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PAG LIN 1 1 Section 1. Section 422B.1, subsections 3, 4, 5, 6, 8, and 1 2 9, Code Supplement 1995, are amended to read as follows: 1 3 3. 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1 4 election at which a majority of those voting on the question 1 5 favors imposition and shall then be imposed until repealed as 1 6 provided in subsection 6, paragraph "a". If the tax is a 1 7 local vehicle tax imposed by a county, it shall apply to all 1 8 incorporated and unincorporated areas of the county. If the 1 9 tax is a local sales and services tax or a local cigarette and 1 10 tobacco tax imposed by a county, it shall only apply to those 1 11 incorporated areas and the unincorporated area of that county 1 12 in which a majority of those voting in the area on the tax 1 13 favors its imposition. For purposes of the local sales and 1 14 services tax or a local cigarette and tobacco tax, all cities 1 15 contiguous to each other shall be treated as part of one 1 16 incorporated area and the tax would be imposed in each of 1 17 those contiguous cities only if the majority of those voting 1 18 in the total area covered by the contiguous cities favors its 1 19 imposition. For purposes of the local sales and services tax 1 20 or a local cigarette and tobacco tax, a city is not contiguous 1 21 to another city if the only road access between the two cities 1 22 is through another state. 1 23 4. a. A county board of supervisors shall direct within 1 24 thirty days the county commissioner of elections to submit the 1 25 question of imposition of a local vehicle tax,ora local 1 26 sales and services tax, or a local cigarette and tobacco tax 1 27 to the registered voters of the incorporated and 1 28 unincorporated areas of the county upon receipt of a petition, 1 29 requesting imposition of a local vehicle tax,ora local sales 1 30 and services tax, or a local cigarette and tobacco tax, signed 1 31 by eligible electors of the whole county equal in number to 1 32 five percent of the persons in the whole county who voted at 1 33 the last preceding state general election. In the case of a 1 34 local vehicle tax, the petition requesting imposition shall 1 35 specify the rate of tax and the classes, if any, that are to 2 1 be exempt. If more than one valid petition is received, the 2 2 earliest received petition shall be used. 2 3 b. The question of the imposition of a local sales and 2 4 services tax or a local cigarette and tobacco tax shall be 2 5 submitted to the registered voters of the incorporated and 2 6 unincorporated areas of the county upon receipt by the county 2 7 commissioner of elections of the motion or motions, requesting 2 8 such submission, adopted by the governing body or bodies of 2 9 the city or cities located within the county or of the county, 2 10 for the unincorporated areas of the county, representing at 2 11 least one half of the population of the county. Upon adoption 2 12 of such motion, the governing body of the city or county, for 2 13 the unincorporated areas, shall submit the motion to the 2 14 county commissioner of elections and in the case of the 2 15 governing body of the city shall notify the board of 2 16 supervisors of the adoption of the motion. The county 2 17 commissioner of elections shall keep a file on all the motions 2 18 received and, upon reaching the population requirements, shall 2 19 publish notice of the ballot proposition concerning the 2 20 imposition of the local sales and services tax or a local 2 21 cigarette and tobacco tax. A motion ceases to be valid at the 2 22 time of the holding of the regular election for the election 2 23 of members of the governing body which adopted the motion. 2 24 The county commissioner of elections shall eliminate from the 2 25 file any motion that ceases to be valid. The manner provided 2 26 under this paragraph for the submission of the question of 2 27 imposition of a local sales and services tax or a local 2 28 cigarette and tobacco tax is an alternative to the manner 2 29 provided in paragraph "a". 2 30 5. The county commissioner of elections shall submit the 2 31 question of imposition of a local option tax at a state 2 32 general election or at a special election held at any time 2 33 other than the time of a city regular election. The election 2 34 shall not be held sooner than sixty days after publication of 2 35 notice of the ballot proposition. The ballot proposition 3 1 shall specify the type and rate of tax and in the case of a 3 2 vehicle tax the classes that will be exempt and in the case of 3 3 a local sales and services tax or a local cigarette and 3 4 tobacco tax the date it will be imposed. The ballot 3 5 proposition shall also specify the approximate amount of local 3 6 option tax revenues that will be used for property tax relief 3 7 and shall contain a statement as to the specific purpose or 3 8 purposes for which the revenues shall otherwise be expended. 