Official Summary Text
HB2950 - 572R - Senate Fact Sheet
Assigned to
FIN���������������������������������������������������������������������������������������������������������������� AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 2950
tourism improvement
areas; municipalities; counties
Purpose
����������� Allows a municipality
or county governing body (governing body) to establish a tourism improvement
area, approve lodging business assessments on specified lodging businesses
within the area and contract with a destination marketing organization to
manage the area and its activities. Outlines procedures for tourism improvement
area formation petitions, public hearings, management, plans and activities, assessments,
amendments and dissolution.
Background
����������� Special taxing
districts are usually created to fill a need and to enable the provision of
services in an area that might otherwise be limited from receiving those
services for various reasons, including size, location, financial limitations
or unavailability of other government support. The formation of a special
taxing district creates a funding stream to pay for the desired or needed
services by placing the responsibility on those who benefit from that service.
Statute allows
and outlines the process for the formation of 36 types of special taxing
districts including fire districts, irrigation districts, hospital districts,
pest abatement districts and power districts. Although the specific process
depends on the type of district created, the formation in many cases requires
the submission of petitions to the county board of supervisors, followed by a
public hearing. Statute also prescribes mechanisms for the dissolution of
districts and methods for changing district boundaries (
A.R.S. Title 48
).
The transient
lodging classification of transaction privilege tax is comprised of the
business of operating a hotel or motel for occupancy by transients who
obtain the lodging space on a daily or weekly basis or on any other basis for
less than 30 consecutive days (
A.R.S.
� 42-5070
).
����������� There is no anticipated fiscal impact to the
state General Fund associated with this legislation.
Provisions
Tourism
Improvement Area Petition, Formation and Public Hearing
1.
Allows
a governing body to approve the formation of a tourism improvement area and the
lodging business assessment rate on presentation of a formation petition that
includes:
a)
the
signatures of lodging business owners of two or more lodging businesses within
the proposed area that agreed to participate in the area, as prescribed;
b)
the
geographic boundaries of the area;
c)
the
types or classes of lodging businesses that will be subject to the proposed
lodging business assessment;
d)
the
proposed lodging business assessment rate for each type or class of lodging
business that will be subject to the assessment; and
e)
information
specifying where the complete area plan may be obtained and that the complete
area plan is available upon request.
2.
Requires
a tourism improvement area plan to be prepared before the governing body holds
a public hearing to consider forming the area and requires the plan to include:
a)
a map that identifies the boundaries of the proposed area in sufficient
detail to allow a lodging business owner to reasonably determine whether the
business is located within the proposed boundaries;
b)
the name of the area;
c)
the planned activities of the proposed area and an estimate of the
annual cost of the planned activities;
d)
a definition describing the type or class of lodging businesses,
including property size and room information, to be included in the proposed
area and the lodging businesses that will be subject to the proposed lodging
business assessment;
e)
the proposed source of financing, including the proposed method and
basis of levying the lodging business assessment in sufficient detail to allow
each lodging business owner to estimate the amount of the assessment to be
levied against the business;
f)
the estimated total proposed lodging business assessments to be spent
for area activities during the first year of operation of the proposed area and
the formula used to determine each lodging business owner's assessment, which must
be based on benefit; and
g)
the
term of the proposed area.
3.
Caps the initial term of a formed tourism improvement area at 10 years
and renewals at 10 years per renewal.
4.
Requires tourism improvement area activities to be designed to promote
tourism and lodging to enhance the economic development climate in the tourism
improvement area in accordance with all applicable state and federal laws,
regulations and requirements.
5.
Allows a governing body, on receipt of a formation petition, to adopt a
resolution of intention to consider the formation of a tourism improvement
area, if adopted by the governing body.
6.
Requires
the governing body's resolution of intention to consider forming a tourism
improvement area to state:
a)
the date, time and place of a public hearing to consider the formation petition;
b)
the proposed area activities;
c)
an estimated amount of funding necessary to implement the area plan;
d)
the boundaries of the proposed area; and
e)
the
amount of the proposed lodging business assessment.
7.
Requires, if a governing body adopts a resolution that meets the
outlined requirements, a public hearing notice that includes a description of
the tourism improvement area to be sent by mail to each lodging business owner
subject to assessment in the proposed tourism improvement area and published in
a newspaper or online at least 30 days before the hearing.
8.
Requires the governing body to conduct the public hearing at least 30
days after mailing the notice to all lodging business owners subject to
assessment in the proposed tourism improvement area.
9.
Requires the governing board to consider public testimony regarding the
proposed tourism improvement area.
10.
Allows
any lodging business owner proposed to be subjected to a lodging business
assessment to submit a written objection to the governing body at any time
before the public hearing concludes.
11.
Stipulates
that, if written objections are received from lodging business owners that
represent 50 percent or more of the total rooms subject to the lodging business
assessment, the governing body must end the hearing and the municipality or
county may not hold further proceedings on the proposed tourism improvement
area's formation for one year after the hearing date.
Lodging
Business Assessments
12.
Allows a lodging business
assessment to be levied based on either:
a)
fixed rate lodging room rental of up to $5 per night; or
b)
percentage of receipts from lodging room rentals of up to 5 percent by
the lodging business.
