Unless otherwise expressly stated or the context clearly indicates a different intention, the following terms shall, for the purpose of this chapter, have the meanings in this section:
1. “Hotel” and “motel” mean any hotel, motel, inn, public lodging house, rooming house, mobile home that is tangible personal property, or tourist court, or any place where sleeping accommodations are furnished to transient guests for rent, whether with or without meals, except the renting of sleeping rooms in dormitories and in memorial unions at all universities and colleges in the State of Iowa and the guests of a religious institution if the property is exempt under Section 427.1, subsection 8, 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.
2. “Renting” and “rent” include any kind of direct or indirect charge for such sleeping rooms, apartments, or sleeping quarters, or their use.
A tax is hereby imposed upon the gross receipts from the renting of any and all rooms, apartments, or sleeping quarters in any hotel or motel as defined in this chapter at the rate of seven percent of such gross receipts derived from the renting of a room, apartment, or sleeping quarters while rented by the same person for a period of not more than 31 consecutive days.
Such tax shall be paid as is provided in Chapter 423A.2, Code of Iowa, as amended, and the proceeds of such tax shall be used for the purposes stated in subsection 4 thereof as follows:
1. The revenue derived from any hotel and motel tax authorized by this chapter shall be used as follows:
A. The City shall spend at least 50 percent of the revenues derived therefrom 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 County or City for those recreation, convention, cultural, or entertainment facilities; or for the promotion and encouragement of tourist and convention business in the City or County and surrounding areas.
B. The remaining revenues may be spent by the City for any City operations authorized by law as a proper purpose for the expenditure within statutory limitations of City revenues derived from ad valorem taxes.
C. 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 paragraph A of this subsection. Any revenue pledged to the payment of such bonds may be credited to the spending requirement of paragraph A of this subsection.