This bill increases the county lodging tax (tax on hotel or accommodation stays) and expands its allowable uses. Here’s a breakdown of what the bill does:
Key Changes:
Tax Rate Increase:
The bill allows counties to increase the lodging tax rate from a maximum of 2% to up to 6%, but this increase requires approval by the local voters.
Expanded Uses of Tax Revenue:
In addition to the original uses (advertising tourism, housing and childcare for tourism workers, and improving visitor experiences), the bill expands the purposes for which lodging tax revenue can be used to include:
Public infrastructure maintenance or improvements.
Preservation of natural landscapes, wildlife habitats, and promotion of sustainable tourism.
Cultural and historical preservation, including the restoration and maintenance of historical sites, museums, and cultural institutions.
Enhancing public safety, including funding for local law enforcement, fire departments, and emergency medical services.
Clarification on Past Approvals:
If a county has already received voter approval before January 1, 2025, to allocate portions of lodging tax revenue for specific uses, the bill clarifies how these previous allocations are maintained. It also explains how additional revenue from the increased tax rate can be allocated.
This bill gives counties the option to increase the lodging tax rate (with voter approval) to up to 6% and broadens the ways in which the revenue can be used, such as for public infrastructure, cultural preservation, and public safety. This provides counties more flexibility in how they use this revenue to support local needs related to tourism and community well-being.
Summary
Under current law, counties may levy a county lodging tax (tax) of
up to 2% on the purchase price paid or charged to persons for rooms or accommodations. Revenue from the tax is allowed to be used for the following purposes:
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Advertising and marketing local tourism;
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Housing and childcare for the tourism-related workforce; or
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Facilitating and enhancing visitor experiences. Subject to local voter approval, the bill increases the allowed rate
of the tax to up to 6% and expands the allowed uses to the following additional purposes:
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Public infrastructure maintenance or improvements;
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Preservation of natural landscapes and wildlife habitats and promotion of sustainable tourism practices;
•
Cultural and historical preservation through restoration and maintenance of historical sites, museums, and cultural institutions; or
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Enhancing public safety measures by funding local law enforcement, fire departments, and emergency medical services.
If a county received voter approval before January 1, 2025, to
specifically allocate portions of revenue from the lodging tax to allowed uses for designated purposes, the bill clarifies how those previously approved allocations are preserved and how revenue attributable to an increase in the tax rate may be allocated by the county.
