§ 42-6108 — Tax on hotels

A. The board of supervisors of a county having a population of less than two million five hundred thousand but more than five hundred thousand persons may levy and, if levied, the department shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in the county in a business taxed under chapter 5 of this title and classified under section 42-5070 or 42-5076. The tax shall be levied under this section beginning January 1 or July 1, whichever date first occurs at least three months after the county resolution approving the tax levy. The rate of tax shall not exceed six per cent.

B. The tax only applies in unincorporated areas of the county.

C. At the end of each month the state treasurer shall transmit the net revenues collected pursuant to this section to the treasurer of the county levying the tax. The county shall use:

1. Not more than thirty-four percent of these revenues for the purposes set forth in section 48-4204, subsection A, as financial participation by the county as required by that subsection.

2. Not more than sixteen percent of these revenues for the purposes of economic development under section 11-254.04. Any increase in tax imposed under this section shall not constitute a new tax for the purposes of section 11-254.04, subsection B.

3. All remaining revenues to promote and enhance tourism through the recognized tourism promotion agency in the county.