Iowa-2017-HF186-Introduced
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:
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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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