HB 2873 Summary

• Amends Title 48 of Arizona Revised Statutes by adding Chapter 38 to establish tourism improvement areas in municipalities and counties.

• Allows formation of tourism improvement areas when lodging business owners representing at least 67% of total rooms in a proposed area petition the governing body, subject to public hearing and approval.

• Permits levying of lodging business assessments on nightly room rentals up to $5 per room per night or 5% of room revenue to fund tourism promotion and improvement activities.

• Requires an owners' board composed of a majority of lodging business owners to govern each tourism improvement area, with a contracted destination marketing organization managing implementation of approved activities.

• Establishes an initial term limit of 10 years for tourism improvement areas with option for renewal; allows dissolution upon petition from owners representing 50% or more of total rooms, with remaining funds returned to lodging businesses or spent per the tourism improvement plan.