Tourism tax rules include museums and review local groups

Tourism product development may include museums, including military museums and related institutions. The definition covers museums and institutions focused on U.S. armed forces and service members. The museums or institutions must be dedicated to preserving, exhibiting, and interpreting the history of U.S. armed forces and service members through artifacts, documents, or similar materials.

The Hotel Motel Tax Performance Review Board reviews certain proposed changes to a local government's tourism organization when the local government and organization cannot agree. The review concerns a proposed private nonprofit group chosen to promote local tourism, conventions, and trade shows. The text applies to local governments that collected more than $500,000 in tax in any of the three preceding fiscal years. The board considers the proposed organization's eligibility, visitation goals, local expertise, investments, contractual obligations, and potential conflicts of interest. The board is to meet quarterly as needed to decide whether to approve or reject a proposed change.

The board investigates complaints about local spending of hotel and motel tax money and compliance with state law. Taxpayers, local governments, innkeepers, and private nonprofit organizations may submit complaints about a county, municipality, or other entity. The text provides for written findings, notice of noncompliance, and public posting of that notice until a remedy is provided. The revenue commissioner may take enforcement action, including ending the tax, if remedial action is not taken. Complaints must reach the department by June 1 to be heard the following year. The board has 90 days to hold a hearing, and the commissioner has 30 days after receiving the board's findings to review them.