Local lodging excise taxes

AN ACT Relating to authority to impose local excise taxes on 1
lodging; amending RCW 67.28.181, 36.100.010, 36.100.040, and 2
36.100.040; providing an effective date; and providing an expiration 3
date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 67.28.181 and 2015 3rd sp.s. c 24 s 703 are each 6
amended to read as follows: 7
(1) The legislative body of any municipality may impose an excise 8
tax on the sale of or charge made for the furnishing of lodging that 9
is subject to tax under chapter 82.08 RCW. The rate of tax shall not 10
exceed the lesser of two percent or a rate that, when combined with 11
all other taxes imposed upon sales of lodging within the municipality 12
under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, 13
equals ((twelve)) 12 percent. A tax under this chapter shall not be 14
imposed in increments smaller than tenths of a percent.15
(2) Notwithstanding subsection (1) of this section:16
(a) If a municipality was authorized to impose taxes under this 17
chapter or RCW 67.40.100 or both with a total rate exceeding four 18
percent before July 27, 1997, such total authorization shall continue 19
through January 31, 1999, and thereafter the municipality may impose 20
H-2872.1
HOUSE BILL 2583
State of Washington 69th Legislature 2026 Regular Session
By Representatives Stonier, Obras, Scott, and Hill
Read first time 01/20/26. Referred to Committee on Finance.
p. 1 HB 2583
a tax under this section at a rate not exceeding the rate actually 1
imposed by the municipality on January 31, 1999. 2
(b) If a city or town, other than a municipality imposing a tax 3
under (a) of this subsection, is located in a county that imposed 4
taxes under this chapter with a total rate of four percent or more on 5
January 1, 1997, the city or town may not impose a tax under this 6
section. 7
(c) If a city has a population of ((four hundred thousand )) 8
200,000 or more and is located in a county with a population of ((one 9
million)) 500,000 or more, the rate of tax imposed under this chapter 10
by the city shall not exceed the lesser of four percent or a rate 11
that, when combined with all other taxes imposed upon sales of 12
lodging in the municipality under this chapter and chapters 36.100, 13
67.40, 82.08, and 82.14 RCW, equals ((fifteen and two-tenths )) 15.2 14
percent. 15
(d) If a municipality was authorized to impose taxes under this 16
chapter or RCW 67.40.100, or both, at a rate equal to six percent 17
before January 1, 1998, the municipality may impose a tax under this 18
section at a rate not exceeding the rate actually imposed by the 19
municipality on January 1, 1998. 20
(3) Any county ordinance or resolution adopted under this section 21
shall contain a provision allowing a credit against the county tax 22
for the full amount of any city or town tax imposed under this 23
section upon the same taxable event. 24
(4) In determining the effective combined rate of tax for 25
purposes of the limit in subsections (1) and (2)(c) of this section, 26
the tax rate under RCW 82.14.530 is not included. 27
Sec. 2. RCW 36.100.010 and 2010 1st sp.s. c 15 s 2 are each 28
amended to read as follows: 29
(1) One or more public facilities districts may be created in any 30
county and must be coextensive with the boundaries of the county.31
(2) A public facilities district is created upon adoption of a 32
resolution providing for the creation of such a district by the 33
county legislative authority in which the proposed district is 34
located. 35
(3) A public facilities district is a municipal corporation, an 36
independent taxing "authority" within the meaning of Article VII, 37
section 1 of the state Constitution, and a "taxing district" within 38
the meaning of Article VII, section 2 of the state Constitution.39
p. 2 HB 2583
(4) ((Except as provided in RCW 36.100.040 (4) and (5), no taxes 1
authorized under this chapter may be assessed or levied unless a 2
majority of the voters of the public facilities district has approved 3
such tax at a general or special election. A single ballot 4
proposition may both validate the imposition of the sales and use tax 5
under RCW 82.14.048 and the excise tax under RCW 36.100.040(1).6
(5)))(a) A public facilities district constitutes a body 7
corporate and possesses all the usual powers of a corporation for 8
public purposes as well as all other powers that may now or hereafter 9
be specifically conferred by statute, including, but not limited to, 10
the authority to hire employees, staff, and services, to enter into 11
