This bill allows a municipality to impose a local option sales tax of 2% on short-term lodging that is subject to the state sales and use tax if approved by referendum of the voters in that municipality. The revenue from the local option sales tax must be distributed to the municipality imposing the local option sales tax. The distributed revenue must be used in municipal programs for affordable housing in that municipality, including rental assistance
43 for lower income households or moderate income households or to support the costs to
44 municipalities for providing general assistance. Revenue received by a municipality may
45 not be used to reduce or eliminate funding otherwise due the municipality under other
46 provisions of law. The local option sales tax may not take effect before January 1, 2026.