in excess of five million three hundred thousand
dollars shall only be used as follows:
(i) Seventy-five percent from January 1, 1992, through
December 31, 2000, and seventy percent from January 1, 2001,
through December 31, 2012, for art museums, cultural museums,
heritage museums, heritage and preservation programs, the arts,
and the performing arts. Moneys spent under this subsection
(3)(a)(i) shall be used for the purposes of this subsection
(3)(a)(i) in all parts of the county.
(ii) Twenty-five percent from January 1, 1992, through
December 31, 2000, and thirty percent from January 1, 2001,
through December 31, 2012, for the following purposes and in a
manner reflecting the following order of priority: Stadium
purposes as authorized under subsection (2)(b) of this section;
acquisition of open space lands; youth sports activities; and
tourism promotion. If all or part of the debt on the stadium is
refinanced, all revenues under this subsection (3)(a)(ii) shall
be used to retire the debt.
(b) From January 1, 2013, through December 31, 2015, in a
county with a population of one million or more, all revenues
under this section shall be used to retire the debt on the
stadium, until the debt on the stadium is retired. On and after
the date the debt on the stadium is retired, and through December
31, 2015, all revenues under this section in a county of a [one]
million or more shall be deposited in the special account under
(f) of this subsection.
(c) From January 1, 2016, through December 31, 2020, in a
county with a population of one million or more, all revenues
under this section shall be deposited in the stadium and
exhibition center account under RCW 43.99N.060.
(d) On and after January 1, 2021, at least thirty-seven and
one-half percent of revenues under this section in a county of a
[one] million or more shall be deposited in the special account
under (f) of this subsection.
(e) At least seventy percent of moneys spent under (a)(i) of
this subsection for the period January 1, 1992, through December
31, 2000, shall be used only for the purchase, design,
construction, and remodeling of performing arts, visual arts,
heritage, and cultural facilities, and for the purchase of fixed
assets that will benefit art, heritage, and cultural
organizations. For purposes of this subsection, fixed assets are
tangible objects such as machinery and other equipment intended
to be held or used for ten years or more. Moneys received under
this subsection (3)(e) may be used for payment of principal and
interest on bonds issued for capital projects. Qualifying
organizations receiving moneys under this subsection (3)(e) must
be financially stable and have at least the following:
(i) A legally constituted and working board of directors;
(ii) A record of artistic, heritage, or cultural
accomplishments;
(iii) Been in existence and operating for at least two
years;
(iv) Demonstrated ability to maintain net current
liabilities at less than thirty percent of general operating
expenses;
(v) Demonstrated ability to sustain operational capacity
subsequent to completion of projects or purchase of machinery and
equipment; and
(vi) Evidence that there has been independent financial
review of the organization.
(f) At least forty percent of the revenues distributed
pursuant to (a)(i) of this subsection for the period January 1,
2001, through July 1, 2008, shall be deposited in a special
account. The account may only be used for the purposes of (a)(i)
of this subsection.
(g) School districts and schools shall not receive revenues
distributed pursuant to (a)(i) of this subsection.
(h) Moneys distributed to art museums, cultural museums,
heritage museums, heritage and preservation programs, the arts,
and the performing arts, and moneys distributed for tourism
promotion shall be in addition to and may not be used to replace
or supplant any other funding by the legislative body of the
county.
(i) As used in this section, "tourism promotion" includes
activities intended to attract visitors for overnight stays,
arts, heritage, and cultural events, and recreational,
professional, and amateur sports events. Moneys allocated to
tourism promotion in a class AA county shall be allocated to
nonprofit organizations formed for the express purpose of tourism
promotion in the county. Such organizations shall use moneys
from the taxes to promote events in all parts of the class AA
county.
(j) No taxes collected under this section may be used for
the operation or maintenance of a public stadium that is financed
directly or indirectly by bonds to which the tax is pledged.
