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Senate File 2045 - IntroducedA Bill ForAn Act 1concerning hotel and motel taxation, providing for other
2properly related matters including the creation of a local
3hotel and motel tax account and board to administer locally
4imposed hotel and motel taxes, and including applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423A.5A, subsection 3, Code 2020, is
2amended to read as follows:
33. Unless otherwise provided in this section, the
4lodging provider shall obtain a sales tax permit, collect the
5state-imposed tax under section 423A.3 and any locally imposed
6tax under section 423A.4 shall be collected by the lodging
7provider from the user of that lodging, and shall be remitted
8 remit the tax to the department. The lodging provider shall
9add the state-imposed tax to the sales price of the lodging and
10the tax, when collected, shall be stated as a distinct item,
11separate and apart from the sales price of the lodging and from
12the locally imposed tax, if any. The lodging provider shall
13add the locally imposed tax, if any, to the sales price of
14the lodging and the tax, when collected, shall be stated as a
15distinct item, separate and apart from the sales price of the
16lodging and from the state-imposed tax.
17 Sec. 2. Section 423A.5A, subsection 4, paragraph e, Code
182020, is amended to read as follows:
19e. Notwithstanding any other provision of this section
20to the contrary, if a lodging facilitator and its affiliates
21facilitate total rentals under this chapter and chapter
22423C that, the lodging facilitator shall not be required to
23collect tax on the amount of sales price that represents the
24lodging facilitator’s facilitation fee under the following
25circumstances:
26(1) In a county with a population of fifteen thousand
27or less, if the total rentalsare equal to or less than an
28aggregate amount of sales price and rental price of ten
29thousand dollars for an immediately preceding calendar year
30or a current calendar year, or in ten or fewer separate
31transactions for an immediately preceding calendar year or
32a current calendar year, the lodging facilitator shall not
33be required to collect tax on the amount of sales price that
34represents the lodging facilitator’s facilitation fee.
35(2) In a county with a population greater than fifteen
-1-1thousand, if the total rentals are equal to or less than an
2aggregate amount of sales price and rental price of five
3thousand dollars for an immediately preceding calendar year
4or a current calendar year, or in five or fewer separate
5transactions for an immediately preceding calendar year or a
6current calendar year.
7 Sec. 3. Section 423A.7, subsection 3, Code 2020, is amended
8to read as follows:
93. Moneys received by the city or county from this fund
10shall be credited to the general fund of the city or county,
11subject to the provisions of subsection 4.
12 Sec. 4. Section 423A.7, subsection 4, paragraphs a and b,
13Code 2020, are amended by striking the paragraphs and inserting
14in lieu thereof the following:
15a. A city or county that levies the tax shall establish a
16hotel and motel tax account within the general fund of the city
17or county. All of the revenues received by the city or county
18pursuant to subsection 2 shall be deposited into the account.
19Interest earned on revenues deposited in the account shall
20remain in the account and be used for the purposes specified in
21this section.
22b. (1) The governing authority of each city or county that
23levies the tax shall establish a hotel and motel tax board
24comprising of an even number of members, but in no event shall
25the board be less than four members, to spend at least fifty
26percent of the revenues in the account on the promotion of
27tourism in the city, county, or surrounding areas. One-half of
28the members of the board shall be from the tourism industry,
29and one-half of the members of the board shall be local hotel,
30motel, or resort owners, or be designees of such owners.
31(2) The remaining revenues not subject to subparagraph (1)
32may be spent by the city or county that levies the tax for any
33city or county operation authorized by law as a proper purpose
34for the expenditure within statutory limitations of city or
35county revenues derived from ad valorem taxes.
-2-1 Sec. 5. Section 423A.7, subsection 4, paragraphs c and e,
2Code 2020, are amended to read as follows:
3c. Any city or county which levies and collects the local
4hotel and motel tax authorized by section 423A.4 may pledge
5irrevocably an amount of the remaining revenues derived
6therefrom from the local hotel and motel tax as set forth in
7paragraph “b”, subparagraph (2), for each of the years the bonds
8remain outstanding to the payment of bonds which the city or
9county may issue for one or more of the purposes set forth in
10paragraph “a” for the purpose of promoting tourism or for any
11other purpose authorized by law. Any revenue pledged to the
12payment of such bonds may shall not be credited to the spending
13requirement of paragraph “a” “b”, subparagraph (1).
