TOURISM DESTINATION MARKETING DISTRICTS

M.G.L. pt. Part I, tit. Title VII, ch. c. 40X

in effect

M.G.L. c. 40X, § 1 Definitions

c. 40X, § 1. Definitions Section 1. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:- ''Commissioner'', the commissioner of revenue. ''Elector'', a tourism destination marketing district member or the authorized representative of a district member. ''Lead jurisdiction'', the city or town in which the tourism destination marketing district petition is filed. ''Lodging business'', any hotel or motel, as defined in section 1 of chapter 64G, and subject to the excise imposed by chapter 64G. ''Lodging business owner'', the owner of record or the owner's authorized representative, of a lodging business. ''Management entity'', an entity designated in a tourism destination marketing district plan to receive funds to carry out and implement the purposes of the tourism destination marketing district. The tourism destination marketing district plan shall designate a regional tourism council as the management entity. The management entity shall be required to furnish a surety bond conditioned on the faithful performance of its duties. ''Municipal governing body'', the city council or board of aldermen in a city or the board of selectmen or town council in a town. ''Special assessment'', a payment for supplemental services or improvements specified by the tourism destination marketing district plan. ''Special assessment formula'', a formula used to calculate the special assessment pursuant to section 7. ''Standard government services'', governmental functions, programs, activities, facilities, improvements and other services that a municipality is authorized to perform or provide. ''Supplemental services'', the provision of programs, activities or information in addition to the standard governmental services provided in the tourism destination marketing district, including, marketing, sales activities or events in addition to other tourism and travel promotion activities. ''Tourism destination marketing district'', a district formed pursuant to this chapter, which is a geographic area with clearly defined boundaries. A tourism destination marketing district may include multiple tourism regions served by multiple regional tourism councils; provided, however, that there shall only be 1 regional tourism council designated as the management entity for each tourism destination marketing district. Only those lodging businesses meeting the criteria described in the petition and tourism destination marketing district plan shall be liable for the tourism destination marketing district's special assessment. The geographic regions within a tourism destination marketing district need not be contiguous. ''Tourism destination marketing district committee'' or ''district committee'', a committee selected by the management entity's board of directors responsible for overseeing the ongoing district plan. ''Tourism destination marketing district member'' or ''district member'', a lodging business owner who participates in a tourism destination marketing district. ''Tourism destination marketing district plan'' or ''district plan'', the strategic plan for the tourism destination marketing district that sets forth the supplemental services and programs, budget and special assessment structure, the criteria for inclusion of lodging businesses, and the management entity and tourism destination marketing district committee for the tourism destination marketing district, and is approved by the local municipal governing body as part of the creation of the tourism destination marketing district. The updated tourism destination marketing district plan shall take effect upon the approval of a majority of electors, with each elector's vote having the same weight. Any amendment to the tourism destination marketing district plan under section 9 shall be deemed to be an update of the tourism destination marketing district plan.

M.G.L. c. 40X, § 2 Rights and powers of management entity of approved tourism destination marketing district

c. 40X, § 2. Rights and powers of management entity of approved tourism destination marketing district Section 2. The rights and powers of the management entity of the tourism destination marketing district approved by a municipal governing body pursuant to section 3 shall include: (i) retaining or recruiting business; (ii) administering and managing the tourism destination marketing district; (iii) promoting economic development; (iv) formulating a special assessment structure; (v) planning and design services; (vi) design, engineer, construct, maintain or operate buildings, facilities, urban streetscapes or infrastructure to further economic development and public purposes; (vii) accumulating interest; (viii) incurring costs or indebtedness; (ix) entering into contracts; (x) suing and being sued; (xi) employing legal and accounting services; (xii) undertaking planning, feasibility and market analyses; (xiii) developing, implementing, and conducting tourism marketing and promotional activities; and (xiv) other supplemental services or programs that would further the purposes of this chapter.

