SB 5228 is sponsored by Sen. Dean Takko (D–Longview) at the request of some of the cities in his district to address local lodging taxes. The bill would allow cities or towns in a county with a population of less than 400,000 to directly adopt a lodging excise tax.

Currently in the impacted jurisdictions, the county has authority to first impose the tax, and if the county chooses to impose the tax, then the city is prevented from instituting the same tax. In a number of smaller counties, the counties have imposed the maximum rate allowed by law preventing cities with lodging from collecting lodging tax dollars directly to promote specific local interests. In those counties, there is usually a process where cities and other eligible entities can request lodging tax funding from the county for a local proposal.

This bill would allow cities to impose the lodging tax directly to promote local interests. The tax collections would still be subject to the same restrictions as other lodging tax revenue.

Lodging tax revenue is used to promote tourism through marketing, operations of special events and festivals, and/or the operations and capital expenditures of tourism-related facilities.

Dates to remember

The Senate Local Government Committee will hear the bill on Tuesday, January 29 at 8 am.