This bill proposes to allow municipalities to collect an occupancy fee from operators of local room rentals. The purpose of this fee is to establish a municipal capital improvement or tourism support fund, which aims to increase or stabilize local hotel and other room rental occupancy. The fee can be up to $2 per occupancy per 24-hour period or a percentage of the occupancy price, with the condition that it does not exceed $2 per day. The fee will not be collected if the average daily price of the occupancy is $40 or less. The legislative body of the municipality will decide the number of consecutive days the fee applies, with a maximum of 184 days. The enforcement of nonpayment will follow the same procedures as those for enforcing ordinances.

The revenue from this fee will be deposited into a capital reserve fund, tourism support fund, revolving fund, or other special revenue fund as authorized. These funds are designated to support municipal services related to tourism and transient traffic. The funds will not be considered part of the general fund surplus and cannot be expended or transferred without a specific vote by the town select board or city legislative body. The bill outlines the process for adopting the provisions, including a public hearing and ballot vote, and also provides a mechanism for a town or city to rescind the fee if desired. The act will take effect upon its passage.