SB 6592, sponsored by Senator Jeff Holy (R–Spokane), threatens the stability of tourism promotion area (TPA) funding.

TPAs are critical to city economies, as they generate revenue for cities to invest in festivals, tourism-related construction, and other tourism activity. The rise of tourism in Washington cities stimulates local economies, encourages job growth, and generates essential tax revenue for city budgets.

While the proposal actually increases the amount of the fee that can be collected from $2 per night to $5 per night, it also allows lodging businesses to effectively end the funding by petitioning the city to opt out.

Although a TPA has sole discretion as to how the revenue derived from the charge is used, this bill requires that the money be used to increase the number of tourists in the area. It also specifically defines tourist as someone traveling 50 miles or more and staying overnight.

If lodging businesses believe the TPA charges are not having a significant economic impact, they may petition the TPA to remove the charge. If the petition is signed by all lodging businesses in the area, the TPA must remove the charge. If this bill passes, private lodging facilities can eliminate TPAs and threaten over $14.6 million in city revenue that supports tourism.

AWC opposes this bill as it is currently drafted. Cities would support the ability to increase the fee, but not the additional restrictions that could hamper tourism promotion.

Dates to remember

SB 6592 is scheduled for public hearing in the Senate Local Government Committee at 8 am on Tuesday, February 4.