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Published on Friday, February 22, 2013

Update on maintaining current uses of lodging taxes

AWC’s priority lodging tax bills continue to move in both chambers. On February 21, the Senate Trade & Economic Development Committee passed SB 5262, and the bill was referred to the Ways & Means Committee. We are concerned about three amendments that have been added to the bill:

  1. Removing capital expenditures for tourism-related facilities owned or operated by non-profits. Not only would this prevent capital expenditures on a facility owned by a non-profit, it would also prohibit capital expenditures for a facility owned by a city but operated by a non-profit.
  2. Narrowing the definition of a tourist to a person who travels more than 50 miles from their residence, stays overnight in paid accommodations, or travels from another state or country.
  3. Giving substantial authority to lodging tax advisory committees to choose who receives lodging tax revenue.

AWC, cities, and other stakeholders are working on these concerns. The House version, HB 1253, does not contain similar provisions and is scheduled for executive session in the House Finance Committee on February 26.

Categories: Budget & finance