HB1376 Summary

• Authorizes each county to establish a county surcharge on transient accommodations tax, with counties notifying the state tax director within 10 days of establishment and collection beginning no earlier than 180 days after adoption

• Reduces the state transient accommodations tax rate from 9.25% to 6% effective July 1, 2019, and establishes 7% as the combined rate under section 237D-2(e) for the period July 1, 2019 to December 31, 2030

• Requires the state director of taxation to assess, collect, and administer county surcharges, with the state retaining a percentage of revenues to cover administrative costs before distributing remaining funds quarterly to counties

• Repeals the current distribution of $103,000,000 in state transient accommodations tax revenues to counties (proportioned among the four counties), redirecting those revenues to state funds instead

• Establishes separate accounting and reporting requirements for county surcharges on tax forms, with taxpayers designating which taxation district receives surcharge payments