13.
Requires the governing body
to contract with its destination marketing organization to manage and implement
the activities specified in the tourism improvement area.
14.
Defines
destination
marketing organization
as a nonprofit organization or governmental unit
that is designated by the governing body as being responsible for the tourism
promotion and marketing of the municipality or county.
15.
Requires the lodging
business assessment to be levied beginning on the first day of the first month
90 days after the governing body's approval of the tourism improvement area
formation petition and requires the assessment to be paid to the Arizona
Department of Revenue (ADOR).
16.
Requires lodging business
assessments that are levied to conduct tourism improvement area activities to
provide benefits to lodging businesses and associated industries located within
the area and that are subject to the assessment.
17.
Allows lodging business
assessments to vary by types or classes of lodging businesses as described in
the tourism improvement area plan, including the size of the lodging property
or number of rooms at the property.
18.
Requires ADOR to report to
the State Treasurer the amount of collected lodging business assessments.
19.
Requires the State Treasurer
to transmit monthly to the treasurer of the municipality or county where the
tourism improvement area is located the amount collected from lodging business
assessments within the area and requires that amount to be transmitted from the
treasurer to the destination marketing organization managing the area.
20.
Requires the destination
marketing organization managing the tourism improvement area and the governing
body to report to ADOR the amount of the lodging business assessment and supply
ADOR and the State Treasurer with all requested information necessary.
21.
Requires ADOR and the
applicable governing body to enter into an intergovernmental agreement that
provides for ADOR to receive monies for the costs of administering the lodging
business assessment from the proceeds of that lodging business assessment.
22.
Prohibits the validity of a
lodging business assessment from being contested in an action or proceeding, unless
the action or proceeding is commenced within 30 days after the resolution
levying the lodging business assessment is adopted.
23.
Requires any appeal from a
final judgment in an action or proceeding contesting the validity of a lodging
business assessment to be perfected within 30 days after the entry of judgment.
Tourism
Improvement Area Management by Lodging Business Owners' Board
24.
Requires each tourism
improvement area to be governed by an owners' board composed of a majority of
the assessed lodging business owners located within the tourism improvement
area or their authorized representatives.
25.
Allows a representative of
the county or municipality to have a nonvoting, ex officio seat on the owner's
board.
26.
Requires the owners' board,
on governing body approval of the tourism improvement area and annually
thereafter, to submit to ADOR the approved tourism improvement area map with
details on the assessed properties in a form and manner required by ADOR.
27.
Grants a destination
marketing organization that manages the tourism improvement area all the powers
possessed by a nonprofit corporation organized pursuant to Arizona laws,
including the authority to accept donations or gifts of monies and property, to
apply for and receive grants from public and private sources and to carry over
monies from one fiscal year to the next.
28.
Requires the destination
marketing organization that manages the tourism improvement area, beginning the
first full year of formation, to file an annual report with the governing body
within 120 days after the end of the tourism improvement area's fiscal year
that includes:
a)
the area activities provided for the previous year;
b)
the amount of area monies spent on area activities for the previous
fiscal year; and
c)
the estimated amount of any surplus or deficit monies to be carried over
from the previous fiscal year.
Tourism
Improvement Area Plan Amendments
29.
Allows, on the written
request of the destination marketing organization that manages the tourism
improvement area and after approval by a majority of the lodging business
owners' board, to amend the tourism improvement area plan as prescribed.
30.
Requires the governing body,
if the amendment includes a new or increased lodging business assessment, to:
a)
provide notice of a public hearing by mail to each lodging business
owner that is subject to lodging business assessment in the tourism improvement
area and publish the notice in a newspaper or online at least 30 days before
the hearing;
b)
hold a public hearing on the amendment at least 30 days after mailing
the notice to the assessed lodging business owners; and
c)
provide
notice of any approved tourism improvement area plan amendment to ADOR in the
manner required ADOR.
31.
Specifies
that the governing body is not required to hold a public hearing on an
amendment that does not include a new or increased assessment.
32.
Prohibits
a tourism improvement area plan amendment from including any changes to the
tourism improvement plan's boundaries.
Tourism
Improvement Area Participation and Dissolution
33.
Deems
a lodging business owner who signed the tourism improvement area formation
petition to have joined the area on its establishment.
34.
Specifies
that an owner of a lodging business located with the tourism improvement area
who did not sign the formation petition is not a participant of the area but
may join the area within 60 days after establishment of the area by filing a
notice of joinder.
35.
Establishes
s 60-day period each year in which lodging business owners that have paid
lodging business assessments may request dissolution of the tourism improvement
area.
36.
Requires
the initial 60-day period to begin one year after the date of establishment of
the tourism improvement area.
37.
Requires
the destination marketing organization to annually notify, six months in
advance, lodging business owners within the tourism improvement area that any
owner may join or withdraw from the area during the annual 60-day dissolution
period.
38.
Allows
any lodging business owner to join or withdraw from the tourism improvement
area during the annual 60-day period provided for dissolution by filing a
written notice of joinder or withdrawal with the owners' board.
39.
Requires
the owners' board to notify ADOR and the applicable governing body if a lodging
business owner joins or withdraws from the tourism improvement area during the
annual
60-day period.
40.
