Local sales tax cap for lodging

From the 2024 DOR Tax Exemption Study

82.14.410 - Local sales tax cap for lodging Description Charges for sales of lodging are exempt from local sales and use taxes imposed after December 1, 2000, if the local tax results in a combined state and local tax rate of more than 12% or the rate that was otherwise in effect on December 1, 2000. As of December 1, 2000, the combined state and local tax rate for lodging was 15.2% within the city of Seattle and 12% elsewhere. This exemption does not apply to the following local sales and use taxes: - Regional Transit Authority. - Housing and Related Services. Purpose To encourage tourist activities in areas with high tax rates. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $19.311 $19.588 $19.539 $19.526 Repeal of Repealing this exemption would increase revenues. Seattle, Pierce County, exemption Wenatchee and East Wenatchee lodging facilities would collect and remit the additional lodging taxes on transient rentals. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $16.323 $19.539 $19.526 Assumptions - This rep