Text: HF00543 Text: HF00545 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422B.1, subsection 2, Code 1995, is 1 2 amended to read as follows: 1 3 2. A local option tax shall be imposed only after an 1 4 election at which a majority of those voting on the question 1 5 favors imposition and shall then be imposed until repealed as 1 6 provided in subsection 5, paragraph "a". If the local option 1 7 tax isa local vehicle taximposed by a county, it shall apply 1 8 to all incorporated and unincorporated areas of the county. 1 9If the tax is a local sales and services tax imposed by a1 10county, it shall only apply to those incorporated areas and1 11the unincorporated area of that county in which a majority of1 12those voting in the area on the tax favors its imposition.1 13For purposes of the local sales and services tax, all cities1 14contiguous to each other shall be treated as part of one1 15incorporated area and the tax would be imposed in each of1 16those contiguous cities only if the majority of those voting1 17in the total area covered by the contiguous cities favors its1 18imposition. For purposes of the local sales and services tax,1 19a city is not contiguous to another city if the only road1 20access between the two cities is through another state.1 21 Sec. 2. Section 422B.1, subsection 5, paragraph a, 1 22 unnumbered paragraph 1, Code 1995, is amended to read as 1 23 follows: 1 24 If a majority of those voting on the question of imposition 1 25 of a local option tax favor imposition of a local option tax, 1 26 the governing body of that county shall impose the tax at the 1 27 rate specified for an unlimited period.However, in the case1 28of a local sales and services tax, the county shall not impose1 29the tax in any incorporated area or the unincorporated area if1 30the majority of those voting on the tax in that area did not1 31favor its imposition. For purposes of the local sales and1 32services tax, all cities contiguous to each other shall be1 33treated as part of one incorporated area and the tax shall be1 34imposed in each of those contiguous cities only if the1 35majority of those voting on the tax in the total area covered2 1by the contiguous cities favored its imposition.The local 2 2 option tax may be repealed or the rate increased or decreased 2 3 or the use thereof changed after an election at which a 2 4 majority of those voting on the question of repeal or rate or 2 5 use change favored the repeal or rate or use change. The 2 6 election at which the question of repeal or rate or use change 2 7 is offered shall be called and held in the same manner and 2 8 under the same conditions as provided in subsections 3 and 4 2 9 for the election on the imposition of the local option tax. 2 10 However, in the case of a local sales and services tax imposed 2 11 prior to May 1, 1995, where the tax has not been imposed 2 12 countywide, the question of repeal or imposition or rate or 2 13 use change shall be voted on only by the qualified electors of 2 14 the areas of the county where the tax has been imposed or has 2 15 not been imposed, as appropriate. However, counties which 2 16 have imposed a local sales and services tax prior to May 1, 2 17 1995, which was not countywide may continue to do so until the 2 18 tax is imposed countywide or the tax is no longer imposed in 2 19 the county. 2 20 Sec. 3. Section 422B.1, subsection 8, Code 1995, is 2 21 amended to read as follows: 2 22 8. In a county that has imposedathe local option sales 2 23 and services tax prior to May 1, 1995, the board of 2 24 supervisors shall, notwithstanding any contrary provision of 2 25 this chapter, repeal the local option sales and services tax 2 26 in the unincorporated areas or in an incorporated city area in 2 27 which the tax has been imposed upon adoption of its own motion 2 28 for repeal in the unincorporated areas or upon receipt of a 2 29 motion adopted by the governing body of that incorporated city 2 30 area requesting repeal. The board of supervisors shall repeal 2 31 the local option sales and services tax effective at the end 2 32 of the calendar quarter during which it adopted the repeal 2 33 motion or the motion for the repeal was received. For 2 34 purposes of this subsection, incorporated city area includes 2 35 an incorporated city which is contiguous to another 3 1 incorporated city. 3 2 Sec. 4. Section 422B.8, unnumbered paragraph 1, Code 1995, 3 3 is amended to read as follows: 3 4 A local sales and services tax at the rate of not more than 3 5 one percent may be imposed by a county on the gross receipts 3 6 taxed by the state under chapter 422, division IV. A local 3 7 sales and services tax shall be imposed on the same basis as 3 8 the state sales and services tax and may not be imposed on the 3 9 sale of any property or on any service not taxed by the state, 3 10 except the tax shall not be imposed on the gross receipts from 3 11 the sale of motor fuel or special fuel as defined in chapter 3 12 452A, on the gross receipts from the rental of rooms, 3 13 apartments, or sleeping quarters which are taxed under chapter 3 14 422A during the period the hotel and motel tax is imposed, on 3 15 the gross receipts from the sale of natural gas or electric 3 16 energy in a city or county where the gross receipts are 3 17 subject to a franchise fee or user fee during the period the 3 18 franchise or user fee is imposed, on the gross receipts upon 3 19 which sales tax is imposed only under section 422.43, 3 20 subsection 12, on the gross receipts from the sale of 3 21 equipment by the state department of transportation, and on 3 22 the gross receipts from the sale of a lottery ticket or share 3 23 in a lottery game conducted pursuant to chapter 99E. A local 3 24 sales and services tax is applicable to transactions within 3 25 those incorporated and unincorporated areas of the county 3 26 where it is imposed and shall be collected by all persons 3 27 required to collect state gross receipts taxes.All cities3 28contiguous to each other shall be treated as part of one3 29incorporated area and the tax would be imposed in each of3 30those contiguous cities only if the majority of those voting3 31in the total area covered by the contiguous cities favor its3 32imposition.3 33 Sec. 5. This Act, being deemed of immediate importance, 3 34 takes effect upon enactment and applies to local option sales 3 35 and services taxes to be imposed on or after May 1, 1995. 4 1 EXPLANATION 4 2 Under present application of the local sales and services 4 3 tax statutes, counties impose the local sales and services tax 4 4 in the incorporated or unincorporated areas of the county 4 5 where a majority of those voting in such areas vote in favor 4 6 of the imposition. Thus, none of the counties that have 4 7 imposed the tax as of March 1, 1995, have done so on a 4 8 countywide basis. This bill requires that after April 30, 4 9 1995, a local sales and services tax shall be imposed 4 10 countywide. The bill provides a provision to allow those 4 11 counties that have local sales and services taxes which are 4 12 not countywide to continue to impose the tax. 4 13 The bill takes effect upon enactment and applies to local 4 14 sales and services taxes to be imposed on or after May 1, 4 15 1995. 4 16 LSB 2098HH 76 4 17 mg/jw/5
Text: HF00543 Text: HF00545 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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