Tourism-related facilities

AN ACT Relating to limiting operational expenditures for tourism-1
related facilities owned or operated by municipalities and public 2
facilities districts; and amending RCW 67.28.1816. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 67.28.1816 and 2013 c 196 s 1 are each amended to 5
read as follows: 6
(1) Lodging tax revenues under this chapter may be used, directly 7
by any municipality or indirectly through a convention and visitors 8
bureau or destination marketing organization for: 9
(a) Tourism marketing; 10
(b) The marketing and operations of special events and festivals 11
designed to attract tourists; 12
(c) Supporting the operations and capital expenditures of 13
tourism-related facilities owned or operated by a municipality or a 14
public facilities district created under chapters 35.57 and 36.100 15
RCW. Support for the operations of tourism-related facilities is 16
limited to a maximum of five percent of the total annual lodging tax 17
revenues collected in a calendar year; or 18
(d) Supporting the operations of tourism-related facilities owned 19
or operated by nonprofit organizations described under 26 U.S.C. Sec. 20
H-2960.1
HOUSE BILL 2733
State of Washington 69th Legislature 2026 Regular Session
By Representative Chase
Read first time 02/06/26. Referred to Committee on Finance.
p. 1 HB 2733
501(c)(3) and 26 U.S.C. Sec. 501 (c)(6) of the internal revenue code 1
of 1986, as amended. 2
(2)(a) Except as provided in (b) of this subsection, applicants 3
applying for use of revenues in this chapter must provide the 4
municipality to which they are applying estimates of how any moneys 5
received will result in increases in the number of people traveling 6
for business or pleasure on a trip: 7
(i) Away from their place of residence or business and staying 8
overnight in paid accommodations; 9
(ii) To a place fifty miles or more one way from their place of 10
residence or business for the day or staying overnight; or11
(iii) From another country or state outside of their place of 12
residence or their business. 13
(b)(i) In a municipality with a population of five thousand or 14
more, applicants applying for use of revenues in this chapter must 15
submit their applications and estimates described under (a) of this 16
subsection to the local lodging tax advisory committee.17
(ii) The local lodging tax advisory committee must select the 18
candidates from amongst the applicants applying for use of revenues 19
in this chapter and provide a list of such candidates and recommended 20
amounts of funding to the municipality for final determination. The 21
municipality may choose only recipients from the list of candidates 22
and recommended amounts provided by the local lodging tax advisory 23
committee. 24
(c)(i) All recipients must submit a report to the municipality 25
describing the actual number of people traveling for business or 26
pleasure on a trip: 27
(A) Away from their place of residence or business and staying 28
overnight in paid accommodations; 29
(B) To a place fifty miles or more one way from their place of 30
residence or business for the day or staying overnight; or31
(C) From another country or state outside of their place of 32
residence or their business. A municipality receiving a report must: 33
Make such report available to the local legislative body and the 34
public; and furnish copies of the report to the joint legislative 35
audit and review committee and members of the local lodging tax 36
advisory committee. 37
(ii) The joint legislative audit and review committee must on a 38
biennial basis report to the economic development committees of the 39
p. 2 HB 2733
legislature on the use of lodging tax revenues by municipalities. 1
Reporting under this subsection must begin in calendar year 2015.2
(d) This section does not apply to the revenues of any lodging 3
tax authorized under this chapter imposed by a county with a 4
population of one million five hundred thousand or more.5
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p. 3 HB 2733