Municipal Partnership Act - House Bill 3749

HB3749 would allow municipalities to authorize local hotel and restaurant taxes. While much of this bill has been dissected, separating out Group Insurance Commission opportunities for local governments as well as local pension funds (HB4105 & HB4110, singed by the Governor on 7/25/07), and issues concerning “tax loopholes”, the question of local option taxes remains. While cities and towns could certainly use more revenue, should it come at the expense of local businesses?

This bill would provide cities and towns with opportunities to obtain more financial resources through optional local hotel (at a rate of up to 5%) and restaurant taxes (at a rate of up to 2%). At a time of fiscal woes in many cities and towns, this offer would be difficult to turn down but how would it affect the tourism and hospitality industries in your communities if passed?

Similar legislation has been filed in House Bills 2994 and 3118 and Senate Bill 1790, all of which are currently before the Joint Committee on Revenue.

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