HF 2320 (LSB 5315YH (1) 91)

HOUSE FILE 2320

BY  WICHTENDAHL

A BILL FOR

An Act relating to short-term rental property classification by cities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 414.1, subsection 1, paragraph e, Code 2026, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (5)  Notwithstanding subparagraph (2), a city may adopt an ordinance requiring registration of a short-term rental property. The city may apply penalties for failure to register. A city may consider a short-term rental property to be lodging for purposes of collecting the hotel and motel tax pursuant to chapter 423A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, cities are prohibited from regulating short-term rental properties. In addition, cities are permitted to impose a hotel and motel tax upon the sales price from the renting of lodging.
   This bill allows a city to consider a short-term rental property as lodging for purposes of collecting the hotel and motel tax. A city may adopt an ordinance requiring registration of a short-term rental property and may apply a penalty for failure to register.