Senate Study Bill 3114 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act concerning locally imposed hotel and motel taxes for 1 tourism development and tourism promotion. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6861XC (3) 91 jm/jh

S.F. _____ Section 1. Section 423A.2, subsection 1, Code 2026, is 1 amended by adding the following new paragraphs: 2 NEW PARAGRAPH . 0l. “Tourism development” means the creation 3 or expansion of physical attractions, facilities, or events 4 that are available and open to the public, improving the appeal 5 of destinations to tourists, and enhancing tourist experiences 6 that are primarily promoted to or used by tourists. 7 NEW PARAGRAPH . 00l. “Tourism promotion” means planning, 8 conducting, or participating in programs of information, 9 publicity, and advertising that are designed to attract 10 tourists and foster economic activity through tourism. 11 NEW PARAGRAPH . 000l. “Tourist” means a person who travels 12 more than fifty miles to a destination for business or leisure. 13 Sec. 2. Section 423A.7, subsection 3, Code 2026, is amended 14 to read as follows: 15 3. Moneys received by the city or county from this fund 16 shall be credited to the general fund of the city or county , 17 subject to the provisions of subsection 4 . 18 Sec. 3. Section 423A.7, subsection 4, paragraph a, Code 19 2026, is amended by striking the paragraph and inserting in 20 lieu thereof the following: 21 a. (1) The governing authority of each city or county 22 that levies the tax shall spend at least fifty percent of the 23 revenues on tourism development and tourism promotion in the 24 city, county, or surrounding areas, as applicable. 25 (2) Beginning with the annual report required to be filed 26 by December 1, 2027, under section 331.403 or 384.22, as 27 applicable, and for each annual report thereafter, the annual 28 report shall contain a detailed accounting and explanation of 29 the use of moneys for tourism development and tourism promotion 30 pursuant to this paragraph. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill concerns locally imposed hotel and motel 35 -1- LSB 6861XC (3) 91 jm/jh 1/ 2

S.F. _____ taxes by creating a local hotel and motel tax account for 1 the development and promotion of tourism, and includes 2 applicability provisions. 3 The bill strikes the detailed list of permissible 4 expenditures for at least 50 percent of the locally imposed 5 hotel and motel taxes in Code section 423A.7(4)(a), and 6 specifies the governing authority of each city or county which 7 levies the hotel and motel tax shall spend at least 50 percent 8 of the revenues on tourism development and tourism promotion in 9 the city, county, or surrounding areas. The bill requires the 10 city or county to include a detailed accounting and explanation 11 of the use of the moneys for tourism development and tourism 12 promotion beginning with the annual report required on or after 13 December 1, 2027, under Code section 331.403 or 384.22, as 14 applicable. 15 The bill defines “tourism development” to mean the creation 16 or expansion of physical attractions, facilities, or events 17 that are available and open to the public, improving the appeal 18 of destinations to tourists, and enhancing tourist experiences 19 that are primarily promoted to or used by tourists. The bill 20 defines “tourism promotion” to mean planning, conducting, 21 or participating in programs of information, publicity, 22 and advertising that are designed to attract tourists and 23 foster economic activity through tourism. The bill defines 24 “tourist” to mean a person who travels more than 50 miles to a 25 destination for business or leisure. 26 The remaining revenues not subject to expenditure by the 27 hotel and motel tax board created in the bill shall be spent, 28 as required by current law, by the city or county on any city 29 or county operations authorized by law as a proper purpose for 30 the expenditure within statutory limitations of city or county 31 revenues derived from ad valorem taxes. 32 -2- LSB 6861XC (3) 91 jm/jh 2/ 2