An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities

This bill authorizes the City of Salem to raise its local excise tax on hotel and bed and breakfast stays from the standard 6 percent to a maximum of 8.75 percent. The additional revenue generated by this increase must be placed into a special fund dedicated exclusively to planning, building, and maintaining school and municipal facilities. The law ensures that these funds cannot be used for other city expenses and does not prevent the city from seeking external grants for the same purposes.