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House votes to end double taxation on hotel consumables, but members flag education-fund impact
Summary
The House passed SB 84 to exempt hotels from paying sales tax on consumables they purchase, arguing the guest already pays tax at checkout. Supporters framed it as correcting double taxation; opponents worried about education-fund revenue loss. The bill passed 63'10.
The House passed Senate Bill 84, which exempts short-term lodging operators from paying sales tax on consumable items they purchase for guests (soap, shampoo, small sundries) and treats those items as taxed at the point of retail — the guest's checkout.
Representative Wilson, sponsor, described the change as consistent tax policy: "Sales tax is to be collected at the point of retail sale," he said, arguing the current practice imposed double taxation on hoteliers. Supporters compared the approach to treatment of restaurants and other businesses that do not pay tax on business inputs ultimately taxed to the consumer.
Opponents raised revenue concerns. Representative Wiley called it the "toilet paper bill," urging further study and saying the education fund could lose revenue; Representative Barris asked whether hotels upcharge consumables and whether the state would lose sales-tax revenue as a result. Representative Pitcher disclosed a conflict of interest and described how hotels currently treat in-room consumables.
The House debated fairness to business, the precedent for tax-exemption carve-outs and the fiscal analyst's note. After floor discussion the bill passed the House 63–10 and will be returned to the Senate.
