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House approves tourism marketing incentive that ties funding to a 4% growth target
Summary
House Bill 107 passed unanimously on the floor after debate about oversight and local impacts. The bill creates a tourism performance marketing fund that could direct up to $3 million from the general fund when tourism-related revenue grows by at least 4%.
The Utah House on Feb. 6 approved House Bill 107, an economic development measure that expands funding for state tourism marketing and creates an incentive structure to encourage industry spending.
Representative Cheryl L. Allen, sponsor of the amendment and floor manager, told the chamber that Utah currently spends about "43.7% of the national average" on tourism advertising and that lost market share has cost the state an estimated $33 million a year in state and local tax revenue. The bill sets a trigger: if specified tourism-related state revenue categories rise by 4%, the state would direct additional funds — up to $3 million — to the travel council for marketing the Utah brand. (Representative Cheryl L. Allen)
The measure creates or clarifies roles for county tourism tax advisory boards and establishes the tourism performance marketing fund and a committee to advise expenditure of the money. Allen said the change responds to recommendations in a legislative audit and that the industry would need to demonstrate performance to unlock the additional funding.
Members asked detailed questions about how the 4% growth metric is measured, whether the increase is statewide or local, how the $3 million is funded (Allen said from the general fund) and what oversight would govern the fund. The sponsor noted the State Tax Commission will calculate the growth using specified SIC codes that relate to lodging, restaurants and recreation, and that the travel council would direct expenditures advised by the performance marketing committee.
The bill also contains a requirement for county tourism tax advisory boards; an amendment to change whether those boards are mandatory was debated and lost on the floor. Allen said the bill was the result of compromise between tourist-industry representatives and the Utah Association of Counties. Following debate and adoption of amendments on the pink sheet, HB 107 passed and will be referred to the Senate.
