SB 451

This bill allows any municipality that has enacted an ordinance imposing a

premier resort area tax that was effective before January 1, 2000, to amend the

ordinance to increase its premier resort area tax rate up to a maximum of 1.5 percent.

Current law allows such municipalities to establish a premier resort area tax rate

up to a maximum of 1.25 percent. In order to impose an increase in the premier resort

area tax rate, the municipality's governing body must adopt a resolution proclaiming

its intent to increase the tax rate and the resolution must be approved by a majority

of electors of the municipality voting on the resolution at a referendum held at the

first spring primary or election or partisan primary or general election occurring at

least 70 days after the resolution is adopted. The proceeds from the increase in the

premier resort area tax rate allowed under the bill must be used only to pay for public

safety expenses.

Under current law, premier resort areas may impose taxes on the gross receipts

from the sale, lease, or rental of goods or services that are subject to the general sales

and use tax and are sold by tourism-related retailers. The proceeds of the tax may

be used only to pay for infrastructure expenses within the jurisdiction of the premier

resort area. The definition of “infrastructure expenses” includes the costs of

purchasing, constructing, or improving parking lots; transportation facilities,

including roads and bridges; sewer and water facilities; recreational facilities;

exposition center facilities; fire fighting equipment; and police vehicles.