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Bill would restore tourism marketing share in rooms-and-meals split; industry warns of cuts if not fixed
Summary
Senate Bill 63, introduced by Sen. Tim Lang, would clarify that the state's 3.15% promotional allocation for travel-and-tourism be taken from gross rooms-and-meals revenue before the 30% municipal allocation, a change Lang and industry witnesses said corrects a DRA interpretation that they say reduced the effective tourism marketing pot in statute.
Senate Bill 63, introduced by Sen. Tim Lang at the Ways and Means Committee public hearing, would clarify how the rooms-and-meals tax is split so that the 3.15% allocation for state travel-and-tourism promotion is removed from gross revenue before the 30% municipal share is calculated.
The bill, Lang told the committee, "puts it back to the way it was" by ensuring the Division of Travel and Tourism's marketing allocation is taken first from gross rooms-and-meals revenue, then the remaining amount is split between the state and municipalities. Lang said the change corrects an unintended interpretation by the Department of Revenue Administration (DRA) that had directed the municipal reimbursement fund to be paid before the promotional allocation.
Why it matters: Industry witnesses told lawmakers that the promotional allocation supports statewide marketing that…
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