A lodging tax request can fail for reasons that have nothing to do with the idea: the expense does not fit a category the statute allows, or the applicant cannot show the visitor numbers the statute asks for afterward. This guide covers what Washington’s lodging tax can pay for, in the law’s own words, and where websites, registration and visitor tracking fit.
Washington’s hotel-motel tax is authorized by chapter 67.28 RCW. Cities and counties impose it, the Department of Revenue collects it and sends the money back, and under RCW 67.28.1815 the proceeds go into a special fund that, with narrow statutory exceptions, may be used only for tourism promotion and for acquiring or operating tourism-related facilities. Everything below is a plain-language reading of the statute. It is not legal advice, and your city or county has the final say on how it applies locally.
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What the statute actually allows
RCW 67.28.1816(1) says lodging tax revenue may be used by a municipality directly, or indirectly through a convention and visitors bureau or destination marketing organization, for four things:
- Tourism marketing.
- The marketing and operations of special events and festivals designed to attract tourists.
- Operations and capital costs of tourism-related facilities owned or operated by a municipality or a public facilities district.
- Operations of tourism-related facilities owned or operated by qualifying nonprofit organizations.
For most cities and counties, that is the whole menu. (RCW 67.28.1815 points to exceptions in RCW 67.28.180, and RCW 67.28.1816 does not apply to a county of 1.5 million or more people, which is why JLARC lists King County as exempt from reporting.) Otherwise, an expense that fits none of the four headings is not a lodging tax expense, however worthy. Also missing from the list: general nonprofit overhead, programs aimed at locals, and anything unconnected to attracting visitors.
The definitions that decide edge cases
The terms in that list are defined in RCW 67.28.080, and they settle many edge cases.
- Tourism is “economic activity resulting from tourists,” with examples such as sales of overnight lodging, meals, tours, gifts and souvenirs.
- Tourism promotion covers activities, operations and expenditures designed to increase tourism, including advertising and information that attract and welcome tourists, strategies to expand tourism, tourism promotion agencies, and the marketing or operation of special events and festivals designed to attract tourists.
- A tourism-related facility is real or tangible personal property with a usable life of three or more years (or property built with volunteer labor) that is owned by a public entity, a 501(c)(3) or 501(c)(6) nonprofit, or another listed group (a business organization, destination marketing organization, main street organization, lodging association or chamber of commerce), and that is used to support tourism or performing arts or to accommodate tourist activities.
The word that matters in the festival clause is “designed.” A community fair that happens to draw a few out-of-towners is a different case from an event built, scheduled and promoted to bring visitors in. The application is where you show which one yours is.
Where websites, registration and tracking fit
The statute never mentions websites, registration software or analytics. Eligibility comes from what the spending is for. In our reading, which your municipality may or may not share:
- A destination or event website aimed at attracting visitors fits the advertising and information distribution in the definition of tourism promotion, which makes it tourism marketing under the first category.
- Registration, ticketing and vendor-application systems for a festival are part of the operations of a special event. The second category covers “marketing and operations.”
- Visitor tracking and reporting tools support a legal requirement that sits on every recipient (more on that below), so there is a reasonable case for them as part of running the funded activity.
Two cautions. A website that mostly serves local residents, such as a club calendar or member portal, is a harder sell than one built around visitors. And many municipalities add their own application rules, so a scope that is fine in one city can be questioned in the next county. Ask before you commit the money. The Joint Legislative Audit and Review Committee (JLARC) says so itself in its reporting FAQ: for questions about specific activities and expenditures, work with the entity that gives your municipality legal advice.
What you must promise before you get the money
Eligibility is only half the test. Under RCW 67.28.1816(2)(a), applicants must give the municipality estimates of how the funding will increase the number of people traveling for business or pleasure on a trip that involves one or more of these:
- Staying overnight in paid accommodations away from home or business.
- Traveling fifty miles or more one way from home or business, for the day or overnight.
- Traveling from another state or country.
After the activity, recipients report the actual numbers in those same categories to the municipality, which makes the report public, shares it with its legislative body, and sends a copy to JLARC. The planning lesson is simple: decide how you will count visitors before you spend a dollar, because your budget line and your measurement plan are reviewed together.
