Iowa-2017-HF609-Introduced
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:
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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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