contracts, including contracts with public and private parties, to 12
acquire, own, sell, transfer, lease, and otherwise acquire or dispose 13
of property, to grant concessions under terms approved by the public 14
facilities district, and to sue and be sued. 15
(b) A public facilities district created by a county with a 16
population of ((one million five hundred thousand )) 1,500,000 or more 17
to acquire, own, and operate a convention and trade center 18
transferred from a public nonprofit corporation may continue to 19
contract with the Seattle-King county convention and visitors' bureau 20
or its successor in interest for marketing the convention and trade 21
center facility and services. 22
(((6))) (5) A public facilities district may enter into contracts 23
with a county for the purpose of exercising any powers of a community 24
renewal agency under chapter 35.81 RCW. 25
(((7))) (6) The legislative authority of a city or county, the 26
board of directors of a public nonprofit corporation, or the state of 27
Washington may transfer property to a public facilities district 28
created under this chapter, with or without consideration. No 29
property that is encumbered with debt or that is in need of major 30
capital renovation may be transferred to the district without the 31
agreement of the district and revenues adequate to retire the 32
existing indebtedness. 33
(((8))) (7) A public facilities district may enter into 34
agreements with the state, any municipal corporation, or any other 35
governmental entity for the design, financing, acquisition, 36
development, construction, reconstruction, lease, remodeling, 37
alteration, maintenance, equipping, reequipping, repair, operation, 38
or management of one or more facilities of the parties thereto. 39
Agreements may provide that any party to the contract designs, 40
p. 3 HB 2583
finances, acquires, develops, constructs, reconstructs, remodels, 1
alters, maintains, equips, reequips, repairs, and operates one or 2
more facilities for the other party or parties to the contract. A 3
public facilities district may enter into an agreement with the 4
state, any municipal corporation, or other public or private entity 5
that will assist a public facilities district in the financing of all 6
or any part of a district facility on such terms as may be determined 7
by agreement between the respective parties, including without 8
limitation by a loan, guaranty, or other financing agreement.9
Sec. 3. RCW 36.100.040 and 2025 c 376 s 1 are each amended to 10
read as follows: 11
(1) ((A)) The board of a public facilities district may impose an 12
excise tax on the sale of or charge made for the furnishing of 13
lodging that is subject to tax under chapter 82.08 RCW, except that 14
no such tax may be levied on any premises having fewer than 40 15
lodging units. ((Except for any tax imposed under subsection (4) or 16
(5) of this section, if a public facilities district has not imposed 17
such an excise tax prior to December 31, 1995, the public facilities 18
district may only impose the excise tax if a ballot proposition 19
authorizing the imposition of the tax has been approved by a simple 20
majority vote of voters of the public facilities district voting on 21
the proposition.))22
(2) The rate of the tax may not exceed two percent and the 23
proceeds of the tax may only be used for the acquisition, design, 24
construction, remodeling, maintenance, equipping, reequipping, 25
repairing, and operation of its public facilities. This excise tax 26
may not be imposed until the district has approved the proposal to 27
acquire, design, and construct the public facilities.28
(3) Except for a public facilities district created within a 29
county with a population of ((one million five hundred thousand )) 30
500,000 or more for the purpose of acquiring, owning, and operating a 31
convention and trade center or performing arts center , a public 32
facilities district may not impose the tax authorized in this section 33
if, after the tax authorized in this section was imposed, the 34
effective combined rate of state and local excise taxes, including 35
sales and use taxes and excise taxes on lodging, imposed on the sale 36
of or charge made for furnishing of lodging in any jurisdiction in 37
the public facilities district exceeds eleven and one-half percent.38
p. 4 HB 2583
(4)(a) To replace the tax authorized by former RCW 67.40.090, a 1
public facilities district created within a county with a population 2
of ((one million five hundred thousand )) 1,500,000 or more for the 3
