In its Monday afternoon meeting, the House Finance Committee advanced two bills to the House floor.
One bill, House Bill 213, would dedicate $25 million in spending authority to debt service for general obligation bonds for Roads to Prosperity. The other bill, House Bill 211, would extend tourism development tax credits from December 31, 2019 to December 31, 2025.
Delegates questioned Transportation Secretary Byrd White in whether transferring spending authority would affect any current maintenance projects. White said it would not. If passed, the bill would transfer $25 million in spending authority from maintenance to debt service. This $25 million, he said, is not earmarked for any project. This would not delay or cancel any maintenance projects, he said.
The Department is going to market for the second and third round of GO bonds, approved by voters in 2017.
Lawmakers were told that this bill must be passed Monday night in order to prepare for a conversation between state officials and financial officials.
House Finance advanced House Bill 213 to the floor without amendment.
The committee also advanced House Bill 211, dealing with tourism development tax credits, Monday afternoon. These tax credits, which have been in existence since 2004, are available for certain tourism development projects that meet qualifications.
These requirements are that businesses would have to invest at least $1 million in the state, be open at least 100 days a year, have 20% of visitors come from out of state, and have no more than half of a project as lodging. The credit is based on how much a company invests. If the company succeeds in growing the sales tax base, it could recuperate 25% of the investment, which is a credit against the sales tax, or 35%, if the project borders a state or national park or an abandoned mine land.
Credits were set to expire December 31, 2019. This bill would extend the credits until December 31, 2025.
Tourism Commissioner Chelsea Ruby said this bill is something they hoped to see introduced during next year’s regular session. However, the Development Office saw renewed interest in tourism development and received questions from investors whether these credits would be available.
Ruby said there are six projects in the works. The amount of applications for these tax credits have increased. Ruby said since 2005, 16 applications have been received with six of those received this year. Ruby said before this year, the Development Office had not received an application since 2016.
“The influx came from when we started investing in tourism,” Ruby said. “Tourism traveler spending is up 9.9%. As this has happened, there is a renewed interest in investors. This is why this has happened suddenly and this is why we’re getting interest now.”
The committee rejected an amendment which would have changed the extension from 2025 to December 31, 2020. House Bill 211 was advanced without amendment to the House floor.
