S.F. _____ Section 1. Section 331.402, subsection 2, paragraph f, Code 1 Supplement 2009, is amended to read as follows: 2 f. Impose a hotel and motel tax , a lessor regulation fee, or 3 both, in accordance with chapter 423A. 4 Sec. 2. Section 331.427, subsection 1, unnumbered paragraph 5 1, Code Supplement 2009, is amended to read as follows: 6 Except as otherwise provided by state law, county revenues 7 from taxes and other sources for general county services shall 8 be credited to the general fund of the county, including 9 revenues received under sections 9I.11, 101A.3, 101A.7, 123.36, 10 123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8, 11 section 331.554, subsection 6, sections 341A.20, 364.3, 368.21, 12 423A.4A, 423A.7, 428A.8, 433.15, 434.19, 445.57, 453A.35, 13 458A.21, 483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, 14 and 906.17, and the following: 15 Sec. 3. NEW SECTION . 423A.4A Local lodging regulation fee. 16 1. A city or county may impose by ordinance of the city 17 council or by resolution of the board of supervisors a lodging 18 regulation fee at a rate not to exceed one dollar and fifty 19 cents per night of lodging rental. The fee when imposed by a 20 city shall apply only within the corporate boundaries of that 21 city and when imposed by a county shall apply only outside the 22 incorporated areas within that county. 23 2. The fee shall be collected by the lessor of lodging from 24 the user of that lodging. The lessor shall add the fee to the 25 sales price of the lodging, and the fee shall be stated as a 26 distinct item, separate and apart from the sales price of the 27 lodging and taxes imposed, if any, under section 423A.3 or 28 423A.4. 29 3. Fees collected by a lessor shall be due and payable to 30 the city or county, as applicable, according to a schedule 31 specified in the ordinance. A lessor is liable for the payment 32 of fees to the city or county in the same manner as liability is 33 imposed on retailers for the payment of taxes under sections 34 421.26 and 421.28. 35 -1- LSB 6258SC (9) 83 md/sc 1/ 3

S.F. _____ 4. Fees received by a city or county under this section 1 shall be deposited in a lodging regulation account within 2 the city’s general fund or the county’s general fund, as 3 applicable. All fees collected under this section are deemed 4 to be held in trust for the applicable city or county that is 5 imposing the fee. 6 5. a. Moneys in the lodging regulation account within the 7 city or county general fund shall be used for that city’s or 8 county’s costs related to the inspection, supervision, and 9 regulation of lessors within the applicable city or county 10 under chapter 137C. 11 b. Moneys in the lodging regulation account in excess of 12 the amounts necessary to inspect, supervise, or regulate the 13 lessors under paragraph “a” shall be expended for property tax 14 relief. 15 6. An ordinance imposing a fee under this section shall 16 designate an applicable city or county officer to receive 17 payments from lessors and to prescribe any forms necessary for 18 the collection, reporting, and payment of such fees. 19 Sec. 4. Section 423A.5, Code Supplement 2009, is amended by 20 adding the following new subsection: 21 NEW SUBSECTION . 3. All of the following are exempt from any 22 fee imposed under section 423A.4A: 23 a. The renting of lodging which is rented by the same person 24 for a period of more than thirty-one consecutive days. 25 b. The renting of sleeping rooms in dormitories and in the 26 memorial unions at all universities and colleges located in the 27 state of Iowa. 28 c. The lodging furnished to the guests of a religious 29 institution if the property is exempt under section 427.1, 30 subsection 8, and the purpose of renting is to provide a 31 place for a religious retreat or function and not a place for 32 transient guests generally. 33 EXPLANATION 34 This bill authorizes cities and counties to impose by 35 -2- LSB 6258SC (9) 83 md/sc 2/ 3

S.F. _____ ordinance of the city council or by resolution of the county 1 board of supervisors a lodging regulation fee at a rate not to 2 exceed $1.50 per night of lodging rental. The fee when imposed 3 by a city applies only within the corporate boundaries of that 4 city and when imposed by a county applies only outside the 5 incorporated areas within that county. 6 The bill requires such fees to be collected by the lessor 7 of lodging from the user of the lodging. The fee is added to 8 the sales price of the lodging, and the fee must be stated as 9 a distinct item, separate from the sales price of the lodging 10 and other hotel and motel taxes imposed on the rental. The 11 fees collected by a lessor are paid to the city or county, as 12 applicable, according to a schedule specified by the city or 13 county. The bill imposes liability on a lessor for the payment 14 of fees to the city or county in the same manner as liability is 15 imposed on retailers for the payment of certain taxes. 16 The bill requires all lodging regulation fees received by a 17 city or county to be deposited in a lodging regulation account 18 within the city’s general fund or the county’s general fund, 19 as applicable. Moneys in the lodging regulation account must 20 first be used for that city’s or county’s costs related to the 21 inspection, supervision, and regulation of lessors within the 22 applicable city or county under Code chapter 137C. Moneys 23 in the lodging regulation account in excess of the amounts 24 necessary to inspect, supervise, or regulate the lessors, must 25 be expended for property tax relief. 26 The bill exempts certain lodging rental from the lodging 27 regulation fee. The exemptions in the bill are similar to the 28 exemptions currently applicable to state and local hotel and 29 motel taxes under Code chapter 423A. 30 -3- LSB 6258SC (9) 83 md/sc 3/ 3