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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