HB 1173 Summary

• Authorizes each county to establish a county surcharge on transient accommodations tax at a rate not exceeding 2 percent through local ordinance.

• Requires counties to conduct a public hearing and adopt any surcharge ordinance by December 31, 2019, with notice published in local newspapers at least twice within 30 days before the hearing.

• County surcharges may be levied beginning January 1, 2021, and must be administered by the state director of taxation in accordance with Chapter 237D procedures.

• Surcharge does not apply to transient accommodations exempt from state tax and applies to contracts allowing for tax pass-through; contracts entered before June 30 of the year prior to tax implementation are exempt if they do not provide for tax increases.

• All county surcharge ordinances automatically repeal on December 31, 2036; if no county adopts a surcharge ordinance by December 31, 2019, the entire Act repeals on that date.