Bill Text: IA SF2045 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-28 - Subcommittee: Chapman, Feenstra, and Quirmbach. S.J. 162. [SF2045 Detail]
Download: Iowa-2019-SF2045-Introduced.html
Senate
File
2045
-
Introduced
SENATE
FILE
2045
BY
WHITING
A
BILL
FOR
An
Act
concerning
hotel
and
motel
taxation,
providing
for
other
1
properly
related
matters
including
the
creation
of
a
local
2
hotel
and
motel
tax
account
and
board
to
administer
locally
3
imposed
hotel
and
motel
taxes,
and
including
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
423A.5A,
subsection
3,
Code
2020,
is
1
amended
to
read
as
follows:
2
3.
Unless
otherwise
provided
in
this
section
,
the
3
lodging
provider
shall
obtain
a
sales
tax
permit,
collect
the
4
state-imposed
tax
under
section
423A.3
and
any
locally
imposed
5
tax
under
section
423A.4
shall
be
collected
by
the
lodging
6
provider
from
the
user
of
that
lodging
,
and
shall
be
remitted
7
remit
the
tax
to
the
department.
The
lodging
provider
shall
8
add
the
state-imposed
tax
to
the
sales
price
of
the
lodging
and
9
the
tax,
when
collected,
shall
be
stated
as
a
distinct
item,
10
separate
and
apart
from
the
sales
price
of
the
lodging
and
from
11
the
locally
imposed
tax,
if
any.
The
lodging
provider
shall
12
add
the
locally
imposed
tax,
if
any,
to
the
sales
price
of
13
the
lodging
and
the
tax,
when
collected,
shall
be
stated
as
a
14
distinct
item,
separate
and
apart
from
the
sales
price
of
the
15
lodging
and
from
the
state-imposed
tax.
16
Sec.
2.
Section
423A.5A,
subsection
4,
paragraph
e,
Code
17
2020,
is
amended
to
read
as
follows:
18
e.
Notwithstanding
any
other
provision
of
this
section
19
to
the
contrary,
if
a
lodging
facilitator
and
its
affiliates
20
facilitate
total
rentals
under
this
chapter
and
chapter
21
423C
that
,
the
lodging
facilitator
shall
not
be
required
to
22
collect
tax
on
the
amount
of
sales
price
that
represents
the
23
lodging
facilitator’s
facilitation
fee
under
the
following
24
circumstances:
25
(1)
In
a
county
with
a
population
of
fifteen
thousand
26
or
less,
if
the
total
rentals
are
equal
to
or
less
than
an
27
aggregate
amount
of
sales
price
and
rental
price
of
ten
28
thousand
dollars
for
an
immediately
preceding
calendar
year
29
or
a
current
calendar
year,
or
in
ten
or
fewer
separate
30
transactions
for
an
immediately
preceding
calendar
year
or
31
a
current
calendar
year
,
the
lodging
facilitator
shall
not
32
be
required
to
collect
tax
on
the
amount
of
sales
price
that
33
represents
the
lodging
facilitator’s
facilitation
fee
.
34
(2)
In
a
county
with
a
population
greater
than
fifteen
35
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thousand,
if
the
total
rentals
are
equal
to
or
less
than
an
1
aggregate
amount
of
sales
price
and
rental
price
of
five
2
thousand
dollars
for
an
immediately
preceding
calendar
year
3
or
a
current
calendar
year,
or
in
five
or
fewer
separate
4
transactions
for
an
immediately
preceding
calendar
year
or
a
5
current
calendar
year.
6
Sec.
3.
Section
423A.7,
subsection
3,
Code
2020,
is
amended
7
to
read
as
follows:
8
3.
Moneys
received
by
the
city
or
county
from
this
fund
9
shall
be
credited
to
the
general
fund
of
the
city
or
county
,
10
subject
to
the
provisions
of
subsection
4
.
11
Sec.
4.
Section
423A.7,
subsection
4,
paragraphs
a
and
b,
12
Code
2020,
are
amended
by
striking
the
paragraphs
and
inserting
13
in
lieu
thereof
the
following:
14
a.
A
city
or
county
that
levies
the
tax
shall
establish
a
15
hotel
and
motel
tax
account
within
the
general
fund
of
the
city
16
or
county.