14e. A city or county, jointly with one or more other cities
15or counties as provided in chapter 28E, may pledge irrevocably
16any amount derived from the remaining revenues of the local
17hotel and motel tax as set forth in paragraph “b”, subparagraph
18(2), to the support or payment of bonds issued for a project
19within the purposes set forth in paragraph “a” and located
20within one or more of the participatory cities or counties
21or may apply the proceeds of its bonds to the support of any
22such project the purpose of promoting tourism or for any other
23purpose authorized by law. Revenue so pledged or applied shall
24not be credited to the spending requirement of paragraph “a”
25 “b”, subparagraph (1).
26 Sec. 6. NEW SECTION. 423A.8 Good-faith effort to collect
27tax.
28A land use district, city, or county, including a city
29or county acting jointly with other local governments, shall
30expend a portion of the remaining revenues of the local hotel
31and motel tax in section 423A.7, subsection 4, paragraph “b”,
32subparagraph (2), for paid advertisements or public service
33announcements that disseminate information about the law
34requiring lodging providers to obtain a permit and to collect
35the state and locally imposed taxes under this chapter.
-3-1 Sec. 7. APPLICABILITY. This Act does not apply to bonds
2issued prior to the effective date of this Act or to the
3proceeds of such bonds.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill concerns hotel and motel taxation, including the
8creation of a local hotel and motel tax account and board to
9administer locally imposed hotel and motel taxes.
10The bill specifies that a lodging provider shall obtain a
11sales tax permit when renting lodging in this state, and remit
12any tax collected to the department of revenue.
13Code section 423A.2 defines “lodging facilitator” to mean
14person or any affiliate of a person, other than a lodging
15provider or a lodging platform, that facilitates the renting
16of lodging and collects or processes the sales price charged
17to the user.
18The bill provides that a lodging facilitator shall not be
19required to collect the state and local hotel and motel tax
20on the amount of the sales price that represents the lodging
21facilitator’s fee under the following circumstances: in a
22county with a population of 15,000 or less, if the yearly total
23rentals are equal to or less than $10,000, or there are 10 or
24fewer yearly transactions; or in a county with a population
25greater than 15,000, if the yearly total rentals are equal
26to or less than $5,000, or there are five or fewer yearly
27transactions. Current law, regardless of the size of the
28county, does not require the lodging facilitator to collect the
29hotel and motel tax if the aggregate value of the rentals is
30equal to or less than $10,000 in a calendar year, or there are
3110 or fewer separate transactions in a calendar year.
32If a city or county has levied a locally imposed hotel and
33motel tax, the bill requires the city or county to establish
34a hotel and motel tax account within the general fund of the
35city or county. The bill requires all of the revenues received
-4-1by the city or county pursuant to the locally imposed hotel
2and motel tax be deposited into the account. Moneys in the
3account are not subject to transfer to any other accounts or
4to any other funds established by a city or county unless such
5transfer is for a purpose specified by law.
6The governing authority of each city or county which levies
7the hotel and motel tax shall also establish a hotel and motel
8tax board to spend at least 50 percent of the revenues in the
9account on the promotion of tourism in the city, county, or
10surrounding areas. One-half of the members of the board shall
11be from the tourism industry, and one-half of the members of
12the board shall be local hotel, motel, or resort owners, or be
13designees of such owners.
14The remaining revenues not subject to expenditure by the
15hotel and motel tax board created in the bill shall be spent,
16as required by current law, by the city or county on any city
17or county operations authorized by law as a proper purpose for
18the expenditure within statutory limitations of city or county
19revenues derived from ad valorem taxes.
20The bill also allows an amount of the remaining revenues not
21subject to expenditure by the hotel and motel tax board created
22in the bill to be irrevocably pledged to the servicing of bonds
23to promote tourism or for any other purposes authorized by
24law. The bill specifies a city or county may enter into 28E
25agreements or jointly service such bonds with other cities or
26counties.
27The bill requires a portion of the remaining revenues not
28subject to expenditure by the hotel and motel tax board created
29in the bill to be spent for paid advertisements or public
30service announcements that disseminate information about the
31law requiring lodging providers to obtain a permit and collect
32state and locally imposed hotel and motel taxes.
