Bill Text: IA HF609 | 2017-2018 | 87th General Assembly | Introduced

Iowa House Bill 609 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: A bill for an act providing for the imposition of the local hotel and motel tax by a land use district. Effective 7-1-17.

Spectrum: Committee Bill

Status: (Passed) 2017-05-11 - Signed by Governor. H.J. 1149. [HF609 Detail]

Download: Iowa-2017-HF609-Introduced.html


House File 609 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 186)

                                      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 1717HV (2) 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.  a.  The board of trustees may by
  1  4 ordinance impose a hotel and motel tax in accordance with
  1  5 chapter 423A.
  1  6    b.  All revenues derived from imposition of the hotel and
  1  7 motel tax shall be spent exclusively on the acquisition of
  1  8 sites for, or constructing, improving, enlarging, equipping,
  1  9 repairing, operating, or maintaining of recreation, convention,
  1 10 cultural, or entertainment facilities including but not limited
  1 11 to memorial buildings, halls and monuments, civic center
  1 12 convention buildings, auditoriums, coliseums, and parking
  1 13 areas or facilities located at those recreation, convention,
  1 14 cultural, or entertainment facilities, or for the promotion and
  1 15 encouragement of tourist and convention business in the land
  1 16 use district and surrounding areas.
  1 17    Sec. 2.  Section 423A.4, Code 2017, is amended to read as
  1 18 follows:
  1 19    423A.4  Locally imposed hotel and motel tax.
  1 20    1.  A city or, a county, or a land use district created under
  1 21 chapter 303, subchapter IV, may impose, by ordinance of the
  1 22 city council or by resolution of the board of supervisors or
  1 23 by ordinance of the board of trustees, a hotel and motel tax,
  1 24 at a rate not to exceed seven percent, which shall be imposed
  1 25 in increments of one or more full percentage points upon the
  1 26 sales price from the renting of lodging. The tax when imposed
  1 27 by a city shall apply only within the corporate boundaries
  1 28 of that city, and when imposed by a county shall apply only
  1 29 outside incorporated areas within that county, and when imposed
  1 30 by a land use district shall apply only within the corporate
  1 31 boundaries of that district.  A hotel and motel tax imposed
  1 32 by a city or county shall not be imposed within the corporate
  1 33 boundaries of a land use district during any period of time
  1 34 that the land use district is imposing a hotel and motel tax.
  1 35    2.  Within ten days of the election at which a majority of
  2  1 those voting on the question favors the imposition, repeal,
  2  2 or change in the rate of the hotel and motel tax, the county
  2  3 auditor shall give written notice by sending a copy of the
  2  4 abstract of votes from the favorable election to the director
  2  5 of revenue.
  2  6    3.  A local hotel and motel tax shall be imposed on January
  2  7 1 or July 1, following the notification of the director of
  2  8 revenue. Once imposed, the tax shall remain in effect at the
  2  9 rate imposed for a minimum of one year. A local hotel and motel
  2 10 tax shall terminate only on June 30 or December 31. At least
  2 11 forty=five days prior to the tax being effective or prior to a
  2 12 revision in the tax rate or prior to the repeal of the tax, a
  2 13 city, or county, or land use district shall provide notice by
  2 14 mail of such action to the director of revenue. The director
  2 15 shall have the authority to waive the notice requirement.
  2 16    4.  a.  A city, or county, or land use district shall impose
  2 17 or repeal a hotel and motel tax or increase or reduce the tax
  2 18 rate only after an election at which a majority of those voting
  2 19 on the question favors imposition, repeal, or change in rate.
  2 20 However, a hotel and motel tax of a city or county shall not
  2 21 be repealed or reduced in rate if obligations are outstanding
  2 22 which are payable as provided in section 423A.7, unless funds
  2 23 sufficient to pay the principal, interest, and premium, if any,
  2 24 on the outstanding obligations at and prior to maturity have
  2 25 been properly set aside and pledged for that purpose.
  2 26    b.  If the tax applies only within the corporate boundaries
  2 27 of a city, only the registered voters of the city shall be
  2 28 permitted to vote. The election shall be held at the time of
  2 29 the regular city election or at a special election called for
  2 30 that purpose. If the tax applies only in the unincorporated