3 9 If the county board of supervisors decides under subsection 6 3 10 to specify a date on which the local option sales and services 3 11 tax or a local cigarette and tobacco tax shall automatically 3 12 be repealed, the date of the repeal shall also be specified on 3 13 the ballot. The rate of the vehicle tax shall be in 3 14 increments of one dollar per vehicle as set by the petition 3 15 seeking to impose the tax. The rate of a local sales and 3 16 services tax shall not be more than one percent as set by the 3 17 governing body. The rate of the cigarette and tobacco tax 3 18 shall not be more than ten percent as set by the governing 3 19 body. The state commissioner of elections shall establish by 3 20 rule the form for the ballot proposition which form shall be 3 21 uniform throughout the state. 3 22 6. a. If a majority of those voting on the question of 3 23 imposition of a local option tax favor imposition of a local 3 24 option tax, the governing body of that county shall impose the 3 25 tax at the rate specified for an unlimited period. However, 3 26 in the case of a local sales and services tax or a local 3 27 cigarette and tobacco tax, the county shall not impose the tax 3 28 in any incorporated area or the unincorporated area if the 3 29 majority of those voting on the tax in that area did not favor 3 30 its imposition. For purposes of the local sales and services 3 31 tax or a local cigarette and tobacco tax, all cities 3 32 contiguous to each other shall be treated as part of one 3 33 incorporated area and the tax shall be imposed in each of 3 34 those contiguous cities only if the majority of those voting 3 35 on the tax in the total area covered by the contiguous cities 4 1 favored its imposition. The local option tax may be repealed 4 2 or the rate increased or decreased or the use thereof changed 4 3 after an election at which a majority of those voting on the 4 4 question of repeal or rate or use change favored the repeal or 4 5 rate or use change. The election at which the question of 4 6 repeal or rate or use change is offered shall be called and 4 7 held in the same manner and under the same conditions as 4 8 provided in subsections 4 and 5 for the election on the 4 9 imposition of the local option tax. However, in the case of a 4 10 local sales and services tax or a local cigarette and tobacco 4 11 tax where the tax has not been imposed countywide, the 4 12 question of repeal or imposition or rate or use change shall 4 13 be voted on only by the registered voters of the areas of the 4 14 county where the tax has been imposed or has not been imposed, 4 15 as appropriate. However, the governing body of the 4 16 incorporated area or unincorporated area where the local sales 4 17 and services tax or a local cigarette and tobacco tax is 4 18 imposed may, upon its own motion, request the county 4 19 commissioner of elections to hold an election in the 4 20 incorporated or unincorporated area, as appropriate, on the 4 21 question of the change in use of local sales and services tax 4 22 revenues. The election may be held at any time but not sooner 4 23 than sixty days following publication of the ballot 4 24 proposition. If a majority of those voting in the 4 25 incorporated or unincorporated area on the change in use favor 4 26 the change, the governing body of that area shall change the 4 27 use to which the revenues shall be used. The ballot 4 28 proposition shall list the present use of the revenues, the 4 29 proposed use, and the date after which revenues received will 4 30 be used for the new use. 4 31 When submitting the question of the imposition of a local 4 32 sales and services tax or a local cigarette and tobacco tax, 4 33 the county board of supervisors may direct that the question 4 34 contain a provision for the repeal, without election, of the 4 35 local sales and services tax or a local cigarette and tobacco 5 1 tax on a specific date, which date shall be the end of a 5 2 calendar quarter. 5 3 b. Within ten days of the election at which a majority of 5 4 those voting on the question favors the imposition, repeal, or 5 5 change in the rate of a local option tax, the governing body 5 6 shall give written notice to the director of revenue and 5 7 finance or, in the case of a local vehicle tax, to the 5 8 director of the department of transportation, of the result of 5 9 the election. 5 10 8. Local option taxes authorized to be imposed as provided 5 11 in this chapter are a local sales and services tax, a local 5 12 cigarette and tobacco tax, and a local vehicle tax. The rate 5 13 of the tax shall be in increments of one dollar per vehicle 5 14 for a vehicle tax as set on the petition seeking to impose the 5 15 vehicle tax. The rate of a local sales and services tax shall 5 16 not be more than one percent as set by the governing body. 5 17 The rate of the local cigarette and tobacco tax shall not be 5 18 more than ten percent as set by the governing body. 5 19 9. In a county that has imposed a local option sales and 5 20 services tax or a local option cigarette and tobacco tax, the 5 21 board of supervisors shall, notwithstanding any contrary 5 22 provision of this chapter, repeal the local optionsales and5 23servicestax in the unincorporated areas or in an incorporated 5 24 city area in which the tax has been imposed upon adoption of 5 25 its own motion for repeal in the unincorporated areas or upon 5 26 receipt of a motion adopted by the governing body of that 5 27 incorporated city area requesting repeal. The board of 5 28 supervisors shall repeal the local optionsales and services5 29 tax effective at the end of the calendar quarter during which 5 30 it adopted the repeal motion or the motion for the repeal was 5 31 received. For purposes of this subsection, incorporated city 5 32 area includes an incorporated city which is contiguous to 5 33 another incorporated city. 5 34 Sec. 2. NEW SECTION. 