HB 5420 Summary

• Defines "room remarketer" as any person with ability to offer, reserve, book, or resell hotel rooms through internet transactions or other means, excluding the hotel operator.

• Establishes that room remarketers are liable for sales tax on the markup they add to hotel room rates, separate from the base rent paid to operators.

• Requires room remarketers to collect and remit 15% sales tax on additional rent (markup) charged to occupants, while operators collect tax on net rent received from remarketers.

• Modifies sales tax definitions to clarify that "rent" includes service and booking fees charged by room remarketers as conditions of occupancy.

• Effective July 1, 2012, and applies to all hotel room sales occurring on or after that date.