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Abstract
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SSB 5647, enacted in 2007, authorizes local governments to use lodging tax revenues to support events and facilities sponsored by certain nonprofit organizations. The legislation includes a June 30, 2013 termination date and requires JLARC to evaluate the economic impact of lodging tax expenditures. JLARC’s review finds that the many local governments have not reported on their use of lodging tax revenues and those expenditures’ impact on tourism. As a result, JLARC cannot evaluate the economic impact of local government use of lodging tax revenue. However, review of reported data shows that approximately 8 percent of lodging tax revenues was used to support nonprofit events and facilities. Although reporting can be improved, there would be costs for local governments and state agencies to fully evaluate the economic impact of lodging tax revenues.
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