Expenditures for operation or maintenance include all
expenditures other than expenditures that directly result in new
fixed assets or that directly increase the capacity, life span,
or operating economy of existing fixed assets.
(k) No ad valorem property taxes may be used for debt
service on bonds issued for a public stadium that is financed by
bonds to which the tax is pledged, unless the taxes collected
under this section are or are projected to be insufficient to
meet debt service requirements on such bonds.
(l) If a substantial part of the operation and management of
a public stadium that is financed directly or indirectly by bonds
to which the tax is pledged is performed by a nonpublic entity or
if a public stadium is sold that is financed directly or
indirectly by bonds to which the tax is pledged, any bonds to
which the tax is pledged shall be retired. This subsection
(3)(l) does not apply in respect to a public stadium under
chapter 36.102 RCW transferred to, owned by, or constructed by a
public facilities district under chapter 36.100 RCW or a stadium
and exhibition center.
(m) The county shall not lease a public stadium that is
financed directly or indirectly by bonds to which the tax is
pledged to, or authorize the use of the public stadium by, a
professional major league sports franchise unless the sports
franchise gives the right of first refusal to purchase the sports
franchise, upon its sale, to local government. This subsection
(3)(m) does not apply to contracts in existence on April 1, 1986.
If a court of competent jurisdiction declares any provision
of this subsection (3) invalid, then that invalid provision shall
be null and void and the remainder of this section is not
affected. Section 2, chapter 264, Laws of 2008 expires July 1,
2009.
[2008 c 264 § 2; 2007 c 189 § 1; 2002 c 178 § 2; 1997 c 220 § 501 (Referendum Bill No. 48, approved June 17, 1997); 1995 1st sp.s. c 14 § 10; 1995 c 386 § 8. Prior: 1991 c 363 § 139; 1991 c 336 § 1; 1987 c 483 § 1; 1986 c 104 § 1; 1985 c 272 § 1; 1975 1st ex.s. c 225 § 1; 1973 2nd ex.s. c 34 § 5; 1970 ex.s. c 89 § 1; 1967 c 236 § 11.]
NOTES:
Findings -- Intent -- 2008 c 264: "The legislature finds that
locally funded heritage and arts programs build vital communities
and preserve community history and culture. It further finds
that within existing revenue sources, local jurisdictions should
have the capability to preserve these programs in the future.
The locally funded heritage and arts program in the state's
most populated county was established in 1989 using a portion of
hotel-motel tax revenues. This program was structured to provide
for inflation and an expanding population of the county.
In 1997, the legislature acted to assure the future of the
heritage and arts program by creating an endowment fund using
these same local funds. This funding mechanism has proved to be
inadequate and unless immediately modified will result in a
seventy-five percent reduction of funds for the program.
This act will provide a stable and predictable flow of funds
to the program, provide for inflation and an expanding
population, and assure the future viability of the program within
existing revenue flows." [2008 c 264 § 1.]
Effective date -- 2008 c 264: "This act takes effect July 1, 2008." [2008 c 264 § 5.]
Retroactive application -- 2002 c 178: "This act applies retroactively to events occurring on and after September 1, 2001." [2002 c 178 § 6.]
Effective date -- 2002 c 178: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 27, 2002]." [2002 c 178 § 7.]
Referendum--Other legislation limited--Legislators' personal intent not indicated--Reimbursements for election--Voters' pamphlet, election requirements -- 1997 c 220: See RCW 36.102.800 through 36.102.803.
Part headings not law -- Severability--1997 c 220: See RCW 36.102.900 and 36.102.901.
Severability -- Effective dates -- 1995 1st sp.s. c 14: See notes following RCW 36.100.010.
Severability -- Effective date -- 1995 c 386: See notes following RCW 67.40.130.
Effective date -- 1991 c 336: "This act shall take effect January 1, 1992." [1991 c 336 § 3.]
Purpose -- Captions not law -- 1991 c 363: See notes following RCW 2.32.180.
Effective date -- 1986 c 104: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect April 1, 1986." [1986 c 104 § 2.]
