King County Lodging Tax |
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2008 Legislative Session Update
SB 6638 - 2007-08
Reallocating existing lodging taxes for heritage and arts programs in a county with a population of one million or more.
The Washington State Legislature took action this year and made a statement about the role of arts and heritage in our community. With Reps. Ross Hunter and Lynn Kessler as champions in the House, and Sen. Ed Murray as a champion in the Senate, an amended version of SB 6638, with a 2009 expiration date, was passed by the Legislature and has been sent on to be signed by Governor Gregoire! Below is a complete timeline of the bill's progess during the 2008 session. Work will continue during the 2009 legislative session to finalize the extension of use King County’s Lodging Tax for culture post-2020. |
History of Bill
as of Thursday, March 20, 2008 12:09 p.m.
Sponsors: Senators Murray, Roach, McAuliffe, Kohl-Welles, Fairley, Kline, Kauffman, Jacobsen, Eide, Pflug
Companion Bill: HB 3054
2008 REGULAR SESSION
- 1.21 First reading, referred to Ways & Means. (View Original Bill)
- 1.30 Public hearing in the Senate Committee on Ways & Means.
- 2.12 Executive action taken in the Senate Committee on Ways & Means. Passed to Rules Committee for second reading.
- 2.13 Made eligible to be placed on second reading.
- 2.15 Placed on second reading by Rules Committee.
- 2.19 Rules suspended, Placed on Third Reading. Passed 44-5.
IN THE HOUSE
- 2.21 First reading, referred to Finance.
- 2.22 Public hearing in the House Committee on Finance.
- 2.27 Executive action taken in the House Committee on Finance.
- 3. 3 Executive action taken in the House Committee on Finance. Passed to Rules Committee for second reading.
- 3.11 Rules Committee relieved of further consideration. Placed on second reading.
- 3.12 Floor amendment(s) adopted, Rules suspended. Placed on Third Reading. Passed 67-30.
IN THE SENATE
- 3.13 Senate concurred in House amendments. Passed 43-6. President signed.
IN THE HOUSE
OTHER THAN LEGISLATIVE ACTION
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FAQ's |
| What is the Lodging Tax? |
| The Lodging Tax refers to the state sales tax on hotels, motels, and other temporary lodging. It is a tax paid by primarily visitors; the tax rate varies by city and county in Washington State. A 2% credit against the state sales tax is reserved for servicing debt on the Kingdome, youth sports activities, open space acquisition, and tourism promotion, including funding for King County cultural programs. |
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| Is "Lodging Tax" the same thing as "Hotel/Motel Tax"? |
| Yes. Lodging Tax is the preferred industry name for what is commonly called the Hotel/Motel Tax. It is the technical term in legislation and should be used when referring to this fund. |
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| What is the King County Lodging Tax for Culture? |
| The Lodging Tax for Culture was established by state law in 1987 when the state legislature set a cap on the tax revenues servicing construction bonds for the Kingdome. A portion of the tax revenues above $5.3 million per year were dedicated to arts and heritage programs through the year 2012, when the Kingdome debt was originally scheduled to be retired. Between 2001 and 2012 cultural programs receive 70% of the excess revenue above $5.3 million. |
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| What does the Lodging Tax for Culture support? |
| 4Culture provides funding for support of the visual and performing arts, heritage programs and historic preservation. Annual funding supports the activities of more than 200 arts and heritage organizations, hundreds of artists and heritage specialists, capital construction and fixed asset purchases, project support, and cultural education in public schools. The cultural benefits of this tax extend to all communities and residents of King County. |
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| What has been the impact of this fund? |
- New arts facilities and local history museums in communities throughout King County;
- Expanded opportunities for suburban and rural audiences to attend and participate in the arts;
- A regional network of local arts agencies providing cultural programs for their local communities;
- Education programs in all King County public school districts;
- More than 200 arts and heritage organizations receiving annual support for programs;
- $844 million in economic impact annually, including $300 million in "new money," spent by visitors;
- 7 million visitors to cultural events each year;
Arts and heritage funding stimulates cultural development and provides access to cultural opportunities in all areas of the county, from professional exhibitions and performances to community groups, festivals and events. Cultural programs build a sense of community and infuse our work and our daily lives with the joy of creativity and the power of imagination. |
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| Who oversees the distribution of the Lodging Tax for Culture in King County? |
| Lodging taxes for cultural programs in King County are distributed to cultural organizations in accordance with King County Code and managed by 4Culture, a public development authority chartered by King County in 2003 to continue the work of the 35-year-old King County Office of Cultural Resources. 4Culture is governed by a 15-member Board of Directors and four citizen advisory committees in the arts, public art, heritage and historic preservation. Three King County Council members and a representative of the Executive's office also serve as ex-officio board members and represent the county's ongoing commitment to cultural development. |
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| What happens to this fund after 2012 when the Kingdome bonds are retired? |
| The Lodging Tax for Culture will end in 2012. State law required that from 2001-2012, 40% of the Lodging Tax for Culture be set aside in an endowment. The continuation of cultural funding after 2012 will be provided through interest earnings from this endowment. |
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| How much will the endowment generate for cultural funding? |
| Arts funding under the terms of the endowment will be reduced dramatically. Due to post-2001 economic downturn, the endowment will be capitalized at a much lower level than originally anticipated. Additionally, restrictions on the investment of public funds result in lower interest yields than privately funded endowments. The interest income is projected to be significantly less than the funds currently generated by the annual tax. |
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| Are there plans to extend the lodging tax for cultural programs in the future? |
| Between 2013 and 2020 all lodging tax revenues are dedicated to service debt on Qwest Field. The next opportunity to extend the tax for cultural programs will be in the year 2020. The 4Culture Board has identified the extension of Lodging Taxes for Culture after 2020 as one of its highest priorities. |
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