LD632

Municipalities can impose a 2% local option sales tax on short-term lodging to fund affordable housing programs.

This bill allows a municipality to impose a local option sales tax of 2% on the value of rental of living quarters in hotels, rooming houses, or tourist or trailer camps, subject to state sales and use tax. The tax can only be imposed if approved by a referendum of the voters in the municipality. The revenue from the local option sales tax must be used for programs for affordable housing within the municipality, including rental assistance for lower income and moderate income households. The tax cannot take effect before January 1, 2026.