Individual State Agency Fiscal Note — HB 1258, Statewide Tourism Marketing Account, Department of Revenue
Summary
Individual State Agency Fiscal Note for HB 1258 from the Department of Revenue, on the bill relating to increasing tourism to Washington state through enhancement of the statewide tourism marketing account and changing necessary match requirements. The narrative states that the legislation decreases the matching funds from two-to-one to one-to-one and increases the $3 million per biennium cap to $26 million. It says the bill decreases state revenues by an estimated $2.7 million in fiscal year 2025 since the cap is based on a biennium. It assumes the legislation will affect 17,000 taxpayers and states that the department will incur total costs of $13,200 in fiscal year 2024.
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“Individual State Agency Fiscal Note — HB 1258, Statewide Tourism Marketing Account, Department of Revenue.”
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, SHA-256 a62c023affcc076005f335c1d2d7c2176f63fa94206e767bef89cb3db60c41c0.Full text
Individual State Agency Fiscal Note
Bill Number: HB 1258 Bill Title: AN ACT Relating to increasing tourism to Agency: 140
Washington state through enhancement of the Department of Revenue
statewide tourism marketing account and changing
necessary match requirements.
Part I: Estimates
[ ] No Fiscal Impact
Estimated Cash Receipts to:
Fund Fiscal Year 2024 Fiscal Year 2025 2023-2025 Total 2025-27 Biennium 2027-29 Biennium
GF-State Retail Sales Tax (2,700,000) (2,700,000) (3,100,000) (3,500,000)
Tourism Marketing Acctt Retail
2,700,000 2,700,000 3,100,000 3,500,000
Sales Tax
Total
Estimated Expenditures from:
Fiscal Year 2024 Fiscal Year 2025 2023-2025 Total 2025-27 Biennium 2027-29 Biennium
FTE Staff Years
Fund
GF-State 001 13,200 13,200
Total 13,200 13,200
The revenue and expenditures estimates on this page represent the most likely fiscal impact. Factors impacting the precision of
these estimates, and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
[X] If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent
biennia, complete entire fiscal note form Parts I-V.
[ ] If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia,
complete this page only (Part I).
[ ] Capital budget impact, complete Part IV.
[ ] Requires new rule making, complete Part V.
Legislative Contact: CASSIE JONES Phone: 360-786-7303 Date: 1/12/2023
Agency Preparation: DIANA TIBBETTS Phone: (360) 534-1520 Date: 1/13/2023
Agency Approval Valerie Torres Phone: (360) 534-1521 Date: 1/16/2023
OFM Review: Phone: Date:
OFM Form FN (10/95)
Fiscal Note # 1258-1
Bill # HB 1258
1
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
CURRENT LAW:
Since 2018, 0.2% of state retail sales tax revenues generated from sales from lodging, car rentals and restaurants fund the
Tourism Marketing Authority. The Department of Revenue transfers up to $3 million of these revenues to the tourism
marketing account per biennium.
A two-to-one match of non-state or non-general fund state fund must be provided for the tourism marketing account
expenditures.
PROPOSAL:
This legislation decreases the matching funds from two-to-one to one-to-one.
This legislation increases the $3 million per biennium cap to $26 million.
EFFECTIVE DATE:
The bill takes effect 90 days after final adjournment of the session.
II. B - Revenue Impact
ASSUMPTIONS
-Taxable sales growth mirrors the Economic and Revenue Forecast Council's November 2022 forecast of taxable retail
sales growth.
- Matching funds will be met.
DATA SOURCES
- Department of Revenue excise tax return data - lodging tax, rental car, and restaurant data
- Economic and Revenue Forecast Council, November 2022 forecast
REVENUE ESTIMATES
This bill decreases state revenues by an estimated $2.7 million in fiscal year 2025 since the cap is based on a biennium.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000):
FY 2024 - $ 0
FY 2025 - $ 0
FY 2026 - $ 0
FY 2027 - $ 0
FY 2028 - $ 0
FY 2029 - $ 0
Local Government, if applicable (cash basis, $000): None.
II. C - Expenditure Impact
ASSUMPTIONS:
This legislation will affect 17,000 taxpayers subject to allocation of taxes to the statewide tourism marketing account.
OFM Form FN (10/95)
Fiscal Note # 1258-1
Bill # HB 1258
2
FIRST YEAR COSTS:
The department will incur total costs of $13,200 in fiscal year 2024. These costs include:
Object Costs - $13,200.
- Contract computer system programming to update the cap on distribution of taxes to the statewide tourism marketing
account.
SECOND YEAR COSTS:
The department will not incur any costs in fiscal year 2025.
ONGOING COSTS:
There are no ongoing costs.
Part III: Expenditure Detail
III. A - Expenditures by Object or Purpose:
Fiscal Year 2024 Fiscal Year 2025 2023-2025 Total 2025-27 Biennium 2027-29 Biennium
Personal Service Contracts 13,200 13,200
Total 13,200 13,200
III. B - FTE Detail:
Job Classification Salary FY 2024 FTEs FY 2025 FTEs 2023 - 2025 Total 2025 - 2027 2027 - 2029
Total
III. C - Expenditures by Program (optional):
Fiscal Year 2024 Fiscal Year 2025 2023-2025 Total 2025-27 Biennium 2027-29 Biennium
Total
Part IV: Capital Budget Impact
None.
Part V: New Rule Making Required
OFM Form FN (10/95)
Fiscal Note # 1258-1
Bill # HB 1258
3
Revenue Impact Detail
First Biennium Second Biennium Third Biennium
FUND SOURCE CODE 1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR
GF-State Retail Sales Tax 0101 (2,700,000) (3,100,000) (200,000) (3,300,000)
Total (2,700,000) (3,100,000) (200,000) (3,300,000)
OTHER
Tourism Marketing
Acctt Retail Sales Tax 0101 2,700,000 3,100,000 200,000 3,300,000
Total 2,700,000 3,100,000 200,000 3,300,000
Net
Revenue Impact - by Biennium
FUND SOURCE CODE 1st Biennium 2nd Biennium 3rd Biennium
GF-State Retail Sales Tax 0101 (2,700,000) (3,100,000) (3,500,000)
Total (2,700,000) (3,100,000) (3,500,000)
OTHER
Tourism Marketing Acctt Retail Sales Tax 0101 2,700,000 3,100,000 3,500,000
Total 2,700,000 3,100,000 3,500,000
Net
OFM Form FN (10/95)
Fiscal Note # 1258-1
Bill # HB 1258
4
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