This bill amends the definition of "permanent resident" under the meals and rooms tax by changing the requirement from occupying a hotel room for at least 185 consecutive days to making an agreement to occupy a room for more than 30 consecutive days. Additionally, it establishes that permanent resident status is determined at the start of the occupancy, and only the first 30 days of such occupancy will be taxable. If a stay is shortened to not more than 30 days, that occupancy will then become taxable.

The bill is set to take effect 60 days after its passage and will apply to all taxable periods ending on or after January 1, 2027. The fiscal impact is expected to be a decrease in revenue for both state and local governments, as it narrows the tax base by excluding stays between 30 and 185 days from taxation. The Department of Revenue has indicated that while the bill may eliminate some refunds currently issued for short stays extending beyond 30 days, the overall effect will likely be a net loss in revenue, although the exact amount is indeterminable due to a lack of data on the length of occupants' stays.

Statutes affected:
Introduced: 78-A:3
As Amended by the House: 78-A:3
HB1068 text: 78-A:3