The bill proposes the addition of a new section, 94.833, to chapter 94 of Missouri law, which allows cities of the third classification that operate under a city manager form of government to impose a transient guest tax. This tax would apply to charges for lodging establishments and short-term rentals occupied by transient guests, defined as individuals staying for thirty-one days or less. The tax rate would not exceed five percent per occupied room per night or per rental term and would be in addition to existing charges and taxes. The proceeds from this tax are designated for the promotion of tourism within the city. To implement this tax, the governing body of the city must submit a proposal to the voters, who must approve it for the tax to take effect. The bill outlines the process for collecting and administering the tax, allowing cities to either manage it internally or contract with the state’s director of revenue. Additionally, the bill provides a mechanism for voters to repeal the tax in the future, should they choose to do so. The repeal process also requires voter approval, ensuring that the tax remains subject to public consent.

Statutes affected:
Introduced (5891H.01): 94.833