The City of Mountlake Terrace offers the 2025 Secondary Allocation Lodging Tax Funds Grant to support local events, festivals, and tourism-related activities that help attract visitors to the city. Lodging tax funds come from a tax imposed on local lodging establishments and are dedicated to enhancing tourism efforts. These funds can be used for marketing and operational expenses related to special events and festivals designed to attract tourists. Additionally, funds can be allocated for the operations and capital expenditures of tourism-related facilities owned or operated by municipalities, public facilities districts created under RCW 35.57 and RCW 36.100, or nonprofit organizations qualifying under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the Internal Revenue Code.

Eligible applicants must comply with state law (Ch. 67.28 RCW), which requires the provision of economic impact estimates for the proposed event, activity, or facility. Applicants must also describe how these estimates were calculated. This documentation is necessary for the City of Mountlake Terrace to complete its required annual report to the state. Eligibility is further limited to events, festivals, or facilities with a clear connection to tourism promotion.

This is a secondary allocation process specifically meant to support community events and tourism-related activities. Applications must be completed using the official form and submitted to the Lodging Tax Advisory Committee (LTAC) Staff Liaison by 4:30 p.m. on Wednesday, March 12, 2025. Applications that are incomplete or that refer to external documents instead of answering directly on the form may be disqualified. The final allocation of funds is tentatively scheduled for approval by the City Council on May 1, 2025. Successful applicants must enter into a formal agreement with the City of Mountlake Terrace before receiving funds.

All funded projects or events must submit a Final Report, including receipts, within 90 days of the project or event’s conclusion, or by the end of the calendar year, whichever comes first. Extensions can be requested in writing within that 90-day window. The Final Report is essential for compliance and for maintaining eligibility for future funding.

Applications will be reviewed by the LTAC, a committee appointed by the Mayor and confirmed by the City Council. Each application will be scored on completeness, eligibility of proposed expenditures, potential to increase overnight visits or off-season tourism, demonstrated financial need, and efforts to secure other funding sources such as county lodging tax funds or private sponsorships.

Applicants must submit the completed application, an itemized budget form, and—if applicable—a nonprofit corporate registration with the Washington Secretary of State. Optional materials such as brochures, promotional materials, or other evidence of tourism marketing efforts may also be submitted. For nonprofits, a copy of the Federal 501(c) status letter is required. Public agencies must provide official meeting minutes documenting approval of the project. All application materials become public records and may be posted on the City’s website.