HB 2551 Summary

• Imposes transient accommodations tax (9.25% baseline, 10.25% for 2018-2030) on travel agencies and tour packagers that arrange accommodations at negotiated contract rates, creating tax parity with direct hotel bookings.

• Requires travel agencies and tour packagers to register with the director of taxation for a one-time $15 fee before arranging transient accommodations; unregistered operators face misdemeanor penalties up to $25,000 fine and one year imprisonment.

• Expands definition of "gross rental proceeds" to include amounts retained by online travel companies from customer bookings, ensuring tax applies to the full customer payment regardless of booking method.

• Increases transient accommodations tax rate to 10.25% for January 1, 2018 through December 31, 2030, with revenues exceeding the 9.25% rate deposited into the mass transit special fund.

• Takes effect July 1, 2018, and applies framework used in chapter 237 (general excise tax) to administration and enforcement of this expanded tax.