The bill S.286, introduced by Senators Gulick and Vyhovsky, proposes the implementation of a two percent meals and rooms tax surcharge specifically aimed at generating revenue for the School Construction Aid Special Fund. This new surcharge will be collected by operators on the rent of each occupancy, the sale of taxable meals, and the sale of alcoholic beverages, all of which are subject to existing tax regulations. The surcharge will be in addition to the current taxes and must be itemized on invoices, clearly stating its purpose for supporting the School Construction Aid Special Fund. The bill also emphasizes that the tax base for this surcharge will align with the existing meals and rooms tax.

Additionally, the bill amends the existing law regarding the School Construction Aid Special Fund to include revenue from the newly established school construction surcharge as a source of funding. The Fund will now consist of amounts transferred or appropriated by the General Assembly, revenue from the surcharge, and any interest earned by the Fund. The act is set to take effect on August 1, 2026.

Statutes affected:
As Introduced: 16-3444