House Bill 374

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor: James Mills

HB 374 seeks to provide clarification to hotel/motel tax provisions.  The bill moves certain definitions related to the hotel motel tax from later sections into the code section with other definitions on this tax at the beginning of the Article.  These definitions include �private sector nonprofit organization�, �state authority�, �charitable trust�, �functionally related business�, �fund� or �funding�, and �local authority�.

This bill received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Open Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB 374 provides clarification to hotel/motel tax provisions by moving certain definitions related to the hotel motel tax from later sections to the beginning of the Article for convenience. 

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The complexity and confusing nature of the hotel motel tax provisions.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

This bill will assist in compliance with our tax code, which may result in more revenues generated from taxes therefore enabling the ability to otherwise reduce taxes.

• Increases Personal Responsibility:

This bill will encourage personal responsibility by making the hotel motel tax provisions easier to understand therefore easier to comply with.

Senate Changes:

The Senate added a car rental tax. Because this change is a revenue measure originating from the Senate, the House will disagree with the Senate's amendment.