M.G.L. c. 40X, § 3 Procedures for organization of a tourism destination marketing district; lead jurisdiction

c. 40X, § 3. Procedures for organization of a tourism destination marketing district; lead jurisdiction Section 3. (a) The organization of a tourism destination marketing district shall be initiated by a petition of the lodging business owners within the proposed tourism destination marketing district, which shall be filed in the office of the clerk of the municipality that is to serve as the lead jurisdiction. The petition shall contain:- (i) the signatures of 62 per cent of the tourism destination marketing district members in the proposed tourism destination marketing district; (ii) a description of and site map delineating the boundaries of the proposed tourism destination marketing district; (iii) the initial list of lodging businesses to be included in the proposed tourism destination marketing district. Lodging businesses that commence operations after the formation of the tourism destination marketing district and meet the criteria by which lodging businesses are assessed by the tourism destination marketing district shall be included in the tourism destination marketing district pursuant to section 4; (iv) the proposed tourism destination marketing district plan, which shall set forth the supplemental services and programs, update mechanism, criteria by which lodging businesses are assessed by the tourism destination marketing district, and budget and special assessment structures; and (v) the identity and address of the management entity and the tourism destination marketing district committee. A copy of said petition shall be filed with the clerk of the lead jurisdiction and the commissioner within 30 days of receipt of such petition by the clerk of the lead jurisdiction. (b) All required procedures related to the formation, operation and renewal of the tourism destination marketing district shall only be carried out by the lead jurisdiction. A lead jurisdiction is authorized to form a tourism destination marketing district that includes other cities or towns; provided, however, that the lead jurisdiction may not vote to form a tourism destination marketing district that includes the territorial jurisdiction of another city or town within the tourism destination marketing district's boundaries until it has received consent, by vote, from such other city or town's local municipal governing body.

M.G.L. c. 40X, § 4 Public hearing and notice; declaration of organization of tourism destination marketing district; participation; renewal; discontinuation

