Accommodations that are paid for directly by the United States government are exempt. However, rooms rented to federal government employees who are paying with cash, personal check, or personal credit card are subject to tax. This is true even if the employees will be reimbursed by the federal government.
Rooms located on real property that is exempt from tax as the property of a religious institution are exempt from hotel/motel tax if the reason for renting the room is to provide a place for a religious retreat or function and not a place for transient guests generally.
The tax is remitted to the Department with the hotel/motels' quarterly sales tax returns. It is then distributed to the appropriate jurisdictions on a quarterly basis. The amount distributed is not an estimate; it is the actual amount remitted.
The Department must be notified at least 45 days before imposition. This also applies to rate changes and repeals.
After the 1-year period expires, the tax can be changed or repealed on one of two annual dates: December 31 or June 30. The Department must be given 45 days notice of the change or repeal of the tax in an existing jurisdiction.
This means an election to change or repeal the tax in an existing jurisdiction must be held on or before November 13 or May 13.
Regardless of the election date, the county auditor must notify the Director of the Department within 10 days of the election if the tax is changed or repealed in an existing jurisdiction.
Once imposed, the hotel/motel tax must remain in effect at the rate imposed for a minimum of one year.
On one of two start dates: January 1 or July 1. The Department must be given 45 days notice of the imposition of the tax in a new jurisdiction.
This means an election to impose the tax in a new jurisdiction must be held on or before November 14 or May 14.
Regardless of the election date, the county auditor must notify the Director of the Department within 10 days of the election if the tax is approved in a new jurisdiction.
Incorporated jurisdictions
A city council passes a resolution to hold an election. The resolution is sent to the county commissioner of elections, usually the auditor. The auditor presents the resolution to the supervisors, who vote to direct the commissioner of elections to set up an election date. The issue passes or fails based on a simple majority vote.