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Poulsbo open house clarifies lodging‑tax eligibility; capital improvements and for‑profit applicants discussed
Summary
City staff told attendees that lodging‑tax funds must promote tourism and overnight stays but noted nuances for capital projects and that the statute does not categorically bar for‑profit applicants. Committee staff will reconcile website guidance with state RCWs.
City staff at a Poulsbo lodging‑tax open house summarized which projects are typically eligible for lodging‑tax grants and addressed disagreements about capital improvements for nonprofit operators.
"The statute does not explicitly prohibit for profit entities from applying for lodging tax funds," said Lynn Heino, special events coordinator. She said eligible uses generally include tourism marketing, festival operations and tourism‑related facility improvements when the expense can be tied to attracting overnight visitors.
But some nonprofit operators said the program has repeatedly denied capital‑project requests. "I've requested several times to get some... a ruling if you will on items that would potentially or could possibly fall under capital improvement... and it has been deemed a non eligible expense every time," said a representative of the Sea Discovery Center, who described past denials for habitat and exhibit work.
Jeff Osmich, the city's parks and recreation director and staff member for the committee, flagged a discrepancy between the city's web guidance and the RCW language and said staff will verify the interpretation publicly. "I'm gonna have to find we have discrepancy, Lynn, on our website because it says no capital expenditures are allowed for tourism readily related facilities owned or operated by nonprofit organization," he said. Staff said they use MRSC guidance (mrsc.org) and will reconcile website text with state statute and committee practice.