422B.5 LOCAL CIGARETTE AND TOBACCO 5 35 TAX. 6 1 A local cigarette and tobacco tax at the rate of not more 6 2 than ten percent may be imposed by a county on the gross 6 3 receipts from sales of cigarettes and tobacco products sold at 6 4 retail by a retailer as defined under chapter 422, division 6 5 IV. A local cigarette and tobacco tax shall be imposed only 6 6 if the retailer is required under section 422.53 to have a 6 7 state tax permit to collect the state sales and services tax. 6 8 A local cigarette and tobacco tax is applicable to 6 9 transactions within those incorporated and unincorporated 6 10 areas of the county where it is imposed and shall be collected 6 11 by all persons required to collect state gross receipts taxes. 6 12 All cities contiguous to each other shall be treated as part 6 13 of one incorporated area and the tax would be imposed in each 6 14 of those contiguous cities only if the majority of those 6 15 voting in the total area covered by the contiguous cities 6 16 favor its imposition. 6 17 The amount of the sale, for purposes of determining the 6 18 amount of the local cigarette and tobacco tax, does not 6 19 include the amount of any state gross receipts taxes but does 6 20 include the amount of any tax imposed under chapter 453A. 6 21 A tax permit other than the state tax permit required under 6 22 section 422.53 shall not be required by local authorities. 6 23 Sec. 3. NEW SECTION. 422B.6 ADMINISTRATION. 6 24 A local cigarette and tobacco tax shall be imposed either 6 25 January 1, April 1, July 1 or October 1 following the 6 26 notification of the director of revenue and finance. 6 27 A local cigarette and tobacco tax shall be repealed only on 6 28 March 31, June 30, September 30, or December 31. However, a 6 29 local cigarette and tobacco tax shall not be repealed before 6 30 the tax has been in effect for one year. At least forty days 6 31 before the imposition or repeal of the tax, a county shall 6 32 provide notice of the action by certified mail to the director 6 33 of revenue and finance. 6 34 The director of revenue and finance shall administer a 6 35 local cigarette and tobacco tax as nearly as possible in 7 1 conjunction with the administration of state gross receipts 7 2 tax laws. The director shall provide appropriate forms or 7 3 provide on the regular state tax forms for reporting local 7 4 cigarette and tobacco tax liability. 7 5 The ordinance of a county board of supervisors imposing a 7 6 local cigarette and tobacco tax shall adopt by reference the 7 7 applicable provisions of the appropriate sections of chapter 7 8 422, division IV. All powers and requirements of the director 7 9 to administer the state gross receipts tax law are applicable 7 10 to the administration of a local cigarette and tobacco tax 7 11 law, including but not limited to, the provisions of sections 7 12 422.25, subsection 4, 422.30, 422.48 to 422.52, 422.54 to 7 13 422.58, 422.67, 422.68, 422.69, subsection 1, and 422.70 to 7 14 422.75. Local officials shall confer with the director of 7 15 revenue and finance for assistance in drafting the ordinance 7 16 imposing a local cigarette and tobacco tax. A certified copy 7 17 of the ordinance shall be filed with the director as soon as 7 18 possible after passage. 7 19 The director, in consultation with local officials, shall 7 20 collect and account for a local cigarette and tobacco tax. 7 21 The director shall certify each quarter the amount of local 7 22 cigarette and tobacco tax receipts and any interest and 7 23 penalties to be credited to the "local cigarette and tobacco 7 24 tax fund" established in the office of the treasurer of state. 7 25 All local tax moneys and interest and penalties received or 7 26 refunded one hundred eighty days or more after the date on 7 27 which the county repeals its local cigarette and tobacco tax 7 28 shall be deposited in or withdrawn from the state general 7 29 fund. 7 30 Sec. 4. NEW SECTION. 422B.7 PAYMENT TO LOCAL 7 31 GOVERNMENTS. 7 32 1. The director shall credit the local cigarette and 7 33 tobacco tax receipts and interest and penalties from the tax 7 34 imposed in the unincorporated area of a county to the county's 7 35 account in the local cigarette and tobacco tax fund and from 8 1 the tax imposed in a city to the city's account in the local 8 2 cigarette and tobacco tax fund. If the director is unable to 8 3 determine from which county any of the receipts were 8 4 collected, those receipts shall be allocated among the 8 5 possible counties based on allocation rules adopted by the 8 6 director. 