SSB 3245 (LSB 6258SC (9) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM)

A BILL FOR

An Act authorizing cities and counties to impose a fee on the renting of certain lodging.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.402, subsection 2, paragraph f, Code Supplement 2009, is amended to read as follows:
   f.  Impose a hotel and motel tax, a lessor regulation fee, or both, in accordance with chapter 423A.
    Sec. 2.  Section 331.427, subsection 1, unnumbered paragraph 1, Code Supplement 2009, is amended to read as follows:
   Except as otherwise provided by state law, county revenues from taxes and other sources for general county services shall be credited to the general fund of the county, including revenues received under sections 9I.11, 101A.3, 101A.7, 123.36, 123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8, section 331.554, subsection 6, sections 341A.20, 364.3, 368.21, 423A.4A, 423A.7, 428A.8, 433.15, 434.19, 445.57, 453A.35, 458A.21, 483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, and 906.17, and the following:
    Sec. 3.  NEW SECTION.  423A.4A  Local lodging regulation fee.
   1.  A city or county may impose by ordinance of the city council or by resolution of the board of supervisors a lodging regulation fee at a rate not to exceed one dollar and fifty cents per night of lodging rental. The fee when imposed by a city shall apply only within the corporate boundaries of that city and when imposed by a county shall apply only outside the incorporated areas within that county.
   2.  The fee shall be collected by the lessor of lodging from the user of that lodging. The lessor shall add the fee to the sales price of the lodging, and the fee shall be stated as a distinct item, separate and apart from the sales price of the lodging and taxes imposed, if any, under section 423A.3 or 423A.4.
   3.  Fees collected by a lessor shall be due and payable to the city or county, as applicable, according to a schedule specified in the ordinance. A lessor is liable for the payment of fees to the city or county in the same manner as liability is imposed on retailers for the payment of taxes under sections 421.26 and 421.28.
   4.  Fees received by a city or county under this section shall be deposited in a lodging regulation account within the city’s general fund or the county’s general fund, as applicable. All fees collected under this section are deemed to be held in trust for the applicable city or county that is imposing the fee.
   5.  a.  Moneys in the lodging regulation account within the city or county general fund shall be used for that city’s or county’s costs related to the inspection, supervision, and regulation of lessors within the applicable city or county under chapter 137C.
   b.  Moneys in the lodging regulation account in excess of the amounts necessary to inspect, supervise, or regulate the lessors under paragraph “a” shall be expended for property tax relief.
   6.  An ordinance imposing a fee under this section shall designate an applicable city or county officer to receive payments from lessors and to prescribe any forms necessary for the collection, reporting, and payment of such fees.
    Sec. 4.  Section 423A.5, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  All of the following are exempt from any fee imposed under section 423A.4A:
   a.  The renting of lodging which is rented by the same person for a period of more than thirty-one consecutive days.
   b.  The renting of sleeping rooms in dormitories and in the memorial unions at all universities and colleges located in the state of Iowa.
   c.  The lodging furnished to the guests of a religious institution if the property is exempt under section 427.1, subsection 8, and the purpose of renting is to provide a place for a religious retreat or function and not a place for transient guests generally.
EXPLANATION
   This bill authorizes cities and counties to impose by ordinance of the city council or by resolution of the county board of supervisors a lodging regulation fee at a rate not to exceed $1.50 per night of lodging rental. The fee when imposed by a city applies only within the corporate boundaries of that city and when imposed by a county applies only outside the incorporated areas within that county. 
   The bill requires such fees to be collected by the lessor of lodging from the user of the lodging. The fee is added to the sales price of the lodging, and the fee must be stated as a distinct item, separate from the sales price of the lodging and other hotel and motel taxes imposed on the rental. The fees collected by a lessor are paid to the city or county, as applicable, according to a schedule specified by the city or county. The bill imposes liability on a lessor for the payment of fees to the city or county in the same manner as liability is imposed on retailers for the payment of certain taxes. 
   The bill requires all lodging regulation fees received by a city or county to be deposited in a lodging regulation account within the city’s general fund or the county’s general fund, as applicable. Moneys in the lodging regulation account must first be used for that city’s or county’s costs related to the inspection, supervision, and regulation of lessors within the applicable city or county under Code chapter 137C. Moneys in the lodging regulation account in excess of the amounts necessary to inspect, supervise, or regulate the lessors, must be expended for property tax relief.
   The bill exempts certain lodging rental from the lodging regulation fee. The exemptions in the bill are similar to the exemptions currently applicable to state and local hotel and motel taxes under Code chapter 423A.