This bill establishes the extended stay housing program, which provides an exemption to the rooms and meals tax for participating businesses. The program allows lodging businesses to reserve rooms specifically for extended stays and exempts those rooms from the tax. The bill also sets criteria for businesses to participate in the program, including submitting an application, limiting the number of rooms assigned to the program, and setting a maximum monthly rental fee. The Department of Revenue Administration is authorized to develop rules to implement the program.

The bill repeals the extended stay housing program exception to the rooms and meals tax and the establishment of the program on July 1, 2026. The effective date of the bill is July 1, 2024, for sections 1 and 2, and July 1, 2026, for the remainder of the bill. The fiscal impact of the bill is indeterminable, as it is unclear how many lodging businesses will participate in the program and how much revenue will be affected. The Department of Revenue Administration does not anticipate any additional administrative costs to implement the program.

Statutes affected:
Introduced: 78-A:6-d