SB 1101 Summary

• Creates tourism marketing authorities in Arizona municipalities and counties with populations under two million through petition and governing body approval, requiring support from at least 67% of transient lodging room owners.

• Authorizes authorities to levy assessments of up to $5 per transient lodging room per night, collected by the Department of Revenue alongside transaction privilege taxes and distributed monthly to participating municipalities or counties.

• Requires authorities to contract with nonprofit tourism promotion organizations (exempt under IRC section 501(c)(6)) that have existed for at least five years, or two years if no five-year organization exists, to provide marketing services.

• Restricts authorities from financing or facilitating acquisition, construction, maintenance, or operation of hotels, motels, resorts, or sports/entertainment facilities; requires annual reporting to participating governing bodies.

• Sets 10-year terms for authorities with termination possible upon petition by 51% of lodging room owners, and allows renewal for additional 10-year periods through petition and governing body approval.