| | | 9.__Charter municipalities.__A municipality with a charter | | that allows the creation of municipal debt obligations without a | | vote by the legal voters of the municipality is not subject to | | subsections 6, 7 and 8 and may impose or deauthorize the local | | option liquor, meals and lodging tax to be used in accordance | | with subsection 5 pursuant to the municipal charter.__A tax | | imposed pursuant to this subsection takes effect 120 days after | | enactment by the municipal officials and, if repealed, is | | repealed on the first day of the month following 90 days after | | notification of the State Tax Assessor. |
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| | | 10.__Local Option Liquor, Meals and Lodging Tax Program.__The | | Local Option Liquor, Meals and Lodging Tax Program is established | | within the Bureau of Revenue Services to enable the State Tax | | Assessor to segregate and administer the funds collected and | | attributable to each municipality that adopts a local option | | liquor, meals and lodging tax. |
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| | | This bill allows municipalities to adopt a local option tax at | | a rate not to exceed 2% on liquor, meals and lodging that are | | provided within the municipal corporate limits. The voters of | | the town must approve this local tax at a local referendum, | | unless the municipality has a charter that allows the issuance of | | municipal bonds without a referendum vote. |
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| | | The tax applies to the sales of the same liquor, meals and | | lodging services to which the state sales and use tax currently | | applies. |
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| | | All the provisions regarding assessment, collection and | | enforcement of the state sales and use tax also apply to the | | local option tax. The State shall assess and collect the local | | option tax along with the state tax and return the revenue raised | | to the municipality. The municipality must notify the State Tax | | Assessor at least 180 days before the local option tax goes into | | effect. This will give the State Tax Assessor time to set up the | | procedures for administering the local option tax. |
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| | | The State Tax Assessor shall determine the amount of revenue | | raised by each municipality's local tax each month, subtract the | | administrative costs of the local tax and certify the amount to | | be returned to each municipality. The Treasurer of State shall | | pay that certified amount to each participating municipality each | | month. |
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