This bill allows municipalities to implement a municipal occupancy fee on room rentals to create a capital improvement fund or a tourism support fund. The fee can be a daily charge of up to $2 per occupancy or a percentage of the occupancy price, with the stipulation that it cannot exceed $2 per day. The fee will not be collected if the average daily price of the occupancy is $40 or less, and it can be applied for a maximum of 184 consecutive days. The revenues generated from this fee will be allocated to support municipal services related to tourism and transient traffic, and these funds will not be considered part of the general fund surplus until specifically appropriated by the town select board or city legislative body.

To adopt this fee, municipalities must follow a specific process, including placing the question on the warrant for a town meeting or voting on it through the city’s legislative body. A public hearing must be held prior to the vote, and the question must clearly outline the fund's name, its intended uses, and the details of the fee collection. If a majority votes in favor, the fee will take effect as determined by the local governing body. Additionally, municipalities have the option to rescind the fee through a similar voting process. The bill introduces new legal language regarding the establishment and collection of the occupancy fee while deleting any conflicting provisions in existing law.