HomeMy WebLinkAboutPED 2020-08-17 Item 1D - LTAC - Lodging Tax: Historical Usage of FundCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: August 11, 2020
SUBJECT: Historical Usage of Lodging Tax Funds
ISSUE
Briefing on the historical usage of lodging tax funds by the City of Tukwila.
BACKGROUND
The City collects a 1% charge on eligible stays at hotels, motels, and Airbnbs in the City. Under
Washington State law these funds can only be used for tourism promotion activities. With nearly
2,000 hotel rooms, the City is in the top five of lodging tax collection in King County, with just
over $800,000 in funds collected in 2019.
As previously discussed with the Committee, lodging tax funds can only be used for certain
tourism promotion activities in the City. Additionally, any proposal to use the funds requires a
two-step approval process involving the Lodging Tax Advisory Committee and the City Council.
The following non -exhaustive list outlines some of the past activities that have used lodging tax
fundsd. This list is being provided to help with the future discussion we will have as part of the
lodging tax six -year financial plan.
Recipient/ActivityRecipient/Activity
Approximant Amount
Notes
Seattle Southside Regional
Just over $200,000 per year.
SSRTA is the City's primary
Tourism (SSRTA)
destination marketing
organization. The amount
provided to SSRTA is a
recommended amount
provided in in the Interlocal
Agreement with the Cities of
Des Moines, Tukwila, and
SeaTac. The lodging tax
funds are used in conjunction
with the TPA fee to bring
visitors from outside the area
to the City.
Rock -in -Roll Marathon
Over $300,000 for a three
Large marathon, which started
commitment in 2010, 2011,
in Tukwila and ended in
and 2012.
Seattle. The marathon now is
fully with the City of Seattle.
Starfire Sports
Just over $40,000 until 2019.
Funds are used to support
No funds were requested for
tournaments at Starfire
2020 due to COVID-19.
Sports. These tournaments
bring in traveling teams from
throughout the nation.
Museum of Flight
For 2019, the Museum
Funds were used to sponsor
received $100,000. Previous
activities and events at the
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INFORMATIONAL MEMO
Page 2
years the amount has ranged
Museum
between $25,000 and
$50,000.
Seattle Southside Chamber of
For 2020, the Chamber is
Funds are used to help
Commerce
receiving $50,000. Up until
support the Chamber's
2015 the Chamber use to
activities. For 2020 the funds
regularly request lodging tax
will be used to help with
funds from the City.
COVID-19 business recovery.
Renton Chamber of
$20,000 in 2018.
Funds were used to sponsor
Commerce (RenCon).
the Renton Comic Con (now
known as Kin Con).
City of Tukwila, Drag Queen
$10,000 in 2018.
This event was done in
Bowling.
partnershi with SSRTA.
City of Tukwila, Experience
$100,000 in 2020.
Funds are used for social
Tukwila
media and development of a
website.
City of Tukwila, International
$15,000 in 2019.
Sponsorship of two food truck
Food Truck Rodeo
events at Westfield
Southcenter.
City of Tukwila,
$185,000 in 2020.
Marketing and recovery
Savin LocalKC.
associated with COVID-19
City of Tukwila, Tukwila Pond
$125,000 in 2019, work will be
Parks and Recreation is the
Master Plan.
completed in 2020 and 2021.
lead on this request.
City of Tukwila, Southcenter
$40,000 in 2019 (work will be
Art installation and completion
Art
done in 2020).
of a master plan along Baker
Blvd.
City of Tukwila, Basic
Between $50,000 and
Funds are used for
Operations
$100,000 since 2017.
administrative costs
associated with the lodging
tax program; small marketing
activities; and the indirect cost
allocation. Starting in 2019
50% of the Business
Relations Manager labor costs
were included in this funding.
Rave Foundation
$10,000 in 2017 and 2018.
Sponsorship of a 5k Run with
the non-profit arm of Seattle
Sounders FC.
FINANCIAL IMPACT
None.
RECOMMENDATION
Discussion only.
ATTACHMENTS
• None.
66 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Memo, Historical Use of Lodging Tax Funds.doc