Authorize a Local Option Sales Tax on Meals and Lodging and Provide Funding To Treat Opioid Use Disorder

Last updated: Mar 10, 2020

Details about this bill
Category: Taxation
Status: In Committee
Sponsor: Representative Michael Sylvester, House 39
Session: 129
Bill #: LD 1254



UPDATE 3/10/2020: This committee has a divided report on the bill.

UPDATE: The Senate voted to commit it back to committee. The House followed suit. We believe a carry over to 2020 is possible.

UPDATE: After narrowly passing the House by 3 votes, the bill was voted Ought Not to Pass by a 21-14 vote in the Senate. The bill went back to the House where it was amended to only apply to lodging taxes, not meals taxes. The bill now goes back to the Senate for reconsideration.

UPDATE: The committee voted a majority Ought Not to Pass on the bill. They amended it to remove that funds go to opioid prevention. 




This bill allows a municipality to impose a local option sales tax, which may be seasonal, on prepared food, not including marijuana or marijuana products, and short-term lodging of no more than 1% if approved by referendum of the voters in that municipality. Revenue from the local option sales tax is distributed 85% to the municipality and 15% to all other municipalities. The 15% distributed to a municipality must be used by that municipality for the purposes of preventing and treating opioid use disorder in that municipality. Revenue received by a municipality may not be used to reduce or eliminate funding otherwise due the municipality under other provisions of law.