Proposal that increases tourism fee awaits Governor’s signature

SB 6592 increases the authority of tourism promotion area (TPA) funding.

Tourism is critical to city economies, and TPAs can generate revenue for cities to market and encourage tourism activity. The rise of tourism in Washington cities stimulates local economies, encourages job growth, and generates essential tax revenue for city budgets.

The legislation increases the amount of a tourism fee that can be collected from $2 per night to $5 per night. Although a TPA has sole discretion about how the fee’s generated revenue is used, this bill requires that the money be used to increase the number of tourists in the area.

If lodging businesses believe the additional $3 TPA fee does not have a significant economic impact, they may petition the TPA to remove the charge. If the petition is signed by a majority of lodging businesses in the area, the legislative body must remove the charge. AWC did seek a clarifying amendment to make certain that legislative bodies had some control over when to end a charge and to limit liability for outstanding contracts and expenses.

AWC supports this bill, as it increases funding authorities for the critical TPAs that support city economies. The bill currently awaits the Governor’s signature.