All
of
the
revenues
received
by
the
city
or
county
17
pursuant
to
subsection
2
shall
be
deposited
into
the
account.
18
Interest
earned
on
revenues
deposited
in
the
account
shall
19
remain
in
the
account
and
be
used
for
the
purposes
specified
in
20
this
section.
21
b.
(1)
The
governing
authority
of
each
city
or
county
that
22
levies
the
tax
shall
establish
a
hotel
and
motel
tax
board
23
comprising
of
an
even
number
of
members,
but
in
no
event
shall
24
the
board
be
less
than
four
members,
to
spend
at
least
fifty
25
percent
of
the
revenues
in
the
account
on
the
promotion
of
26
tourism
in
the
city,
county,
or
surrounding
areas.
One-half
of
27
the
members
of
the
board
shall
be
from
the
tourism
industry,
28
and
one-half
of
the
members
of
the
board
shall
be
local
hotel,
29
motel,
or
resort
owners,
or
be
designees
of
such
owners.
30
(2)
The
remaining
revenues
not
subject
to
subparagraph
(1)
31
may
be
spent
by
the
city
or
county
that
levies
the
tax
for
any
32
city
or
county
operation
authorized
by
law
as
a
proper
purpose
33
for
the
expenditure
within
statutory
limitations
of
city
or
34
county
revenues
derived
from
ad
valorem
taxes.
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Sec.
5.
Section
423A.7,
subsection
4,
paragraphs
c
and
e,
1
Code
2020,
are
amended
to
read
as
follows:
2
c.
Any
city
or
county
which
levies
and
collects
the
local
3
hotel
and
motel
tax
authorized
by
section
423A.4
may
pledge
4
irrevocably
an
amount
of
the
remaining
revenues
derived
5
therefrom
from
the
local
hotel
and
motel
tax
as
set
forth
in
6
paragraph
“b”
,
subparagraph
(2),
for
each
of
the
years
the
bonds
7
remain
outstanding
to
the
payment
of
bonds
which
the
city
or
8
county
may
issue
for
one
or
more
of
the
purposes
set
forth
in
9
paragraph
“a”
for
the
purpose
of
promoting
tourism
or
for
any
10
other
purpose
authorized
by
law
.
Any
revenue
pledged
to
the
11
payment
of
such
bonds
may
shall
not
be
credited
to
the
spending
12
requirement
of
paragraph
“a”
“b”
,
subparagraph
(1)
.
13
e.
A
city
or
county,
jointly
with
one
or
more
other
cities
14
or
counties
as
provided
in
chapter
28E
,
may
pledge
irrevocably
15
any
amount
derived
from
the
remaining
revenues
of
the
local
16
hotel
and
motel
tax
as
set
forth
in
paragraph
“b”
,
subparagraph
17
(2),
to
the
support
or
payment
of
bonds
issued
for
a
project
18
within
the
purposes
set
forth
in
paragraph
“a”
and
located
19
within
one
or
more
of
the
participatory
cities
or
counties
20
or
may
apply
the
proceeds
of
its
bonds
to
the
support
of
any
21
such
project
the
purpose
of
promoting
tourism
or
for
any
other
22
purpose
authorized
by
law
.
Revenue
so
pledged
or
applied
shall
23
not
be
credited
to
the
spending
requirement
of
paragraph
“a”
24
“b”
,
subparagraph
(1)
.
25
Sec.
6.
NEW
SECTION
.
423A.8
Good-faith
effort
to
collect
26
tax.
27
A
land
use
district,
city,
or
county,
including
a
city
28
or
county
acting
jointly
with
other
local
governments,
shall
29
expend
a
portion
of
the
remaining
revenues
of
the
local
hotel
30
and
motel
tax
in
section
423A.7,
subsection
4,
paragraph
“b”
,
31
subparagraph
(2),
for
paid
advertisements
or
public
service
32
announcements
that
disseminate
information
about
the
law
33
requiring
lodging
providers
to
obtain
a
permit
and
to
collect
34
the
state
and
locally
imposed
taxes
under
this
chapter.
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Sec.
7.
APPLICABILITY.
This
Act
does
not
apply
to
bonds
1
issued
prior
to
the
effective
date
of
this
Act
or
to
the
2
proceeds
of
such
bonds.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
concerns
hotel
and
motel
taxation,
including
the
7
creation
of
a
local
hotel
and
motel
tax
account
and
board
to
8
administer
locally
imposed
hotel
and
motel
taxes.