Severability -- 1985 c 272: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1985 c 272 § 2.]
Contracts for marketing facility and services: RCW 67.40.120.
Lodging tax imposed in King county for state convention and trade center: RCW 67.40.090.
RCW 67.28.180
Lodging tax authorized -- Conditions.
(Effective July 1, 2009.)
(1) Subject to the conditions set
forth in subsections (2) and (3) of this section, the legislative
body of any county or any city, is authorized to levy and collect
a special excise tax of not to exceed two percent on the sale of
or charge made for the furnishing of lodging that is subject to
tax under chapter 82.08 RCW.
(2) Any levy authorized by this section shall be subject to
the following:
(a) Any county ordinance or resolution adopted pursuant to
this section shall contain, in addition to all other provisions
required to conform to this chapter, a provision allowing a
credit against the county tax for the full amount of any city tax
imposed pursuant to this section upon the same taxable event.
(b) In the event that any county has levied the tax
authorized by this section and has, prior to June 26, 1975,
either pledged the tax revenues for payment of principal and
interest on city revenue or general obligation bonds authorized
and issued pursuant to RCW 67.28.150 through 67.28.160 or has
authorized and issued revenue or general obligation bonds
pursuant to the provisions of RCW 67.28.150 through 67.28.160,
such county shall be exempt from the provisions of (a) of this
subsection, to the extent that the tax revenues are pledged for
payment of principal and interest on bonds issued at any time
pursuant to the provisions of RCW 67.28.150 through 67.28.160:
PROVIDED, That so much of such pledged tax revenues, together
with any investment earnings thereon, not immediately necessary
for actual payment of principal and interest on such bonds may be
used: (i) In any county with a population of one million or
more, for repayment either of limited tax levy general obligation
bonds or of any county fund or account from which a loan was
made, the proceeds from the bonds or loan being used to pay for
constructing, installing, improving, and equipping stadium
capital improvement projects, and to pay for any engineering,
planning, financial, legal and professional services incident to
the development of such stadium capital improvement projects,
regardless of the date the debt for such capital improvement
projects was or may be incurred; (ii) in any county with a
population of one million or more, for repayment or refinancing
of bonded indebtedness incurred prior to January 1, 1997, for any
purpose authorized by this section or relating to stadium repairs
or rehabilitation, including but not limited to the cost of
settling legal claims, reimbursing operating funds, interest
payments on short-term loans, and any other purpose for which
such debt has been incurred if the county has created a public
stadium authority to develop a stadium and exhibition center
under RCW 36.102.030; or (iii) in other counties, for
county-owned facilities for agricultural promotion until January
1, 2009, and thereafter for any purpose authorized in this
chapter.
A county is exempt under this subsection with respect to
city revenue or general obligation bonds issued after April 1,
1991, only if such bonds mature before January 1, 2013. If any
county located east of the crest of the Cascade mountains has
levied the tax authorized by this section and has, prior to June
26, 1975, pledged the tax revenue for payment of principal and
interest on city revenue or general obligation bonds, the county
is exempt under this subsection with respect to revenue or
general obligation bonds issued after January 1, 2007, only if
the bonds mature before January 1, 2021. Such a county may only
use funds under this subsection (2)(b) for constructing or
improving facilities authorized under this chapter, including
county-owned facilities for agricultural promotion, and must
perform an annual financial audit of organizations receiving
funding on the use of the funds.
As used in this subsection (2)(b), "capital improvement
projects" may include, but not be limited to a stadium restaurant
facility, restroom facilities, artificial turf system, seating
facilities, parking facilities and scoreboard and information
system adjacent to or within a county owned stadium, together
with equipment, utilities, accessories and appurtenances
necessary thereto. The stadium restaurant authorized by this
subsection (2)(b) shall be operated by a private concessionaire
under a contract with the county.
(c)(i) No city within a county exempt under subsection
(2)(b) of this section may levy the tax authorized by this
section so long as said county is so exempt.
