There is hereby imposed a tax at the rate of seven percent (7%) upon the sales price from the renting of any and all sleeping rooms, apartments or sleeping quarters in any hotel, motel, inn, public lodging house, rooming house, manufactured or mobile home which is tangible personal property, tourist court, or in any place where sleeping accommodations are furnished to transient guests for rent, whether with or without meals. “Renting” and “rent” include any kind of direct or indirect charge for such sleeping rooms, apartments, or sleeping quarters, or their use.
The tax does not apply to the sales price from:
1. The renting of sleeping rooms in dormitories at any college located within the City limits,
2. Guests of a religious institution if the property is exempt under Section 427.1 of the Code of Iowa and the purpose of renting is to provide a place for a religious retreat or function and not a place for transient guests generally; and
3. The renting of a room, apartment or sleeping quarters while rented by the same person for a period of more than thirty-one (31) consecutive days.
The revenue derived from any hotel and motel tax shall be credited to the General Fund of the City, subject to the following:
1. At least fifty percent (50%) of the revenue derived therefrom shall be used for the acquisition of sites for, or constructing, improving, enlarging, equipping, repairing, operating, or maintaining of recreation, convention, cultural, or entertainment facilities including, but not limited to memorial buildings, halls and monuments, civic center convention buildings, auditoriums, coliseums, and parking areas or facilities located at those recreation, convention, cultural, or entertainment facilities or the payment of principal and interest, when due, on bonds or other evidence of indebtedness issued by the City for those recreation, convention, cultural, or entertainment facilities; or for the promotion and encouragement of tourist and convention business in the City and surrounding areas.
2. The remaining revenues may be spent by the City for any City operation authorized by law as a proper purpose for the expenditures within statutory limitations of City revenues derived from ad valorem taxes including but not limited to economic development and property tax relief.
3. The City may pledge, irrevocably, an amount of the revenues derived therefrom, for each of the years the bonds remain outstanding, to the payment of bonds which the City may issue for one or more of the purposes set forth in subsection 1 of this section. Any revenue pledged to the payment of such bonds may be credited to the spending requirement of subsection 1 of this section.
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