Bill Text: IA HF186 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act providing for the imposition of the local hotel and motel tax by a land use district.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2017-03-30 - Withdrawn. H.J. 817. [HF186 Detail]

Download: Iowa-2017-HF186-Introduced.html

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House File 186 - Introduced




                                 HOUSE FILE       
                                 BY  PETTENGILL and MAXWELL

                                      A BILL FOR

  1 An Act providing for the imposition of the local hotel and
  2    motel tax by a land use district.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1717YH (5) 87
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PAG LIN



  1  1    Section 1.  Section 303.52, Code 2017, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  3A.  The board of trustees may by ordinance
  1  4 impose a hotel and motel tax in accordance with chapter 423A.
  1  5    Sec. 2.  Section 423A.4, Code 2017, is amended to read as
  1  6 follows:
  1  7    423A.4  Locally imposed hotel and motel tax.
  1  8    1.  A city or, a county, or a land use district created under
  1  9 chapter 303, subchapter IV, may impose, by ordinance of the
  1 10 city council or by resolution of the board of supervisors or
  1 11 by ordinance of the board of trustees, a hotel and motel tax,
  1 12 at a rate not to exceed seven percent, which shall be imposed
  1 13 in increments of one or more full percentage points upon the
  1 14 sales price from the renting of lodging. The tax when imposed
  1 15 by a city shall apply only within the corporate boundaries
  1 16 of that city, and when imposed by a county shall apply only
  1 17 outside incorporated areas within that county, and when imposed
  1 18 by a land use district shall apply only within the corporate
  1 19 boundaries of that district.  A hotel and motel tax imposed
  1 20 by a city or county shall not be imposed within the corporate
  1 21 boundaries of a land use district during any period of time
  1 22 that the land use district is imposing a hotel and motel tax.
  1 23    2.  Within ten days of the election at which a majority of
  1 24 those voting on the question favors the imposition, repeal,
  1 25 or change in the rate of the hotel and motel tax, the county
  1 26 auditor shall give written notice by sending a copy of the
  1 27 abstract of votes from the favorable election to the director
  1 28 of revenue.
  1 29    3.  A local hotel and motel tax shall be imposed on January
  1 30 1 or July 1, following the notification of the director of
  1 31 revenue. Once imposed, the tax shall remain in effect at the
  1 32 rate imposed for a minimum of one year. A local hotel and motel
  1 33 tax shall terminate only on June 30 or December 31. At least
  1 34 forty=five days prior to the tax being effective or prior to a
  1 35 revision in the tax rate or prior to the repeal of the tax, a
  2  1 city, or county, or land use district shall provide notice by
  2  2 mail of such action to the director of revenue. The director
  2  3 shall have the authority to waive the notice requirement.
  2  4    4.  a.  A city, or county, or land use district shall impose
  2  5 or repeal a hotel and motel tax or increase or reduce the tax
  2  6 rate only after an election at which a majority of those voting
  2  7 on the question favors imposition, repeal, or change in rate.
  2  8 However, a hotel and motel tax of a city or county shall not
  2  9 be repealed or reduced in rate if obligations are outstanding
  2 10 which are payable as provided in section 423A.7, unless funds
  2 11 sufficient to pay the principal, interest, and premium, if any,
  2 12 on the outstanding obligations at and prior to maturity have
  2 13 been properly set aside and pledged for that purpose.
  2 14    b.  If the tax applies only within the corporate boundaries
  2 15 of a city, only the registered voters of the city shall be
  2 16 permitted to vote. The election shall be held at the time of
  2 17 the regular city election or at a special election called for
  2 18 that purpose. If the tax applies only in the unincorporated
  2 19 areas of a county or only within the corporate boundaries
  2 20 of a land use district, only the registered voters of the
  2 21 unincorporated areas of the county or the registered voters of
  2 22 the land use district, as applicable, shall be permitted to
  2 23 vote. The election shall be held at the time of the general
  2 24 election or at a special election called for that purpose.
  2 25    Sec. 3.  Section 423A.6, subsection 1, Code 2017, is amended
  2 26 to read as follows:
  2 27    1.  The director of revenue shall administer the state and
  2 28 local hotel and motel tax as nearly as possible in conjunction
  2 29 with the administration of the state sales tax law, except
  2 30 that portion of the law which implements the streamlined sales
  2 31 and use tax agreement. The director shall provide appropriate
  2 32 forms, or provide on the regular state tax forms, for reporting
  2 33 state and local hotel and motel tax liability. All moneys
  2 34 received or refunded one hundred eighty days after the date
  2 35 on which a city, or county, or land use district terminates
  3  1 its local hotel and motel tax and all moneys received from the
  3  2 state hotel and motel tax shall be deposited in or withdrawn
  3  3 from the general fund of the state.
  3  4    Sec. 4.  Section 423A.7, subsection 2, Code 2017, is amended
  3  5 to read as follows:
  3  6    2.  All moneys in the local transient guest tax fund shall
  3  7 be remitted at least quarterly by the department, pursuant to
  3  8 rules of the director of revenue, to each city in the amount
  3  9 collected from businesses in that city, and to each county in
  3 10 the amount collected from businesses in the unincorporated
  3 11 areas of the county, and to each land use district in the
  3 12 amount collected from businesses in that land use district.
  3 13    Sec. 5.  Section 423A.7, subsection 4, unnumbered paragraph
  3 14 1, Code 2017, is amended to read as follows:
  3 15    The revenue derived by a city or county from any local hotel
  3 16 and motel tax authorized by section 423A.4 shall be used by a
  3 17 city or county as follows:
  3 18    Sec. 6.  Section 423A.7, Code 2017, is amended by adding the
  3 19 following new subsection:
  3 20    NEW SUBSECTION.  5.  The revenue derived by a land use
  3 21 district from any local hotel and motel tax authorized by
  3 22 section 423A.4 may be expended for any lawful purpose of the
  3 23 land use district.
  3 24                           EXPLANATION
  3 25 The inclusion of this explanation does not constitute agreement with
  3 26 the explanation's substance by the members of the general assembly.
  3 27    This bill permits a land use district created under Code
  3 28 sections 303.41 through 303.68 to impose the local hotel and
  3 29 motel tax under Code chapter 423A upon the renting of any
  3 30 lodging within the land use district.  The bill amends the
  3 31 powers and duties of the board of trustees of a land use
  3 32 district to permit the board to impose the tax.
  3 33    The tax may only be imposed by ordinance of the board of
  3 34 trustees of the district after an election at which a majority
  3 35 of those voting favors imposition.  Only registered voters
  4  1 of the land use district are permitted to vote, and the tax
  4  2 only applies within the corporate boundaries of the land use
  4  3 district.  A majority vote of the registered voters of the
  4  4 district is also required for a repeal or rate change.  The tax
  4  5 rate may not exceed 7 percent and must be in increments of one
  4  6 or more full percentage points.
  4  7    The bill provides that revenues derived by a land use
  4  8 district from the local hotel and motel tax may be expended
  4  9 for any lawful purposes of the land use district.  The bill
  4 10 also provides that a hotel and motel tax imposed by a city or
  4 11 county shall not be imposed within the corporate boundaries of
  4 12 a land use district during any period of time that the land use
  4 13 district is imposing a hotel and motel tax.  The bill amends
  4 14 provisions of Code sections 423A.4 and 423A.7 relating to the
  4 15 power to pledge future hotel and motel tax revenues toward
  4 16 the payment of certain bonds to specify that such bonding
  4 17 provisions only apply to cities and counties that levy the tax.
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