Lodging Tax Advisory Committee Proposal Process
Proposal Process for 2010
Proposal deadline was THURSDAY, OCTOBER 8, 2009, 5:00 p.m.
Resources
Olympia's Lodging Tax Fund and Advisory Committee
The Lodging Tax is an excise (sales) tax authorized by State law in RCW 67.28, Public Stadium, Convention, Arts and Tourism Facilities. It is paid by people who stay overnight in a lodging establishment such as a hotel, motel, bed and breakfast facility, or camp ground.
In the City of Olympia, as in neighboring the cities of Lacey and Tumwater, the total sales tax on lodging in 10.4%. Only part of the 10.4% lodging tax comes to the City of Olympia, with Olympia's share equal to a 4% tax. Various portions of the remaining tax are revenue for Washington State, Thurston County, Intercity Transit, and the Olympia Timberland Library.
By state law, the Lodging Tax may be used to promote tourism events, locations, and activities for the purpose of attracting visitors. Lodging tax revenue may also be used to pay for capital costs for some tourism-related facilities, the operation of visitor/convention agencies, and the marketing of or the operation of special events and festivals designed to attract tourists. Under Olympia's guidelines, tourism promotion must be to audiences outside Thurston County. Only non-profit or government agencies are eligible to apply.
Successful applicants must enter into a contract with the City, provide liability insurance, demonstrate sufficient cash flow to cover the costs of the services, and submit proof of costs and payment to the City for reimbursement. The City reimburses only for actual costs that are covered as part of the contract.
The Committee establishes an annual service proposal process. The Committe reviews the information and makes its recommendations to the City Council in November when the Council is considering budget proposals for the next year.
The Committee's recommendations are advisory in nature only. The City Council decides how to use the Lodging Tax Fund within the parameters of the State law. By State law, the Committee is comprised of a Councilmember who serves as Chair, two members from the lodging establishments in the City who pay the tax, and two members who represent potential recipients of the funds.
Direct questions about the Lodging Tax Advisory Committee proposal process to staff liaison Cathie Butler.