Concerning hotel and motel taxation, providing for other properly related matters including the creation of a local hotel and motel tax account and board to administer locally imposed hotel and motel taxes, and including applicability provisions

This bill concerns hotel and motel taxation, including the creation of a local hotel and motel tax account and board to administer locally imposed hotel and motel taxes. The bill specifies that a lodging provider shall obtain a sales tax permit when renting lodging in this state, and remit any tax collected to the department of revenue.2 defines “lodging facilitator” to mean a person or any affiliate of a person, other than a lodging provider or a lodging platform, that facilitates the renting of lodging and collects or processes the sales price charged to the user. The bill provides that a lodging facilitator shall not be required to collect the state and local hotel and motel tax on the amount of the sales price that represents the lodging facilitator’s fee under the following circumstances: in a county with a population of 15,000 or less, if the yearly total rentals are equal to or less than $10,000, or there are or fewer yearly transactions; or in a county with a population greater than 15,000, if the yearly total rentals are equal to or less than $5,000, or there are five or fewer yearly transactions. Current law, regardless of the size of the county, does not require the lodging facilitator to collect the hotel and motel tax if the aggregate value of the rentals is equal to or less than $10,000 in a calendar year, or there are or fewer separate transactions in a calendar year. If a city or county has levied a locally imposed hotel and motel tax, the bill requires the city or county to establish a hotel and motel tax account within the general fund of the city or county. by the city or county pursuant to the locally imposed hotel and motel tax be deposited into the account. Moneys in the account are not subject to transfer to any other accounts or to any other funds established by a city or county unless such transfer is for a purpose specified by law. The governing authority of each city or county which levies the hotel and motel tax shall also establish a hotel and motel tax board to spend at least percent of the revenues in the account on the promotion of tourism in the city, county, or surrounding areas. One-half of the members of the board shall be from the tourism industry, and one-half of the members of the board shall be local hotel, motel, or resort owners, or be designees of such owners. The remaining revenues not subject to expenditure by the hotel and motel tax board created in the bill shall be spent, as required by current law, by the city or county on any city or county operations authorized by law as a proper purpose for the expenditure within statutory limitations of city or county revenues derived from ad valorem taxes. The bill also allows an amount of the remaining revenues not subject to expenditure by the hotel and motel tax board created in the bill to be irrevocably pledged to the servicing of bonds to promote tourism or for any other purposes authorized by law. The bill specifies a city or county may enter into 28E agreements or jointly service such bonds with other cities or counties. The bill requires a portion of the remaining revenues not subject to expenditure by the hotel and motel tax board created in the bill to be spent for paid advertisements or public service announcements that disseminate information about the law requiring lodging providers to obtain a permit and collect state and locally imposed hotel and motel taxes.