Bill would let resort communities offer voter‑approved sales surcharge to fund housing and infrastructure

Senate Bill 172 would expand an existing option for resort communities to raise a voter‑approved local sales surcharge for infrastructure and — newly added in this bill — workforce housing. The Senate committee recommended the bill do pass on second reading.

The nut graf: the measure responds to housing shortages in tourism‑dependent towns by giving local voters in resort communities the option to approve an extra 1 percent sales surcharge (subject to the local cap described in statute) and use revenues for workforce housing as well as infrastructure projects.

Senator Fern, sponsor of the bill, said the statute applies to localities that meet the legal definition of a resort community (population under 5,500 at the time of designation and with 50 percent or more of the economy based on tourism). The bill deliberately left the definition of “workforce housing” to local voters and authorities, the sponsor said, so local communities could tailor projects to their needs. Supporters emphasized the importance of workforce housing in places where tourism drives the economy and housing costs make it difficult for workers to live locally.

There was no substantive floor amendment; the clerk recorded the committee recommendation and later recorded the recorded tally listed in the committee report as 42–8 on second reading. The bill will advance to further Senate consideration.

If enacted, the law would permit resort communities or resort districts to place the surcharge question before local voters and dedicate approved revenue to infrastructure or workforce housing projects, subject to current statutory voter‑approval processes.

Votes recorded: committee recommended do pass on second reading; clerk recorded 42 ayes and 8 nays.