(A) Transient room tax. There is imposed and levied a transient room tax of 3% of the rent for every occupancy of a suite, room, or rooms, charged by all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses within the city. Effective January 1, 2023, every person, company, corporation or other like or similar persons, groups or organizations providing occupancy of a suite, room, rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, campgrounds, recreational vehicle parks, or any other place in which accommodations arc regularly furnished to transients for consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations, shall pay monthly to the Commission a transient room tax of three percent (3%) of the gross rent for every occupancy of a suite, room or rooms charged and collected by them during such monthly periods.
(1) In addition, there is imposed and levied a special transient room tax of one percent (1%) of the rent for every occupancy of a suite, room or rooms charged by all persons, companies, corporations or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns or like or similar accommodations businesses within the city. Effective January 1, 2023, every person, company, corporation or other like or similar persons, groups or organizations providing occupancy of a suite, room, rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, campgrounds, recreational vehicle parks, or any other place in which accommodations are regularly furnished to transients for consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations, shall pay monthly to the Commission a special transient room tax of one percent (1%) of the gross rent for every occupancy of a suite, room or rooms charged and collected by them during such monthly periods.
(2) Transient room taxes shall not apply to the rental or leasing of an apartment supplied by an individual or business that regularly holds itself out as exclusively providing apartments. Apartment means a room or set of rooms, in an apartment build-ing, fitted especially with a kitchen and usually leased as a dwelling for a minimum period of 30 days or more.
(B) Collection. All persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses shall collect and pay the transient room tax to the City Clerk or other agent designated by the Council as collecting officer for the city.
(C) Monthly payments. The payment required to be made shall be made monthly on or before the fifteenth of the month immediately following the tax collection (For example, July collections will be due by August 15). This tax shall be paid to the City Clerk or other designated agent of the city. See KRS 91A.390(1).
(D) Annual gross rental report. Each person subject to the tax imposed by this section shall, on or before day 15 of the fourth month following the close of each year, make and file with the City Clerk, or other designated agent of the city, a return, in duplicate, on a form furnished by or obtainable from the City Clerk, setting forth the aggregate amount of the gross rentals charged during the preceding calendar year for every occupancy of a suite, room, or rooms, together with such other pertinent information as the City Clerk may require.
(E) Interest and penalty on unpaid tax. The transient room tax imposed by this section remaining unpaid after it becomes due shall bear interest at the rate of 7% per annum, and the person from whom the transient room tax is due shall further be charged a penalty of .5% of the amount of the unpaid tax for each month or fraction of a month the tax remains unpaid.
(F) (1) Limitation on use of tax revenue. The money collected from the imposition and levy of this tax shall be maintained by the City Clerk in a special fund. A portion of the money collected from the imposition of this tax, as determined by the tax levying body by subsequent ordinance, may be used to finance the cost of acquisition, construction, operation, and maintenance of facilities useful in the attraction and promotion of tourist and convention business and shall include athletic stadiums. The balance of the money collected from the imposition of this tax shall be used for the purposes set forth in KRS 91A.350. Proceeds from the tax may not be used to provide a subsidy in any form to any hotel, motel, or restaurant. Any money not expended by the Commission during any fiscal year will be used to make up a part of the Commission's budget for its next fiscal year. The creation and establishment of the Recreational, Tourist, and Convention Commission are approved, confirmed, and ratified.
(Ord. 698, passed 10-11-79; Am. Ord. 92-992, passed 11-24-92)
(2) Deposit in interest-bearing account authorized. The Clerk shall deposit and escrow the 1% Special Transient Room tax in an interest-bearing account for future use in support of special projects as outlined in KRS 91A.390.
(G) The City of Murray is hereby granted a lien upon the owner-occupied real estate of any hotel/motel within the city which does not remit its transient room tax on a timely basis pursuant to this section.
(Ord. 93-1001, passed 5-27-93; Am. Ord. 2003-1306, passed 5-22-03; Am. Ord. 2003-1321, passed 8-28-03; Am. Ord. 2022-1835, passed 10-27-22)
Cross reference:
Power to impose tax; use of funds, see § 32.82.