Specifies
that a lodging business owner that files a notice of withdrawal is not subject
to the lodging business assessment and is no longer eligible for membership on
the owners' board.
41.
Allows
a lodging business owner that has withdrawn from the tourism improvement area
to rescind its withdrawal by filing written notice of rescission with the
owners' board thereby becoming subject to the lodging business assessment on
the first day of the fiscal year after rescission.
42.
Requires
the governing body, after receiving a petition submitted by the lodging
business owners that represent 50 percent or more of the total assessed rooms
within the tourism improvement area, to pass a resolution of intent to dissolve
the area.
43.
Requires
the governing body to hold a hearing on the dissolution petition and provide
notice of the hearing, as prescribed.
44.
Allows
the governing body to adopt a dissolution resolution only when the tourism
improvement area has satisfied all debts or the governing body finds there has
been a misappropriation of monies, malfeasance or a violation of law in
connection with the management of the area.
45.
Requires
a dissolution resolution to state the reason for the dissolution and the time
and place of the public hearing and to contain a proposal to dispose of any
assets acquired with the monies of the lodging business assessments levied
within the tourism improvement area.
46.
Requires
the governing body to conduct the public hearing at least 30 days after mailing
the notice of hearing but before 60 days after adopting the dissolution
resolution.
47.
Requires,
on dissolution or expiration of a tourism improvement area, any monies that
remain after all debts of the area are paid to be spent in accordance with the
tourism improvement area plan or be refunded to the lodging business owners
within the area at the time of dissolution.
48.
Requires
monies refunded to lodging business owners to be refunded using the same method
and basis used by the destination marketing organization to establish the
lodging business assessments levied in the fiscal year in which the tourism
improvement area terminates.
Tourism
Improvement Area Renewal
49.
Allows
a tourism improvement area to be renewed for a new term and requires, on
renewal, the governing body to transfer any remaining monies held by the area
to the renewed area.
50.
Allows
a renewed tourism improvement area to engage in different area activities than
the original area.
Lodging
Business Owner Representatives
51.
Allows
a lodging business owner to appoint an authorized agent to act as the owner's
representative for the purposes of forming and managing a tourism improvement
area.
52.
Considers
a lodging business owner's representative as the owner for the purposes of any
signature required for a formation petition, serving on a board or committee or
any other purpose authorized by the owner.
53.
Specifies
that a governing body has no obligation to obtain other information as to the
ownership of a lodging business and its determination of ownership must be
final and conclusive for the purposes prescribed in statute.
Miscellaneous
54.
Prohibits a governing body
from forming a proposed tourism improvement area within the jurisdiction of
another local government without the consent of the other jurisdiction's
governing body.
55.
Specifies that, unless the
context otherwise requires, the statutes governing transaction privilege tax
governs the administration of the lodging business assessment, except that:
a)
a separate license is not required for the lodging business assessment;
and
b)
a separate bond is not required for employees of ADOR to administer the
assessments.
56.
Defines terms.
57.
Contains a statement of
legislative findings.
58.
Becomes effective on the
general effective date.
Amendments Adopted by
Committee of the Whole
1.
Removes the requirement for the destination marking organization that
manages a tourism improvement area to establish lodging business assessments on
lodging businesses within the area and removes the authority for the
organization to levy the assessments.
2.
Allows a city, town or county governing body to approve a lodging
business assessment rate on presentation of a tourism improvement area
formation petition.
3.
Requires the lodging business assessment to be levied 90 days after the
governing body approves the formation petition, rather than 90 days after the
lodging business owners' board is established.
4.
Specifies that a lodging business owner within a tourism improvement
area who did not sign the formation petition is not a tourism improvement area
participant.
5.
Removes the specification that any lodging business that commences
operations during a tourism improvement area's term is subject to a lodging
business assessment.
6.
Stipulates that a city, town or county governing body may amend a
tourism improvement area's plan only after approval by a majority of the
lodging business owners' board.
7.
Specifies that the signatures of two lodging business owners that are
required to be included in a tourism improvement area formation petition must
be from lodging business owners that agreed to participate in the area.
8.
Makes technical and conforming changes.
House Action
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Senate
Action
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Prepared by
Senate Research
April 21, 2026
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Current Bill Text
Read the full stored bill text
HB2950 - 572R - H Ver
House Engrossed
tourism improvement
areas; municipalities; counties
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2950
AN
ACT
amending title 48, Arizona Revised
Statutes, by adding chapter 38; relating to special districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 48, Arizona Revised Statutes,
is amended by adding chapter 38, to read:
CHAPTER
38
TOURISM
IMPROVEMENT AREAS
ARTICLE
1. GENERAL PROVISIONS
START_STATUTE
48-6501.
Definitions
In this chapter, unless the context otherwise
requires:
1. "board" MEANS the board
of supervisors of the county.
2.
"Destination
marketing organization" means a nonprofit
organization or governmental unit that is designated by the governing body as
being responsible for the tourism promotion and marketing of the municipality
or county.
3. "Governing body" means
the governing body or board that by law is constituted as the legislative
department of the municipality or county.
4. "Lodging business":
(
a
) Means any business providing transient lodging as
prescribed by section 42-5070.