purpose of acquiring, owning, operating, renovating, and expanding a 4
convention and trade center may impose an excise tax on the sale of 5
or charge made for the furnishing of lodging (including but not 6
limited to any short-term rental) that is subject to tax under 7
chapter 82.08 RCW, except that no such tax may be levied on:8
(i) Any premises: 9
(A) Having fewer than 60 lodging units if the premises is located 10
in a town with a population less than ((three hundred)) 300; or11
(B) Classified as a hostel; 12
(ii) Any lodging that is concurrently subject to a tax on 13
engaging in the business of being a short-term rental operator 14
imposed by a city in which a convention and trade center is located; 15
or 16
(iii) Any lodging that is operated by a university health care 17
system exclusively for family members of patients.18
(b) The rate of the tax may not exceed seven percent within the 19
portion of the district that corresponds to the boundaries of the 20
largest city within the public facilities district and may not exceed 21
2.8 percent in the remainder of the district. The tax imposed under 22
this subsection (4) may not be collected prior to the transfer date 23
defined in RCW 36.100.230. 24
(5) To replace the tax authorized by former RCW 67.40.130, a 25
public facilities district created within a county with a population 26
of ((one million five hundred thousand )) 1,500,000 or more for the 27
purpose of acquiring, owning, operating, renovating, and expanding a 28
convention and trade center may impose an additional excise tax on 29
the sale of or charge made for the furnishing of lodging (including 30
but not limited to any short-term rental) that is subject to tax 31
under chapter 82.08 RCW, except that no such tax may be levied on any 32
premises: (a) Having fewer than ((sixty)) 60 lodging units if the 33
premises is located in a town with a population less than ((three 34
hundred)) 300; or (b) classified as a hostel. The rate of the 35
additional excise tax may not exceed two percent and may be imposed 36
only within the portion of the district that corresponds to the 37
boundaries of the largest city within the public facilities district 38
and may not be imposed in the remainder of the district. The tax 39
imposed under this subsection (5) may not be collected prior to the 40
p. 5 HB 2583
transfer date specified in RCW 36.100.230. The tax imposed under this 1
subsection (5) must be credited against the amount of the tax 2
otherwise due to the state from those same taxpayers under chapter 3
82.08 RCW. The tax under this subsection (5) may be imposed only for 4
the purpose of paying or securing the payment of the principal of and 5
interest on obligations issued or incurred by the public facilities 6
district and paying annual payment amounts to the state under 7
subsection (6)(a) of this section. The authority to impose the 8
additional excise tax under this subsection (5) expires on the date 9
that is the earlier of (i) July 1, 2029, or (ii) the date on which 10
all obligations issued or incurred by the public facilities district 11
to implement any redemption, prepayment, or legal defeasance of 12
outstanding obligations under RCW 36.100.230(3)(a) are no longer 13
outstanding. 14
(6)(a) Commencing with the first full fiscal year of the state 15
after the transfer date defined in RCW 36.100.230 and for so long as 16
a public facilities district imposes a tax under subsection (5) of 17
this section, the public facilities district must transfer to the 18
state of Washington on June 30th of each state fiscal year an annual 19
payment amount. 20
(b) For the purposes of this subsection (6), "annual payment 21
amount" means an amount equal to revenues received by the public 22
facilities district in the fiscal year from the additional excise tax 23
imposed under subsection (5) of this section plus an interest charge 24
calculated on one-half the annual payment amount times an interest 25
rate equal to the average annual rate of return for the prior 26
calendar year in the Washington state local government investment 27
pool created in chapter 43.250 RCW. 28
(c)(i) If the public facilities district in any fiscal year is 29
required to apply additional lodging excise tax revenues to the 30
payment of principal and interest on obligations it issues or incurs, 31
and the public facilities district is unable to pay all or any 32
portion of the annual payment amount to the state, the deficiency is 33
deemed to be a loan from the state to the public facilities district 34
