This bill amends Iowa's Code regarding locally imposed hotel and motel taxes to enhance tourism development and promotion. It introduces new definitions for "tourism development," which refers to the creation or expansion of attractions and facilities aimed at improving tourist experiences, and "tourism promotion," which involves programs designed to attract tourists. Additionally, it defines a "tourist" as someone traveling more than fifty miles for business or leisure. The bill also expands the scope of the fund to include counties, allowing them to receive moneys from the hotel and motel tax.

Furthermore, the bill mandates that at least fifty percent of the revenues collected from the hotel and motel tax must be allocated to tourism development and promotion within the respective city or county. It removes the previous detailed list of permissible expenditures and instead requires a detailed accounting of how the funds are used, starting with annual reports due on or after December 1, 2027. The remaining funds not allocated for tourism purposes can be used for any authorized city or county operations as per existing law.

Statutes affected:
Introduced: 423A.2, 423A.7