(
b)
Includes a property that begins providing transient
lodging as prescribed by section 42-5070 after the ESTABLISHMENT of a tourism
improvement area that includes the property.
5. "lodging business
assessment" means a levy on room rentals at a business that is classified
under section 42-5070.
6. "Lodging business owner"
means a person recognized as the owner of a lodging business that is subject to
a lodging business assessment.
7. "municipality" means a
city or town.
8. "owners'
board" means
the designated individuals
that govern the activities of the tourism improvement area and
may be the board of directors of the destination marketing
organization or a committee of the destination marketing organization as long
as the owners' board is composed
of at least a majority
of lodging business owners THAT ARE SUBJECT TO THE ASSESSMENT.
9. "Tourism improvement
area" means an improvement area of contiguous or noncontiguous boundaries.
10. "Tourism improvement area
activity":
(
a
) Means any advertising, promotion or business recruitment
that is directly related to lodging businesses in a tourism improvement area.
(
b
) Does not include activities that are directly or
indirectly related to construction and maintenance of physical infrastructure.
11. "tourism improvement area
plan" means a proposal for a tourism improvement area that contains
information required pursuant to section 48-6503.
END_STATUTE
START_STATUTE
48-6502.
Petition; requirements
A. On
presentation of a petition pursuant to this section, the governing body may
approve the formation of a tourism improvement area. The petition for the
formation of the tourism improvement area must include and identify the
following:
1. The signature of lodging business
owners of two or more lodging businesses WITHIN a proposed tourism improvement
area.
2. The geographic boundaries of the
proposed tourism improvement area.
3. THE TYPES OR CLASSES OF LODGING
BUSINESSES THAT WILL BE SUBJECT TO THE proposed lodging business ASSESSMENT.
4. THE proposed lodging business
ASSESSMENT RATE FOR EACH TYPE OR CLASS OF LODGING BUSINESS THAT WILL BE SUBJECT
TO THE lodging business ASSESSMENT.
5. INFORMATION SPECIFYING WHERE THE
COMPLETE tourism improvement area PLAN may BE OBTAINED and that the complete
tourism improvement area plan is AVAILABLE on request.
B. A LODGING BUSINESS owner MAY
APPOINT AN AUTHORIZED AGENT TO ACT AS the lodging business owner's
REPRESENTATIVE FOR THE PURPOSES OF THIS chapter. The lodging
business owner's Representative is CONSIDERED THE LODGING BUSINESS OWNER FOR
THE PURPOSES OF ANY SIGNATURE REQUIRED
for a petition
prescribed by this section, serving on a board or committee OR FOR ANY OTHER
PURPOSE AUTHORIZED BY THE LODGING BUSINESS OWNER. THE governing body
has NO OBLIGATION TO OBTAIN OTHER INFORMATION AS TO THE OWNERSHIP OF the
LODGING BUSINESS, AND ITS DETERMINATION OF OWNERSHIP SHALL BE FINAL AND
CONCLUSIVE FOR THE PURPOSES OF THIS chapter.
END_STATUTE
START_STATUTE
48-6503.
Tourism improvement area plan; information
A. A tourism improvement area PLAN
must BE PREPARED BEFORE THE PUBLIC HEARING ON THE PROPOSED Tourism improvement
area held pursuant to section 48-6504. The tourism improvement area plan
must INCLUDE all of THE FOLLOWING:
1. A MAP THAT IDENTIFIES THE
BOUNDARIES of the proposed tourism improvement area IN SUFFICIENT DETAIL TO
ALLOW A LODGING BUSINESS OWNER TO REASONABLY DETERMINE WHETHER the LODGING
BUSINESS IS LOCATED WITHIN THE proposed tourism improvement area BOUNDARIES.
2. THE NAME OF THE PROPOSED TOURISM
IMPROVEMENT AREA.
3. THE planned tourism improvement
area activities of the proposed tourism improvement area AND an estimate of the
annual cost of the planned tourism improvement area
activities.
4. A DEFINITION
DESCRIBING THE TYPE OR CLASS OF LODGING BUSINESSES TO BE INCLUDED IN THE
proposed tourism improvement area AND the lodging businesses that will be
SUBJECT TO THE proposed LODGING BUSINESS ASSESSMENT.� THe definition MAY
INCLUDE THE SIZE OF THE LODGING PROPERTY OR NUMBER OF ROOMS AT THE LODGING
PROPERTY.
5. THE PROPOSED SOURCE OF FINANCING,
INCLUDING THE PROPOSED METHOD AND BASIS OF LEVYING THE LODGING BUSINESS
ASSESSMENT IN SUFFICIENT DETAIL TO ALLOW EACH LODGING BUSINESS OWNER TO
ESTIMAte THE AMOUNT OF the LODGING business ASSESSMENT TO BE LEVIED AGAINST THE
LODGING BUSINESS.
6. THE ESTIMATED total proposed
LODGING BUSINESS ASSESSMENTS TO BE spent FOR Tourism improvement area
ACTIVITIES DURING THE FIRST YEAR OF OPERATION OF THE proposed tourism
improvement area AND THE FORMULA USED TO DETERMINE EACH lodging business
OWNER'S LODGING BUSINESS ASSESSMENT, WHICH SHALL BE BASED ON BENEFIT.
