Lodging Tax Grants


The city has $25,000 in lodging tax funds available to qualified applicants for projects and events that promote tourism in 2023. Lodging tax funds come from the taxes collected from Studio 6 Hotel, 6017 244th Street SW, the only lodging facility in city limits. 

Lodging tax funds must be used for marketing or operationStudio 6 Hotel - Mountlake Terrace of special events and festivals designed to attract tourists. They may also support the operations of tourism-related facilities owned or operated by nonprofit organizations according to law. 

Programs or events should have the potential to increase overnight visits to the city's hotel and/or create a positive economic impact. These funds have helped support events such as 3rd of July Fireworks Show, Arts of the Terrace and Tour de Terrace.

All events must adhere to laws and regulations, from the city, state and public health agencies.

Applications For 2023 Funding

Application materials are due by 4:30 p.m. November 8, 2022. The city's Lodging Tax Advisory Committee will review the applications and make a recommendation to the City Council based upon the adopted criteria and state law.

The criteria includes submitting two years of financial documentation, completing the budget form, a certificate of nonprofit incorporation (for nonprofits), meeting minutes for project approval (for public agencies), and a Letter of Endorsement (from Studio 6 Hotel) as listed on the provided checklist.

Allocation of the funds is tentatively scheduled for January 16, 2023.  

The 2023 Application has three parts:

1.  First, applicants should read the Guidelines and Criteria for Lodging Tax Funds, which contains a checklist.

2. The Application Form, which is available online or via PDF.

3. The Budget Form (downloads as an Excel file).

3rd of July Fireworks Show

July 3 Fireworks Show Event

Arts of the Terrace

2016 Arts of the Terrace - Mark Hopkins Photography

Tour de Terrace

Tour de Terrace Rides Seafair Pirates Parade