for the purpose of assisting the district in paying such principal 35
and interest and must be repaid by the public facilities district to 36
the state after providing for the payment of the principal of and 37
interest on obligations issued or incurred by the public facilities 38
district, all on terms established by an agreement between the state 39
treasurer and the public facilities district executed prior to the 40
p. 6 HB 2583
transfer date. Any agreement between the state treasurer and the 1
public facilities district must specify the term for the repayment of 2
the deficiency in the annual payment amount with an interest rate 3
equal to the twenty bond general obligation bond buyer index plus one 4
percentage point. 5
(ii) Outstanding obligations to repay any loans deemed to have 6
been made to the public facilities district as provided in any such 7
agreements between the state treasurer and the public facilities 8
district survive the expiration of the additional excise tax under 9
subsection (5) of this section. 10
(iii) For the purposes of this subsection (6)(c), "additional 11
lodging excise tax revenues" mean the tax revenues received by the 12
public facilities district under subsection (5) of this section.13
(7) A public facilities district is authorized to pledge any of 14
its revenues, including without limitation revenues from the taxes 15
authorized in this section, to pay or secure the payment of 16
obligations issued or incurred by the public facilities district, 17
subject to the terms established by the board of directors of the 18
public facilities district. So long as a pledge of the taxes 19
authorized under this section is in effect, the legislature may not 20
withdraw or modify the authority to levy and collect the taxes at the 21
rates permitted under this section and may not increase the annual 22
payment amount to be transferred to the state under subsection (6) of 23
this section. 24
(8) The department of revenue must perform the collection of such 25
taxes on behalf of the public facilities district at no cost to the 26
district, and the state treasurer must distribute those taxes as 27
available on a monthly basis to the district or, upon the direction 28
of the district, to a fiscal agent, paying agent, or trustee for 29
obligations issued or incurred by the district. 30
(9) Except as expressly provided in this chapter, all of the 31
provisions contained in RCW 82.08.050 and 82.08.060 and chapter 82.32 32
RCW have full force and application with respect to taxes imposed 33
under the provisions of this section. 34
(10) In determining the effective combined rate of tax for 35
purposes of the limit in subsection (3) of this section, the tax rate 36
under RCW 82.14.530 is not included. 37
(11) The taxes imposed in this section do not apply to sales of 38
temporary medical housing exempt under RCW 82.08.997.39
p. 7 HB 2583
(12) The definitions in this subsection apply throughout this 1
section unless the context clearly requires otherwise.2
(a) "Community-initiated equitable development" means strategic 3
capacity-building and capital investments that are determined and 4
directed by communities who have experienced significant historical 5
and ongoing social and economic vulnerabilities with the purpose to 6
offset disparities, prevent or reduce displacement, address 7
marginalization, and improve access to opportunities, resources, and 8
outcomes. 9
(b)(i) "Hostel" means a structure or facility where a majority of 10
the rooms for sleeping accommodations are hostel dormitories 11
containing a minimum of four standard beds designed for single-person 12
occupancy within the facility. Hostel accommodations are supervised 13
and must include at least one common area and at least one common 14
kitchen for guest use. 15
(ii) For the purpose of this subsection (12)(b), "hostel 16
dormitory" means a single room, containing four or more standard beds 17
designed for single-person occupancy, used exclusively as nonprivate 18
communal sleeping quarters, generally for unrelated persons, where 19
such persons independently acquire the right to occupy individual 20
beds, with the operator supervising and determining which bed each 21
person will occupy. 22
(c) "Short-term rental" means a lodging use, that is not a hotel 23
or motel, in which a dwelling unit, or portion thereof, that is 24
offered or provided to a guest or guests by a short-term rental 25
operator for a fee for fewer than ((thirty)) 30 consecutive nights. 26
The term "short-term rental" does not include: 27
