LTAC 2016-03-04 Agenda Packet - Laserfiche WebLink

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TO: FROM: DATE: RE: Issue City of Tukwila Mayor's Office - David Cline, CityAdministrator Lodging Tax Advisory Committee Brandon J. Miles, Committee Staff March 3, 2016 Guidance on Goals for Lodging Tax Funding Staff is seeking guidance on the goals for the use of lodging tax funds. Background Allan Ekberg, Mayor The City collects a 1 % lodging tax on overnight stays at hotels and motels within our city limits. In 2015 the City collected approximately $678,000 in lodging tax funds. Under Washington State law, lodging tax proceeds can only be used for tourism promotion (overnight and/or day visitors) and other tourism related activities (RCW 67.28.1816). Specifically, RCW 67.27.1816 states that lodging tax funds can be used for: • Tourism marketing; • The marketing and operations of special events and festivals designed to attract tourists; • Supporting the operations and capital expenditures of tourism - related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or • Supporting the operations of tourism - related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended. In order to collect the lodging tax and spend the funds collected, the City is required by State Law to have a Lodging Tax Advisory Committee. The City's LTAC has nine members: the City Council President, four hoteliers and four non - hoteliers. The Committee makes recommendations to the City Council on any request to use lodging funds, including requests by the City. The City Council can accept or reject any of the LTAC recommendations. However, the City Council cannot change the specific funding amounts recommended by the LTAC. Discussinn In the past the City used most of its lodging tax funds to support the operations of Seattle Southside Visitor Service Center (SSVS). Effective December 31, 2015, SSVS transitioned to a public development authority (PDA) formed by the City of SeaTac. The PDA receives a new funding source based on a fee per room night stay and may also apply to receive lodging tax. Given the transition staff Tukwila City Hall - 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206 - 433 -2800 • Website. TukwilaWA.gov