Bill Text: IA SF640 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to the exemption from the hotel and motel taxes for the renting of lodging. (Formerly SF 131.)

Spectrum: Partisan Bill (? 1-0)

Status: (Introduced) 2019-04-26 - Withdrawn. S.J. 1152. [SF640 Detail]

Download: Iowa-2019-SF640-Introduced.html
Senate File 640 - Introduced SENATE FILE 640 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 131) A BILL FOR An Act relating to the exemption from the hotel and motel taxes 1 for the renting of lodging. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1771SV (2) 88 jm/jh
S.F. 640 Section 1. Section 423A.5, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. The sales price from the renting of lodging which is 3 rented by the same person to a tenant as defined in section 4 562A.6 or 562B.7 where the lodging is rented by the same tenant 5 for a period of more than thirty-one consecutive days. 6 Sec. 2. Section 423A.5, Code 2019, is amended by adding the 7 following new subsections: 8 NEW SUBSECTION . 1A. The sales price from the renting of 9 lodging which is rented by the same person for the period 10 beginning after ninety consecutive days of rental by such 11 person. 12 NEW SUBSECTION . 4. a. The sales price of lodging furnished 13 to the guests of a nonprofit lodging provider and the purpose 14 of renting is to provide a place for the friends and family of 15 a hospital patient during a time of medical need of the patient 16 and the length of stay is based upon the needs of the friends, 17 family, or patient. 18 b. For purposes of this subsection, “nonprofit lodging 19 provider” means a nonprofit entity which is exempt from federal 20 income taxation pursuant to section 501(c)(3) of the Internal 21 Revenue Code that maintains an established facility that 22 provides lodging to friends and family of a hospital patient 23 during a time of medical need of the patient. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to the exemption from the hotel and motel 28 taxes for the renting of lodging. 29 CONSECUTIVE DAYS OF RENTAL. The bill provides that the sales 30 price from the renting of lodging to a tenant as defined in 31 Code section 562A.6 or 562B.7, where the lodging is rented by 32 the same tenant for a period of more than 31 days, is exempt 33 from state and local hotel and motel taxes. 34 The bill provides that the sales price from the renting 35 -1- LSB 1771SV (2) 88 jm/jh 1/ 2
S.F. 640 of lodging which is rented by the same person for the period 1 beginning after 90 consecutive days of rental by such person, 2 is exempt from state and local hotel and motel taxes. 3 Currently, the sales price from the renting of lodging which 4 is rented by the same person for a period of more than 31 5 consecutive days is exempt from the hotel and motel taxes under 6 Code chapter 423A. 7 NONPROFIT LODGING PROVIDER. The bill exempts from the 8 hotel and motel tax the sales price of lodging furnished by a 9 nonprofit lodging provider renting to the friends and family 10 of a hospital patient. 11 The bill defines “nonprofit lodging provider” to mean a 12 nonprofit entity which is exempt from federal income taxation 13 pursuant to section 501(c)(3) of the Internal Revenue Code 14 that maintains an established facility that provides lodging 15 to friends and family of a hospital patient during a time of 16 medical need of the patient. 17 -2- LSB 1771SV (2) 88 jm/jh 2/ 2
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