7. THE TERM OF THE proposed tourism
improvement area.
B. Lodging business assessments that
are levied to CONDUCT Tourism improvement area ACTIVITIES must PROVIDE BENEFITS
TO LODGING BUSINESSES
and associated industries that are
LOCATED WITHIN THE tourism improvement area and THAT ARE SUBJECT TO THE LODGING
BUSINESS ASSESSMENT. LODGING BUSINESS ASSESSMENTS MAY VARY BY TYPES
OR CLASSES OF LODGING BUSINESSES AS DESCRIBED IN THE TOURISM IMPROVEMENT AREA
PLAN, INCLUDING THE SIze OF THE LODGING PROPERTY OR NUMBER OF ROOMS AT THE
LODGING PROPERTY. A LODGING BUSINESS ASSESSMENT MAY BE LEVIED BASED
ON any of the following:
1. FIXED RATE PER lodging
room rental PER DAY.
2. PERCENTAGE OF
receipts on lodging room rentals.
C. THE VALIDITY OF A lodging business
ASSESSMENT LEVIED by a formed tourism improvement area MAY NOT BE CONTESTED IN
AN ACTION OR PROCEEDING UNLESS THE ACTION OR PROCEEDING IS COMMENCED WITHIN
thirty DAYS AFTER THE RESOLUTION LEVYING THE LODGING BUSINESS ASSESSMENT IS
ADOPTED. ANy APPEAL FROM A FINAL JUDGMENT IN AN ACTION OR PROCEEDING contesting
the validity of a lodging business assessment must BE PERFECTED WITHIN thirty
DAYS AFTER THE ENTRY OF JUDGMENt.
D. tourism improvement area
activities must be DESIGNED TO PROMOTE TOURISM AND LODGING TO ENHANCE THE
ECONOMIC DEVELOPMENT CLIMATE IN THE tourism improvement AREA in accordance WITH
ALL APPLICABLE LAWS, REGULATIONS AND REQUIREMENTS OF THis state AND THE UNITED
STATES.
END_STATUTE
START_STATUTE
48-6504.
Formation; public hearing
a. On
receipt of a valid petition, THE GOVERNING BODY may ADOPT A RESOLUTION OF
INTENTION TO CONSIDER THE formation OF A tourism improvement area, if adopted
by the governing body. THE RESOLUTION OF INTENTION must STATE all of
the following:
1. The date, TIME AND PLACE OF A
public HEARING TO CONSIDER the petition for formation of a tourism improvement
area.
2. THE proposed Tourism improvement
area ACTIVITIES.
3. An ESTIMATED AMOUNT OF FUNDING
necessary to implement the tourism improvement area plan.
4. THE BOUNDARIES OF THE PROPOSED
Tourism improvement area.
5. THE AMOUNT OF THE PROPOSED lodging
business assessment.
B. If a resolution
consistent with subsection A of this section is adopted by the governing body,
THE NOTICE OF THE PUBLIC HEARING SHALL BE sent BY MAIL TO EACH LODGING BUSINESS
owner SUBJECT TO ASSESSMENT IN THE proposed tourism improvement area AND
PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION IN THE MUNICIPALITY or county
OR ON THE MUNICIPALITY'S or county's PUBLIC WEBSITE at least
thirty
DAYS before THE
DATE OF THE HEARING. THE NOTICE must ALSO CONTAIN A DESCRIPTION OF
THE proposed tourism improvement area AS SET FORTH IN THE RESOLUTION OF
INTENTION.
c. THE GOVERNING BODY
SHALL CONDUCT THE PUBLIC HEARING at least Thirty DAYS AFTER MAILING THE NOTICE
TO all LODGING BUSINESS OWNERS identified pursuant to subsection b of this
section.
D. THE GOVERNING BODY SHALL CONSIDER
PUBLIC TESTIMONY REGARDING THE PROPOSED Tourism improvement
area. ANY LODGING BUSINESS PROPOSED TO BE SUBJECTed TO A lodging
business ASSESSMENT MAY SUBMIT A WRITTEN OBJECTION TO THE governing body AT ANY
TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING.� IF WRITTEN OBJECTIONS ARE
RECEIVED FROM LODGING BUSINESS OWNERS THAT REPRESENT fifty percent OR MORE OF
THE TOTAL ROOMS
THAT ARE SUBJECT TO THE ASSESSMENT, THE
governing body shall end the HEARING AND THE MUNICIPALITY or county may not
hold any FURTHER PROCEEDINGS on the formation of the proposed tourism
improvement area FOR A PERIOD OF ONE YEAR after THE DATE OF THE HEARING.
E. The governing body of a
MUNICIPALITY MAY NOT FORM A proposed tourism improvement area WITHIN THE
UNINCORPORATED TERRITORY OF A COUNTY WITHOUT THE CONSENT OF THE BOARD OF
SUPERVISORS OF THAT COUNTY. the governing body of a MUNICIPALITY MAY
NOT FORM A proposed tourism improvement area WITHIN THE TERRITORIAL
JURISDICTION OF ANOTHER MUNICIPALITY WITHOUT THE CONSENT OF THE GOVERNING BODY
OF THE OTHER MUNICIPALITY. the board of supervisors may not form a proposed
tourism improvement area within the territorial jurisdiction of another county
without consent of the board of supervisors of the other county.