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2properly related matters including the creation of a local
3hotel and motel tax account and board to administer locally
4imposed hotel and motel taxes, and including applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423A.5A, subsection 3, Code 2020, is
2amended to read as follows:
33. Unless otherwise provided in this section, the
4lodging provider shall obtain a sales tax permit, collect the
5state-imposed tax under section 423A.3 and any locally imposed
6tax under section 423A.4 shall be collected by the lodging
7provider from the user of that lodging, and shall be remitted
8 remit the tax to the department. The lodging provider shall
9add the state-imposed tax to the sales price of the lodging and
10the tax, when collected, shall be stated as a distinct item,
11separate and apart from the sales price of the lodging and from
12the locally imposed tax, if any. The lodging provider shall
13add the locally imposed tax, if any, to the sales price of
14the lodging and the tax, when collected, shall be stated as a
15distinct item, separate and apart from the sales price of the
16lodging and from the state-imposed tax.
17 Sec. 2. Section 423A.5A, subsection 4, paragraph e, Code
182020, is amended to read as follows:
19e. Notwithstanding any other provision of this section
20to the contrary, if a lodging facilitator and its affiliates
21facilitate total rentals under this chapter and chapter
22423C that, the lodging facilitator shall not be required to
23collect tax on the amount of sales price that represents the
24lodging facilitator’s facilitation fee under the following
25circumstances:
26(1) In a county with a population of fifteen thousand
27or less, if the total rentalsare equal to or less than an
28aggregate amount of sales price and rental price of ten
29thousand dollars for an immediately preceding calendar year
30or a current calendar year, or in ten or fewer separate
31transactions for an immediately preceding calendar year or
32a current calendar year, the lodging facilitator shall not
33be required to collect tax on the amount of sales price that
34represents the lodging facilitator’s facilitation fee.
35(2) In a county with a population greater than fifteen
-1-1thousand, if the total rentals are equal to or less than an
2aggregate amount of sales price and rental price of five
3thousand dollars for an immediately preceding calendar year
4or a current calendar year, or in five or fewer separate
5transactions for an immediately preceding calendar year or a
6current calendar year.
7 Sec. 3. Section 423A.7, subsection 3, Code 2020, is amended
8to read as follows:
93. Moneys received by the city or county from this fund
10shall be credited to the general fund of the city or county,
11subject to the provisions of subsection 4.
12 Sec. 4. Section 423A.7, subsection 4, paragraphs a and b,
13Code 2020, are amended by striking the paragraphs and inserting
14in lieu thereof the following:
15a. A city or county that levies the tax shall establish a
16hotel and motel tax account within the general fund of the city
17or county. All of the revenues received by the city or county
18pursuant to subsection 2 shall be deposited into the account.
19Interest earned on revenues deposited in the account shall
20remain in the account and be used for the purposes specified in
21this section.
22b. (1) The governing authority of each city or county that
23levies the tax shall establish a hotel and motel tax board
24comprising of an even number of members, but in no event shall
25the board be less than four members, to spend at least fifty
26percent of the revenues in the account on the promotion of
27tourism in the city, county, or surrounding areas. One-half of
28the members of the board shall be from the tourism industry,
29and one-half of the members of the board shall be local hotel,
30motel, or resort owners, or be designees of such owners.
31(2) The remaining revenues not subject to subparagraph (1)
32may be spent by the city or county that levies the tax for any
33city or county operation authorized by law as a proper purpose
34for the expenditure within statutory limitations of city or
35county revenues derived from ad valorem taxes.
-2-1 Sec. 5. Section 423A.7, subsection 4, paragraphs c and e,
2Code 2020, are amended to read as follows:
3c. Any city or county which levies and collects the local
4hotel and motel tax authorized by section 423A.4 may pledge
5irrevocably an amount of the remaining revenues derived
6therefrom from the local hotel and motel tax as set forth in
7paragraph “b”, subparagraph (2), for each of the years the bonds
8remain outstanding to the payment of bonds which the city or
9county may issue for one or more of the purposes set forth in
10paragraph “a” for the purpose of promoting tourism or for any
11other purpose authorized by law. Any revenue pledged to the
12payment of such bonds may shall not be credited to the spending
13requirement of paragraph “a” “b”, subparagraph (1).
