Rhode Island House Bill H7724

Rhode Island 2022 Regular Session

• Introduced: 3/2/22
• Refer: 3/2/22
• Report Pass: 4/27/22
• Engrossed: 5/5/22
• Refer: 5/20/22
• Report Pass: 6/22/22
• Enrolled: 6/24/22
• Passed: 6/29/22

Caption

Tourism Improvement Districts

Impact

This legislation permits municipalities to create tourism improvement districts which can levy assessments on local businesses to fund specific tourism-related activities and improvements. The assessments can vary based on a percentage of gross business revenue or a fixed dollar amount per transaction. This mechanism allows local governments to supplement their funding for tourism initiatives without replacing existing state and municipal funding, fostering a cooperative approach towards economic growth in the tourism sector.

Summary

House Bill 7724, known as the Tourism Improvement Districts Act, aims to enable municipalities in Rhode Island to establish tourism improvement districts. The intent of these districts is to provide additional funding for marketing programs that promote tourism, ultimately boosting local economies by increasing occupancy and room rates for lodging businesses. The act recognizes tourism as a key economic driver in the state, highlighting its contributions to employment, income, and tax revenues.

Contention

Notable points of contention surrounding HB 7724 relate to the governance of the tourism improvement districts and the potential for financial impacts on small businesses due to the assessments imposed. Critics may raise concerns about whether all businesses within the district would receive equitable benefits in relation to the assessments they pay. Additionally, the process for establishing these districts requires a petition supported by 60% of business owners, which could lead to disputes over representation and the utilization of funds raised through assessments.