King County Lodging Tax |
FAQ's |
| What is the Lodging Tax? |
| The Lodging Tax refers to the sales tax on hotels, motels, and other temporary lodging. It is a tax paid primarily by visitors; the tax rate varies by city and county in Washington State. A 2% credit against the basic 6.5% state sales tax is reserved in King County for servicing debt on the Kingdome, youth sports activities, open space acquisition, and tourism promotion, including funding for King County arts and heritage programs. |
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| Is "Lodging Tax" the same thing as "Hotel/Motel Tax"? |
| Yes. Lodging Tax is the preferred industry name for what is also called the Hotel/Motel Tax. |
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| What is the King County Lodging Tax for Culture? |
| The Lodging Tax for Culture was established by state law in 1987 when the state legislature set a cap on the annual tax revenues servicing construction bonds for the Kingdome at $5.3 million. A portion of the tax revenues above $5.3 million per year are dedicated to arts and heritage programs through the year 2012, when the original Kingdome debt is scheduled to be retired. Between 2001 and 2012 cultural programs receive 70% of the excess revenue above $5.3 million, with a requirement that 40% of the revenues for cultural programs be set-aside in an endowment intended to fund arts and heritage after 2012. |
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| What does the Lodging Tax for Culture support? |
| 4Culture provides funding for support of the visual and performing arts, heritage programs and historic preservation. Annual funding supports the activities of more than 250 arts and heritage organizations, hundreds of artists and heritage specialists, capital construction projects and equipment purchases, new arts and heritage projects, and cultural education in public schools. The cultural benefits of this tax extend to all communities and residents of King County and provide visitors with a vast array of cultural experiences produced by the region's innovative and nationally recognized arts and heritage organizations. |
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| What has been the impact of this fund? |
- New arts facilities and local history museums in communities throughout King County;
- Expanded opportunities for suburban and rural audiences to attend and participate in the arts;
- A regional network of local arts agencies providing cultural programs for their local communities;
- More than 250 arts and heritage organizations receiving annual support for public programs;
- $844 million in economic impact annually, including $300 million in "new money," spent by visitors;
- 7 million visitors to cultural events each year.
Arts and heritage funding stimulates cultural development and provides access to cultural opportunities in all areas of the county, from professional exhibitions and performances to community groups, festivals and events. Cultural programs build a sense of community and infuse our work and our daily lives with the joy of creativity and the power of imagination. |
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| Who oversees the distribution of the Lodging Tax for Culture in King County? |
| Lodging taxes for cultural programs in King County are distributed to cultural organizations in accordance with King County Code and managed by 4Culture, a public development authority chartered by King County in 2003 to continue the work of the 35-year-old King County Office of Cultural Resources. 4Culture is governed by a 15-member Board of Directors and four citizen advisory committees in the arts, public art, heritage and historic preservation. Three King County Council members and a representative of the Executive's office also serve as ex-officio board members and represent the county's ongoing commitment to cultural development. |
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| What happens to this fund after 2012 when the Kingdome bonds are retired? |
| The use of the Lodging Tax for Culture will end at the end of 2012. Between 2001 and 2012, state law requires 40% of the annual Lodging Tax for Culture to be set-aside in an endowment. The continuation of cultural funding after 2012 will be provided through interest earnings from this endowment. |
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| How much will the endowment generate for cultural funding? |
| Arts funding under the terms of the endowment will be reduced dramatically from the levels available annually from the cultural portion of the lodging tax. Due to post-2001 economic downturn, the endowment will be capitalized at a much lower level than originally anticipated. Additionally, restrictions on the investment of public funds result in lower interest yields than privately funded endowments. The interest income is projected to be significantly less than the funds currently generated by the annual tax. |
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| Are there plans to extend the lodging tax for cultural programs in the future? |
| Between 2013 and 2020 all lodging tax revenues are dedicated to service debt on sports stadiums. The next opportunity for cultural programs to be allocated a portion of lodging tax revenues will be in the year 2021. The 4Culture Board has identified the extension of Lodging Taxes for cultural programs again beginning in 2021 as one its highest priority. |
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