BillTracker

Modifying the lodging excise tax to remove the exemption for premises with fewer than sixty lodging units and to tax certain vacation rentals, short-term home-sharing arrangements, and other compensated use or occupancy of dwellings(Pettigrew, Stokesbary, Nealey)

Removes the lodging excise tax exemption for premises with fewer than sixty lodging units and imposes an excise tax on the sale of or charge made for the furnishing of a vacation rental, a home-sharing arrangement, or other compensated use or occupancy of all or a portion of a dwelling or dwelling unit, for a continuous period of less than one month, regardless of whether the dwelling or dwelling unit is also occupied by its owner.

EFFECT CHANGES MADE BY 2ND SUBSTITUTE (Finance)
(1) Authorizes the public facilities district (PFD) to use the tax revenues for the renovating and expanding of a convention and trade center. (2) Prohibits the concurrent imposition of a lodging tax on short-term rentals by the PFD and a city. (3) Provides a definition of "short-term" rental. (4) Clarifies that the maximum lodging tax rate applies. (5) Authorizes the distribution of tax revenues from the imposition of the lodging tax on short-term rentals arising from taxable events within the jurisdiction of a city imposing a local short-term rental lodging tax on or before December 31, 2017, if the city repeals the ordinance imposing the local tax. These funds must be used to support community-initiated equitable development and affordable housing programs. (6) Provides that the PFD can stop the short-term rental lodging tax payments to the city if the city reimposes a short-term rental lodging tax or if the municipality no longer has the authority to impose such a tax. (7) Directs the PFD to distribute 50 percent of the tax revenue collected, after any required distribution to a city, to the county for affordable housing programs. (8) Adds an October 1, 2018, effective date

SENATE COMMITTEE (Ways & Means) STRIKER AMENDMENTS
(1) Maintains the tax exemption for lodging businesses with fewer than 60 lodging units if the business is located in a town with a population less than three hundred. (2) Excludes from the lodging tax the University of Washington Medical Center temporary housing facility available to family members of medical patients. (3) Clarifies that lodging taxes will be applied at the same rate and distributed in the same manner regardless of the number of rooms of a lodging establishment. (4) Makes language consistent with section 2(15) of this bill and states that the payments are from revenues received as a result of this 2018 act. (5) Removes the lack of authority to impose the tax as a condition under which the public facilities district does not have to make quarterly payments to the city.

Hearing Date: Friday, February 24, 2017 -- 9:00 am

WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=2015&Year=2017    (opens a new browser tab)