March 27, 2002

To the Honorable President and Members,
The House of Representatives of the State of Washington

Ladies and Gentlemen:

I am returning herewith, without my approval as to section 3, Second Substitute House Bill No. 1531 entitled:

"AN ACT Relating to the taxation of lodging;"

Second Substitute House Bill No. 1531 makes the application of the sales tax to extended lodging more flexible, and allows it to more easily accommodate real world business practices and needs.

Section 3 of the bill was intended to allow a municipality located in more than one county to impose the special local lodging tax in each county at the maximum rate. However, due to a drafting error, it had no effect. In addition, other statutes would need to be changed in order to achieve the intent of section 3.

I am directing the Department of Revenue to work with the concerned parties to perfect language for legislation that can be introduced by those parties in the next legislative session.

For these reasons, I have vetoed section 3 of Second Substitute House Bill No. 1531.

With the exception of section 3, Second Substitute House Bill No. 1531 is approved.

Respectfully submitted,

Gary Locke