AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

SB 1046 amends the state's sales and use tax laws related to hotel taxes. Currently, there is a 5% state hotel tax and a 1% local hotel tax on hotel stays and similar accommodations. This bill introduces a new provision that allows individual cities and towns to levy an *additional* local hotel tax, up to a maximum of two percent (2%). This means a community could increase its total local hotel tax from one percent to up to three percent, with the state's division of taxation generally collecting and distributing these local taxes to the respective municipalities.