14e. A city or county, jointly with one or more other cities
15or counties as provided in chapter 28E, may pledge irrevocably
16any amount derived from the remaining revenues of the local
17hotel and motel tax as set forth in paragraph “b”, subparagraph
18(2), to the support or payment of bonds issued for a project
19within the purposes set forth in paragraph “a” and located
20within one or more of the participatory cities or counties
21or may apply the proceeds of its bonds to the support of any
22such project the purpose of promoting tourism or for any other
23purpose authorized by law. Revenue so pledged or applied shall
24not be credited to the spending requirement of paragraph “a”
25 “b”, subparagraph (1).
26 Sec. 6. NEW SECTION. 423A.8 Good-faith effort to collect
27tax.
28A land use district, city, or county, including a city
29or county acting jointly with other local governments, shall
30expend a portion of the remaining revenues of the local hotel
31and motel tax in section 423A.7, subsection 4, paragraph “b”,
32subparagraph (2), for paid advertisements or public service
33announcements that disseminate information about the law
34requiring lodging providers to obtain a permit and to collect
35the state and locally imposed taxes under this chapter.
-3-1 Sec. 7. APPLICABILITY. This Act does not apply to bonds
2issued prior to the effective date of this Act or to the
3proceeds of such bonds.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill concerns hotel and motel taxation, including the
8creation of a local hotel and motel tax account and board to
9administer locally imposed hotel and motel taxes.
10The bill specifies that a lodging provider shall obtain a
11sales tax permit when renting lodging in this state, and remit
12any tax collected to the department of revenue.
13Code section 423A.2 defines “lodging facilitator” to mean
14person or any affiliate of a person, other than a lodging
15provider or a lodging platform, that facilitates the renting
16of lodging and collects or processes the sales price charged
17to the user.
18The bill provides that a lodging facilitator shall not be
19required to collect the state and local hotel and motel tax
20on the amount of the sales price that represents the lodging
21facilitator’s fee under the following circumstances: in a
22county with a population of 15,000 or less, if the yearly total
23rentals are equal to or less than $10,000, or there are 10 or
24fewer yearly transactions; or in a county with a population
25greater than 15,000, if the yearly total rentals are equal
26to or less than $5,000, or there are five or fewer yearly
27transactions. Current law, regardless of the size of the
28county, does not require the lodging facilitator to collect the
29hotel and motel tax if the aggregate value of the rentals is
30equal to or less than $10,000 in a calendar year, or there are
3110 or fewer separate transactions in a calendar year.
32If a city or county has levied a locally imposed hotel and
33motel tax, the bill requires the city or county to establish
34a hotel and motel tax account within the general fund of the
35city or county. The bill requires all of the revenues received
-4-1by the city or county pursuant to the locally imposed hotel
2and motel tax be deposited into the account. Moneys in the
3account are not subject to transfer to any other accounts or
4to any other funds established by a city or county unless such
5transfer is for a purpose specified by law.
6The governing authority of each city or county which levies
7the hotel and motel tax shall also establish a hotel and motel
8tax board to spend at least 50 percent of the revenues in the
9account on the promotion of tourism in the city, county, or
10surrounding areas. One-half of the members of the board shall
11be from the tourism industry, and one-half of the members of
12the board shall be local hotel, motel, or resort owners, or be
13designees of such owners.
14The remaining revenues not subject to expenditure by the
15hotel and motel tax board created in the bill shall be spent,
16as required by current law, by the city or county on any city
17or county operations authorized by law as a proper purpose for
18the expenditure within statutory limitations of city or county
19revenues derived from ad valorem taxes.
20The bill also allows an amount of the remaining revenues not
21subject to expenditure by the hotel and motel tax board created
22in the bill to be irrevocably pledged to the servicing of bonds
23to promote tourism or for any other purposes authorized by
24law. The bill specifies a city or county may enter into 28E
25agreements or jointly service such bonds with other cities or
26counties.
27The bill requires a portion of the remaining revenues not
28subject to expenditure by the hotel and motel tax board created
29in the bill to be spent for paid advertisements or public
30service announcements that disseminate information about the
31law requiring lodging providers to obtain a permit and collect
32state and locally imposed hotel and motel taxes.
-5-jm/jh