Print
Senate File 640 - IntroducedA Bill ForAn Act 1relating to the exemption from the hotel and motel taxes
2for the renting of lodging.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423A.5, subsection 1, Code 2019, is
2amended to read as follows:
31. The sales price from the renting of lodging which is
4rented by the same person to a tenant as defined in section
5562A.6 or 562B.7 where the lodging is rented by the same tenant
6 for a period of more than thirty-one consecutive days.
7 Sec. 2. Section 423A.5, Code 2019, is amended by adding the
8following new subsections:
9 NEW SUBSECTION. 1A. The sales price from the renting of
10lodging which is rented by the same person for the period
11beginning after ninety consecutive days of rental by such
12person.
13 NEW SUBSECTION. 4. a. The sales price of lodging furnished
14to the guests of a nonprofit lodging provider and the purpose
15of renting is to provide a place for the friends and family of
16a hospital patient during a time of medical need of the patient
17and the length of stay is based upon the needs of the friends,
18family, or patient.
19b. For purposes of this subsection, “nonprofit lodging
20provider” means a nonprofit entity which is exempt from federal
21income taxation pursuant to section 501(c)(3) of the Internal
22Revenue Code that maintains an established facility that
23provides lodging to friends and family of a hospital patient
24during a time of medical need of the patient.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to the exemption from the hotel and motel
29taxes for the renting of lodging.
30CONSECUTIVE DAYS OF RENTAL. The bill provides that the sales
31price from the renting of lodging to a tenant as defined in
32Code section 562A.6 or 562B.7, where the lodging is rented by
33the same tenant for a period of more than 31 days, is exempt
34from state and local hotel and motel taxes.
35The bill provides that the sales price from the renting
-1-1of lodging which is rented by the same person for the period
2beginning after 90 consecutive days of rental by such person,
3is exempt from state and local hotel and motel taxes.
4Currently, the sales price from the renting of lodging which
5is rented by the same person for a period of more than 31
6consecutive days is exempt from the hotel and motel taxes under
7Code chapter 423A.
8NONPROFIT LODGING PROVIDER. The bill exempts from the
9hotel and motel tax the sales price of lodging furnished by a
10nonprofit lodging provider renting to the friends and family
11of a hospital patient.
12The bill defines “nonprofit lodging provider” to mean a
13nonprofit entity which is exempt from federal income taxation
14pursuant to section 501(c)(3) of the Internal Revenue Code
15that maintains an established facility that provides lodging
16to friends and family of a hospital patient during a time of
17medical need of the patient.
-2-jm/jh
2for the renting of lodging.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423A.5, subsection 1, Code 2019, is
2amended to read as follows:
31. The sales price from the renting of lodging which is
4rented by the same person to a tenant as defined in section
5562A.6 or 562B.7 where the lodging is rented by the same tenant
6 for a period of more than thirty-one consecutive days.
7 Sec. 2. Section 423A.5, Code 2019, is amended by adding the
8following new subsections:
9 NEW SUBSECTION. 1A. The sales price from the renting of
10lodging which is rented by the same person for the period
11beginning after ninety consecutive days of rental by such
12person.
13 NEW SUBSECTION. 4. a. The sales price of lodging furnished
14to the guests of a nonprofit lodging provider and the purpose
15of renting is to provide a place for the friends and family of
16a hospital patient during a time of medical need of the patient
17and the length of stay is based upon the needs of the friends,
18family, or patient.
19b. For purposes of this subsection, “nonprofit lodging
20provider” means a nonprofit entity which is exempt from federal
21income taxation pursuant to section 501(c)(3) of the Internal
22Revenue Code that maintains an established facility that
23provides lodging to friends and family of a hospital patient
24during a time of medical need of the patient.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to the exemption from the hotel and motel
29taxes for the renting of lodging.
30CONSECUTIVE DAYS OF RENTAL. The bill provides that the sales
31price from the renting of lodging to a tenant as defined in
32Code section 562A.6 or 562B.7, where the lodging is rented by
33the same tenant for a period of more than 31 days, is exempt
34from state and local hotel and motel taxes.
35The bill provides that the sales price from the renting
-1-1of lodging which is rented by the same person for the period
2beginning after 90 consecutive days of rental by such person,
3is exempt from state and local hotel and motel taxes.
4Currently, the sales price from the renting of lodging which
5is rented by the same person for a period of more than 31
6consecutive days is exempt from the hotel and motel taxes under
7Code chapter 423A.
8NONPROFIT LODGING PROVIDER. The bill exempts from the
9hotel and motel tax the sales price of lodging furnished by a
10nonprofit lodging provider renting to the friends and family
11of a hospital patient.
12The bill defines “nonprofit lodging provider” to mean a
13nonprofit entity which is exempt from federal income taxation
14pursuant to section 501(c)(3) of the Internal Revenue Code
15that maintains an established facility that provides lodging
16to friends and family of a hospital patient during a time of
17medical need of the patient.
-2-jm/jh