8 7 2. a. The director of revenue and finance within fifteen 8 8 days of the beginning of each fiscal year shall send to each 8 9 city or county where the local option tax is imposed, an 8 10 estimate of the amount of tax moneys each city or county will 8 11 receive for the year and for each quarter of the year. At the 8 12 end of each quarter, the director may revise the estimates for 8 13 the year and remaining quarters. 8 14 b. The director of revenue and finance shall remit ninety 8 15 percent of the estimate tax receipts for the city or county to 8 16 the city or county after the end of each quarter no later than 8 17 the following dates: November 10, February 10, May 10, and 8 18 August 10. 8 19 c. The director of revenue and finance shall remit a final 8 20 payment of the remainder of tax moneys due the city or county 8 21 for the fiscal year before the due date for the payment of the 8 22 first quarter of the next fiscal year. If an overpayment has 8 23 resulted during the previous fiscal year, the first payment of 8 24 the new fiscal year shall be adjusted to reflect any 8 25 overpayment. 8 26 3. Local cigarette and tobacco tax moneys received by a 8 27 city or county shall be expended by the city or county for the 8 28 purpose of educating minors on the addictiveness and harmful 8 29 effects of cigarettes and tobacco products and enforcing 8 30 federal, state, and local cigarette and tobacco laws. 8 31 Sec. 5. Section 422B.8, unnumbered paragraph 1, Code 8 32 Supplement 1995, is amended to read as follows: 8 33 A local sales and services tax at the rate of not more than 8 34 one percent may be imposed by a county on the gross receipts 8 35 taxed by the state under chapter 422, division IV. A local 9 1 sales and services tax shall be imposed on the same basis as 9 2 the state sales and services tax and may not be imposed on the 9 3 sale of any property or on any service not taxed by the state, 9 4 except the tax shall not be imposed on the gross receipts from 9 5 the sale of motor fuel or special fuel as defined in chapter 9 6 452A, on the gross receipts from the sale of cigarettes and 9 7 tobacco products as defined in chapter 453A during the period 9 8 a local cigarette and tobacco tax is imposed, on the gross 9 9 receipts from the rental of rooms, apartments, or sleeping 9 10 quarters which are taxed under chapter 422A during the period 9 11 the hotel and motel tax is imposed, on the gross receipts from 9 12 the sale of natural gas or electric energy in a city or county 9 13 where the gross receipts are subject to a franchise fee or 9 14 user fee during the period the franchise or user fee is 9 15 imposed, on the gross receipts from the sale of equipment by 9 16 the state department of transportation, and on the gross 9 17 receipts from the sale of a lottery ticket or share in a 9 18 lottery game conducted pursuant to chapter 99E. A local sales 9 19 and services tax is applicable to transactions within those 9 20 incorporated and unincorporated areas of the county where it 9 21 is imposed and shall be collected by all persons required to 9 22 collect state gross receipts taxes. All cities contiguous to 9 23 each other shall be treated as part of one incorporated area 9 24 and the tax would be imposed in each of those contiguous 9 25 cities only if the majority of those voting in the total area 9 26 covered by the contiguous cities favor its imposition. 9 27 Sec. 6. Section 453A.56, Code 1995, is amended to read as 9 28 follows: 9 29 453A.56 UNIFORM APPLICATION. 9 30 Enforcement of this chapter shall be implemented in an 9 31 equitable manner throughout the state. For the purpose of 9 32 equitable and uniform implementation, application, and 9 33 enforcement of state and local laws and regulations, the 9 34 provisions of this chapter shall supersede any local law or 9 35 regulation which is inconsistent with or conflicts with the 10 1 provisions of this chapter. This section and any other 10 2 provision in this chapter shall not prohibit the imposition of 10 3 a local option cigarette and tobacco tax under chapter 422B. 10 4 EXPLANATION 10 5 The bill authorizes the imposition of a local option 10 6 cigarette and tobacco tax at a rate of up to 10 percent. In 10 7 order for the tax to be imposed, an election must be held and 10 8 a majority must vote in favor of its imposition. Initially, 10 9 the election would be countywide and then imposed in those 10 10 areas that voted in favor of it. Subsequently, the election 10 11 to impose, repeal, or change the use of revenues would be 10 12 limited to those areas that have already imposed it or have 10 13 not, as appropriate. For purposes of the tax, cities 10 14 contiguous to each other would be considered as one city and a 10 15 majority in the total area is needed for imposition. This 10 16 method for imposition, repeal, and change in use of a local 10 17 option cigarette and tobacco tax is like the present local 10 18 option sales and services tax. The tax would be imposed on 10 19 the gross receipts from the sale of cigarettes and tobacco 10 20 products at retail. 10 21 LSB 3923HH 76 10 22 mg/sc/14
Text: HF02467 Text: HF02469 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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