F. The initial term of a formed
tourism improvement area may NOT EXCEED TEn YEArs and subsequent renewals of
the tourism improvement area may not exceed ten years per renewal.
G. ANY LODGING BUSINESS OF THE TYPES
OR CLASSES THAT ARE SUBJECT TO THE LODGING BUSINESS ASSESSMENT THAT COMMENCES
OPERATIONS DURING THE tourism improvement area'S TERM is SUBJECT TO a lodging
business ASSESSMENT
, except as prescribed by section
48-6507,
SUBSECTION
C.
END_STATUTE
START_STATUTE
48-6505.
Management; annual report
a. EACH Tourism improvement area
SHALL BE
governed BY AN OWNERS'
board
composed of a majority of the ASSESSED lodging business owners located within
the tourism improvement area or their authorized representatives.� A
representative of the municipality or county may have a nonvoting, ex officio
seat on the owner's board.
B. THE governing body SHALL CONTRACT
WITH
its destination marketing organization TO
manage and implement THE TOURISM IMPROVEMENT AREA ACTIVITIES SPECIFIED
IN THE TOURISM IMPROVEMENT AREA PLAN.
C.
The destination marketing organization managing the tourism
improvement area has all of the POWERS POSSESSED BY A NONPROFIT CORPORATION
ORGANIZED PURSUANT TO the laws of this state, INCLUDING THE AUTHORITY TO ACCEPT
DONATIONS OR GIFTS OF MONies AND PROPERTY, TO APPLY FOR AND RECEIVE GRANTS FROM
PUBLIC AND PRIVATE SOURCES AND TO CARRY OVER monies FROM ONE FISCAL YEAR TO THE
NEXT.
D. ON GOVERNING BODY APPROVAL of the
tourism improvement area AND ANNUALLY THEREAFTER, THE OWNERS' BOARD SHALL
SUBMIT to the department of revenue THE APPROVED TOURISM IMPROVEMENT AREA MAP
WITH DETAILS ON THE ASSESSED PROPERTIES IN A FORM AND MANNER REQUIRED BY THE
DEPARTMENT of revenue.
E. THE
destination
marketing organization that manages the TOURISM IMPROVEMENT AREA SHALL FILE AN
ANNUAL REPORT WITH THE governing body WITHIN one hundred twenty DAYS after THE
END OF THE TOURISM IMPROVEMENT AREA'S FISCAL YEAR. THE REQUIREMENT
FOR FILING AN ANNUAL REPORT SHALL begin IN THE FIRST FULL FISCAL YEAR AFTER
TOURISM IMPROVEMENT AREA FORMATION.
F. The ANNUAL REPORT required
pursuant to subsection
E of this section must INCLUDe all
of the following:
1. THE TOURISM IMPROVEMENT AREA
ACTIVITIES PROVIDED FOR THE PREVIOUS FISCAL YEAR.
2. THE AMOUNT OF TOURISM IMPROVEMENT
AREA monies spent ON TOURISM IMPROVEMENT AREA ACTIVITIES FOR THE PREVIOUS
FISCAL YEAR.
3. THE ESTIMATED AMOUNT OF ANY
SURPLUS OR DEFICIT monies TO BE CARRIED OVER FROM THE PREVIOUS FISCAL YEAR.
END_STATUTE
START_STATUTE
48-6506.
Tourism improvement area plan; amendments
A. ON
THE WRITTEN REQUEST OF THE
destination marketing
organization managing the TOURISM IMPROVEMENT AREA, THE governing body MAY
AMEND THE TOURISM IMPROVEMENT AREA PLAN PURSUANT TO THIS SECTION.
B. If THE tourism improvement area
plan AMENDMENT INCLUDES A NEW OR INCREASED LODGING business ASSESSMENT, THE
GOVERNING BODY shall do all of the following:
1. HOLD A PUBLIC HEARING ON THE
AMENDMENT at least thirty DAYS AFTER MAILING THE NOTICE TO THE ASSESSED LODGING
BUSINESS OWNERS that is required pursuant to paragraph 2 of this subsection.
2. PROVIDE NOTICE OF THIS MEETING BY
MAIL TO EACH LODGING BUSINESS owner that is SUBJECT TO lodging business
ASSESSMENT IN THE TOURISM IMPROVEMENT AREA AND PUBLISH THE NOTICE IN A
NEWSPAPER OF GENERAL CIRCULATION IN THE MUNICIPALITY or county OR ON THE
MUNICIPALITY'S or county's PUBLIC WEBSITE at least
thirty
DAYS before THE DATE OF THE HEARING.
3. Provide notice of any approved
tourism improvement area plan amendment to the department of revenue in the
manner required by the department of revenue.
c. IF THE AMENDMENT DOES NOT INCLUDE
A NEW OR INCREASED ASSESSMENT, THE GOVERNING BODY is not required to HOLD A
PUBLIC HEARING ON THE AMENDMENT.
D. Amendments to a tourism
improvement area plan may not include any changes to the tourism improvement
area's boundaries.
END_STATUTE
START_STATUTE
48-6507.
