Senate approves hotel-led convention assessment bill after raising approval threshold to 60%

The Senate passed House Bill 3 73, allowing counties, at the request of hoteliers, to establish a Convention and Tourism Assessment Area (CTAA) that charges a fee (not a tax) on hotel bills to fund promotion and visitor-economy projects. Senator Buxton, the floor sponsor, said the tool is aimed at rebuilding convention business and is controlled by county oversight and a tourism tax advisory board.

Opponents said the measure could let larger hotel owners impose costs on smaller competitors. Senator Fillmore criticized the concept on the floor, saying the mechanism could give "the Grand America... the ability to force Motel 6 and Radisson and Hilton to raise their prices so that Marriott can promote itself." Senator McKay gave a numerical example arguing a hotel owning 51% of assessment value could effectively impose the fee on neighbors while being capped in liability — "they have the ability to tax their neighbors," he said.

Floor sponsors disputed that characterization, saying counties must approve formation, the advisory board approves projects, and the fees are intended to benefit the destination economy. After debate, senators adopted a verbal amendment changing the required qualified owners threshold from 50% to 60% of the assessment amount to increase the level of support required to form a CTAA.

The bill permits a CTAA to charge a fee applied to hotel bills and uses collected funds for branding, sales and visitor-economy projects; management is contractually handled by hoteliers with county oversight, and the county retains authority to create or dissolve a CTAA. Voting weight in formation is determined by the share of the total assessment amount attributed to each owner (that is, larger properties carry more weight than smaller ones), a point emphasized by sponsors during questioning.

Critics warned the structure favors large hotels and could impose a meaningful percentage increase on budget properties; proponents said the fees will grow the convention market and benefit lodging businesses overall. The Senate passed the amended bill on a roll-call and will return it to the House for further consideration.

Next steps: The amended House substitute will be returned to the House for its receipt and any further action.