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Tourism fund overview: bed tax distribution, Experience Scottsdale contract and new city destination marketing plans
Summary
Staff reviewed the Tourism Development Fund (bed tax) structure, Experience Scottsdale’s contract and city plans for a new 5 percent destination‑marketing allocation. Commissioners were briefed on transfers to the general fund, event funding and capital uses.
Scott [last name not specified], finance staff, and Rachel Smetana, tourism and events director, presented the proposed FY 2025‑26 Tourism Development Fund budget and described how bed tax revenue is allocated and spent.
The Tourism Development Fund is governed by a voter‑approved change (Prop 200) that raised the transient occupancy (bed) tax to 5 percent and dedicates half of the increase to destination marketing; the other half may be used for tourism events, research, capital projects and related uses. Staff said the fund is projected to receive about $38.8 million in the current forecast, up from original adopted estimates due to stronger bed‑tax receipts.
Staff described the allocation structure: 50 percent of the bed tax goes to destination marketing, of which 45 percentage points…
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