Lodging business assessments; withdrawal; rescission; collection;
disbursement
a.
Except as
prescribed by
SUBSECTION
C
of this section, tHE
destination marketing organization managing the tourism improvement
area SHALL ESTABLISH lodging business ASSESSMENTS ON the lodging businesses
located WITHIN the tourism improvement area. THE
destination marketing organization managing the tourism improvement
area MAY LEVY A lodging business ASSESSMENT OF NOT MORE THAN $5
per night or five percent
of the receipts from
room rentals by THE LODGING business IN THE TOURISM IMPROVEMENT AREA.
B. A lodging business owner who
signed the petition for the formation of the tourism improvement area pursuant
to section 48-6502 is deemed to have joined the tourism improvement area on its
establishment. An owner of a lodging business located within the tourism
improvement area who did not sign the petition for the formation of the tourism
improvement area may join the tourism improvement area within sixty days after
the establishment of the tourism improvement area by filing a notice of joinder.
C. ANY LODGING BUSINESS OWNER MAY
join or withdraw from THE TOURISM IMPROVEMENT AREA DURING THE same annual
SIXTY-DAY PERIOD PROVIDED for dissolution IN section 48-6508, subsection B BY
FILING A WRITTEN NOTICE OF joinder or withdrawal WITH THE OWNERS' BOARD. �A
LODGING BUSINESS OWNER that FILES A NOTICE OF withdrawal is NOT SUBJECT TO THE
LODGING BUSINESS ASSESSMENT AND is NO LONGER ELIGIBLE FOR MEMBERSHIP ON THE
OWNERS' BOARD. A LODGING BUSINESS OWNER that HAS withdrawn from the TOURISM
improvement area MAY RESCIND its WITHDRAWAL BY FILING A WRITTEN NOTICE OF
RESCISSION WITH THE OWNERS' BOARD AND, on DOING SO, is SUBJECT TO THE LODGING
BUSINESS ASSESSMENT BEGINNING ON THE FIRST DAY OF THE TOURISM IMPROVEMENT AREA
FISCAL YEAR AFTER THE NOTICE OF RESCISSION IS FILED.
D. IF A LODGING business OWNER joins
or WITHDRAWS from THE TOURISM IMPROVEMENT AREA DURING THE SIXTY-DAY PERIOD
prescribed by subsection C OF THIS SECTION, THE OWNERS' BOARD SHALL NOTIFY THE
DEPARTMENT of revenue AND THE GOVERNING BODY.
E. The destination marketing
ORGANIZATION for the tourism improvement area shall notify the lodging business
owners that are within the tourism IMPROVEMENT area that any LODGING business
owner may join or withdraw from the TOURISM improvement area during the annual
sixty-day period prescribed by subsection C of this section. The destination
marketing organization shall provide the notice annually to the lodging
business owners six months before the beginning of the sixty-day period.
F. THE lodging business ASSESSMENT
SHALL BE LEVIED BEGINNING ON THE FIRST DAY OF THE FIRST MONTH NINETY DAYS AFTER
THE OWNERS' board IS ESTABLISHED.�
The assessment shall
be paid to the department of revenue.� THE DEPARTMENT of revenue SHALL REPORT
TO THE STATE TREASURER THE AMOUNT OF lodging business assessments COLLECTED
PURSUANT TO THIS SECTION.
G. THE STATE TREASURER SHALL TRANSMIT
TO THE TREASURER OR OFFICER EXERCISING THE FUNCTIONS OF TREASURER OF THE
MUNICIPALITY or county where the tourism improvement area is located on a
monthly basis THE AMOUNT COLLECTED FROM lodging business assessments WITHIN THE
TOURISM IMPROVEMENT AREA.
H. THE TREASURER OR the OFFICER
EXERCISING THE FUNCTIONS OF TREASURER OF THE MUNICIPALITY or county in which
the tourism improvement area is located shall TRANSMIT on a monthly basis the
amount RECEIVED from the department of revenue to the DESTINATION MARKETING
organization managing the tourism IMPROVEMENT area.
I. ThE
destination
marketing organization managing the tourism improvement area AND the governing
body THAT IS PARTICIPATING IN THE TOURISM IMPROVEMENT AREA SHALL REPORT TO THE
DEPARTMENT OF REVENUE THE amount of the lodging business ASSESSMENT AND SUPPLY
THE DEPARTMENT OF REVENUE AND THE STATE TREASURER WITH ALL REQUESTED INFORMATION
NECESSARY TO ADMINISTER THIS SECTION.
J. The department of revenue and the
governing body that is participating in the tourism improvement area shall
enter into an intergovernmental agreement that provides for the department of
revenue to receive monies for
the costs of administering
the lodging business assessment from the proceeds of that lodging business
assessment.
K. Unless the context otherwise
requires, title 42, chapter 5, article 1 governs the administration of the
lodging business assessment, except that:
1. A separate license is not required
for the lodging business assessment imposed by this section.
2. A separate bond is not required
for employees of the department of revenue for administering this section.
END_STATUTE
START_STATUTE
48-6508.
