HF2472

Purpose of the Bill

The bill's purpose is to amend the current tax legislation concerning the city of Plymouth’s local lodging tax. It aims to remove the expiration date of this tax, extending its ability to generate revenue for local projects indefinitely.

Main Provisions

• The Plymouth city council is authorized to impose a local lodging tax of up to three percent on gross receipts from lodging services. This is in addition to the existing state lodging tax, with the combined total tax not to exceed six percent.
• The revenue from this tax is split into two parts:
  • Two-thirds of the revenue will fund capital improvements for public recreational facilities and community marketing and promotion.
  • One-third of the revenue will be used for purposes consistent with those outlined under the state statute governing lodging taxes.

Significant Changes

• Previously, the lodging tax would terminate either ten years after it was first imposed or by December 31, 2030, whichever came first. This bill eliminates that termination clause, allowing the tax to remain in effect without a sunset date.

Relevant Terms

local lodging tax, city of Plymouth, gross receipts, capital improvements, public recreational facilities, marketing and promotion, revenue allocation, expiration date removal.