The Spokane Valley City Council on Jan. 7 approved two lodging-tax funding motions that together allocate tourism promotion awards from the city's 2% hotel-motel tax (Fund 105) and direct $2.5 million from the 1.3% lodging tax (Fund 104) to the Spokane Sports Cross Country Course project.

City Finance staff and the Lodging Tax Advisory Committee recommended a series of awards from Fund 105 that the council read into the record and approved. Accounting and Finance Program Manager Sarah Farr told the council the city expects roughly $920,000 in 2025 revenues for the 2% tax and $790,000 for the 1.3% tax. She said Fund 105 awards total about $893,000 in grants plus a $500,000 transfer to Fund 104; the LTAC's recommendation to the council passed unanimously.

The council then voted to allocate $2.5 million from the 1.3% lodging tax (Fund 104) to pay design, construction and other eligible costs for the Spokane Sports Cross Country Course project, a decision council members said will fully fund Phase 1. Council members noted the 1.3% tax is restricted by city code to capital costs for tourism venues and that LTAC reviews written applications, presentations and makes recommendations to council.

The Fund 105 awards listed in the motion include (amounts as read into the record): up to $147,000 for Spokane Valley hub events and tourism; up to $30,000 for the 21st USA West Square Dance Convention; up to $35,000 for Spokane Valley Summer Theatre marketing; up to $11,000 for the Inland Northwest RV Show and Sale; up to $15,000 for Spokane Corvette Club's Glass on Grass; up to $11,000 for Cody Productions Inc.'s Spokane Motorcycle Show and Sale; and $6,732 to the Spokane County Fair Expo Center for Interstate Fair marketing and safety. The motion also directed the remainder of Fund 105 collections to be transferred toward the 1.3% Lodging Tax Fund as described above.

Council members discussed the difference between the two lodging taxes and emphasized the 2% is a local rebate against state-collected sales tax rather than a new gross tax on hotel rooms. Council Member Wick clarified the sports commission request in Fund 105 was for one-time equipment tied to the new cross-country course rather than ongoing operational support. Deputy Mayor Hatenberg and others thanked LTAC for its unanimous recommendation. The motions passed unanimously.

The council record and staff presentation note the LTAC reviewed 21 applications at an open meeting on Nov. 4, 2024, and made the recommendation the council then approved. Farr said the LTAC also passed a separate unanimous recommendation to allocate $2.5 million from Fund 104 for the cross-country facility.

The awards are restricted to tourism-promotion activities under city code; the 1.3% fund is further limited to capital costs of tourism venues. Farr said the 2025 lodging-tax revenue estimate is approximately $1.6 million combined across the two funds and identified the accounting entries in the city's 2025 budget packet.