  2 31 areas of a county or only within the corporate boundaries
  2 32 of a land use district, only the registered voters of the
  2 33 unincorporated areas of the county or the registered voters of
  2 34 the land use district, as applicable, shall be permitted to
  2 35 vote. The election shall be held at the time of the general
  3  1 election or at a special election called for that purpose.
  3  2    Sec. 3.  Section 423A.6, subsection 1, Code 2017, is amended
  3  3 to read as follows:
  3  4    1.  The director of revenue shall administer the state and
  3  5 local hotel and motel tax as nearly as possible in conjunction
  3  6 with the administration of the state sales tax law, except
  3  7 that portion of the law which implements the streamlined sales
  3  8 and use tax agreement. The director shall provide appropriate
  3  9 forms, or provide on the regular state tax forms, for reporting
  3 10 state and local hotel and motel tax liability. All moneys
  3 11 received or refunded one hundred eighty days after the date
  3 12 on which a city, or county, or land use district terminates
  3 13 its local hotel and motel tax and all moneys received from the
  3 14 state hotel and motel tax shall be deposited in or withdrawn
  3 15 from the general fund of the state.
  3 16    Sec. 4.  Section 423A.7, subsection 2, Code 2017, is amended
  3 17 to read as follows:
  3 18    2.  All moneys in the local transient guest tax fund shall
  3 19 be remitted at least quarterly by the department, pursuant to
  3 20 rules of the director of revenue, to each city in the amount
  3 21 collected from businesses in that city, and to each county in
  3 22 the amount collected from businesses in the unincorporated
  3 23 areas of the county, and to each land use district in the
  3 24 amount collected from businesses in that land use district.
  3 25    Sec. 5.  Section 423A.7, subsection 4, unnumbered paragraph
  3 26 1, Code 2017, is amended to read as follows:
  3 27    The revenue derived by a city or county from any local hotel
  3 28 and motel tax authorized by section 423A.4 shall be used by a
  3 29 city or county as follows:
  3 30    Sec. 6.  Section 423A.7, Code 2017, is amended by adding the
  3 31 following new subsection:
  3 32    NEW SUBSECTION.  5.  The revenue derived by a land use
  3 33 district from any local hotel and motel tax authorized by
  3 34 section 423A.4 shall be expended exclusively for the purposes
  3 35 set forth in section 303.52, subsection 3A, paragraph "b".
  4  1                           EXPLANATION
  4  2 The inclusion of this explanation does not constitute agreement with
  4  3 the explanation's substance by the members of the general assembly.
  4  4    This bill permits a land use district created under Code
  4  5 sections 303.41 through 303.68 to impose the local hotel and
  4  6 motel tax under Code chapter 423A upon the renting of any
  4  7 lodging within the land use district.  The bill amends the
  4  8 powers and duties of the board of trustees of a land use
  4  9 district to permit the board to impose the tax.
  4 10    The tax may only be imposed by ordinance of the board of
  4 11 trustees of the district after an election at which a majority
  4 12 of those voting favors imposition.  Only registered voters
  4 13 of the land use district are permitted to vote, and the tax
  4 14 only applies within the corporate boundaries of the land use
  4 15 district.  A majority vote of the registered voters of the
  4 16 district is also required for a repeal or rate change.  The tax
  4 17 rate may not exceed 7 percent and must be in increments of one
  4 18 or more full percentage points.
  4 19    The bill provides that revenues derived by a land use
  4 20 district from the local hotel and motel tax must be spent
  4 21 exclusively on certain recreation, convention, cultural, or
  4 22 entertainment facilities as specified in the bill or for the
  4 23 promotion and encouragement of tourist and convention business
  4 24 in the district and surrounding areas.  The bill also provides
  4 25 that a hotel and motel tax imposed by a city or county shall
  4 26 not be imposed within the corporate boundaries of a land use
  4 27 district during any period of time that the land use district
  4 28 is imposing a hotel and motel tax.  The bill amends provisions
  4 29 of Code sections 423A.4 and 423A.7 relating to the power to
  4 30 pledge future hotel and motel tax revenues toward the payment
  4 31 of certain bonds to specify that such bonding provisions only
  4 32 apply to cities and counties that levy the tax.
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