IA SF2441

Cities and counties levying hotel and motel taxes must spend at least 50% of revenues on tourism development and tourism promotion in their jurisdiction or surrounding areas.

"Tourism development" is defined as creating or expanding public attractions, facilities, or events that improve destination appeal and enhance tourist experiences.

"Tourism promotion" is defined as planning, conducting, or participating in information, publicity, and advertising programs designed to attract tourists and foster economic activity.

A "tourist" is defined as a person who travels more than 50 miles to a destination for business or leisure.

Beginning December 1, 2027, annual reports must include detailed accounting and explanation of how hotel/motel tax funds were used for tourism development and promotion.