A bill for an act creating the Iowa tourism advertising fund, and making appropriations.

SF 404 creates the Iowa Tourism Advertising Fund in the state treasury, funded by 0.25% of the state hotel and motel tax (which is 5% of lodging sales). The fund provides grants to eligible applicants - including cities, counties, nonprofits, and businesses - to promote Iowa tourism through advertising in Iowa, other states, or internationally. Applications are submitted to the economic development authority, with final funding decisions made by the authority's board. The bill also specifies that fund earnings stay in the fund and administrative costs cannot exceed 5% of the annual fund balance.