c. 40X, § 4. Public hearing and notice; declaration of organization of tourism destination marketing district; participation; renewal; discontinuation Section 4. (a) The municipal governing body of the lead jurisdiction shall hold a public hearing within 60 days of the receipt of a petition. Written notification of such hearing shall be sent to each tourism destination marketing district member within the boundary of the proposed tourism destination marketing district at least 30 days prior to such hearing, by mailing notice to the address listed in the business records of the municipalities proposed to be included within the boundaries of the tourism destination marketing district or, if no such records exist, by such other method as determined by the clerk of the municipality. Notification of the hearing shall also be published for 2 consecutive weeks in a newspaper of general circulation in the area, with the first date of publication beginning at least 14 days prior to such hearing listed on the municipality's website. Such public notice shall contain the proposed boundaries of the tourism destination marketing district, the proposed special assessment rate formula, a summary of the supplemental services provided by the petitioners and where the property owner may obtain a full copy of the petition and the management plan. (b) Prior to the public hearing, the municipal governing body of the lead jurisdiction shall direct the clerk of the lead jurisdiction or the clerk's designee to determine that the establishment criteria and other petition requirements have been met, as set forth in section 3. (c) At the public hearing, the municipal governing body of the lead jurisdiction shall determine if the petition satisfies the purposes set forth and the establishment criteria of this chapter and shall obtain public comment regarding the tourism destination marketing district plan and the effect the proposed tourism destination marketing district will have on the lodging business owners within the proposed tourism destination marketing district. If it appears that said petition is not in conformity with the purposes and establishment criteria, said local municipal governing body shall dismiss the petition. At the public hearing, the presiding officer or clerk of said local municipal governing body shall read into the record the basis for determining the special assessment pursuant to section 7 and the process by which tourism destination marketing district members may vote not to renew such tourism destination marketing district. (d) Not more than 45 days after the close of the public hearing, the municipal governing body, in its sole discretion, may approve or disapprove the tourism destination marketing district by majority vote. Upon such declaration, the tourism destination marketing district may commence operations. (e) Notice of the declaration of the organization of the tourism destination marketing district shall be mailed or delivered to each tourism destination marketing district member within the proposed tourism destination marketing district. The notice shall explain: (i) that membership in the tourism destination marketing district is irrevocable unless as provided in subsection (g) or the dissolution under section 10; (ii) a description of the basis for determining the special assessment; (iii) the criteria by which lodging businesses are assessed by the tourism destination marketing district; (iv) the special assessment rate; and (v) the proposed supplemental services to be provided by the tourism destination marketing. Such notice shall be published for 2 consecutive weeks in a newspaper of general circulation in the area, the last publication being not more than 14 days after the vote to declare the tourism destination marketing district organized and shall be posted on the municipality's website. (f) Once established, participation in the tourism destination marketing district shall be permanent until after the discontinuation of the tourism destination marketing district as provided in this section, or until the dissolution of the tourism destination marketing district under section 10. All participating lodging business owners shall make payments in accordance with the special assessment set out in the petition or management plan. Non-participating lodging business owners in the tourism destination marketing district shall become tourism destination marketing district members and shall be assessed on the date that their business meets the criteria by which lodging businesses are assessed by the tourism destination marketing district. (g) On or before the fifth anniversary of the organization of a newly created tourism destination marketing district and the fifth anniversary thereafter of the date of the most recent renewal of the tourism destination marketing district under this section, the tourism destination marketing district committee shall call a renewal meeting of the tourism destination marketing district members to: (i) review the history of the tourism destination marketing district since its organization or, if applicable, its most recent renewal; (ii) propose an updated tourism destination marketing district plan to succeed the then current tourism destination marketing district plan; and (iii) consider whether to continue the tourism destination marketing district. The meeting shall be held at a location within the tourism destination marketing district. Notice of the meeting shall be given to tourism destination marketing district members at least 30 days prior to the meeting. The tourism destination marketing district shall continue after each renewal meeting if a majority of tourism destination marketing district members who are not more than 30 days in arrears in any payment due to the tourism destination marketing district and are present at the renewal meeting, in person or by proxy, vote to renew the tourism destination marketing district. Such renewal shall last for a term of 5 years commencing on the first day of the next fiscal year of the tourism destination marketing district. (h) If the tourism destination marketing district members elect not to continue the tourism destination marketing district, the tourism destination marketing district committee shall conclude the business of the tourism destination marketing district prior to the sixth anniversary of the tourism destination marketing district's creation, or of the prior renewal vote, as the case may be, and proceed to discontinue the tourism destination marketing district. Notice of the discontinuation vote shall be given to the municipal governing body of the lead jurisdiction, which shall formally declare the tourism destination marketing district dissolved as of such sixth anniversary; provided, however, that the tourism destination marketing district shall not be dissolved until it has received the accounts receivable due to the tourism destination marketing district and until it has satisfied or paid in full all of its outstanding indebtedness, obligations and liabilities, or until funds are on deposit and available therefor, or until a repayment schedule has been formulated and approved by said local municipal governing body. (i) Except as necessary to conclude the business of the tourism destination marketing district, the tourism destination marketing district shall not incur any new or increased financial obligations after such sixth anniversary. Upon the dissolution of a tourism destination marketing district, the remaining assets shall first be applied to repay obligations of the tourism destination marketing district, and then in accordance with the tourism destination marketing district plan, as updated. (j) Nothing in this section shall prevent the filing of a subsequent petition for a similar project.

M.G.L. c. 40X, § 5 Management entity; tourism destination marketing district committee

c. 40X, § 5. Management entity; tourism destination marketing district committee Section 5. (a) Each tourism destination marketing district shall be governed by a management entity's tourism destination marketing district committee to oversee its operations and ensure the implementation of the tourism destination marketing district plan. The management entity and its tourism destination marketing district committee shall be set forth in the petition and tourism destination marketing district plan. A majority of the membership of the tourism destination marketing district committee shall be lodging business owners paying the tourism destination marketing district assessment. (b) A tourism destination marketing district plan shall, within the limitations described in section 9, be updated at least once every 5 years by the tourism destination marketing district committee, and a copy thereof shall be mailed or delivered to each tourism destination marketing district member and shall file a copy of such update with the municipal governing body and the commissioner.

M.G.L. c. 40X, § 6 Consideration of all lodging businesses in special assessment methodology

c. 40X, § 6. Consideration of all lodging businesses in special assessment methodology Section 6. All lodging businesses described in the petition and located within the proposed tourism destination marketing district shall be considered in the special assessment methodology for the supplemental services and programs as outlined in the tourism destination marketing district plan.

