Simplify Processes Regarding Certain Local Government Taxes

The act requires local taxing jurisdictions that impose a local lodging tax or a sales or use tax on building or construction materials that integrate such taxes into building permits (applicable sales or use tax) to file with the executive director of the department of revenue (executive director) a copy of the resolution or ordinance, and any amendments thereto, imposing such taxes and, if not included in the resolution, ordinance or amendments and certain additional information related to each type of tax. For local lodging taxes, the act requires local taxing jurisdictions to report the rate of the tax, the types of lodging the tax applies to, the number of days after which a stay may be exempt from the tax, and the amount of tax that may be retained by the collector of the tax in exchange for timely filing. For the applicable sales or use tax, the act requires local taxation jurisdictions to report the rate and calculation, what information is included on building permits, the timing for remittance of the tax, and whether the tax is imposed on asphalt equipment, storage of equipment, or services.

By no later than July 1, 2025, and by no later than January 1 and July 1 of each year thereafter, the executive director must publish the information in the local taxing jurisdiction's reports relating to the local lodging tax and applicable sales or use tax.

The act also modifies the scope of the sales and use tax simplification task force (task force) to include simplification of local lodging tax systems and requires that, in the 2024 interim, the task force shall receive testimony and proposals related to the feasibility and implementation of an electronic system for the collection and remittance of local lodging taxes in the same manner or in a manner similar to the electronic sales and use tax simplification system. The task force may propose legislation for the 2025 legislative session to implement or create such an electronic portal.

APPROVED by Governor June 4, 2024

EFFECTIVE June 4, 2024
(Note: This summary applies to this bill as enacted.)