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Bill > SB1562

OR SB1562

OR SB1562
Relating to local taxation; prescribing an effective date.

summary

Introduced
02/02/2026
In Committee
02/02/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act would let local transient lodging tax money be used for city or county services provided by a special district in lieu of the city or county. The Act would change the split of tax uses from at least 70 percent for tourism and no more than 30 percent for local services to at least 40 percent and no more than 60 percent. The Act would let local governments with grandfathered tax laws use the new provisions of the Act. The Act would make local governments file a tax re- venue report every other year. (Flesch Readability Score: 60.7). Allows city and county services for which net local transient lodging tax revenue may be used to be provided either directly by the city or county or indirectly by a special district. Changes the division of allowable uses of net local transient lodging tax revenue from at least 70 percent for tourism-related expenses and no more than 30 percent for city or county services, to at least 40 percent and no more than 60 percent, respectively. Allows units of local government with restricted grandfathered local transient lodging tax regimes to take advantage of the new provisions of the Act. Establishes biennial reporting by local governments of amounts and uses of local transient lodging tax revenue. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill modifies how local governments can use money collected from transient lodging taxes, which are taxes on short-term stays like hotels. Currently, at least 70% of this tax revenue must go towards tourism promotion or facilities, with no more than 30% allowed for general city or county services. This bill changes that split to allow up to 60% for city or county services, which can now be provided directly by the city or county or by a special district acting on their behalf, while requiring at least 40% to be used for tourism. It also allows local governments that previously had restrictions on their lodging tax laws, known as "grandfathered" tax laws, to adopt these new provisions. Additionally, local governments will be required to file a report every two years detailing how they collect and spend these lodging tax revenues, and this reporting requirement will be repealed in 2041. The changes to how the tax money can be used will become effective on January 1, 2027, and the bill itself takes effect 91 days after the legislative session ends.

Committee Categories

Budget and Finance

Sponsors (13)

Last Action

Referred to Finance and Revenue. (on 02/02/2026)

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