A bill for an act authorizing cities to establish self-supported entertainment areas.(Formerly HF 42.)
The bill sets a framework for cities to create entertainment areas that can attract visitors and promote local businesses. It establishes conditions under which an area may be created, including a requirement that it must exceed a combined annual attendance of 250,000 persons across various establishments. The imposition of the surcharge, which cannot exceed 3%, is intended to be a supplementary source of revenue for the cities, as it would be in addition to existing state and local taxes. Cities will have control over how these funds are utilized, potentially addressing community-specific needs through careful allocation.
House File 412 authorizes cities to establish self-supported entertainment areas within their jurisdictions. This legislation allows cities to impose an entertainment surcharge on retail sales of food and beverages, ticket sales, and lodging rentals within designated entertainment areas, which must meet certain criteria, such as having significant cultural or entertainment attendance and consisting only of properties zoned for commercial use. The bill is designed to enhance local economic development by facilitating the generation of revenue that can be reinvested into the entertainment area or used for city services.
While supporters argue that HF412 will invigorate local economies and provide cities with new tools for fostering entertainment and culture, there are concerns regarding how this could impact local businesses. Detractors point to the potential for increased costs for consumers and the possibility that local business owners could oppose the establishment of such areas, especially if they feel the surcharge disproportionately affects them. The bill includes provisions for citizen petitions that can require unanimous council approval if enough property owners express opposition, which may complicate the establishment process in contentious areas.