SF 640 (LSB 1771SV (2) 88)

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 for the renting of lodging.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423A.5, subsection 1, Code 2019, is amended to read as follows:
   1.  The sales price from the renting of lodging which is rented by the same person to a tenant as defined in section 562A.6 or 562B.7 where the lodging is rented by the same tenant for a period of more than thirty-one consecutive days.
    Sec. 2.  Section 423A.5, Code 2019, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  The sales price from the renting of lodging which is rented by the same person for the period beginning after ninety consecutive days of rental by such person.
   NEW SUBSECTION.  4.  a.  The sales price of lodging furnished to the guests of a nonprofit lodging provider and the purpose of renting is to provide a place for the friends and family of a hospital patient during a time of medical need of the patient and the length of stay is based upon the needs of the friends, family, or patient.
   b.  For purposes of this subsection, “nonprofit lodging provider” means 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.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the exemption from the hotel and motel taxes for the renting of lodging.
   CONSECUTIVE DAYS OF RENTAL. The bill provides that the sales price from the renting of lodging to a tenant as defined in Code section 562A.6 or 562B.7, where the lodging is rented by the same tenant for a period of more than 31 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 90 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 31 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.