SF 2441 (LSB 6861SV (1) 91)

SENATE FILE 2441

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SSB 3114)

A BILL FOR

An Act concerning locally imposed hotel and motel taxes for tourism development and tourism promotion.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423A.2, subsection 1, Code 2026, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  0l.  “Tourism development” means the creation or expansion of physical attractions, facilities, or events that are available and open to the public, improving the appeal of destinations to tourists, and enhancing tourist experiences that are primarily promoted to or used by tourists.
   NEW PARAGRAPH.  00l.  “Tourism promotion” means planning, conducting, or participating in programs of information, publicity, and advertising that are designed to attract tourists and foster economic activity through tourism.
   NEW PARAGRAPH.  000l.  “Tourist” means a person who travels more than fifty miles to a destination for business or leisure.
    Sec. 2.  Section 423A.7, subsection 3, Code 2026, is amended to read as follows:
   3.  Moneys received by the city or county from this fund shall be credited to the general fund of the city or county, subject to the provisions of subsection 4.
    Sec. 3.  Section 423A.7, subsection 4, paragraph a, Code 2026, is amended by striking the paragraph and inserting in lieu thereof the following:
   a.  (1)  The governing authority of each city or county that levies the tax shall spend at least fifty percent of the revenues on tourism development and tourism promotion in the city, county, or surrounding areas, as applicable.
   (2)  Beginning with the annual report required to be filed by December 1, 2027, under section 331.403 or 384.22, as applicable, and for each annual report thereafter, the annual report shall contain a detailed accounting and explanation of the use of moneys for tourism development and tourism promotion pursuant to this paragraph.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill concerns locally imposed hotel and motel taxes by creating a local hotel and motel tax account for the development and promotion of tourism, and includes applicability provisions.
   The bill strikes the detailed list of permissible expenditures for at least 50 percent of the locally imposed hotel and motel taxes in Code section 423A.7(4)(a), and specifies the governing authority of each city or county which levies the hotel and motel tax shall spend at least 50 percent of the revenues on tourism development and tourism promotion in the city, county, or surrounding areas. The bill requires the city or county to include a detailed accounting and explanation of the use of the moneys for tourism development and tourism promotion beginning with the annual report required on or after December 1, 2027, under Code section 331.403 or 384.22, as applicable.
   The bill defines “tourism development” to mean the creation or expansion of physical attractions, facilities, or events that are available and open to the public, improving the appeal of destinations to tourists, and enhancing tourist experiences that are primarily promoted to or used by tourists. The bill defines “tourism promotion” to mean planning, conducting, or participating in programs of information, publicity, and advertising that are designed to attract tourists and foster economic activity through tourism. The bill defines “tourist” to mean a person who travels more than 50 miles to a destination for business or leisure.
   The remaining revenues not subject to expenditure by the hotel and motel tax board created in the bill shall be spent, as required by current law, by the city or county on any city or county operations authorized by law as a proper purpose for the expenditure within statutory limitations of city or county revenues derived from ad valorem taxes.