Multiple Agency Fiscal Note Summary — 6202 SB, Tourism promotion exemptions (Final)
Summary
Multiple Agency Fiscal Note Summary for 6202 SB, titled Tourism promotion exemptions, marked Final, with a Department of Revenue Fiscal Note and a Local Government Fiscal Note. The Department of Revenue note reports No Fiscal Impact and describes current law, under which certain local jurisdictions may impose a tourism promotion area charge. It states that the legislation allows a local jurisdiction to exempt any lodging business, lodging unit or lodging guest from the charge. The Local Government note states that it is unknown how many exemptions would be granted or in what jurisdiction, so the revenue loss cannot be calculated.
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“Multiple Agency Fiscal Note Summary — 6202 SB, Tourism promotion exemptions (Final).”
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, SHA-256 02a6431df9d52dadaa0d2a9c3c1974768392faa630cf994b14b26d8d1189e590.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 6202 SB Title: Tourism promotion exemptions
Estimated Cash Receipts
NONE
Agency Name 2023-25 2025-27 2027-29
GF- State Total GF- State Total GF- State Total
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.
Local Gov. Total
Local Gov. Courts
Loc School dist-SPI
Estimated Operating Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Revenue
Total $ 0.0 0 0 0 0.0 0 0 0 0.0 0 0 0
Estimated Capital Budget Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
Prepared by: Amy Hatfield, OFM Phone: Date Published:
(360) 280-7584 Final 1/23/2024
FNPID 69584
:
FNS029 Multi Agency rollup
Department of Revenue Fiscal Note
Bill Number: 6202 SB Title: Tourism promotion exemptions Agency: 140-Department of Revenue
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure 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:
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: Kellee Gunn Phone:
786-7429 Date: 01/22/2024
Agency Preparation: Diana Tibbetts Phone:
360-534-1520 Date: 01/23/2024
Agency Approval: Marianne McIntosh Phone:
360-534-1505 Date: 01/23/2024
OFM Review: Amy Hatfield Phone:
(360) 280-7584 Date: 01/23/2024
Request # 6202-1-1
Form FN (Rev 1/00) 191,695.00 1 Bill # 6202 SB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
CURRENT LAW:
Certain local jurisdictions may impose a tourism promotion area (TPA) charge. The TPA charge can be up to $2 per room
per night of stay. There is the option to add a $3 charge per room per night.
Temporary medical housing is exempt from the TPA charge.
PROPOSAL:
This legislation allows a local jurisdiction to exempt any lodging business, lodging unit, or lodging guest from the TPA
charge.
EFFECTIVE DATE:
The bill takes effect 90 days after the final adjournment of the session and applies to any tourism promotion area established
before, on, or after the effective date.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
ASSUMPTIONS:
- The Department of Revenue (department) receives the taxes from monthly taxpayers the month after the business
collects the sales tax from the consumer. Most local tax distributions occur the month after the department receives sales
and use taxes that businesses collect. This leads to a one-month delay in revenues for the state and a two-month delay in
revenues for local jurisdictions.
- Local jurisdictions' sales and use tax changes can only occur effective January 1, April 1, or July 1.
- In fiscal year 2023, TPA's received almost $23 million. Local jurisdictions impose the TPA charge to fund certain
activities. Local jurisdictions will exempt approximately 1% of TPA charges.
- The earliest this legislation takes effect for local jurisdictions is July 1, 2024, and impacts 10 months of local distributions in
fiscal year 2025.
DATA SOURCES:
- Department of Revenue, Excise tax data
- Economic and Revenue Forecast Council, November 2023 forecast
REVENUE ESTIMATES:
This bill results in no impact on state revenues.
This bill decreases local revenues by an estimated $203,000 in the 10 months of impacted distributions in fiscal year 2025,
and by $240,000 in fiscal year 2026, the first full year of impacted distributions.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000): None
Local Government, if applicable (cash basis, $000):
FY 2024 - $ 0
Request # 6202-1-1
Form FN (Rev 1/00) 191,695.00 2 Bill # 6202 SB
FNS062 Department of Revenue Fiscal Note
FY 2025 - ($ 203)
FY 2026 - ($ 240)
FY 2027 - ($ 235)
FY 2028 - ($ 232)
FY 2029 - ($ 231)
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
The department will have minimal costs of approximately $5,200 associated with answering phone calls, conducting account
examinations, and assisting taxpayers with reporting in fiscal year 2025 to implement this legislation and will absorb these
costs within current funding.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
NONE
III. B - Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I and Part IIIA.
NONE
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
Part V: New Rule Making Required
Request # 6202-1-1
Form FN (Rev 1/00) 191,695.00 3 Bill # 6202 SB
FNS062 Department of Revenue Fiscal Note
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 6202 SB Title: Tourism promotion exemptions
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities: potential loss of revenue from lodging charges in tourism promotion areas
X Counties: potential loss of revenue from lodging charges in tourism promotion areas
X Special Districts: potential loss of revenue from lodging charges in tourism promotion areas
X Specific jurisdictions only: this applies to local governments within tourism promotion areas
Variance occurs due to:
Part II: Estimates
No fiscal impacts.
Expenditures represent one-time costs:
X Legislation provides local option: legislative authorities of the tourism promotion area may grant exemptions to the lodging charge
X Key variables cannot be estimated with certainty at this time: how many exemptions would be designated by the local legislative
authority
Estimated revenue impacts to:
Non-zero but indeterminate cost and/or savings. Please see discussion.
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Alexander Phone: 360-725-5038 Date: 01/22/2024
Leg. Committee Contact: Kellee Gunn Phone: 786-7429 Date: 01/22/2024
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 01/22/2024
OFM Review: Amy Hatfield Phone: (360) 280-7584 Date: 01/23/2024
Page 1 of 2 Bill Number: 6202 SB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
This bill would amend RCW 35.101.055 to allow the legislative authorities of local governments imposing a lodging charge
to designate lodging businesses, lodging units, or lodging guests as exempt from the lodging charges imposed within the
tourism promotion area.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.
This bill would not impact local government expenditures.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.
The legislative authorities of local governments imposing a lodging charge may designate lodging businesses, lodging units,
or lodging guests as exempt from the lodging charges imposed within the tourism promotion area.
If a local authority of a tourism promotion area granted an exemption from the lodging charge, it would result in a revenue
loss for that specific tourism promotion area. It is unknown how many exemptions would be granted or in what
jurisdiction, therefore the revenue loss cannot be calculated.
Please see the Department of Revenue fiscal note for aggregate data, assumptions and data sources.
SOURCES:
Department of Revenue fiscal note, HB 2137 (2024)
House Bill Analysis, HB 2137, Local Government Committee (1/12/2024)
Page 2 of 2 Bill Number: 6202 SB
FNS060 Local Government Fiscal Note
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