Washington State Tax Fact #16: I-884 Hits Hotels Hard

If the billion dollar I-884 tax hike passes, don’t plan on staying in a hotel anytime soon. The tax on temporary lodging— which includes hotels, resorts, RV parks, and even summer camps— could get as high as 13 percent.

In fact, the tax increase would increase the cap on total lodging tax to 16.2 percent if you’re in Seattle. Seattle visitors already pay a 15.2 percent levy on hotels— I-884 will only make this unreasonable burden even worse.

More importantly, raising the tax on lodging could hurt tourism. Many of the 10,000 jobs lost due to I-884 will come from the retail sector, but people would surely be laid off in the tourism industry as visitors avoid hotel stays or choose to visit less expensive states altogther. It’s no surprise that one South Bend motel owner opposes the hike because “it would leave a bad taste in tourists’ mouths.”

The billion dollar tax hike would hurt everyone, but the 30,800 people who are employed by Washington’s lodging industry are especially vulnerable.

For more information, please visit http://www.freedomworks.org/washington