EVERETT — A dispute over lodging tax money has divided the Arlington City Council and could cause funding for a popular air show to be slashed by nearly half.

A lodging tax is paid by consumers when staying overnight in hotels, motels, RV parks and Airbnbs. The money goes into a fund for a year. A governing body then distributes that money to activities aimed at boosting tourism.

In Arlington, the city council allocates lodging tax grants based on recommendations by the city’s lodging tax advisory committee.

From 2022 to 2024, SkyFest — formerly known as the Arlington Fly-In — received at least 23% of the city’s lodging tax pie.

SkyFest is the most attended and highest-grossing event in Arlington, with an average annual revenue of $200,000, the event’s executive director, Barbara Tol

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