WILLIAM DONALD SCHAEFER, Governor                         Ch. 111

Section 2-1302.1

Annotated Code of Maryland

(1988 Volume and 1993 Supplement)

BY repealing and reenacting, with amendments,

Article—Tax—General

Section 2 1303

Annotated Code of Maryland

(1988 Volume and 1993 Supplement)

Preamble

WHEREAS, The 1993 Maryland General Assembly, recognizing the value and
importance of pursuing a more aggressive policy for the development of tourism in
Maryland, enacted Chapter 625 of the Acts of 1993 (House Bill 1590), which:

(1)   recognized tourism as a stimulus to economic development and capital
investment, thereby resulting in job creation, income growth and increased tax
revenues; and

(2)   established the Maryland Tourism Development Board to coordinate and
manage the State's tourism efforts, including the development of creative funding
strategies to improve our competitive position with neighboring states; and

WHEREAS, This Act is consistent with and responsive to the intent of Chapter
625 of 1993; and

WHEREAS, This Act provides adequate, consistent, and long-term funding for
tourism promotion, which is crucial for a successful, competitive marketing program,
where a 1% loss in market share is estimated to equal $50 million in foregone visitor
spending and $6 million in foregone tax revenue; and

WHEREAS, At present, there are several non-neighboring states which are
spending an estimated $25 million yearly on tourism advertising in Maryland's primary
market; and

WHEREAS, The tourism budgets in Virginia and Pennsylvania this year alone
equal $10.1 million and $12 million, respectively, compared to Maryland's $5 million
tourism budget; and

WHEREAS, It is documented that for every $1 spent on tourism advertising, $8 is
returned to the State through taxes and visitor spending; and

WHEREAS, Funding for tourism advertising marketing in the State during Fiscal
Years 1996, 1997, and 1998 under this Act will result from a base appropriation of the
fiscal year 1995 appropriation to the Office of Tourism Development within the
Department of Economic and Employment Development plus a share of the annual
growth associated with sales tax revenues derived from specific tourism related business

categories - restaurants, taverns, hotels, amusement places, carnivals/fairs, holiday

season vendors, and race tracks any additional moneys appropriated for the Maryland
Tourism Development Board to supplement the State's tourism development efforts; and

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