(ii) If bonds have been issued under RCW 43.99N.020 and any
necessary property transfers have been made under RCW 36.102.100,
no city within a county with a population of one million or more
may levy the tax authorized by this section before January 1,
2021.
(iii) However, in the event that any city in a county
described in (i) or (ii) of this subsection (2)(c) has levied the
tax authorized by this section and has, prior to June 26, 1975,
authorized and issued revenue or general obligation bonds
pursuant to the provisions of RCW 67.28.150 through 67.28.160,
such city may levy the tax so long as the tax revenues are
pledged for payment of principal and interest on bonds issued at
any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.
(3) Any levy authorized by this section by a county that has
levied the tax authorized by this section and has, prior to June
26, 1975, either pledged the tax revenues for payment of
principal and interest on city revenue or general obligation
bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general
obligation bonds pursuant to the provisions of RCW 67.28.150
through 67.28.160 shall be subject to the following:
(a) Taxes collected under this section in any calendar year
before 2013 in excess of five million three hundred thousand
dollars shall only be used as follows:
(i) Seventy-five percent from January 1, 1992, through
December 31, 2000, and seventy percent from January 1, 2001,
through December 31, 2012, for art museums, cultural museums,
heritage museums, the arts, and the performing arts. Moneys
spent under this subsection (3)(a)(i) shall be used for the
purposes of this subsection (3)(a)(i) in all parts of the county.
(ii) Twenty-five percent from January 1, 1992, through
December 31, 2000, and thirty percent from January 1, 2001,
through December 31, 2012, for the following purposes and in a
manner reflecting the following order of priority: Stadium
purposes as authorized under subsection (2)(b) of this section;
acquisition of open space lands; youth sports activities; and
tourism promotion. If all or part of the debt on the stadium is
refinanced, all revenues under this subsection (3)(a)(ii) shall
be used to retire the debt.
(b) From January 1, 2013, through December 31, 2015, in a
county with a population of one million or more, all revenues
under this section shall be used to retire the debt on the
stadium, or deposited in the stadium and exhibition center
account under RCW 43.99N.060 after the debt on the stadium is
retired.
(c) From January 1, 2016, through December 31, 2020, in a
county with a population of one million or more, all revenues
under this section shall be deposited in the stadium and
exhibition center account under RCW 43.99N.060.
(d) At least seventy percent of moneys spent under (a)(i) of
this subsection for the period January 1, 1992, through December
31, 2000, shall be used only for the purchase, design,
construction, and remodeling of performing arts, visual arts,
heritage, and cultural facilities, and for the purchase of fixed
assets that will benefit art, heritage, and cultural
organizations. For purposes of this subsection, fixed assets are
tangible objects such as machinery and other equipment intended
to be held or used for ten years or more. Moneys received under
this subsection (3)(d) may be used for payment of principal and
interest on bonds issued for capital projects. Qualifying
organizations receiving moneys under this subsection (3)(d) must
be financially stable and have at least the following:
(i) A legally constituted and working board of directors;
(ii) A record of artistic, heritage, or cultural
accomplishments;
(iii) Been in existence and operating for at least two
years;
(iv) Demonstrated ability to maintain net current
liabilities at less than thirty percent of general operating
expenses;
(v) Demonstrated ability to sustain operational capacity
subsequent to completion of projects or purchase of machinery and
equipment; and
(vi) Evidence that there has been independent financial
review of the organization.
(e) At least forty percent of the revenues distributed
pursuant to (a)(i) of this subsection for the period January 1,
2001, through December 31, 2012, shall be deposited in an account
and shall be used to establish an endowment. Principal in the
account shall remain permanent and irreducible. The earnings
from investments of balances in the account may only be used for
the purposes of (a)(i) of this subsection.
(f) School districts and schools shall not receive revenues
distributed pursuant to (a)(i) of this subsection.
