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H0690...................................................by LOCAL GOVERNMENT HOTEL/MOTEL TAX - Amends existing law to provide for a graduated hotel/motel room tax rate based on the proximity of the taxpayer hotel or motel to the facility being financed. 02/13 House intro - 1st rdg - to printing 02/16 Rpt prt - to Loc Gov 02/19 Rpt out - Ref'd to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 690 BY LOCAL GOVERNMENT COMMITTEE 1 AN ACT 2 RELATING TO THE HOTEL/MOTEL ROOM SALES TAX; AMENDING SECTION 67-4917B, IDAHO 3 CODE, TO PROVIDE FOR A GRADUATED TAX BASED ON THE PROXIMITY OF THE TAX- 4 PAYER HOTEL OR MOTEL TO THE FACILITY BEING FINANCED. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 67-4917B, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 67-4917B. HOTEL/MOTEL ROOM SALES TAX. The board shall have power and 9 authority to levy a sales tax of not to exceed five percent (5%) of the 10 receipts derived by hotels and motels within the district from the furnishing 11 of hotel and motel rooms, except no tax shall be imposed where residence 12 therein is maintained continuously under the terms of a lease or similar 13 agreement for a period in excess of thirty (30) days, and except that no tax 14 shall be charged on the sale of rooms by the Idaho Ronald McDonald House; pro- 15 vided that for any auditorium district established after July 1, 2001, such 16 sales tax shall not exceed the maximum tax rate authorized in the petition. 17 Subject to the overall maximum tax rate of five percent (5%), the maximum tax 18 rate payable with respect to a hotel or motel subject to the tax shall be 19 graduated, based upon its proximity to any facility being financed, as fol- 20 lows: a maximum tax rate of five percent (5%) shall be payable for hotels or 21 motels located within a one-half (1/2) mile radius of the facility; a maximum 22 tax rate of four percent (4%) shall be payable for hotels or motels located 23 beyond a one-half (1/2) mile radius, but within a one and one-half (1 1/2) 24 mile radius, of the facility; a maximum tax rate of three percent (3%) shall 25 be payable for hotels or motels located beyond a one and one-half (1 1/2) mile 26 radius, but within a three (3) mile radius, of the facility; and a maximum tax 27 rate of two percent (2%) shall be payable for hotels or motels located beyond 28 a three (3) mile radius of the facility. The levy and collection of said sales 29 tax shall not be subject to the limitations or other provisions of sections 30 67-4913, 67-4914, 67-4915 and 67-4916, Idaho Code. The revenues received by 31 the district from such sales tax shall be deposited in the depository of the 32 district. Promptly following the adoption by the board of the resolution to 33 levy such tax, the secretary of the board shall certify to the state tax com- 34 mission that such levy has been adopted and shall state the effective date 35 thereof and shall transmit to the commission a certified copy of such resolu- 36 tion. The effective date of any such levy shall not be earlier than the first 37 day of the month not less than sixty (60) days following certification of such 38 levy to the commission.
STATEMENT OF PURPOSE RS 13970 This legislation establishes a graduated maximum tax rate for auditorium districts that are financed through the hotel/motel room sales tax under Section 67-4917B, Idaho Code. The current maximum tax rate is 5%, which applies to all hotels/motels located within the geographic boundaries of the auditorium district, regardless of how close the hotel/motel is to the facility being financed. A hotel/motel located immediately adjacent to a facility, such as a convention center, gains the greatest benefit, while a hotel/motel located several miles away may receive no benefit at all. This legislation establishes graduated maximum tax rates allowed to be levied against hotels/motels located within the auditorium district, based upon their proximity to the facility being financed. The graduated rate would be: Maximum 5% tax payable for hotels/motels located within a one-half mile radius; maximum 4% rate would apply within a one and one-half mile radius; maximum 3% rate would apply within a three miles radius; and a maximum rate of 2% would apply to hotels/motels located beyond a three mile radius. FISCAL IMPACT There would be no fiscal impact to the general fund. Contact Name: David Kerrick Phone: 870-5544 STATEMENT OF PURPOSE/FISCAL NOTE H 690