M.G.L. c. 40X, § 7 Special assessment; other funding sources

c. 40X, § 7. Special assessment; other funding sources Section 7. (a) By formal approval of a tourism destination marketing district, the municipal governing body of a lead jurisdiction shall adopt the special assessment methodology for the financing of supplemental services submitted in the tourism destination marketing district plan for the tourism destination marketing district. (b) The basis of such special assessment may be determined by a formula utilizing any 1 or a combination of the following: (i) different rates for varying classifications of lodging businesses; (ii) different rates for different benefit zones; or (iii) any other formula which meets the objectives of the tourism destination marketing district. The special assessment shall be equal to a percentage, not to exceed 2 per cent, of the total amount of rent taxable under chapter 64G. (c) The methodology for determining the tourism destination marketing district special assessment shall be set forth in the original petition as required by section 3. (d) In addition to receiving funds from the tourism destination marketing district special assessment, the management entity may receive grants, donations or gifts on behalf of the tourism destination marketing district.

M.G.L. c. 40X, § 8 Payment, collection and use of special assessment; annual audit

c. 40X, § 8. Payment, collection and use of special assessment; annual audit Section 8. (a) The municipal governing body of a lead jurisdiction shall notify the commissioner of its approval of a tourism destination marketing district, the rate at which the special assessment is to be imposed and the effective date of the special assessment. Such notification shall be received by the commissioner within 48 hours of the formal approval of the tourism destination marketing district by the local municipal governing body of the lead jurisdiction. The special assessment shall take effect on the first day of the first calendar quarter following 30 days after approval by the municipal governing body of a lead jurisdiction of the tourism destination marketing district; provided, that the assessment shall not take effect for a calendar quarter if the commissioner has not first been notified of the adoption of the assessment at least 28 days before the start of such calendar quarter. (b) The management entity of a tourism destination marketing district shall, with respect to every lodging business operating in the tourism destination marketing district, report to the commissioner the lodging business's name, address, zip code, federal employment identification number and any other information the commissioner may require for the purposes of the administration and collection of the special assessment within 30 days after approval by the municipal governing body of a lead jurisdiction of the tourism destination marketing district. The management entity must report this information to the commissioner with respect to any lodging businesses added to the tourism destination marketing district within 30 days of such addition. (c) Assessed lodging businesses shall pay the tourism destination marketing district special assessment to and file a return with the commissioner at the same time and in the same manner provided for filing the return required by paragraph (g) of section 16 of chapter 62C. Such special assessment shall be treated as tax for administration and collection purposes and shall be subject to said chapter 62C. All sums received by the commissioner under this chapter shall, at least quarterly, be distributed, credited and paid by the state treasurer upon certification of the commissioner, to each management entity in proportion to the amount of such sums received from the respective tourism destination marketing districts. The special assessments collected shall be used solely to fund supplemental services identified and approved in the tourism destination marketing district plan for the tourism destination marketing district. (d) An annual audit, certified by a certified public accountant, of the revenues generated, the grants, donations and gifts received and the expenses incurred by the tourism destination marketing district shall be made within 120 days of the close of the fiscal year, and shall be placed on file with the commissioner. Such accounting shall be a public record. (e) The commissioner may promulgate regulations and issue other guidance for the assessing, reporting, collecting, remitting and enforcement of the special assessment under this section.

M.G.L. c. 40X, § 9 Amendment to tourism destination marketing district plan; public hearing and notice; amendment of district boundaries

c. 40X, § 9. Amendment to tourism destination marketing district plan; public hearing and notice; amendment of district boundaries Section 9. (a) At any time after the establishment of a tourism destination marketing district pursuant to this chapter, the tourism destination marketing district plan upon which the establishment was based may, upon the recommendation of the management entity's tourism destination marketing district committee be amended by the municipal governing body of the lead jurisdiction after compliance with the procedures set forth in this section; provided, however, that a lead jurisdiction may not approve amendments to the boundaries of a tourism destination marketing district that include the territorial jurisdiction of a city or town not yet included in the tourism destination marketing district without the consent, by vote, from such other city or town's local municipal governing body. Amendments to the tourism destination marketing district plan shall be subject to the approval of the municipal governing body of the lead jurisdiction for the following: (i) providing for additional supplemental services that affect more than 25 per cent of the total annual budget; (ii) incurring indebtedness; (iii) changing the special assessment methodology, management entity or tourism destination marketing district committee; or (iv) change the tourism destination marketing district boundaries; provided, however, that said municipal governing body, after a public hearing, determines that it is in the public interest to adopt said amendments. (b) The municipal governing body shall give notice of the public hearing for the amendment to the district plan. Such notice shall be published for 2 consecutive weeks in a newspaper of general circulation in the area, with the first date of publication beginning at least 14 days prior to such hearing, and shall specify the time and the place of such hearing and the amendments to be considered. (c) The local municipal governing body may, within 30 days of the public hearing and, in its sole discretion, declare the amendments approved or disapproved. If approved, such amendments shall be effective upon the date of such approval. (d) Upon the adoption of any amendment to the tourism destination marketing district boundaries that increases the size of the tourism destination marketing district, any assessed lodging business owner to be added to the tourism destination marketing district shall be notified of the new boundaries of the tourism destination marketing district in accordance with section 4. (e) The municipal governing body of a lead jurisdiction shall notify the commissioner of the approval of any amendment to a tourism destination marketing district plan within 48 hours of the formal approval of such amendment. Any change in assessment rate shall take effect in the manner provided in subsection (a) of section 8.