(i) A dwelling unit, or portion thereof, that is used by the same 28
person for ((thirty)) 30 or more consecutive nights; and29
(ii) A dwelling unit, or portion thereof, that is operated by an 30
organization or government entity that is registered as a charitable 31
organization with the secretary of state, state of Washington, and/or 32
is classified by the federal internal revenue service as a public 33
charity or a private foundation, and provides temporary housing to 34
individuals who are being treated for trauma, injury, or disease 35
and/or their family members. 36
(13) Taxes authorized under subsections (4) and (5) of this 37
section are deemed to have been imposed on December 1, 2000, for the 38
purposes of RCW 82.14.410. 39
p. 8 HB 2583
(14)(a) Beginning on the date that the condition in (b) of this 1
subsection is satisfied, a public facilities district created within 2
a county with a population of ((one million five hundred thousand )) 3
1,500,000 or more for the purpose of acquiring, owning, operating, 4
renovating, and expanding a convention and trade center must make 5
quarterly payments from tax revenue collected by a public facilities 6
district as a result of the tax imposed in chapter 245, Laws of 2018 7
to a city in which the convention and trade center is located that 8
has authorized on or before December 31, 2017, a tax on engaging in 9
the business of being a short-term rental operator. Such payments 10
must be made no more than ((thirty)) 30 days after the last day of 11
each fiscal quarter and must equal the portion of the revenues 12
received by the public facilities district during such fiscal quarter 13
from the lodging taxes authorized under subsection (4) of this 14
section that are determined by the department of revenue to be 15
derived from the short-term rental activity within such city.16
(b) The public facilities district is not required to make any 17
payments under this subsection (14) unless the city has repealed any 18
ordinance authorizing a tax on engaging in the business of being a 19
short-term rental operator. 20
(c) The public facilities district is not required to make any 21
payments to a city under this subsection (14), if the city, after 22
satisfying the condition in (b) of this subsection imposes any tax 23
specifically on the act of engaging in the business of being a short-24
term rental operator. 25
(d) The proceeds of any payments made by a public facilities 26
district to a city under this subsection (14) must be used by the 27
city to support community-initiated equitable development and 28
affordable housing programs, as determined by the city in its sole 29
discretion. 30
(15) 50 percent of any tax revenue collected by a public 31
facilities district as a result of the tax imposed in chapter 245, 32
Laws of 2018 must be distributed by the public facilities district to 33
the county in which the convention and trade center is located. 34
However, if a city has satisfied the condition in subsection (14)(b) 35
of this section, payments made under this subsection to the county in 36
which the convention and trade center is located must be calculated 37
after deducting any payments made to a city under subsection (14) of 38
this section from the total tax revenue received by the public 39
facilities district as a result of the enactment of chapter 245, Laws 40
p. 9 HB 2583
of 2018. The proceeds of such payments to a county under this 1
subsection (15) must be used by the county to support community-2
initiated equitable development and affordable housing programs, as 3
determined by the county, in its sole discretion. 4
Sec. 4. RCW 36.100.040 and 2018 c 245 s 2 are each amended to 5
read as follows: 6
(1) ((A)) The board of a public facilities district may impose an 7
excise tax on the sale of or charge made for the furnishing of 8
lodging that is subject to tax under chapter 82.08 RCW, except that 9
no such tax may be levied on any premises having fewer than ((forty)) 10
40 lodging units. ((Except for any tax imposed under subsection (4) 11
or (5) of this section, if a public facilities district has not 12
imposed such an excise tax prior to December 31, 1995, the public 13
facilities district may only impose the excise tax if a ballot 14
proposition authorizing the imposition of the tax has been approved 15
by a simple majority vote of voters of the public facilities district 16
voting on the proposition.))17
(2) The rate of the tax may not exceed two percent and the 18
proceeds of the tax may only be used for the acquisition, design, 19
