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Council begins plan to reallocate recouped lodging tax: half to tourism facilities, half to affordable‑housing set‑aside
Summary
After approving the interlocal, the council debated a lodging‑tax allocation proposal to keep half of recouped funds for local tourism facility maintenance and to set aside half for affordable housing; staff estimated current collections near $200,000 per year, producing an estimated $14,000 annual affordable‑housing fund under the proposal.
Mayor Kennedy Horstman presented a proposed distribution of lodging‑tax revenue after Langley begins recouping funds from the county tourism interlocal. Using 2025 actual collections, the mayor said Langley historically collects about $200,000 a year and proposed splitting the recouped portion so half funds operations/maintenance/capital for local tourism facilities and half accrues toward affordable housing development relief.
"Historically, we collect about $200,000 a year," Horstman said when describing the math staff compiled. Council members questioned legal limits under state RCWs for using lodging tax for housing (noting the code describes lodging tax uses tied to bonds in some cases), asked about timing and application mechanisms, and noted that at current rates the set‑aside would yield roughly $14,000 a year—enough to cover about one sewer/water connection at roughly $17,000 per unit. The mayor and council agreed to form a work plan item, craft a resolution for the next meeting, and research legal guardrails before finalizing allocations.
