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Percival council adopts 1% daily short-term rental equipment tax
Summary
After a public hearing, the Percival Town Council adopted an ordinance imposing a 1% daily tax on certain short‑term equipment rentals; staff said the measure currently affects one local business and is expected to raise roughly $5,000 annually.
The Percival Town Council on June 10 adopted Ordinance 25‑0502 to add a 1% daily short‑term rental tax on certain tangible personal property held for rental and owned by individuals engaged in short‑term rental equipment businesses.
Town attorney/staff presenter summarized the proposal during the public hearing, saying the tax applies to equipment rentals lasting fewer than 92 days and would be collected at the point of sale. “At present, only one business in town falls under the scope of this tax,” the presenter said and estimated annual revenue at approximately $5,000. Council members asked whether the measure would apply to lodging platforms; staff replied that a separate transient‑occupancy tax covers short‑term lodging and the new equipment tax is targeted at retail equipment rentals such as tables, chairs and event gear.
During public comment, residents raised legal concerns about adopting a tax that currently affects only a single business and suggested delaying implementation to reduce litigation risk. Council members and the town attorney discussed whether the ordinance’s effective date could be retroactive; the draft ordinance included language making the tax effective April 1, and counsel said ex post facto criminal protections do not apply to this civil tax scheme.
Council moved to suspend the rules and vote the same evening. The motion to adopt Ordinance 25‑0502 carried on roll call; the mayor subsequently called a five‑minute recess.
The ordinance and related materials are on the town’s public docket. The council did not direct further immediate changes to the ordinance at the meeting; any implementation details (quarterly remittance, enforcement procedures) will be handled by staff consistent with state code and the adopted text.