9
The
bill
specifies
that
a
lodging
provider
shall
obtain
a
10
sales
tax
permit
when
renting
lodging
in
this
state,
and
remit
11
any
tax
collected
to
the
department
of
revenue.
12
Code
section
423A.2
defines
“lodging
facilitator”
to
mean
13
person
or
any
affiliate
of
a
person,
other
than
a
lodging
14
provider
or
a
lodging
platform,
that
facilitates
the
renting
15
of
lodging
and
collects
or
processes
the
sales
price
charged
16
to
the
user.
17
The
bill
provides
that
a
lodging
facilitator
shall
not
be
18
required
to
collect
the
state
and
local
hotel
and
motel
tax
19
on
the
amount
of
the
sales
price
that
represents
the
lodging
20
facilitator’s
fee
under
the
following
circumstances:
in
a
21
county
with
a
population
of
15,000
or
less,
if
the
yearly
total
22
rentals
are
equal
to
or
less
than
$10,000,
or
there
are
10
or
23
fewer
yearly
transactions;
or
in
a
county
with
a
population
24
greater
than
15,000,
if
the
yearly
total
rentals
are
equal
25
to
or
less
than
$5,000,
or
there
are
five
or
fewer
yearly
26
transactions.
Current
law,
regardless
of
the
size
of
the
27
county,
does
not
require
the
lodging
facilitator
to
collect
the
28
hotel
and
motel
tax
if
the
aggregate
value
of
the
rentals
is
29
equal
to
or
less
than
$10,000
in
a
calendar
year,
or
there
are
30
10
or
fewer
separate
transactions
in
a
calendar
year.
31
If
a
city
or
county
has
levied
a
locally
imposed
hotel
and
32
motel
tax,
the
bill
requires
the
city
or
county
to
establish
33
a
hotel
and
motel
tax
account
within
the
general
fund
of
the
34
city
or
county.
The
bill
requires
all
of
the
revenues
received
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by
the
city
or
county
pursuant
to
the
locally
imposed
hotel
1
and
motel
tax
be
deposited
into
the
account.
Moneys
in
the
2
account
are
not
subject
to
transfer
to
any
other
accounts
or
3
to
any
other
funds
established
by
a
city
or
county
unless
such
4
transfer
is
for
a
purpose
specified
by
law.
5
The
governing
authority
of
each
city
or
county
which
levies
6
the
hotel
and
motel
tax
shall
also
establish
a
hotel
and
motel
7
tax
board
to
spend
at
least
50
percent
of
the
revenues
in
the
8
account
on
the
promotion
of
tourism
in
the
city,
county,
or
9
surrounding
areas.
One-half
of
the
members
of
the
board
shall
10
be
from
the
tourism
industry,
and
one-half
of
the
members
of
11
the
board
shall
be
local
hotel,
motel,
or
resort
owners,
or
be
12
designees
of
such
owners.
13
The
remaining
revenues
not
subject
to
expenditure
by
the
14
hotel
and
motel
tax
board
created
in
the
bill
shall
be
spent,
15
as
required
by
current
law,
by
the
city
or
county
on
any
city
16
or
county
operations
authorized
by
law
as
a
proper
purpose
for
17
the
expenditure
within
statutory
limitations
of
city
or
county
18
revenues
derived
from
ad
valorem
taxes.
19
The
bill
also
allows
an
amount
of
the
remaining
revenues
not
20
subject
to
expenditure
by
the
hotel
and
motel
tax
board
created
21
in
the
bill
to
be
irrevocably
pledged
to
the
servicing
of
bonds
22
to
promote
tourism
or
for
any
other
purposes
authorized
by
23
law.
The
bill
specifies
a
city
or
county
may
enter
into
28E
24
agreements
or
jointly
service
such
bonds
with
other
cities
or
25
counties.
26
The
bill
requires
a
portion
of
the
remaining
revenues
not
27
subject
to
expenditure
by
the
hotel
and
motel
tax
board
created
28
in
the
bill
to
be
spent
for
paid
advertisements
or
public
29
service
announcements
that
disseminate
information
about
the
30
law
requiring
lodging
providers
to
obtain
a
permit
and
collect
31
state
and
locally
imposed
hotel
and
motel
taxes.
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