Section 1 of the bill amends the authority of a local marketing
district (district) to allow it to use the proceeds of its marketing and promotion tax levied on rooms or accommodations (marketing and promotion tax) for activities related to workforce recruitment, management, and development and for facilitating and enhancing visitor experiences. It also allows a district to make capital expenditures related to these purposes, as well as for business recruitment, management, and development.
If a district's allowable uses of the marketing and promotion tax
revenue approved by voters prior to January 1, 2022, do not include an additional use, then under section 2, the district will require subsequent voter approval to use the marketing and promotion tax revenue for that purpose.
Counties are currently authorized, with prior voter approval, to
levy a county lodging tax for the purpose of advertising and marketing local tourism. Section 3 expands the lodging tax to allow the revenue to also be used for:
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Economic development;
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Workforce recruitment, management, and development; or
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Facilitating and enhancing visitor experiences.
If a county already has a lodging tax that is limited to advertising and marketing local tourism, then the county must obtain voter approval to begin using the lodging tax revenues for any or all of these additional purposes.
Beginning January 1, 2023, section 3 also requires any person or
entity collecting the county lodging tax to remit the tax revenue to the department of revenue with the same filing frequency as the person or entity remits and files sales tax, instead of quarterly.
