Bills › 91st General Assembly

SF 2441Died when the session ended · February 23, 2026

Concerning locally imposed hotel and motel taxes for tourism development and tourism promotion

Sponsored by the Senate Local Government Committee

Topics:Cities & countiesTaxes

Same legislation: SSB 3114

Where it is now

  1. Done: IntroducedFebruary 4, 2026
  2. Done: SubcommitteeFebruary 9, 2026
  3. Done: Senate committeeFebruary 19, 2026
  4. Stopped: Passes the SenateDied when the General Assembly ended
  5. Next: House committeeFunnel: by March 20, 2026
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary Cities and counties that collect taxes from hotels and motels must now use at least half of that money to grow and promote tourism. This money can be used to build new attractions or run advertising to bring more visitors to the area. Starting in late 2027, local governments will have to provide a detailed report explaining exactly how they spent these funds on tourism.1

Read the official explanation

This bill concerns locally imposed hotel and motel taxes by creating a local hotel and motel tax account for the development and promotion of tourism, and includes applicability provisions.7(4)(a), and specifies the governing authority of each city or county which levies the hotel and motel tax shall spend at least 50 percent of the revenues on tourism development and tourism promotion in the city, county, or surrounding areas.22, as applicable. The bill defines “tourism development” to mean the creation or expansion of physical attractions, facilities, or events that are available and open to the public, improving the appeal of destinations to tourists, and enhancing tourist experiences that are primarily promoted to or used by tourists. The bill defines “tourism promotion” to mean planning, conducting, or participating in programs of information, publicity, and advertising that are designed to attract tourists and foster economic activity through tourism. The bill defines “tourist” to mean a person who travels more than 50 miles to a destination for business or leisure. The remaining revenues not subject to expenditure by the hotel and motel tax board created in the bill shall be spent, as required by current law, by the city or county on any city or county operations authorized by law as a proper purpose for the expenditure within statutory limitations of city or county revenues derived from ad valorem taxes.

Why it matters. Cities and counties that collect hotel and motel taxes would be required to spend a portion of those revenues on tourism development and promotion. These local governments must also provide a detailed accounting of how that money is used in their annual reports starting on or after December 1, 2027.2

Full bill text3

Senate subcommittee

Named February 26, 2026. It hasn’t reported yet.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Iowa Code it changes

Amends§423A.2§423A.7

How the Code works4

Lobbying

3 for · 2 against · 18 undecided · Who →

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