AZ HB2801

Allows boards of supervisors in counties with populations under 500,000 to levy a tax on gross proceeds of sales or gross income from hotel businesses (classified under sections 42-5070 or 42-5076 of Arizona tax code).

Tax rate cannot exceed 6 percent and applies only in unincorporated areas of the county.

Tax becomes effective on January 1 or July 1, whichever date first occurs at least three months after county resolution approving the tax levy.

Net revenues collected monthly by the state treasurer are transmitted to the county treasurer and must be used either to promote and enhance tourism within the county or for economic development activities as defined in section 11-254.04.

An increase in this tax does not constitute a new tax for purposes of section 11-254.04, subsection B.