HB 2390 Summary

• Repeals and replaces Section 94.270, RSMo, which grants mayors and boards of aldermen authority to license and tax various businesses including hotels and motels.

• Caps hotel and motel license fees at $27 per room per year for fourth-class cities with 800-900 inhabitants in charter counties with over 1 million residents.

• Caps hotel and motel license fees at $13.50 per room per year for fourth-class cities with 4,100-4,200 inhabitants in charter counties with over 1 million residents.

• Caps hotel and motel license fees at $1,000 per year (effective January 1, 2006) for fourth-class cities with 51,300-52,000 inhabitants in charter counties with 280,000-285,000 residents, with annual increases capped at 5% or one-eighth of one percent of gross revenue.

• Allows cities to increase hotel and motel license taxes up to 5% annually but not to exceed the greater of one-eighth of one percent of gross revenue or the business license tax rate in effect on May 1, 2005, except for certain projects with outstanding bonds.