wa-law.org > bill > 2025-26 > HB 2061 > Engrossed Substitute
The legislature finds that federal law in 19 U.S.C. Sec. 1555 recognizes the authority of states and governmental authorities, incident to their jurisdiction over any airport, seaport, or other exit point facility, to require a concession or other form of approval to be obtained with respect to the operation of a duty-free sales enterprise under which merchandise is delivered to or through such facility for exportation.
The legislature finds that congress in enacting the omnibus trade and competitiveness act of 1988, H.R. 4848, specifically recognized that concession fees derived from the operations of authorized duty-free sales enterprises constitute an important source of revenue for the state and other governmental authorities that collect such fees.
The legislature finds that duty-free sales enterprises operate in Washington including at airports and locations within Washington near international borders, and engage in sales of alcohol, cigarettes, other tobacco products, vapor products, nicotine products, and various kinds of merchandise. The legislature finds that Washington has jurisdiction over these facilities, locations, and duty-free sales enterprises operating in Washington, and that Washington does not currently require concession fees of duty-free sales enterprises to the extent authorized by federal law for collecting this important source of revenue.
Therefore, the legislature intends to impose concession fees on duty-free sales enterprises operating within Washington as provided in this act.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Concession fee" means payment of a monetary fee by a duty-free sales enterprise to Washington state in relation to the sale of merchandise from a duty-free sales enterprise operating in Washington.
"Department" means the department of revenue.
"Duty-free sales enterprise" has the same meaning as in 19 U.S.C. Sec. 1555(b)(8), as it exists on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this title.
"Gross proceeds of sales" has the same meaning as in RCW 82.04.070.
"Merchandise" means all items, goods, and products sold by a duty-free sales enterprise including but not limited to beer, wine, spirits, liquor, cigarettes, other tobacco products, vapor products, nicotine products, nonalcoholic beverages, food, clothing, jewelry, fragrances, cosmetics, accessories, electronics, books, magazines, souvenirs, and all other items, goods, and products whatsoever.
"Sales" has the same meaning as in RCW 82.04.040.
Upon every duty-free sales enterprise operating in Washington, there is levied and collected a concession fee in an amount equal to the gross proceeds of sales of merchandise by the duty-free sales enterprise, multiplied by the rate of 0.10.
The concession fee in this section is separate and in addition to business and occupation taxes and all other taxes and fees applicable to duty-free sales enterprises operating in Washington including a concession fee paid to a port authority or other governmental authority.
The concession fee may be stated separately from the selling price. For purposes of determining the amount due from the buyer to the seller, it is conclusively presumed that the selling price quoted in any price list does not include concession fees imposed by this section.
The moneys collected pursuant to this section shall be distributed as follows:
For amounts appropriated to the department of revenue for the implementation and administration of this act; and
Beginning July 1, 2025 and annually thereafter, the moneys remaining after the amounts appropriated pursuant to subsection (a) shall be deposited as follows:
Fifty percent into the statewide tourism marketing account created in RCW 43.384.040; and
Fifty percent into the sustainable aviation fuel account created in section 4 of this act.
The department shall implement this chapter and may establish procedures and requirements for the payment of concession fees by duty-free sales enterprises and the collection of such concession fees.
All other administrative provisions of chapter 82.32 RCW have full force and application with respect to the fee imposed under this section.
The sustainable aviation fuel account is created in the state treasury. The account shall consist of concession fees collected and deposited into the account pursuant to section 3 of this act. Moneys in the account may be spent only after appropriation. Moneys in the account may be expended by the department for activities supporting research development, environmental review, and infrastructure to support the production of sustainable aviation fuel.
The statewide tourism marketing account is created in the state treasury. All receipts from tax revenues under RCW 82.08.225 and moneys collected pursuant to section 3 of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for expenditures of the department that are related to implementation of a statewide tourism marketing program and operation of the authority. A one-to-one nonstate or state fund, other than general fund state, match must be provided for all expenditures from the account. A match may consist of nonstate or state fund, other than general fund state, cash contributions deposited in the private local account created under RCW 43.384.020(4), the value of an advertising equivalency contribution, or an in-kind contribution. The board must determine criteria for what qualifies as an in-kind contribution.
The department may adopt rules to implement this chapter.
Every airport and other air navigation facility controlled and operated by any municipality, or jointly controlled and operated pursuant to the provisions of this chapter, shall, subject to federal and state laws, rules, and regulations, including sections 2, 3, and 6 of this act, be under the exclusive jurisdiction and control of the municipality or municipalities controlling and operating it. The municipality or municipalities shall have concurrent jurisdiction over the adjacent territory described in RCW 14.08.120(1)(b). No other municipality in which the airport or air navigation facility is located shall have any police jurisdiction of the same or any authority to charge or exact any license fees or occupation taxes for the operations. However, by agreement with the municipality operating and controlling the airport or air navigation facility, a municipality in which an airport or air navigation facility is located may be responsible for the administration and enforcement of the uniform fire code, as adopted by that municipality under RCW 19.27.040, on that portion of any airport or air navigation facility located within its jurisdictional boundaries.
This act takes effect January 1, 2026.
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2025, in the omnibus appropriations act, this act is null and void.