Since 1972, and as of July 1, 2018, 88 local tourism and economic development taxes are currently authorized by the Legislature, with 82 approved locally and in effect throughout the state. Entities conducting business in lodging, prepared food and beverage, and alcohol sales are subject to these taxes.

In total, for federal fiscal year1 2017, special tax levies generated more than $96 million. This includes county and city jurisdictions and joint initiatives.

Businesses subject to special tax levies remit these collections to the Department of Revenue as part of their normal sales tax

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Some of the Committee’s major findings include:

  • Since 1972, and as of July 1, 2018, 88 local tourism and economic development taxes are currently authorized by the Legislature, with 82 approved locally and in effect throughout the state.  Entities conducting business in lodging, prepared food and beverage, and alcohol sales are subject to these taxes.
  • In total, for county fiscal year 2017, special tax levies generated more than $96 million.
  • Local tourism and economic development taxes contain considerable individualization in their authorizing legislation, local focus, and means of collections.
  • State law does not provide for procedures, nor do local governing authorities have a method, for determining whether all businesses are collecting and remitting the correct amount of special tax levy revenue to the Department of Revenue for distribution to the specified local governing authority.
  • Rather than authorizing legislation by locality, the Legislature could choose to provide general law authority for the creation of tourism and development taxes or authorize a uniform general levy for the support of communities.