Title
Agenda Item:
2013 Lodging Tax Advisory Committee Recommendations
Body
Issue:
How shall the City use 2013 lodging tax revenue for tourism-related purposes?
Committee Recommendation:
Approve tourism-related service contracts totaling $221,000 with 10 agencies and groups (detailed below and in the attachments), and continue the practice of maintaining a 2 month cash flow / operating reserve in that portion of the Fund considered by the committee.
City Manager’s Recommendation:
Forward the committee's proposal to the budget public hearing for comment. Staff concurs that a minimum 2 month cash flow / operating reserve should be maintained in that portion of the Fund considered by the committee.
Staff Contact:
Cathie Butler, Communications Manager, 360.753.8361
Presenter(s):
Julie Hankins, Councilmember and Chair of the Olympia Lodging Tax Advisory Committee
Cathie Butler, Communications Manager
Background and Analysis:
General Background about Lodging Tax and the Committee
State law requires that cities with a local lodging tax appoint an advisory committee to recommend how to use the money. The committee's role is "advisory" in nature; the final decision rests with the City Council. By State law, the committee consists of at least two representatives of agencies eligible to receive funding, at least two representatives of lodging establishments who pay the tax, and a Councilmember who serves as Chair.
Olympia receives the equivalent of a 4% tax on local hotel/motel lodging. This revenue is to be deposited in a Lodging Tax Fund to be used for tourism-related purposes as authorized by State law. One-half of Olympia's lodging tax is dedicated for various uses associated with The Washington Center for the Performing Arts, a tourism-related facility owned by the City. The Lodging Tax Advisory Committee makes an annual recommendation on use of the other half.
Lodging Tax is a dedicated revenue source to be used for tourism promotion and the acquisition / ...
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