Proyectos de ley › 88.ª Asamblea General
Relating to the exemption from the hotel and motel taxes for the renting of lodging
Presentado por el comité Ways and Means del Senado
Temas:Taxes
Dónde está ahora
- Hecho: Presentado28 de enero de 2019
- Hecho: Subcomité29 de enero de 2019
- Hecho: Comité del Senado25 de abril de 2019
- Hecho: Lo aprueba el Senado26 de abril de 201948–1
- Se saltó: Comité de la CámaraSe saltó
- Hecho: Lo aprueba la Cámara24 de abril de 201993–4
- Hecho: A gobernador(a)24 de junio de 2020
- Hecho: Firmado como ley24 de junio de 2020
HF 760 se hizo ley → La misma legislación se aprobó como HF 760, así que esta versión se dejó de lado. Ir a HF 760 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA People staying in hotels or motels for more than 30 consecutive days would no longer have to pay state or local hotel taxes. Additionally, nonprofit organizations that provide housing to the friends and family of hospital patients would be exempt from these taxes. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to the exemption from the hotel and motel taxes for the renting of lodging. CONSECUTIVE DAYS OF RENTAL.7, where the lodging is rented by the same tenant for a period of more than days, is exempt from state and local hotel and motel taxes. The bill provides that the sales price from the renting of lodging which is rented by the same person for the period beginning after consecutive days of rental by such person, is exempt from state and local hotel and motel taxes. Currently, the sales price from the renting of lodging which is rented by the same person for a period of more than consecutive days is exempt from the hotel and motel taxes under Code chapter 423A. NONPROFIT LODGING PROVIDER. The bill exempts from the hotel and motel tax the sales price of lodging furnished by a nonprofit lodging provider renting to the friends and family of a hospital patient. The bill defines “nonprofit lodging provider” to mean a nonprofit entity which is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code that maintains an established facility that provides lodging to friends and family of a hospital patient during a time of medical need of the patient.
Cambiado después por las enmiendas S-3239, S-3238, H-1319, H-1316, H-1204; vea Enmiendas.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse2
Nota fiscal
Minimal Compare con otros proyectos
Resumen con IA This bill changes the law so that the first 90 days of a lodging stay are subject to hotel and motel taxes and exempts certain nonprofit lodging provided to friends and family of hospital patients. It is estimated to increase local tax revenue by $2.7 million in fiscal year 2021, $2.8 million in fiscal year 2022, $2.9 million in fiscal year 2023, $2.9 million in fiscal year 2024, and $3.0 million in fiscal year 2025. The fiscal impact of the nonprofit lodging exemption is estimated to be minimal. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 760 modifies the number of consecutive days a person must rent lodging for the sales price to be exempt from State and local hotel and motel taxes by making the first 90 days of a stay subject to taxation.
The Bill also exempts lodging furnished by a nonprofit lodging provider renting to the friends and family of a hospital patient from the hotel and motel tax.
Background
Under current law (Iowa Code chapter 423A), the renting of lodging by the same person for a period of more than 31 consecutive days is exempt from State and local hotel and motel taxes. Iowa Code section 423A.7(4) requires that 50.0% of the revenue generated by local hotel and motel taxes be used for purposes related to recreation, convention, cultural, or entertainment facilities, or for the promotion and encouragement of tourist and convention business in the city or county and surrounding areas. The remaining revenues may be spent by the city or county for any operations authorized by law as a proper purpose for the expenditure within statutory limitations.
Assumptions
- In FY 2019, hotels and motels reported exempt sales of $50.6 million. These sales are assumed to be for long-term rentals, and other potential sales to exempt entities are assumed to be minimal.
- The State tax rate is 5.0%, and the effective local tax rate is 6.76%.
- Of the exempt hotel and motel sales, 10.0% are assumed to be for periods of 90 days or longer. Of that amount, it is assumed there is a decreasing number of stays beyond 90 days, and a stay of 120 days is used as the maximum. Therefore, 97.5% of currently exempt sales would become taxable.
- Total revenue from lodging and fee support from 2016 to 2017 reported by Ronald McDonald House Charities of Eastern Iowa and Western Illinois on Internal Revenue Service (IRS) Tax Form 990 was reviewed to determine if there would be a fiscal impact associated with the tax exemption for lodging provided by a nonprofit.
Fiscal Impact
Changing the tax exemption is estimated to increase revenues as presented in the following table. The assumptions are based on data prior to the COVID-19 pandemic and the economic recession that began in February 2020. The extent of the economic impact that the COVID-19 pandemic will have on long-term hotel stays is unknown. The estimated increase in tax revenue shown on the below table represents the fiscal impact under pre-COVID-19 economic activity. The exemption of lodging furnished by a nonprofit lodging provider to friends and family of a hospital patient is estimated to have minimal fiscal impact.
Sources
- Department of Revenue
- IRS Tax Form 990 for Ronald McDonald House Charities of Eastern Iowa and Western Illinois,
- 2016-2017
- Final Fiscal Note – Hotel and Motel Tax — Extended Stay Exemption · 24 de junio de 2020
- Hotel and Motel Local Sales Tax · 26 de abril de 2019
- Hotel and Motel Local Sales Tax · 3 de abril de 2019
- Hotel and Motel Local Sales Tax · 15 de marzo de 2019