County Lodging Tax Expansion

Subject to local voter approval, the act increases the maximum allowed rate of a county lodging tax levied on the purchase price paid or charged to persons for rooms or accommodations from 2% to 6% and expands the allowed uses of lodging tax revenue to include:

• Public infrastructure maintenance or improvements; or
• Enhancing public safety measures by funding local law enforcement, fire protection services, and emergency medical services.

If a county received voter approval before January 1, 2025, to specifically allocate portions of revenue from the lodging tax to allowed uses for designated purposes, the act clarifies how those previously approved allocations are preserved and how revenue attributable to an increase in the tax rate may be allocated by the county.

(Note: This summary applies to this bill as enacted.)