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LTAC committee recommends modest reductions and one full award; council hears lodging‑tax spending rules
Summary
The Lodging Tax Advisory Committee (LTAC) recommended funding allocations that slightly reduce most prior awards to fit available revenue and fully fund a Master Gardeners plant‑sale relocation request; council members asked about eligibility, precedent and the LTAC process.
Councilmember Winning (chairing LTAC in the mayor’s recusal) presented LTAC’s recommendations for allocating lodging tax funds on Oct. 8. The committee reviewed $2,492,000 in requests and recommended awards that are slightly lower than many 2025 awards because available lodging tax revenue this year is reduced. The committee recommended fully funding a proposal from the Master Gardeners to relocate a large plant sale to the fairgrounds — a one‑time project the committee found likely to draw a regional audience — and proportionally reducing awards to other recurring recipients.
Why it matters: LTAC (lodging tax) revenues are restricted by state law to tourism‑related activities intended to generate overnight stays. City staff and the mayor clarified that lodging tax funds cannot be used for general operations and must be spent to attract visitors.
Allocation approach and questions: Councilmembers asked how LTAC applicants document how many visitors they bring to town and whether the committee’s approach unduly favors repeat applicants. Committee chair Councilmember Muehring said the committee used prior‑year metrics where available (for example, registration numbers for running events) and recommended proportional reductions. Councilmember Johnson asked whether LTAC decisions set a precedent for similar applicants and was told that new applicants would be evaluated against the same criteria; LTAC will consider any new proposals on their merits.
Process and recusal: Councilmember Dorr announced a recusal for the LTAC adoption vote next Tuesday because of a new role with Puyallup Main Street Association. The mayor also recused from chairing LTAC earlier and asked the councilmember to chair the committee meeting.
Ending: The council heard the committee recommendations and background on lodging tax legal limits; LTAC awards and required hearings will be on the agenda for formal action at the next council meeting.
