House Bill 5481 (sHB5481 File No. 243) proposes amendments to the tax system, specifically targeting the allocation of tax revenues from the sales of certain goods and services. The bill introduces a new provision that requires the commissioner to deposit 25% of the tax revenue collected from room occupancy and meals into the newly established "tourism public safety account" starting from calendar quarters ending on or after September 30, 2024. This account is intended to provide grants to municipalities for enhancing public safety in the tourism sector. The bill also outlines a schedule for depositing increasing percentages of tax revenues from the sale of motor vehicles into the Special Transportation Fund, with 100% of such revenues being deposited starting from July 1, 2022. Additionally, the bill amends excise tax rates on various goods and services, including hotel and lodging house rents, motor vehicle purchases by armed forces members, and luxury items, with specific tax exemptions for certain services.

The bill mandates that the Commissioner of Revenue Services annually determine and report the amount of tax collected from sales in each municipality, which will then be used by the Commissioner of Emergency Services and Public Protection to distribute grants equal to 25% of the tax attributable to each municipality. These grants are to be used for fire, police, and emergency services to support tourism. The bill includes a fiscal note indicating a revenue loss to the General Fund but a corresponding revenue gain to municipalities. The bill is effective from July 1, 2024, and applies to sales occurring on or after that date. It passed the Public Safety and Security Committee unanimously and includes minor changes for clarity and consistency with standard drafting conventions.