ON APRIL 10, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 629, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, make the following revisions to present law relative to the privilege tax upon the privilege of occupancy in a hotel levied by municipalities:  Revises provisions relative to the disposition of proceeds of such tax to, instead, provide the following:  Generally, the revenue received by a municipality from the tax must be designated and used for tourism promotion and tourism development, including debt service and contractual obligations incurred in furtherance of such purposes.  Generally, tourism development investments authorized under law relative to such tax must not be used to fund general government expenditures or activity unless designated and approved through a memorandum of understanding between a municipality's governing body and the designated destination marketing entity.  A municipality levying such a tax before May 1, 2025, may continue to use the revenue in the manner prescribed in the private act, resolution, or ordinance levying the tax.  Not later than 90 days after the end of a municipality's fiscal year, each municipality that levies such tax must provide an annual written report to the commissioner of the department of tourist development. The annual written report must detail the amount of revenue spent by the municipality, and its subordinate contractors, and how those expenditures have been designated and used for tourism promotion and tourism development.  If an audit by the comptroller of the treasury or by contractors employed by a municipality with the approval of the comptroller, finds that a municipality has spent funds derived from such tax for purposes not related to tourism promotion and tourism development, the municipality must, using general funds, appropriate an amount equal to the amount spent improperly to be used to support tourism promotion and tourism development for the next subsequent fiscal year.  Defines, for purposes of law relative to such tax, "tourism development" as the creation or expansion of physical attractions, facilities, or events that are available and open to the public, improving the appeal of destinations to tourists, and enhancing tourist experiences that are primarily promoted to or used by tourists.  Authorizes a municipality to adopt an ordinance or resolution requiring funds received from the department of revenue that were collected from the tax levied upon the privilege of occupancy of a short-term rental unit secured through a short-term rental unit marketplace to be used for the promotion of tourism and tourism development.  Limits the present law provision prohibiting such tax from exceeding 4% of the consideration charged to a transient by the hotel operator by providing that, on or after the effective date of the bill, a municipality must not increase such tax in an amount such that the cumulative tax in an incorporated area of a county exceeds 8%.

Statutes affected:
Introduced: 7-4-107