City of Dayton Hotel/Motel Lodging Excise Tax Funding
City of Dayton Hotel/Motel Lodging Excise Tax Funding Application is available year around, but due no later than October 15 of each year for the next fiscal year’s distribution.
What is the Hotel/Motel Lodging Excise Tax Fund?
Funding for this program comes from the Motel/Hotel Lodging Excise Tax Fund (Lodging Tax) which receives hotel/motel taxes from lodging establishments inside the city limits. The City collects a four percent special excise tax on charges for overnight lodging (RCW 67.28.181).
What Can Be Funded with Lodging Tax Revenue?
Lodging taxes can be used for:
- tourism marketing,
- marketing and operations of special events and festivals,
- operations of tourism-related facilities owned or operated by nonprofit organizations,
- operations and capital expenditures of tourism related facilities owned by the City of Dayton.
State Law Defining the Use of Lodging Tax Funds
The Washington State Legislature enacted changes to the laws governing the use and reporting of lodging tax revenues with the passage of ESHB 1253 in the 2013 legislative session. These changes, in part, established requirements for reporting information on the use of lodging tax which have been incorporated into the Lodging Tax/Tourism Promotion application. Revised Code of Washington (RCW), Chapter 67.28 ‘Public Stadium, Convention, Arts and Tourism Facilities’ provides detailed information about the use, award and reporting of tourism funds.
Important Terms Relating to RCW 67.28:
- Tourism: Economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.
- Tourism promotion: Activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists.
- Tourism-related facility: Real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities.
Who May Apply?
The annual funding program is open to non-profit organizations with the demonstrated ability to achieve tourism goals as outlined below:
- Increase hotel occupancy in Dayton by creating overnight stays.
- Increase overnight stays during the off season.
- Provide visitor attractions and/or promote the area’s existing attractions.
- Attract more businesses to Dayton and thereby generate additional business for hotels and motels.
As a result of State Legislative changes made in the 2013 session, all applications must include estimates of how funding the activity will result in increases to people staying overnight, travelling 50 miles or more, or coming from another state or country. To ensure this data is collected, the City is now required to have applicants provide additional information in the lodging tax application.
Selection and Award Process
Funding of a program/activity and specific awards are dependent on the Dayton City Council’s final determination. Hotel/Motel Lodging Excise Tax Funds will be awarded on a competitive basis, and applicants will be notified following City Council decision.
The City Council will make awards based on the most competitive applications that meet the criteria for funding outlined in the previous paragraph.
All organizations seeking funding under this program must submit a completed application form along with all required documentation in order to be considered for funding. Incomplete applications will not be considered by the Dayton City Council.
Applications must be received at Dayton City Hall, 111 S. 1st Street, Dayton, WA 99328 by 3:45 p.m. October 15. Please submit only one fully completed and signed original. All applications must be able to be clearly reproduced in black and white. Applications submitted by fax or email will not be accepted.
Dayton City Hall mailing address:
City of Dayton
111 S. 1st Street
Dayton, WA 99328
Organizations awarded funds will be required to execute a contractual agreement that will set out the performance expectations, level of funding and the mechanism for invoicing for payment.
Reporting requirements enacted by the Washington State legislature in 2013 requires the City to report to the State regarding the use of funds for the year. All recipients of lodging tax revenue, regardless of what the revenue is to be used for, must submit a post-event activity report to the City describing the actual number of travelers generated. The City will, as part of the contract with the recipients, require that the report be provided immediately after the event or activity. The City will file an annual report to the State of Washington Joint Legislative Audit and Review Committee (JLARC).
The post-event activity report must include the following:
- Total amount spent on the event.
- The number of participants who attended the event/activity in each of the following categories:
- Stayed overnight in paid accommodations away from their place of residence or business;
- Stayed overnight in unpaid accommodations (e.g. with friends and family) and traveling fifty miles or more one way from their place of residence or business;
- Stayed for the day only and traveling more than fifty miles or more one way from their place of residence or business;
- Attended but not included in one of the three categories above.
- The estimated number of participants in any of the above categories that attended from out-of- state (includes other countries).
- A description of methods used to determine attendance and distinguish among the visitor categories at the event/activity.
Any recipient awarded funding must complete the reporting requirements.