Convention Center Inches Closer in the Legislature

Today in the Washington State Senate Ways & Means Committee had a hearing on draft legislation S-5541.1, which will turn into SB 6889. This legislation is the same as HB 3027 that is getting a fresh amendment to clarify some language in that bill.
This allows the state to keep $57 million dollars the state has taken in the past. Not passing means the state ends up in court and could lose that $57 million dollars.

Senator McDermott is championing this on the Senate side.

Time to Breakup the King County "Stadium" Taxes

Last Wednesday, March 10th, David Brewster wrote a story lamenting the failure of the state legislature to pass a bill for arts funding taxes that currently fund the arts and stadiums, and are set to expire.
His story at Crosscut.com, Olympia about to renege again on funding King County arts groups, expresses frustration with failure of the current process.

4Culture, the nonprofit successor to the old King County Arts Commission, has long received some of this hotel-motel sales-tax, so it has a good place in line for its continuation. They've played ball with the Sonics in some years, letting arts give a high-minded cover for the sports barons. Speaker Frank Chopp holds the key to these fund, and he wants to pledge about $10 million a year of that money for low-income housing. (Chopp's demand is a political problem, since it is a serious stretch of the nexus established between taxing hotel visitors and providing benefits, like stadiums and arts, that bring more visitors.) Others like the UW, wanting a different pot of visitor money, the 0.5 percent tax on restaurants, for a remodeled Husky Stadium, further muddying the waters.

Speaker Chopp likes to keep all the supplicants waiting to the last minute, so he can then cut the deal. Last year he set a new record in cleverness by giving 4Culture a promise of the funds — expiring in a year. And he reportedly assured the arts groups that he would definitely come through this year, so long as he also got, dollar-for-dollar, his low-income housing. Now it appears he has stepped on a Senate version of the bill that gives him the money he wants but not until 2020.

"Hoteliers" v. Washington State Resolved?

The Substitute House Bill HB 3027 that passed out of the House Finance Committee looks as though it resolves the conflict between the hoteliers and the State of Washington.

Three Bills that Help King County: SB 6051, HB 3027, SB 6424

Monday, 3/1/2010, in the House Finance Committee will vote in Executive Session SB 6051 (King County Hotel Taxes), HB 3027 (Seattle Hotel Taxes), and SB 6424 (County/City Excise Taxes).



HB 3027 - Regarding the governance and financing of the Washington state convention and trade center.
ESSB 6051 - Concerning lodging taxes.
ESSB 6424 - Concerning local excise tax authorities for counties and cities.

All three of these bills could really help King County, and Seattle.

Washington State Legislature Under Reported Story HB 3027, Washington State Convention Center

Friday morning the Washington State House Finance Committed will vote to pass HB 3027 in executive session, it will pass, it is unlikely to be amended at this point. It will likely get to the House Floor and passed with little or no debate.

Why?
Because the state needs to take back its 2% tax credit, and wants to again take money from the Tax collected on hotels in Seattle to help balance the state budget. At issue here is the structure of the current law; Seattle hotels with more than 60 rooms charge 5% tax on top of the near 10% sales tax (yes, that is 10 AND 5% sales tax). The state credits the fund this tax goes into with a 2% tax credit, so, 7% feeds the fund.

Today in Television for Insomniacs

At 8 am this morning the Washington State House Committee on Finance had a meeting to take testimony and vote on bills, including HB 2912 and HB 3027.

The meeting was early enough for Rep. Ross Hunter, the Committee Chair, to quip that the online broadcast was more suited for "insomniacs".
It is also possible that by me watching the online TVW.org broadcast the number of viewers increased by 1/3.

Part 1:


Part 2:


OK, it is a bit sleep inducing.

HB 2912 is: Modifying local excise taxes in counties that have pledged lodging tax revenues for the payment of bonds prior to June 26, 1975.

Those are King County stadium taxes, a mix of stadium parking, hotel, and car rental, taxes. Yakima also applies one of the many taxes involved. Amendments to the original bill cut out funding for stadiums, arenas, Safeco Field upkeep, and tagged an extra dollar on each ticket sold at a professional football, baseball, or soccer game (welcome to big-league sports, Sounders).
That is not going to survive the senate.