construction, remodeling, maintenance, equipping, reequipping, 20
repairing, and operation of its public facilities. This excise tax 21
may not be imposed until the district has approved the proposal to 22
acquire, design, and construct the public facilities.23
(3) Except for a public facilities district created within a 24
county with a population of ((one million five hundred thousand )) 25
500,000 or more for the purpose of acquiring, owning, and operating a 26
convention and trade center or performing arts center , a public 27
facilities district may not impose the tax authorized in this section 28
if, after the tax authorized in this section was imposed, the 29
effective combined rate of state and local excise taxes, including 30
sales and use taxes and excise taxes on lodging, imposed on the sale 31
of or charge made for furnishing of lodging in any jurisdiction in 32
the public facilities district exceeds ((eleven and one-half )) 11.5 33
percent. 34
(4)(a) To replace the tax authorized by former RCW 67.40.090, a 35
public facilities district created within a county with a population 36
of ((one million five hundred thousand )) 1,500,000 or more for the 37
purpose of acquiring, owning, operating, renovating, and expanding a 38
convention and trade center may impose an excise tax on the sale of 39
p. 10 HB 2583
or charge made for the furnishing of lodging (including but not 1
limited to any short-term rental) that is subject to tax under 2
chapter 82.08 RCW, except that no such tax may be levied on:3
(i) Any premises: 4
(A) Having fewer than ((sixty)) 60 lodging units if the premises 5
is located in a town with a population less than ((three hundred )) 6
300; or 7
(B) Classified as a hostel; 8
(ii) Any lodging that is concurrently subject to a tax on 9
engaging in the business of being a short-term rental operator 10
imposed by a city in which a convention and trade center is located; 11
or 12
(iii) Any lodging that is operated by a university health care 13
system exclusively for family members of patients.14
(b) The rate of the tax may not exceed seven percent within the 15
portion of the district that corresponds to the boundaries of the 16
largest city within the public facilities district and may not exceed 17
2.8 percent in the remainder of the district. The tax imposed under 18
this subsection (4) may not be collected prior to the transfer date 19
defined in RCW 36.100.230. 20
(5) To replace the tax authorized by former RCW 67.40.130, a 21
public facilities district created within a county with a population 22
of ((one million five hundred thousand )) 1,500,000 or more for the 23
purpose of acquiring, owning, operating, renovating, and expanding a 24
convention and trade center may impose an additional excise tax on 25
the sale of or charge made for the furnishing of lodging (including 26
but not limited to any short-term rental) that is subject to tax 27
under chapter 82.08 RCW, except that no such tax may be levied on any 28
premises: (a) Having fewer than ((sixty)) 60 lodging units if the 29
premises is located in a town with a population less than ((three 30
hundred)) 300; or (b) classified as a hostel. The rate of the 31
additional excise tax may not exceed two percent and may be imposed 32
only within the portion of the district that corresponds to the 33
boundaries of the largest city within the public facilities district 34
and may not be imposed in the remainder of the district. The tax 35
imposed under this subsection (5) may not be collected prior to the 36
transfer date specified in RCW 36.100.230. The tax imposed under this 37
subsection (5) must be credited against the amount of the tax 38
otherwise due to the state from those same taxpayers under chapter 39
82.08 RCW. The tax under this subsection (5) may be imposed only for 40
p. 11 HB 2583
the purpose of paying or securing the payment of the principal of and 1
interest on obligations issued or incurred by the public facilities 2
district and paying annual payment amounts to the state under 3
subsection (6)(a) of this section. The authority to impose the 4
additional excise tax under this subsection (5) expires on the date 5
that is the earlier of (i) July 1, 2029, or (ii) the date on which 6
all obligations issued or incurred by the public facilities district 7
to implement any redemption, prepayment, or legal defeasance of 8
outstanding obligations under RCW 36.100.230(3)(a) are no longer 9
outstanding. 10
(6)(a) Commencing with the first full fiscal year of the state 11
