This bill revises the laws governing state-funded tourism promotion by the Department of Commerce in Montana. It mandates that the Department utilize lodging facility use tax revenue for specific purposes, including allocations to various state accounts and programs. Key changes include the amendment of Section 15-65-121, which outlines the distribution of tax proceeds. Notably, the bill deletes the previous designation of purposes under Section 90-1-122 and introduces new allocations, such as 28.6% for tourism media and promotions, 14.3% for rural tourism and tribal tourism projects, and 15.3% for tourism grant programs. Additionally, it specifies that 22.5% of the proceeds will be distributed to regional nonprofit tourism corporations, with provisions for cities and districts that exceed certain revenue thresholds.

Furthermore, the bill repeals Section 90-1-122, which previously governed the allocation of lodging facility use tax, and establishes a new effective date of July 1, 2025, for these changes. The bill aims to enhance the effectiveness of tourism promotion efforts in Montana by reallocating funds to support various tourism-related initiatives, including infrastructure, marketing, and emergency services, while ensuring that funds are appropriately distributed to support local tourism efforts.

Statutes affected:
LC Text: 15-65-121