Relating to the rate of the hotel occupancy tax in certain municipalities and the use of certain revenue from that tax by those municipalities; authorizing an increase in the rate of a tax.

HB 4095 allows small coastal municipalities (population under 5,000 with a state highway ferry system) to temporarily increase their hotel occupancy tax rate above 7% - up to 8% - if approved by voters. Municipalities collecting at 7% must dedicate at least 1% of room tax revenue to tourism infrastructure like parks, marinas, or visitor facilities. If they exceed 7%, they may use the extra revenue for street beautification and main street improvements (e.g., pedestrian safety), but cannot spend more on these projects than they fund from other sources. The bill expires December 31, 2035. (Current status: Referred to Ways & Means committee.)