Renewal; dissolution; remaining revenue
a. An
established TOURISM IMPROVEMENT AREA MAY be renewed for a new term. A renewed
TOURISM IMPROVEMENT AREA may engage in different tourism improvement area
activities than the original tourism improvement area. �On RENEWAL of a tourism
improvement area, the governing body shall transfer any remaining monies held
by the tourism improvement area TO THE RENEWED TOURISM IMPROVEMENT AREA.
B. DuRING THE term of THE TOURISM
IMPROVEMENT AREA, THERE SHALL BE A sixty-DAY PERIOD EACH YEAR IN WHICH
LODGING BUSINESS OWNERS that have paid lodging business ASSESSMENTS MAY REQUEST
DISSOLUTION OF THE TOURISM IMPROVEMENT AREA. THE initial sixty-day
period shall BEGIN ONE YEAR AFTER THE DATE OF ESTABLISHMENT OF THE TOURISM
IMPROVEMENT AREA. ON receipt of a PETITION submitted by THE LODGING
BUSINESS OWNERS THAT REPRESENT fifty percent OR MORE OF THE TOTAL
number of assessed ROOMS WITHIN THE TOURISM IMPROVEMENT AREA, THE
GOVERNING BODY SHALL PASS A RESOLUTION OF INTENTION TO DISSOLVE THE TOURISM
IMPROVEMENT AREA. THE GOVERNING BODY SHALL hold a hearing on the
petition to dissolve the tourism improvement area and shall provide NOTICE of
the hearing pursuant to the notice requirements of section 48-6504.
C. The governing body may adopt a
resolution to dissolve A TOURISM IMPROVEMENT AREA. The governing
body may only adopt a resolution to dissolve a tourism improvement area WHEN
THE tourism improvement area has satisfied all debts of the tourism improvement
AREa. The governing body may also dissolve a tourism improvement area if tHE
GOVERNING BODY FINDS THERE HAS BEEN MISAPPROPRIATION OF monies, MALFEASANCE OR
A VIOLATION OF LAW IN CONNECTION WITH THE MANAGEMENT OF THE TOURISM IMPROVEMENT
AREa.
D. THE RESOLUTION adopted by the
governing body pursuant to subsection b or c of this section SHALL STATE THE
REASON FOR THE DISSOLUTION and THE TIME AND PLACE OF THE PUBLIC HEARING AND
SHALL CONTAIN A PROPOSAL TO DISPOSE OF ANY ASSETS ACQUIRED WITH THE monies OF
THE lodging business ASSESSMENTS LEVIED WITHIN THE TOURISM IMPROVEMENT AREA.
THE NOTICE OF THE HEARING ON DISSOLUTION REQUIRED BY THIS SECTION SHALL BE
GIVEN BY MAIL TO each lodging business owner that is SUBJECT TO a lodging
business ASSESSMENT IN THE TOURISM IMPROVEMENT AREA AND PUBLISHED IN A
NEWSPAPER OF GENERAL CIRCULATION IN THE MUNICIPALITY or county OR ON THE
MUNICIPALITY'S or county's PUBLIC WEBSITE at least
thirty
DAYS before THE DATE OF THE HEARING. THE GOVERNING BODY SHALL
CONDUCT THE PUBLIC HEARING at least thirty DAYS AFTER mailing the notice of
hearing. THE PUBLIC HEARING SHALL BE HELD NOT MORE THAN sixty DAYS
AFTER THE ADOPTION OF THE RESOLUTION OF INTENTION to dissolve the tourism
improvement area.
E. On THE DISSOLUTION OR EXPIRATION
WITHOUT RENEWAL OF A TOURISM IMPROVEMENT AREA, any monies that remain AFTER ALL
DEBTS of the tourism improvement area ARE PAID SHALL BE SPENT IN ACCORDANCE
WITH THE TOURISM IMPROVEMENT AREA PLAN OR SHALL BE REFUNDED TO THE lodging
business OWNERS OF THE LODGING BUSINESSES that are LOCATED AND OPERATING WITHIN
THE TOURISM IMPROVEMENT AREA at the time of dissolution of the tourism
improvement area. remaining monies that are to be refunded to lodging
business owners shall be refunded using THE SAME METHOD AND BASIS THAT WAS USED
by the destination marketing organization TO establish THE lodging business
ASSESSMENTS LEVIED IN THE FISCAL YEAR IN WHICH THE TOURISM IMPROVEMENT AREA IS
DISSOLVED OR EXPIRES.
END_STATUTE
Sec. 2.
Legislative
findings
The legislature finds that:
1. Many tourism and lodging
businesses located and operating in municipalities and counties in this state
struggle to compete with destinations in other states in attracting overnight
visitation.
2. Tourism
improvement areas will help municipalities within this state to grow leisure,
convention and event visitor demand by promoting tourism, business activities,
economic growth and employment within this state.
3. Because additional
services and activities will provide direct benefits to the lodging businesses
that choose to participate within a tourism improvement
area, the most equitable method of financing tourism improvement area
activities is to levy a lodging business assessment on lodging businesses that
will benefit from a tourism improvement area.
4. Tourism and lodging
demand generated by a tourism improvement area will increase revenue for this
state.
5. Tourism lodging business
owners should be encouraged to create a tourism improvement area to enhance the
local tourism business climate.
6. Tourism improvement area
activities are intended to supplement and not replace existing governmental
activities and services.