Title
Update on Lodging Tax Advisory Committee Recommendations for 2027 Tourism Funding
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive an update on Lodging Tax Advisory Committee recommendations for 2027 tourism funding.
Report
Issue:
Whether to receive an update on the Lodging Tax Advisory Committee recommendations for 2027 tourism funding.
Staff Contact:
Amelia Layton, Senior Program Specialist, Community Development, 360.570.3808
Presenter(s):
Amelia Layton, Senior Program Specialist, Community Development
Background and Analysis:
Lodging Tax is collected as a 4% sales tax paid by the customer at hotels, motels, and short-term rentals including Airbnb, bed and breakfasts, RV parks, and other housing and lodging accommodations in Olympia. Lodging tax revenues must generally be used for tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities, including: tourism marketing, marketing and operations of special events and festivals designed to attract tourists, operations and capital expenditures of tourism-related facilities owned or operated by a municipality, and operations of tourism-related facilities owned or operated by nonprofit organizations.
The Lodging Tax Advisory Committee (LTAC) is required to include at least two representatives from businesses required to collect the lodging tax, at least two people involved in activities authorized to be funded by the lodging tax, and one elected official from the jurisdiction.
Historically, the LTAC makes recommendations on the use of 2% of the City’s Lodging Tax Fund, while the other 2% goes directly to the Washington Center for the Performing arts. In 2027, the full 4% of the collected sales tax is available through competitive funding, reviewed and recommended by the LTAC.
An open call for tourism services funded by the Olympia Lodging Tax Fund was advertised beginning, August 31, 20...
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