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AIM supported bill that restores the exemption of hotel utilities on the move

April 12, 2022- This morning, House Bill 2382 was voted out of the Senate Small Business and industry Committee by a vote of 6-0. AIM previously testified in support of the bill. The language was also added to Senate Bill 756 during lengthy debate last evening.


This bill excludes from the definition of "retail sale" or "sale at retail" in the sales tax law the purchase by persons operating hotels, motels, or other transient accommodation establishments of utilities used to heat, cool, or provide water or power to the guests' accommodations which are included in the charge made for the accommodations. Any business required to remit sales tax on these purchases prior to August 28, 2022, would be entitled to a refund of such taxes if the language becomes law.


"This bill is necessary to correct another errant interpretation of court decisions by the Missouri Department of Revenue," said Ray McCarty, president of Associated Industries of Missouri. "The case upon which the DOR has based their decision that these utilities are no longer exempt was a case about hotel furniture - not utilities and other items that are clearly resold by the hotels to their guests and consumed by those guests. This bill will make the law crystal clear for the Department of Revenue attorneys."


HB 2382 also includes a provision dealing with safes and safe deposit boxes and a provision stating that any lodging establishment that publishes current rates electronically on a public Internet platform does not have to post a written copy of the rates charged for each guest room.











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