How the advisory committee process works
If your municipality has 5,000 or more residents, applications go through a local lodging tax advisory committee (LTAC). Under RCW 67.28.1816(2)(b), the committee selects candidates and recommends funding amounts, and the municipality may choose recipients only from that list. RCW 67.28.1817 describes the committee itself:
- At least five members, appointed by the legislative body unless a charter says otherwise.
- At least two members who represent businesses required to collect the tax, and at least two who are involved in activities the tax can fund, in equal numbers, with no one eligible for both groups.
- One elected official of the municipality, who serves as chair.
- Proposals for a new tax, a rate increase, repeal of an exemption or a change in the use of revenue go to the committee for comment at least 45 days before final action.
In practice, your application is read by people from local lodging businesses and from other fundable activities, not by strangers. They know what a believable visitor estimate looks like. An application that says “we expect 5,000 visitors” with no method gets less trust than one that explains where the number comes from.
What it pays for in practice
JLARC’s 2025 lodging tax report says municipalities reported awarding $114 million in 2024: 47 percent to facility projects, 40 percent to marketing and 13 percent to events and festivals. Counted by activity, the picture flips: 970 of the 1,743 funded activities were events or festivals. Facilities take the biggest dollars; events take the most awards. JLARC compiles these figures from municipal reports and does not independently verify them.
Buying web and registration work with lodging tax money
- Describe the deliverable in tourism terms. “Event website with lodging partner links and visitor-origin reporting” fits the categories better than “website redesign.”
- Budget measurement as a line item. Registration that captures home ZIP code and number of nights is the raw material for the 50-mile and overnight estimates.
- Keep the data. Your registration and referral records should be exportable and in your accounts, so you can reuse them in next year’s application. Our guide to tourism website design covers the proof problem in more depth.
- Get the scope approved in writing. A short email from your city or county contact confirming that the category fits costs nothing and gives you something to point to later.
The honest verdict
If your event or destination site is small, an off-the-shelf website builder or a ticketing service is often the right buy, and lodging tax money may cover it if the purpose is attracting visitors and your municipality agrees. Do not commission a custom platform to solve a problem an off-the-shelf tool already solves.
Custom work earns its cost when the numbers are the product: when you need registration, lodging partner referrals and visitor-origin data to flow into one place you own, so the report comes from real records instead of a year-end scramble. That is the problem we build for. If that is your situation, see our work in custom web development, read the Mercy House Ministry case study for how we handle verified reporting, or request an estimate. This article is general information, not legal advice. Check with your city or county before relying on any of it.
Frequently Asked Questions
What can Washington lodging tax money be spent on?
RCW 67.28.1816 allows four uses: tourism marketing, the marketing and operations of special events and festivals designed to attract tourists, operating and capital costs of tourism-related facilities owned or operated by a municipality or public facilities district, and operating costs of qualifying nonprofit-run tourism-related facilities. Funds can be used directly by the city or county, or indirectly through a convention and visitors bureau or destination marketing organization. Apart from a few exceptions written into the statute, expenses outside those four categories are not eligible.
Can lodging tax pay for a website?
The statute does not mention websites by name. A website built to attract visitors fits the definition of tourism promotion, which includes advertising and distributing information to attract tourists, so it commonly qualifies as tourism marketing. A site that mainly serves local residents is harder to justify. Because cities and counties add their own application rules, get written confirmation from your municipality that the scope fits before you spend or commit the money.
What estimates do I need to give when I apply?
Applicants must estimate how the funding will increase the number of people traveling for business or pleasure on a trip that involves staying overnight in paid accommodations, traveling fifty miles or more one way, or traveling from another state or country. After the activity, recipients report the actual numbers in those categories to the municipality. Plan your counting method at the application stage so the estimate and the later report use the same approach.
What is a lodging tax advisory committee?
In municipalities with 5,000 or more people, a lodging tax advisory committee reviews funding applications and recommends which to fund and how much. It has at least five members, including at least two representatives of businesses that collect the tax and at least two people involved in fundable activities, chaired by an elected official. The municipality may choose recipients only from the committee’s list. Expect committee members to know the local lodging industry well and to question vague visitor estimates.