(g) Moneys distributed to art museums, cultural museums,
heritage museums, the arts, and the performing arts, and moneys
distributed for tourism promotion shall be in addition to and may
not be used to replace or supplant any other funding by the
legislative body of the county.
(h) As used in this section, "tourism promotion" includes
activities intended to attract visitors for overnight stays,
arts, heritage, and cultural events, and recreational,
professional, and amateur sports events. Moneys allocated to
tourism promotion in a class AA county shall be allocated to
nonprofit organizations formed for the express purpose of tourism
promotion in the county. Such organizations shall use moneys
from the taxes to promote events in all parts of the class AA
county.
(i) No taxes collected under this section may be used for
the operation or maintenance of a public stadium that is financed
directly or indirectly by bonds to which the tax is pledged.
Expenditures for operation or maintenance include all
expenditures other than expenditures that directly result in new
fixed assets or that directly increase the capacity, life span,
or operating economy of existing fixed assets.
(j) No ad valorem property taxes may be used for debt
service on bonds issued for a public stadium that is financed by
bonds to which the tax is pledged, unless the taxes collected
under this section are or are projected to be insufficient to
meet debt service requirements on such bonds.
(k) If a substantial part of the operation and management of
a public stadium that is financed directly or indirectly by bonds
to which the tax is pledged is performed by a nonpublic entity or
if a public stadium is sold that is financed directly or
indirectly by bonds to which the tax is pledged, any bonds to
which the tax is pledged shall be retired. This subsection
(3)(k) does not apply in respect to a public stadium under
chapter 36.102 RCW transferred to, owned by, or constructed by a
public facilities district under chapter 36.100 RCW or a stadium
and exhibition center.
(l) The county shall not lease a public stadium that is
financed directly or indirectly by bonds to which the tax is
pledged to, or authorize the use of the public stadium by, a
professional major league sports franchise unless the sports
franchise gives the right of first refusal to purchase the sports
franchise, upon its sale, to local government. This subsection
(3)(l) does not apply to contracts in existence on April 1, 1986.
If a court of competent jurisdiction declares any provision
of this subsection (3) invalid, then that invalid provision shall
be null and void and the remainder of this section is not
affected.
[2007 c 189 § 1; 2002 c 178 § 2; 1997 c 220 § 501 (Referendum Bill No. 48, approved June 17, 1997); 1995 1st sp.s. c 14 § 10; 1995 c 386 § 8. Prior: 1991 c 363 § 139; 1991 c 336 § 1; 1987 c 483 § 1; 1986 c 104 § 1; 1985 c 272 § 1; 1975 1st ex.s. c 225 § 1; 1973 2nd ex.s. c 34 § 5; 1970 ex.s. c 89 § 1; 1967 c 236 § 11.]
NOTES:
Retroactive application -- 2002 c 178: "This act applies retroactively to events occurring on and after September 1, 2001." [2002 c 178 § 6.]
Effective date -- 2002 c 178: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 27, 2002]." [2002 c 178 § 7.]
Referendum--Other legislation limited--Legislators' personal intent not indicated--Reimbursements for election--Voters' pamphlet, election requirements -- 1997 c 220: See RCW 36.102.800 through 36.102.803.
Part headings not law -- Severability--1997 c 220: See RCW 36.102.900 and 36.102.901.
Severability -- Effective dates -- 1995 1st sp.s. c 14: See notes following RCW 36.100.010.
Severability -- Effective date -- 1995 c 386: See notes following RCW 67.40.130.
Effective date -- 1991 c 336: "This act shall take effect January 1, 1992." [1991 c 336 § 3.]
Purpose -- Captions not law -- 1991 c 363: See notes following RCW 2.32.180.
Effective date -- 1986 c 104: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect April 1, 1986." [1986 c 104 § 2.]
Severability -- 1985 c 272: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1985 c 272 § 2.]
Contracts for marketing facility and services: RCW 67.40.120.
Lodging tax imposed in King county for state convention and trade center: RCW 67.40.090.