Session: State Capitol, Room 411 Juneau, AK 99801-1182 Toll Free: (877) 465-3004 Phone: (907) 465-3004 Fax: (907) 465-2070 Interim: 119 North Cushman Street, Room 213 Fairbanks, AK 99701-2879 Phone: (907) 452-1088 Fax: (907) 452-1146

Sponsor Statement for HB 24
Borough Revenues for Tourism Marketing

An Act relating to use of certain borough revenues for a tourism marketing campaign.

Released: February 2, 2001

Since the 1970's, the visitor industry in communities throughout Alaska has relied on local destination marketing organization to compete in an increasingly competitive worldwide marketplace.

The funding source for these organizations is typically local visitor industry taxes enacted with the intent that the revenues collected, fund the destination marketing efforts of the community in which such taxes are collected.

A provision in the Alaska State Municipal Code, Title 29 creates a situation wherein certain visitor industry tax collections cannot be used to fund local destination marketing efforts. This has the potential to affect eleven of Alaska's organized boroughs, even in those cases where the funding of destination marketing efforts is the express intent for which a visitor industry tax is collected.

HB 24 amends Title 29 of Alaska Statutes allowing, at local option, the use of borough revenues for an on-going tourism marketing effort.

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