HB2595

Authorizes a transient guest tax in third-class cities with a city manager government for tourism promotion, subject to voter approval.

HB 2595 proposes a tax on sleeping rooms and short-term rentals in third-class cities with a city manager government, intended for tourism promotion. The tax rate cannot exceed five percent per occupied room or rental term. The tax requires voter approval and proceeds will be used solely for tourism promotion. The city can choose to collect the tax internally or contract with the state director of revenue. The tax becomes effective if approved by a majority of voters; otherwise, it can be resubmitted for approval.