Fiscal Note Summary - Bill 2278 HB, Tourism Promotion Areas (OFM, Final 1/21/2026)
Summary
Multiple Agency Fiscal Note Summary for Bill Number 2278 HB, titled Tourism promotion areas, marked Final 1/21/2026 and prepared by Megan Tudor, OFM, followed by the Department of Revenue fiscal note and a Local Government Fiscal Note. The summary lists Department of Revenue operating expenditures of 3,700 for 2025-27 and no cash receipts. The Department of Revenue note describes current law on tourism promotion area charges and a proposal that removes the July 1, 2027, expiration date of the additional charge. It states that the bill does not impact state revenues and increases local revenues by an estimated $1.890 million in fiscal year 2028 and $1.930 million in fiscal year 2029.
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“Fiscal Note Summary - Bill 2278 HB, Tourism Promotion Areas (OFM, Final 1/21/2026).”
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Multiple Agency Fiscal Note Summary
Bill Number: 2278 HB Title: Tourism promotion areas
Estimated Cash Receipts
NONE
Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outloo Total FTEs GF-State NGF-Outlook Total
Department of .0 3,700 3,700 3,700 .0 0 0 0 .0 0 0 0
Revenue
Total $ 0.0 3,700 3,700 3,700 0.0 0 0 0 0.0 0 0 0
Estimated Capital Budget Expenditures
NONE
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Department of Revenue
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
Prepared by: Megan Tudor, OFM Phone: Date Published:
(360) 890-1722 Final 1/21/2026
FNPID: 75478
FNS029 Multi Agency rollup
Department of Revenue Fiscal Note
Bill Number: 2278 HB Title: Tourism promotion areas Agency: 140-Department of Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
Account
GF-STATE-State 001-1 3,700 3,700
Total $ 3,700 3,700
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Martha Wehling Phone:
360-786-7067 Date: 01/12/2026
Agency Preparation: Diana Tibbetts Phone:
360-534-1520 Date: 01/15/2026
Agency Approval: Valerie Torres Phone:
360-534-1521 Date: 01/15/2026
OFM Review: Megan Tudor Phone:
(360) 890-1722 Date: 01/20/2026
Request # 2278-1-1
Form FN (Rev 1/00) 208,847.00 1 Bill # 2278 HB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.
CURRENT LAW:
Tourism promotion areas (TPAs) may impose a charge of $2.00 per room, per night. An additional $3.00 per room charge
may be imposed with the signatures of lodging business operators who pay 60% or more of the charge. The lodging
business operators must provide proposed uses and projects to the Department of Revenue (department) for the additional
charge.
The additional charge is set to expire July 1, 2027.
PROPOSAL:
This legislation removes the July 1, 2027, expiration date.
EFFECTIVE DATE:
The bill takes effect 90 days after the final adjournment of the session.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
ASSUMPTIONS:
- Local governments will continue to impose the additional TPA charge after July 1, 2027.
DATA SOURCES:
- Department of Revenue, Excise tax data
- S&P Global Market Intelligence, November 2025 forecast for Consumer spending - Accommodations
REVENUE ESTIMATES:
This bill does not impact state revenues.
This bill increases local revenues by an estimated $1.890 million in fiscal year 2028, and by $1.930 million in fiscal year
2029.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000): None.
Local Government, if applicable (cash basis, $000):
FY 2026 - $ 0
FY 2027 - $ 0
FY 2028 - $ 1,890
FY 2029 - $ 1,930
FY 2030 - $ 1,960
FY 2031 - $ 2,000
Request # 2278-1-1
Form FN (Rev 1/00) 208,847.00 2 Bill # 2278 HB
FNS062 Department of Revenue Fiscal Note
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result
in the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the
expenditure impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing
functions.
FIRST YEAR COSTS:
The department will incur total costs of $3,700 in fiscal year 2026. These costs include:
Object Costs - $3,700.
- Computer system changes, including contract programming.
SECOND YEAR COSTS:
The department will not incur any costs in fiscal year 2027.
ONGOING COSTS:
There are no ongoing costs.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years
C-Professional Service Contracts 3,700 3,700
Total $ $3,700 $3,700
III. B - Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I and Part IIIA.
NONE
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
Part V: New Rule Making Required
Request # 2278-1-1
Form FN (Rev 1/00) 208,847.00 3 Bill # 2278 HB
FNS062 Department of Revenue Fiscal Note
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 2278 HB Title: Tourism promotion areas
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
X Special Districts: increase in lodging fee revenue for tourism promotion areas
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
No fiscal impacts.
Expenditures represent one-time costs:
Legislation provides local option:
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
None
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Alexander Phone: 360-725-5038 Date: 01/19/2026
Leg. Committee Contact: Martha Wehling Phone: 360-786-7067 Date: 01/12/2026
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 01/19/2026
OFM Review: Megan Tudor Phone: (360) 890-1722 Date: 01/20/2026
Page 1 of 2 Bill Number: 2278 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
This bill would remove the July 1, 2027, expiration date for the $3 per night additional lodging charge, allowing a
legislative body to continue the $3 per night charge within a tourism promotion area (TPA) beyond July 1, 2027.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.
This bill would not impact local government expenditures because no action is required.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when appropriate,
the detail of revenue sources. Delineated between city, county and special district impacts.
According to the Department of Revenue, this bill would increases local revenue to TPAs by an estimated $1.890 million
in fiscal year 2028, and by $1.930 million in fiscal year 2029. The increased revenue breakdown to specific TPAs is
unknown.
TPA REVENUE INCREASE
FY 2026 - $ 0
FY 2027 - $ 0
FY 2028 - $ 1,890,000
FY 2029 - $ 1,930,000
FY 2030 - $ 1,960,000
FY 2031 - $ 2,000,000
Please see the DOR fiscal note for a complete list of their data sources and assumptions.
SOURCES:
Department of Revenue fiscal note, HB 2278 (2026)
House Bill Analysis, HB 2278, Technology, Economic Development, & Veterans Committee (2026)
Page 2 of 2 Bill Number: 2278 HB
FNS060 Local Government Fiscal Note
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