after the transfer date defined in RCW 36.100.230 and for so long as 12
a public facilities district imposes a tax under subsection (5) of 13
this section, the public facilities district must transfer to the 14
state of Washington on June 30th of each state fiscal year an annual 15
payment amount. 16
(b) For the purposes of this subsection (6), "annual payment 17
amount" means an amount equal to revenues received by the public 18
facilities district in the fiscal year from the additional excise tax 19
imposed under subsection (5) of this section plus an interest charge 20
calculated on one-half the annual payment amount times an interest 21
rate equal to the average annual rate of return for the prior 22
calendar year in the Washington state local government investment 23
pool created in chapter 43.250 RCW. 24
(c)(i) If the public facilities district in any fiscal year is 25
required to apply additional lodging excise tax revenues to the 26
payment of principal and interest on obligations it issues or incurs, 27
and the public facilities district is unable to pay all or any 28
portion of the annual payment amount to the state, the deficiency is 29
deemed to be a loan from the state to the public facilities district 30
for the purpose of assisting the district in paying such principal 31
and interest and must be repaid by the public facilities district to 32
the state after providing for the payment of the principal of and 33
interest on obligations issued or incurred by the public facilities 34
district, all on terms established by an agreement between the state 35
treasurer and the public facilities district executed prior to the 36
transfer date. Any agreement between the state treasurer and the 37
public facilities district must specify the term for the repayment of 38
the deficiency in the annual payment amount with an interest rate 39
p. 12 HB 2583
equal to the twenty bond general obligation bond buyer index plus one 1
percentage point. 2
(ii) Outstanding obligations to repay any loans deemed to have 3
been made to the public facilities district as provided in any such 4
agreements between the state treasurer and the public facilities 5
district survive the expiration of the additional excise tax under 6
subsection (5) of this section. 7
(iii) For the purposes of this subsection (6)(c), "additional 8
lodging excise tax revenues" mean the tax revenues received by the 9
public facilities district under subsection (5) of this section.10
(7) A public facilities district is authorized to pledge any of 11
its revenues, including without limitation revenues from the taxes 12
authorized in this section, to pay or secure the payment of 13
obligations issued or incurred by the public facilities district, 14
subject to the terms established by the board of directors of the 15
public facilities district. So long as a pledge of the taxes 16
authorized under this section is in effect, the legislature may not 17
withdraw or modify the authority to levy and collect the taxes at the 18
rates permitted under this section and may not increase the annual 19
payment amount to be transferred to the state under subsection (6) of 20
this section. 21
(8) The department of revenue must perform the collection of such 22
taxes on behalf of the public facilities district at no cost to the 23
district, and the state treasurer must distribute those taxes as 24
available on a monthly basis to the district or, upon the direction 25
of the district, to a fiscal agent, paying agent, or trustee for 26
obligations issued or incurred by the district. 27
(9) Except as expressly provided in this chapter, all of the 28
provisions contained in RCW 82.08.050 and 82.08.060 and chapter 82.32 29
RCW have full force and application with respect to taxes imposed 30
under the provisions of this section. 31
(10) In determining the effective combined rate of tax for 32
purposes of the limit in subsection (3) of this section, the tax rate 33
under RCW 82.14.530 is not included. 34
(11) The taxes imposed in this section do not apply to sales of 35
temporary medical housing exempt under RCW 82.08.997.36
(12) The definitions in this subsection apply throughout this 37
section unless the context clearly requires otherwise.38
(a)(i) "Hostel" means a structure or facility where a majority of 39
the rooms for sleeping accommodations are hostel dormitories 40
p. 13 HB 2583
containing a minimum of four standard beds designed for single-person 1
occupancy within the facility. Hostel accommodations are supervised 2
and must include at least one common area and at least one common 3