HB 3027 is: Regarding the governance and financing of the Washington state convention and trade center.

This is a hotel tax applied in Seattle, on top of all the other taxes. The intent of this tax is to fund the Washington State Convention Center. The hoteliers benefit from having a convention center, the convention center benefits from the taxes on the hotels, and both benefit by being in Seattle. That last point is sometimes lost in the discussion.
There is 2% state sales tax credit, the total tax revenue is 7%.

This bill, in its current form, would have the state take back the 2% sales tax credit that the convention center uses in its current funding structure. That taking back, un-sharing, could result in the hoteliers taking the State to court. That tax was created for a particular reason, and the state constitution is pretty clear about creating special funds with specific taxes and not allowing the state to raid them (again).

I am sure a deal can be worked out to get the tax credit back to the state, and allow the hoteliers to keep taxing themselves to pay for a convention center expantion. I do remember, I think, Ross Hunter saying last year that there was not enough money to slice off 1% to pay for a KeyArena remodel AND allow the state to take back 1% of the state sales tax credit.

Sooooooo, you, Ross Hunter, may have provided evidence for the hoteliers that they could use against the state in a court of law.
Just sayin'.

Anyway, I am sure things will all work out in the end, or on the House Floor, or in the Senate Ways and Means Committee (maybe Mr. Hunter can testify in favor of the substitute senate bill again), or maybe it can be fixed on the Senate floor.

This does appear unusually difficult right now, but at least the bills have been passed out of the House Committee.

Why were these bills passed with these amendments Mr. Hunter?

From: "Hunter, Rep. Ross"
Date: February 9, 2010 5:13:51 PM PST
To: Mr Baker
Subject: RE: HB 2912 & HB 3027

The amendments were required to have the votes to move the bill out of committee. Without the amendments the bill would have died. I did not have the votes to hold the clause.

Rep. Ross Hunter
Finance Committee Chairman
Hunter.ross@leg.wa.gov

Bellevue Office: (425) 453-3064 (until January)
Olympia Office: (360) 786-7936 (January - May)

Well hopefully this will get straightened out on the Senate side.

And thanks to all of you legislators for putting up with people like me, doing what you have to do when moving the ball forward.

Have an excellent day,
Mike Baker
Insomniac

Tuesday Morning at 8 O'clock There Will Be Some Action

[edited 2/6/2010 - SB 6684 is the companion to HB 3027]
Tuesday morning the House Finance Committee will have two bills of interest to vote on in Executive Session. The Safeco Stadium taxes, and the Seattle Hotel tax bills will get a vote, same day, same committee meeting.

These bills would then have to go to the floor for a full House vote.
If the House hotel tax is the same substitute bill, SB 6684 [ed], in the Senate Ways and Means Commttee then there is a dual path, and this house bill will not have to go through the Senate.
The same could be said for HB 2912, though it's partner SB 6661 was referred to the Senate Ways and Means Committed. The bill has yet to show up in it's Electronic Bill Book.

Many of these taxes push control to the local level. A few give shortterm taxing authority and the local control of extending longer.

