Thurston County reviews 2026 lodging-tax priorities; board proposes $334,000 allocation including FIFA fan zone contribution

Olympia, Wash. — At its Oct. 1 work session, the Thurston County Board of County Commissioners received a staff update on lodging-tax (LTAC) priorities for 2026, including changes to the LTAC scoring sheet that add weight for events and projects in unincorporated South Thurston County and a proposed $334,000 county allocation that would include an $84,000 contribution toward a FIFA fan zone.

Ellen Massey, management analyst for Thurston County, explained that lodging tax revenues are collected by the state from paid overnight stays — including hotels, motels, B&Bs, campgrounds and RV parks — and then distributed to counties for tourism marketing, promotion of special events, and operations or capital costs of tourism-related facilities. "The lodging tax is gathered by the state ... and then those funds are given to Thurston County and can be distributed for tourism, marketing, promotion of special events, and operations and capital expenditures for tourism related facilities," Massey said.

Why it matters: Lodging-tax revenues are restricted to tourism-related uses and are a key funding source for events and promotion that aim to generate visitor “heads and beds” — paid overnight stays — which LTAC scoring and priorities try to maximize in unincorporated parts of the county.

Massey described the LTAC process as set by state law (RCW): a five-member advisory committee composed of two representatives from organizations that receive lodging-tax funds, two representatives from organizations that contribute to the lodging-tax base, and one elected official (the county’s LTAC member is Commissioner Wayne Fournier). Applications open in November and December, staff consolidate application materials and bring them to LTAC in January; LTAC holds two meetings to review and recommend funding levels, and the board provides final approval generally in February. County staff then prepare contracts with awarded applicants. Counties must also report prior-year award actuals to the Joint Legislative Audit and Review Committee (JLARC) in May, Massey said.

Applications require both predicted and actual metrics. Massey said the state-required reporting fields in the application include overall attendance; number of attendees who traveled 50 miles or more; whether attendees came from other counties or states; whether attendees stayed overnight in paid lodging; and the total paid lodging nights generated by the funded activity. Applicants use predicted figures in applications to inform LTAC recommendations; the county reports actuals to JLARC.

Scoring changes and geographic priorities: LTAC’s current scoring sheet awards additional points for events in South Thurston County (noted in the presentation as 20 of 100 possible points) and this year includes a new five-point bonus for board-identified priority projects. Staff said the committee added weighting to favor events held in unincorporated Thurston County to direct more funding to areas outside the cities of Olympia, Lacey and Tumwater.

Massey provided a 2025 recap: LTAC received 23 applications and recommended funding for 16. For 2026 planning, the board discussed asking awardees to display Thurston County sponsorship (logo) and to work with the county’s public information office to list funded events and facilities on the county website.

FIFA fan zone update and proposed allocation: Staff told the board the county’s preliminary proposal for lodging-tax disbursement is $334,000 in total, with $84,000 of that earmarked for a FIFA fan zone contribution and $250,000 for general LTAC applications. Commissioners were briefed that Lacey has committed to a portion of the fan zone funding and that other jurisdictions and private contributors are continuing conversations. Jared (identified in the transcript only by given name and speaking as a staff member) said he had a potential additional contributor and asked that staff not withdraw outreach before checking that option.

Commissioners discussed public perception and communications: Commissioner Wayne Fournier said there is public concern about using county dollars for a FIFA fan zone while the county is making budget cuts, and he urged continued transparent communications about the lodging-tax funding source and its restricted, tourism-focused uses. County staff and communications staff were asked to explain clearly — repeatedly and publicly — how lodging-tax dollars are collected and why the county can use them for tourism promotion.

Interjurisdictional coordination: Commissioners and staff discussed overlap between city LTAC programs and the county’s LTAC. Staff said each municipality operates its own LTAC and application timelines and software differ; Olympia and Lacey have larger LTAC budgets and earlier application cycles, which complicates alignment. Staff reported previous attempts at coordination but described the process as disjointed. Commissioners asked staff to reengage city counterparts to explore clearer reciprocity or alignment that could benefit applicants operating across multiple jurisdictions.

No formal action: This item was presented for discussion and follow-up. Commissioners did not take a formal vote on LTAC awards or the proposed allocation at the work session.

Ending: Staff said applications for the 2026 LTAC cycle are expected to open in November and that staff will return with contract and award details after LTAC recommendations and board approval in early 2026.