HB 2950 Arizona House · 57th Legislature - Second Regular Session

tourism improvement areas; municipalities; counties

HB 2950 establishes a framework for Arizona municipalities and counties to create "tourism improvement areas" (TIAs) to fund tourism promotion. It requires a petition signed by lodging business owners representing at least 67% of rooms in the proposed area, including specific boundaries, assessment rates (based on property size or room count), and a detailed plan for how funds will be used. Lodging businesses within a TIA must pay an assessment on room rentals, which can be a fixed fee per night or a percentage of sales, with funds strictly limited to advertising, promotion, and business recruitment directly benefiting lodging businesses. The bill prohibits using these funds for physical infrastructure and sets a 30-day deadline to legally challenge the assessment. This directly affects hotels and resorts in designated areas by requiring them to pay a new, locally determined fee.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Jun 2026

Senate Passage

Jun 2026

Signed into Law

Jun 2026

Introduced Feb 4, 2026 Signed Jun 19, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

Senate Engrossed Version (06/09/2026) → Chaptered Version · 2 edits

MINOR

This bill was converted from a draft Senate version to an official Chaptered version, making it law. The substantive text of the legislation regarding Tourism Improvement Areas remained unchanged, though minor formatting corrections were applied to fix capitalization errors and line breaks throughout the statute.

TECHNICAL

The document header was updated to reflect the final Chapter 206 status and included the official approval date of June 19, 2026, and filing date of June 22, 2026.

Minor formatting and capitalization corrections were made to fix inconsistent all-caps usage and line breaks within the legal definitions and procedural sections.

Introduced Version → House Engrossed Version (03/16/2026) · 9 edits · Jun 9, 2026

MAJOR

This bill was amended to clarify that only lodging businesses subject to the assessment can participate in the tourism improvement area and vote on its board. It also added a formal withdrawal process allowing businesses to opt out annually and rescind that decision later, while requiring the area to submit maps to the Department of Revenue.

Scope change

The bill's scope was narrowed regarding eligibility; participation and board membership are now explicitly limited to businesses that are subject to the assessment, rather than all businesses within the geographic area.

ELIGIBILITY

Changed the definition of who can serve on the owners' board from a majority of all lodging business owners to a majority of only those owners subject to the assessment.

Removed the requirement for the petition to include signatures representing 67% of total rooms, keeping only the requirement for signatures from two or more businesses within the area.

Added a new clause stating that any lodging business commencing operations during the term is subject to the assessment, except as provided in a new withdrawal subsection.

Created a formal mechanism for lodging business owners to withdraw from the area by filing a notice, which exempts them from the assessment and board eligibility, and allows them to rescind that withdrawal later.

REQUIREMENT

Added a new requirement for the tourism improvement area to submit an approved map with details on assessed properties to the Department of Revenue upon governing body approval.

Added a new annual requirement for the destination marketing organization to provide notice to all lodging businesses about the annual 60-day window to join or withdraw from the area.

FISCAL

Modified the dissolution process to require that remaining monies be refunded based on the same method used to collect assessments, rather than a general refund.

Clarified that assessments are paid to the Department of Revenue, which then transmits funds to the local treasurer, rather than the destination marketing organization collecting them directly.

DEFINITION

Changed the definition of 'lodging business assessment' from a levy on 'nightly room rentals' to a levy on 'room rentals' to broaden the scope slightly.

Floor votes · Senate Jun 9, 2026 · House Jun 10, 2026

How they voted

26–3

Passed · 1 other

Total votes 30

Jun 9, 2026

D Democratic13

13 Yea

100% Yea

R Republican17

13 Yea 3 Nay 1

76% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 19, 2026

Signed into law

Signed by Governor

executive

Jun 10, 2026

Lower · Passed

PASSED

lower

Jun 9, 2026

Upper · Passed

PASSED

upper

Apr 27, 2026

Upper · Passed

PASSED

upper

Apr 21, 2026

Upper · Passed

DPA

upper

Mar 23, 2026

Upper · Passed

upper

Mar 16, 2026

Lower · Passed

PASSED

lower

Mar 11, 2026

Lower · Passed

DPA

lower

Mar 11, 2026

Lower · Passed

PASSED

lower

Mar 9, 2026

Lower · Passed

DPA

lower

Feb 19, 2026

Lower · Passed

lower

1 primary · 11 co-sponsors