40-57.3 City Lodging Tax
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receipts of retailers on the leasing or renting of hotel, motel, or tourist court accommodations
within the city for periods of less than thirty consecutive calendar days or one month. The tax
imposed by this section shall be in addition to the state sales tax on rental accommodations
provided in chapter 57-39.2 and any city which imposes the tax upon gross receipts described in
this section shall deposit all proceeds in the city visitors' promotion fund. Moneys deposited in
the city visitors' promotion fund shall be spent only as provided in this chapter. This chapter
applies to all cities and does not limit the authority of a home rule city to levy any taxes
authorized by other provisions of law.40-57.3-01.1. City lodging and restaurant tax - Imposition - Amount - Disposition -Referral. In addition to the tax under section 40-57.3-01, the governing body of any city may, by
ordinance, impose a city tax, at a rate not to exceed one percent, upon the gross receipts of
retailers on the leasing or renting of hotel, motel, or tourist court accommodations within the city
for periods of less than thirty consecutive calendar days or one month and upon the gross
receipts of a restaurant from any sales of prepared food or beverages, not including alcoholic
beverages for consumption off the premises where purchased, which are subject to state sales
taxes. For purposes of this section, "restaurant" means any place where food is prepared and
intended for individual portion service for consumption on or off the premises and "prepared"
includes heating prepackaged food. Accommodations, food, and beverages may all, each, or in
any combination be subjected to the tax under this section, if all items in any category which are
taxable under state law are taxable, except as otherwise provided in this section.The taximposed under this section is in addition to state sales taxes on rental accommodations and
restaurant sales and any city which imposes the tax under this section shall deposit all proceeds
in the city visitors' promotion capital construction fund. Moneys deposited in the city visitors'
promotion capital construction fund shall be spent only as provided in this chapter. An ordinance
adopted under this section may not become effective sooner than sixty days after it is adopted by
the governing body of the city.The provisions of chapter 40-12 with regard to referral ofordinances apply to an ordinance adopted under this section except that a petition to refer an
ordinance adopted under this section must be presented to the governing body of the
municipality before four p.m. on the sixtieth day after the ordinance described in the petition was
adopted by the governing body of the municipality. Revenues from a tax imposed under this
section may not be pledged under section 40-57.3-03 to payment of bonds or evidences of
indebtedness until after the time has passed for filing a referral petition against an ordinance
under this section or, if a referral petition is filed, until after the referral petition has been
submitted to the vote of the electors of the municipality.40-57.3-01.2. City motor vehicle rental tax - Imposition - Amount - Disposition -Definitions. The governing body of any city may impose, by ordinance, a city tax at a rate not to
exceed one percent upon the gross receipts of a retailer on the rental of any motor vehicle for
fewer than thirty days if that motor vehicle is either delivered to a renter at an airport or delivered
to a renter who was picked up by the retailer at an airport. The tax imposed under this section is
in addition to state sales taxes on the rental of motor vehicles for fewer than thirty days. Any city
that imposes the tax under this section shall deposit all proceeds in the city visitors' promotion
fund.For purposes of this section, "motor vehicle" means a motorized passenger vehicledesigned to be operated on highways and "retailer" means a company for which the primary
business is the renting of motor vehicles for periods of fewer than thirty days.40-57.3-02.City visitors' promotion fund - City visitors' promotion capitalconstruction fund - Visitors' committee - Establishment - Purpose. The governing body of
any city which imposes a city tax pursuant to section 40-57.3-01, 40-57.3-01.1, or 40-57.3-01.2
shall, as appropriate, establish a city visitors' promotion fund, a city visitors' promotion capital
construction fund, and a visitors' committee. The visitors' committee shall serve as an advisory
committee to the city governing body in administering the proceeds from the taxes available toPage No. 1the city under this chapter. The moneys in the visitors' promotion fund must be used generally to
promote, encourage, and attract visitors to come to the city and use the travel and tourism
facilities within the city. The moneys in the visitors' promotion capital construction fund must be
used generally for tourism or the purchase, equipping, improving, construction, maintenance,
repair, and acquisition of buildings or property consistent with visitor attraction or promotion. The
committee shall consist of five members appointed by the governing body of the city. These
appointees shall serve without compensation, except for reimbursement for necessary expenses.
Committee members shall serve for a term of four years, except that two of those initially
appointed must be appointed for an initial term of two years. Vacancies must be filled in the
same manner as the initial appointment.The committee shall elect a chairperson and vicechairperson from among its members to serve for a term of two years.40-57.3-03. Budget - Contracts - Bonds - Capital construction. The governing bodyof the city shall annually set the budget, if any, under which the committee shall operate. The
governing body of the city may contract with any person, firm, association, corporation, or limited
liability company to carry out the purposes of the city visitors' promotion fund or the city visitors'
promotion capital construction fund created under section 40-57.3-02. The governing body of the
city may irrevocably dedicate any portion of revenues from the tax authorized under section
40-57.3-01.1 and may authorize and issue bonds or other evidences of indebtedness in the
manner prescribed by section 40-35-08 to be paid by those revenues for any purpose that
moneys in the city visitors' promotion capital construction fund may be used. Such tax upon
being pledged to payment of bonds or evidences of indebtedness issued pursuant to this section
may not be reduced or repealed by the governing body or by the electors of the municipality by
any initiated amendment to or referendum of the ordinance referred to in section 40-57.3-01.1, so
long as any of such bonds or evidences of indebtedness remain outstanding. The proceeds from
the tax imposed under section 40-57.3-01 may not be used for any type of capital construction or
purchase of real property. The proceeds from the tax imposed under section 40-57.3-01.1 may
be used only for payment of bonds issued, and the costs of issuance related thereto, under this
section or for tourism or capital construction, maintenance, and repair or acquisition of property
consistent with the purposes of this chapter.40-57.3-04.Payment of tax - Collection by tax commissioner - Administrativeexpenses allowed - Rules. The taxes imposed under this chapter are due and payable at the
same time the taxpayer is required to file a return under chapter 57-39.2 and must be collected
and administered by the state tax commissioner in accordance with the relevant provisions of
chapter 57-39.2.The amount the tax commissioner remits monthly to each city as taxescollected for that city's visitors' promotion fund and visitors' promotion capital construction fund
must be reduced by three percent as an administrative fee necessary to defray the cost of
collecting the taxes and the expenses incident to collection. The administrative fee must be
deposited in the general fund in the state treasury. The tax commissioner shall adopt rules
necessary for the administration of this chapter. The penalties and liabilities provided in sections
57-39.2-18 and 57-39.2-18.1 specifically apply to the filing of returns and administration of the
taxes imposed under this chapter.Page No. 2Document Outlinechapter 40-57.3 city lodging tax