| | | | | | | |  | Item #5.
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| | | | | | | | | TO: |
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| Mayor and City Council |
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| Eric Holmes, City Manager |
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| | DATE: |
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| 1/23/2023 |
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| SUBJECT
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| Lodging Tax Grants 2023
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| | | | | | | | Key Points
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- The City collects a 4% lodging tax on hotel and motel room nights. These funds can be used by municipalities and community organizations and for the purpose of supporting tourism-related events, activities and facilities.
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The City’s Lodging Tax Advisory Committee, which is required by state regulations in order to expend the funds, reviewed applications for lodging tax funds and is making recommendations to the City Council.
- Council is being asked to approve partial or full funding for ten grant applications totaling $125,000 as set forth in Exhibit A.
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| | | | | | | | | Strategic Plan Alignment | Goal 8: Strengthen commercial, retail and community districts throughout the city
Goal 5: Continue to build high quality historical and cultural experiences for residents and visitors of the City’s Strategic Plan
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| | | | | | | | | Present Situation | RCW 67.28.180 allows municipalities to impose a 4% lodging tax on stays of less than 30 days at hotels, motels, campgrounds, bed and breakfasts and RV parks. Those funds can only be used for tourism-related projects, events and facilities. Vancouver increased its lodging tax from 2% to 4% in 1998 with the second 2% dedicated to debt service and capital improvements for the downtown Hotel/Convention Center. The original 2% continued to be used to fund other tourism related projects. One of the impacts of the recession was that from 2009-2016, all of Vancouver’s lodging tax funds were allocated to support the Hotel/Convention Center.
For 2023, the City has $125,000 in lodging tax revenue that is excess to the needs of the Hotel/Convention Center and is available for other tourism-related projects. The RCW requires that in order to expend lodging tax funds, the City’s Lodging Tax Advisory Committee, comprising equal numbers of lodging tax generators and potential lodging tax recipients, must review and recommend proposed expenditures to the City Council. In October and November 2022, the City solicited lodging tax grant proposals from interested parties. Ten proposals were received totaling $285,000. The Lodging Tax Advisory Committee reviewed the proposals and, as set forth in Exhibit A, is recommending full or partial funding of all ten, which totals $125,000.
Per state regulations, the City Council only may approve awards to candidates recommended by the Lodging Tax Advisory Committee and only at the amount recommended unless Council submits its change in the amount to the LTAC for comment. All approved grant recipients must enter into a professional services agreement with the City.
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| | | | | | | | | Advantage(s) | Grant funds will support tourism-related events, activities and facilities that help strengthen Vancouver’s appeal to both day and overnight visitors.
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| | | | | | | | | Budget Impact | The 2023 budget contains the appropriation sufficient to cover grants in the amount of $125,000 in lodging tax funds.
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| | | | | | | | | Action Requested | On January 23, 2023, adopt a resolution approving the 2023 Lodging Tax Grants as recommended by the Lodging Tax Advisory Committee and authorizing the City Manager or their designee to execute professional services agreements with the grant recipients.
Teresa Brum, Deputy Economic Development Director, 360-487-7949
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