VirginiaHB5242026 Regular SessionHouseWALLET

Tourism improvement districts; transient occupancy tax in Arlington County.

Sponsored By: Adele Y. McClure (Democratic)

Signed by Governor

Summary

Tourism improvement districts; administering nonprofits; county manager plan; transient occupancy tax. Allows tourism entities, defined in the bill, to enter into written agreements for the provision of professional services to an administering nonprofit that is under contract with a locality to administer or implement activities specified in a tourism improvement district plan. Current law does not permit such public-private partnerships in tourism improvement districts. The bill also requires a newly formed administering nonprofit's board of directors to be wholly composed of business owners and an existing administering nonprofit to create a committee of business owners to oversee the activities prescribed in the tourism improvement district plan. Finally, the bill permits any locality with the county manager plan of government (Arlington County) to impose an additional transient occupancy tax of up to one percent. This bill is identical to SB 314.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Arlington can add tax on lodging

The law allows Arlington County to add a lodging tax of up to 1% of the total room or space price. This tax is on top of the county’s existing lodging tax. The county must spend the money to promote tourism and business travel in Arlington. The law does not say whether Arlington has adopted the tax or chosen a rate.

Business owners oversee tourism district nonprofits

Localities with tourism improvement districts can hire nonprofits to carry out district plans and make recommendations about the district. Nonprofits can sign written professional-services agreements with local tourism offices when those offices are divisions of the locality. Administering nonprofits formed on or after July 1, 2026, must have boards made up entirely of business owners. Those existing before July 1, 2026, must create business-owner committees to oversee activities in the district plan.

Sponsors & Cosponsors

Sponsor

  • Adele Y. McClure

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 172 • No: 63

Senate vote • 3/2/2026

Passed Senate

Yes: 21 • No: 19

Senate vote • 2/26/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/26/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/25/2026

Reported from Finance and Appropriations

Yes: 10 • No: 5

Senate vote • 2/23/2026

Reported from Local Government and rereferred to Finance and Appropriations

Yes: 8 • No: 7

House vote • 2/17/2026

Read third time and passed House

Yes: 68 • No: 28

House vote • 1/30/2026

Reported from Counties, Cities and Towns

Yes: 17 • No: 4

House vote • 1/29/2026

Subcommittee recommends reporting

Yes: 8 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0162)

    4/6/2026Governor
  2. Approved by Governor-Chapter 162 (effective 7/1/2026)

    4/6/2026Governor
  3. Fiscal Impact statement From TAX (3/11/2026 2:02 pm)

    3/11/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  6. Bill text as passed House and Senate (HB524ER)

    3/6/2026House
  7. Enrolled

    3/6/2026House
  8. Signed by President

    3/6/2026Senate
  9. Signed by Speaker

    3/6/2026House
  10. Passed Senate (21-Y 19-N 0-A)

    3/2/2026Senate
  11. Passed by for the day

    2/27/2026Senate
  12. Read third time

    2/27/2026Senate
  13. Passed by for the day Block Vote (Voice Vote)

    2/26/2026Senate
  14. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/26/2026Senate
  15. Rules suspended

    2/26/2026Senate
  16. Reported from Finance and Appropriations (10-Y 5-N)

    2/25/2026Senate
  17. Reported from Local Government and rereferred to Finance and Appropriations (8-Y 7-N)

    2/23/2026Senate
  18. Fiscal Impact statement From TAX (2/22/2026 8:38 pm)

    2/22/2026House
  19. Referred to Committee on Local Government

    2/18/2026Senate
  20. Constitutional reading dispensed (on 1st reading)

    2/18/2026Senate
  21. Read third time and passed House (68-Y 28-N 0-A)

    2/17/2026House
  22. Engrossed by House - floor substitute

    2/16/2026House
  23. Delegate McClure Floor substitute agreed to

    2/16/2026House
  24. Read second time

    2/16/2026House
  25. Floor Offered

    2/16/2026House

Bill Text

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