Editor,

When news of this year’s Lodging Tax Advisory Committee (LTAC) grants hit social media this week, I noticed some curious comments — one in particular described it as “another tax for us locals that will make it more expensive to live here.” I found that interesting, because in reality, the LTAC does nearly the opposite — and it’s been in place for decades.

That said, I understand the reaction. When many people hear the word “tax,” they assume it’s coming out of their own pocket. Sometimes that’s true, but other times, it’s a tax paid by someone else. If no one explained how it works, I might think the same. So, to help clarify, here’s a quick overview of what the Lodging Tax actually is.

LTAC grants are awarded to local organizations or government entities to help attract visitors from more than 50 miles away — people who come here, spend money and contribute to our local economy. As a result, locals benefit as well. For example, LTAC funds have supported the Oak Harbor Music Festival, the Chamber of Commerce, and the upcoming Rotary Windmill Project. The city can also apply for LTAC funds for practical capital improvements like downtown restrooms or enhancements to the marina.

So, where does the money come from?

When someone stays at one of our local hotels, 2% is taken as a credit against the 6.5% sales tax rate and given to the local government to be used for LTAC grants—so it doesn’t increase the existing cost. In addition, local governments can adopt an extra 2% lodging tax. That means a $100-per-night room might cost an extra $2, but the city or county receives $4: $2 from the state credit and $2 from the additional lodging tax.

Will that extra $2 be the deciding factor for a tourist considering whether to visit? Unlikely. And those dollars go directly into our local economy.

I may not always agree with how the state spends its tax revenue—that’s a whole other topic — but as a city councilmember and chair of the Oak Harbor LTAC, I believe my job is to ensure that state tax dollars already being collected are used in ways that benefit our local residents as much as possible.

Bryan Stucky

Councilmember

City of Oak Harbor