Authorize a Local Option Sales Tax

Last updated: Jun 11, 2017

Details about this bill
Category: Taxation
Status: Defeated
Sponsor: Representative Michael Sylvester, House 39
Session: 128
Bill #: LD 1522



UPDATE: This bill is dead.

UPDATE: The House voted the bill down 69-73. The Senate still needs to vote on it, but there is not much chance of the Senate supporting the bill. Although not officially dead yet, it is darn close.

UPDATE: The committee modified the bill to limit the tax to up to 1% and limited to meals and lodging taxes. There is some question about prepared foods and it "may" be seasonal. Republicans Karl Ward and Matt Pouliot voted with the other Democrats in support of the bill. Democrats Gay Grant and Stephen Stanley voted in opposition with the other Republicans in opposition to the bill. 


This bill allows a municipality to impose a local option sales tax if approved by referendum of the voters in that municipality. The referendum question must identify the rate of the local option sales tax and the purposes for which the revenue will be used. The local option sales tax would be collected and administered by the State in the same manner as the sales and use tax. Revenue from the local option sales tax is distributed 50% to the municipality, 25% to the Local Government Fund for state-municipal revenue sharing throughout the State and 25% to the Regional Economic Development Revolving Loan Program for regional economic development. Revenue received by a municipality may not be used to reduce or eliminate funding otherwise due the municipality under other provisions of law.