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Associated Press, Published January 18 2011

North Dakota towns would get extra lodging tax

BISMARCK, N.D. (AP) — North Dakota lawmakers are considering two proposals to put a local lodging tax on people who live in motels.

Cities can put a local 2 percent tax on motel bills and another 1 percent tax on motel rooms and restaurant meals.

Under current law, people who live in motels for 30 days or more don't pay the lodging tax.

On Tuesday the North Dakota House and Senate tax committees are reviewing bills to abolish the exemption and levy the tax on long-term motel residents.

Many motels in western North Dakota have long-term guests because of the oil boom.

The state Tax Department estimates the bills would raise another $1.6 million for the state treasury and $1.4 million for city coffers.

Copyright 2011 The Associated Press.