Finance* -  02/09/10  8:00 am
Full Committee
House Hearing Rm C
John L. O'Brien Building
Olympia, WA
REVISED 2/5/2010 4:05 PM
Public Hearing:  
HB 2756 - Allowing medicare supplement insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.
HB 2903 - Concerning benefit charges for regional fire protection service authorities. (If measure is referred to committee.)
HB 2990 - Addressing alternative city assumption and tax authority provisions pertaining to water-sewer districts.
HB 3172 - Concerning the taxation of lodging.
HB 3179 - Revising local excise tax provisions for counties and cities. (If measure is referred to committee.)
Executive Session:  
HB 2402 - Concerning a property tax exemption for property owned by a nonprofit organization and used for the purpose of a farmers market.
HB 2439 - Exempting church property used by a nonprofit organization conducting activities related to a farmers market from property taxation.
HB 2472 - Regarding the sea urchin and sea cucumber license limitation programs.
HB 2537 - Concerning incentives for solar energy systems.
HB 2567 - Concerning the excise taxation of publicly owned facilities accredited by the association of zoos and aquariums.
HB 2672 - Concerning tax relief for aluminum smelters.
HB 2756 - Allowing medicare supplement insurance premiums to be deducted from the calculation of disposable income for the purpose of qualifying for senior property tax programs.
HB 2903 - Concerning benefit charges for regional fire protection service authorities. (If measure is referred to committee.)
HB 2912 - Modifying local excise taxes in counties that have pledged lodging tax revenues for the payment of bonds prior to June 26, 1975.
HB 2933 - Modifying sales and use tax provisions for the local infrastructure financing tool program.
HB 2984 - Concerning a sales and use tax deferral for performing arts centers.
HB 2990 - Addressing alternative city assumption and tax authority provisions pertaining to water-sewer districts.
HB 3027 - Regarding the governance and financing of the Washington state convention and trade center.
HB 3092 - Allowing the department of revenue to issue a notice of lien to secure payment of delinquent excise taxes in lieu of a warrant.
HB 3172 - Concerning the taxation of lodging.
HB 3179 - Revising local excise tax provisions for counties and cities. (If measure is referred to committee.)
HB 3127 - Concerning the business and occupation taxation of newspaper-labeled supplements.
HB 3147 - Concerning sales and use tax exemptions for certain equipment and infrastructure contained in data centers.

There are 5 bills that they will take testimony on, and 18 they will vote on in Executive Session. 23 "actions" will be taken in this one meeting (one bill has testimony and a vote). These meetings are often 2 hours long.

It will be like an auction.

In the words of boxing referee Mills Lane, "let's get in on".

[edit 2/6/2010 - in Testimony to the Senate Ways & Means Committee representitives of the hoteliers said, testifying against SB 6118, that the state taking back the 2% salestax credit and then allowing Seattle the authority to add the 2% sales tax on top of the 6+% currently charged would put the fund that maintains the Convention Center at risk, and add more cost on top of very high sales taxes. They urged the committee to not pass SB 6118, as there were negotiations going on with the state to resolve the issue. Hopefully the state will not end up in court.]

Remarkably Sparse

Mr. Hunter,
Though this bill [HB 3027] in its current form is remarkably sparse, I do have the strangest feeling that I will support its eventual contents. It appears that there is a broad group of sponsors appearing on a series of bills having to do with hotel taxes. Good luck recovering the state's tax credit, and moving this ball forward.

Mike Baker
Seattle, WA
http://manywordsforrain.blogspot.com/
[edited with an update below]

Ok, maybe I am losing my mind, or not, but the Senate companion bill to HB 3027 is SB 6684. That bill is just as sparse, and is scheduled for Executive Session on Monday, 2/1/2010. Stay with me here, are they going to bother to have a hearing, take testimony, and, ah, put some actual text in the bill before they vote on it in Executive Session?

Feb 1  Scheduled for executive session in the Senate Committee on Economic Development and Trade & Innovation at 1:30 PM. (Subject to change)

Mmmm, let's hope they at least go through the motions.
I am wanting to know what happens to the Washington State Convention Center (they dropped "Trade" from their name last week).

[2/2/2010 edit]
SB 6684 was sent to Rules Committee, no update to the bill text. Poof!

[2/2/2010 edit]
SB 6684 was referred to Senate Ways & Means Committee, still empty, still waiting for the negotiations to spell out what will end up in this bill.

What's the big rush?

[2/3/2010 edit 2]
And then SB 6684 was set to the side, SB 6118, last year's Senate Convention Center bill, was scheduled for a public hearing in the Senate Ways & Means Committee tomorrow. There is an amendment and table in the House Finance Committee electronic book.

Looks like the Convention Center will expand, after some fancy book keeping.

[2/4/2010 edit, last edit]
It looks like the "city" will, indeed, be able to apply a 2% tax on hotels, according to new Section 3 of the amended SB 6118.
Wow! So, it looks like the state takes back its tax credit, give Seattle the authority to apply and collect 2% the state was collecting. The city becomes the tax funding authority for the Convention Center expansion. It looks like we will have another Convention Center, as soon as this bill passes and the state avoids court action.