kitchen for guest use. 4
(ii) For the purpose of this subsection (12)(a), "hostel 5
dormitory" means a single room, containing four or more standard beds 6
designed for single-person occupancy, used exclusively as nonprivate 7
communal sleeping quarters, generally for unrelated persons, where 8
such persons independently acquire the right to occupy individual 9
beds, with the operator supervising and determining which bed each 10
person will occupy. 11
(b) "Short-term rental" means a lodging use, that is not a hotel 12
or motel, in which a dwelling unit, or portion thereof, that is 13
offered or provided to a guest or guests by a short-term rental 14
operator for a fee for fewer than ((thirty)) 30 consecutive nights. 15
The term "short-term rental" does not include: 16
(i) A dwelling unit, or portion thereof, that is used by the same 17
person for ((thirty)) 30 or more consecutive nights; and18
(ii) A dwelling unit, or portion thereof, that is operated by an 19
organization or government entity that is registered as a charitable 20
organization with the secretary of state, state of Washington, and/or 21
is classified by the federal internal revenue service as a public 22
charity or a private foundation, and provides temporary housing to 23
individuals who are being treated for trauma, injury, or disease 24
and/or their family members. 25
(13) Taxes authorized under subsections (4) and (5) of this 26
section are deemed to have been imposed on December 1, 2000, for the 27
purposes of RCW 82.14.410. 28
(14)(a) Beginning on the date that the condition in (b) of this 29
subsection is satisfied, a public facilities district created within 30
a county with a population of ((one million five hundred thousand )) 31
1,500,000 or more for the purpose of acquiring, owning, operating, 32
renovating, and expanding a convention and trade center must make 33
quarterly payments from tax revenue collected by a public facilities 34
district as a result of the tax imposed in chapter 245, Laws of 2018 35
to a city in which the convention and trade center is located that 36
has authorized on or before December 31, 2017, a tax on engaging in 37
the business of being a short-term rental operator. Such payments 38
must be made no more than ((thirty)) 30 days after the last day of 39
each fiscal quarter and must equal the portion of the revenues 40
p. 14 HB 2583
received by the public facilities district during such fiscal quarter 1
from the lodging taxes authorized under subsection (4) of this 2
section that are determined by the department of revenue to be 3
derived from the short-term rental activity within such city.4
(b) The public facilities district is not required to make any 5
payments under this subsection (14) unless the city has repealed any 6
ordinance authorizing a tax on engaging in the business of being a 7
short-term rental operator. 8
(c) The public facilities district is not required to make any 9
payments to a city under this subsection (14), if the city, after 10
satisfying the condition in (b) of this subsection imposes any tax 11
specifically on the act of engaging in the business of being a short-12
term rental operator. 13
(d) The proceeds of any payments made by a public facilities 14
district to a city under this subsection (14) must be used by the 15
city to support community-initiated equitable development and 16
affordable housing programs, as determined by the city in its sole 17
discretion. 18
(15) Fifty percent of any tax revenue collected by a public 19
facilities district as a result of the tax imposed in chapter 245, 20
Laws of 2018 must be distributed by the public facilities district to 21
the county in which the convention and trade center is located. 22
However, if a city has satisfied the condition in subsection (14)(b) 23
of this section, payments made under this subsection to the county in 24
which the convention and trade center is located must be calculated 25
after deducting any payments made to a city under subsection (14) of 26
this section from the total tax revenue received by the public 27
facilities district as a result of the enactment of chapter 245, Laws 28
of 2018. The proceeds of such payments to a county under this 29
subsection (15) must be used by the county to support affordable 30
housing programs, as determined by the county, in its sole 31
discretion. 32
NEW SECTION. Sec. 5. Section 3 of this act expires July 1, 33
2035.34
NEW SECTION. Sec. 6. Section 4 of this act takes effect July 1, 35
2035.36
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