M.G.L. c. 40X, § 10 Disestablishment or dissolution of tourism destination marketing district

c. 40X, § 10. Disestablishment or dissolution of tourism destination marketing district Section 10. (a) Any tourism destination marketing district established or extended pursuant to this chapter may be disestablished by declaration of the local municipal governing body of the lead jurisdiction in either of the following circumstances: (i) if said local municipal governing body finds there has been misappropriation of funds, malfeasance or a violation of law in connection with the management of the tourism destination marketing district, it shall hold a hearing on disestablishment. Notice of the hearing shall be mailed to all tourism destination marketing district members within the tourism destination marketing district and shall be published in a newspaper of general circulation in the area at least 14 days prior to such hearing; or (ii) during the operation of the tourism destination marketing district, there shall be a 30-day period each year in which the tourism destination marketing district may be dissolved by petition to the local municipal governing body and a subsequent decision by the local municipal governing body to authorize the dissolution. The 30-day period shall begin each successive year on the anniversary of the date the local municipal governing body formally approved the tourism destination marketing district. In order to be considered by the local municipal governing body, a petition to dissolve a tourism destination marketing district shall contain the signatures of a majority of the electors. The local municipal governing body shall hold a public hearing within 30 days of receipt of a completed petition on the issue of dissolution. Notice of the hearing shall be mailed to all tourism destination marketing district members within the tourism destination marketing district and shall be published in a newspaper of general circulation in the area at least 14 days prior to such hearing. Following the public hearing, the local municipal governing body may declare the tourism destination marketing district dissolved; provided, however, that no tourism destination marketing district shall be dissolved until it has satisfied or paid in full all of its outstanding indebtedness, obligations and liabilities; or until funds are on deposit and available therefor; or until a repayment schedule has been formulated and municipally approved therefor. In addition, the tourism destination marketing district shall be prohibited from incurring any new or increased financial obligations. (b) Any liabilities, either current or future, incurred as a result of action to accomplish the purposes of the tourism destination marketing district plan shall not be an obligation of the municipality. Said liabilities shall be paid for entirely from special assessment revenue gained from the assessed lodging businesses in the tourism destination marketing district. (c) Upon the dissolution of a tourism destination marketing district, any remaining revenues derived from the sale of assets acquired with special assessments collected shall be refunded to the lodging businesses owners in the tourism destination marketing district in which special assessments were charged by applying the same methodology used to calculate the special assessment in the fiscal year in which the tourism destination marketing district is dissolved in amounts proportionate to each lodging business's share of the total special assessments collected in the fiscal year in which the tourism destination marketing district is dissolved or in accordance with the tourism destination marketing district plan, as updated.

M.G.L. c. 40X, § 11 Limitation on action contesting validity of assessment; time for perfecting appeal; disputes

c. 40X, § 11. Limitation on action contesting validity of assessment; time for perfecting appeal; disputes Section 11. (a) The validity of an assessment levied pursuant to this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the formal approval of the tourism destination marketing district by the local municipal governing body of the lead jurisdiction. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after entry of judgment. (b) Notwithstanding subsection (a), chapter 62C shall apply to disputes regarding the proper amount of assessment due from a lodging business pursuant to this chapter.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleVII/Chapter40XFetched: 10/20/2026