Iowa General Assembly Daily Bills, Amendments & Study Bills March 17, 2009



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21 17 Subchapter I of new Code chapter 420A provides that each

21 18 tax or fee imposed by a city or county under subchapters II

21 19 through V shall be enacted by a separate ordinance of the

21 20 governing body of the city or county. Subchapter I provides

21 21 that a tax or fee may be repealed by motion of the local

21 22 governing body. Division II also provides that each tax or

21 23 fee authorized in subchapters II, IV, and V and imposed by

21 24 ordinance may be repealed by petition and election of the

21 25 voters of the city or unincorporated areas of the county, as

21 26 applicable, within 30 days after adoption of the ordinance, or

21 27 after the ordinance has been in effect for one year.

21 28 Subchapter I also provides that each authorized city or

21 29 county that imposes a tax or fee shall establish an

21 30 alternative revenue fund. All revenues collected as a result

21 31 of the imposition of taxes or fees specified in subchapters II

21 32 through V shall be deposited into the alternative revenue fund

21 33 of the city or county, as appropriate. Subchapter I further

21 34 provides that all moneys deposited in the alternative revenue

21 35 fund shall be expended for "core government purposes", as
Senate Study Bill 1308 continued
22 1 defined in the bill, or for property tax relief.

22 2 Subchapter I requires that before approval or amendment of

22 3 an ordinance that imposes a tax or fee under subchapters II

22 4 through V, the governing body of the city or county shall hold

22 5 a public hearing on the proposed ordinance or amendment.

22 6 Subchapter I also requires that not less four nor more than 20

22 7 days before the public hearing on an ordinance authorizing or

22 8 amending a tax or fee, the governing body of the city or

22 9 county shall prepare and publish a revenue purpose statement

22 10 specifying the purpose or purposes for which the revenue

22 11 collected from the tax or fee will be expended. The revenue

22 12 purpose statement is also required to include information

22 13 regarding the amount of property tax relief to be provided as

22 14 a property tax credit with revenue collected from the tax or

22 15 fee.

22 16 Subchapter II of new Code chapter 420A authorizes a city to

22 17 assess an additional franchise fee of up to 3 percent of the

22 18 gross revenues generated from sales of the franchisee.

22 19 Subchapter III of new Code chapter 420A authorizes the

22 20 imposition of a local hotel and motel tax at a maximum rate of

22 21 6 percent on the renting of rooms, apartments, or sleeping

22 22 quarters in a hotel, motel, inn, public lodging house, rooming

22 23 house, or manufactured or mobile home or in any other place

22 24 where sleeping accommodations are furnished to transient

22 25 guests for a period of 31 days or less. The tax is not

22 26 imposed on renting of sleeping rooms in dorms or memorial

22 27 unions at universities or colleges in the state or to guests

22 28 of a religious institution whose property is exempt from

22 29 property tax or on the sales price of transactions that are

22 30 exempt from the state sales tax. The tax is collected in the

22 31 same manner as the state sales tax. The tax is in addition to

22 32 any other local hotel and motel tax.

22 33 Subchapter IV of new Code chapter 420A authorizes the city

22 34 or county to impose a local entertainment tax at the rate of

22 35 up to 5 percent. The tax is similar to the state sales tax in
Senate Study Bill 1308 continued
23 1 that it is imposed on the sale of entertainment tickets, and

23 2 the sale of food, alcoholic liquor, wine, and beer sold at

23 3 retail at food establishments and liquor establishments. A

23 4 "food establishment" is a home food establishment licensed by

23 5 the department of inspections and appeals under Code chapter

23 6 137D or a food establishment licensed by the department of

23 7 inspections and appeals under Code chapter 137F, where food is

23 8 served or sold at retail. A liquor establishment is a

23 9 premises licensed by the department of inspections and appeals

23 10 under Code chapter 123 at which beer, wine, or alcoholic

23 11 beverages are sold at retail. The tax is in addition to any

23 12 local option sales and services tax imposed by the city or

23 13 county and state sales tax.

23 14 Subchapter V authorizes a city or county to impose a local

23 15 cigarette and tobacco products tax on the sale of cigarettes

23 16 and tobacco products sold at retail locations in the city or

23 17 in the unincorporated area of a county, as applicable. The

23 18 rate of the tax is not limited and shall be specified in

23 19 increments of one or more full percentage points. The tax is

23 20 to be imposed on the same basis as the state sales tax and

23 21 shall be administered by the director of revenue. Revenues

23 22 collected are to be remitted at least quarterly to the city or

23 23 county imposing the tax.

23 24 Subchapter VI of new Code chapter 420A authorizes a city or

23 25 county to impose a local income surtax not to exceed 5 percent

23 26 on the state individual income tax of residents following

23 27 voter approval at election. The director of revenue shall

23 28 administer the surtax and by November 1 of the year following

23 29 the tax year shall remit the revenues collected to the city or

23 30 county imposing the surtax.

23 31 Division II of the bill takes effect upon enactment.

23 32 LSB 2680XC 83



23 33 md/sc/5


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