County Lodging Tax Expansion

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:

• Advertising and marketing local tourism;
• Housing and childcare for the tourism-related workforce; or
• Facilitating and enhancing visitor experiences.

Subject to local voter approval, the bill increases the allowed rate of the tax to up to 6% 5% and expands the allowed uses to the following additional purposes:

• Public infrastructure maintenance or improvements; or
• 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
• 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.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)