Text: SF00469 Text: SF00471 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422B.1, subsection 1, Code 1995, is 1 2 amended to read as follows: 1 3 1. A county may impose by ordinance of the board of 1 4 supervisors local option taxes authorized by this chapter, 1 5 subject to this section and subject to the exception provided 1 6 in subsection 1A. 1 7 Sec. 2. Section 422B.1, Code 1995, is amended by adding 1 8 the following new subsection: 1 9 NEW SUBSECTION. 1A. a. A city whose corporate boundaries 1 10 include areas of two counties may impose by ordinance of its 1 11 city council a local sales and services tax if all of the 1 12 following apply: 1 13 (1) All the residents of the city live in one county. 1 14 (2) The county in which the city residents reside has held 1 15 an election on the question of the imposition of a local sales 1 16 and services tax and a majority of those voting on the 1 17 question in the city favored its imposition. 1 18 (3) The city has entered into an agreement on the 1 19 distribution of the sales and services tax revenues collected 1 20 from the area where the city tax is imposed with the county 1 21 where such area is located. 1 22 b. The city council of a city authorized to impose a local 1 23 sales and services tax pursuant to paragraph "a" shall only do 1 24 so subject to all of the following restrictions: 1 25 (1) The tax shall only be imposed in the area of the city 1 26 located in the county where none of its residents reside. 1 27 (2) The tax shall be at the same rate and become effective 1 28 at the same time as the county tax imposed in the other area 1 29 of the city. 1 30 (3) The tax once imposed shall continue to be imposed 1 31 until the county imposed tax is reduced or increased in rate 1 32 or repealed, and then the city imposed tax shall also be 1 33 reduced or increased in rate or repealed in the same amount 1 34 and be effective on the same date. 1 35 (4) The tax shall be imposed on the same basis as provided 2 1 in section 422B.8 and notification requirements in section 2 2 422B.9 apply. 2 3 (5) The city shall assist the department of revenue and 2 4 finance to identify the businesses in the area which are to 2 5 collect the city imposed tax. The process shall be ongoing as 2 6 long as the city tax is imposed. 2 7 c. The agreement on the distribution of the revenues 2 8 collected from the city imposed tax shall provide that fifty 2 9 percent of such revenues shall be remitted to the county in 2 10 which the part of the city where the city tax is imposed is 2 11 located. 2 12 d. The latest certified federal census preceding the 2 13 election held by the county on the question of imposition of 2 14 the local sales and services tax shall be used in determining 2 15 if the city qualifies under paragraph "a", subparagraph (1) to 2 16 impose its own tax and in determining the area where the city 2 17 tax may be imposed under paragraph "b", subparagraph (1). 2 18 e. A city is not authorized to impose a local sales and 2 19 services tax under this subsection after January 1, 1998. A 2 20 city that has imposed a local sales and services tax under 2 21 this subsection on or before January 1, 1998, may continue to 2 22 collect the tax until such time as the tax is repealed by the 2 23 city and the fact that that area acquires residents after the 2 24 tax is imposed shall not affect the imposition or collection 2 25 of the tax. 2 26 Sec. 3. Section 422B.10, subsection 1, Code 1995, is 2 27 amended to read as follows: 2 28 1. The director shall credit the local sales and services 2 29 tax receipts and interest and penalties from a county imposed 2 30 tax to the county's account in the local sales and services 2 31 tax fund and from a city imposed tax under section 422B.1, 2 32 subsection 1A, to the city's account in the local sales and 2 33 services tax fund. If the director is unable to determine 2 34 from which county any of the receipts were collected, those 2 35 receipts shall be allocatedamongstamong the possible 3 1 counties based on allocation rules adopted by the director. 3 2 Sec. 4. Section 422B.10, Code 1995, is amended by adding 3 3 the following new subsection: 3 4 NEW SUBSECTION. 4A. From each city's account, the percent 3 5 of revenues agreed to be distributed to the county in the 3 6 agreement entered into as provided in section 422B.1, 3 7 subsection 1A, paragraph "a", subparagraph (3) and paragraph 3 8 "c", shall be deposited into the appropriate county's account 3 9 to be remitted as provided in subsections 3 and 4. The 3 10 remaining revenues in the city's account shall be remitted to 3 11 the city council. If a county does not have an account, its 3 12 percent of the revenues shall be remitted directly to the 3 13 county board of supervisors. 3 14 Sec. 5. This Act, being deemed of immediate importance, 3 15 takes effect upon enactment. 3 16 EXPLANATION 3 17 The bill authorizes a city which is located in two 3 18 counties, but all of its residents are located in one county, 3 19 to impose a city local sales and services tax in the county 3 20 where none of its residents live. Present law only allows 3 21 counties to impose the local sales and services tax and only 3 22 in incorporated areas that have voted for the imposition. 3 23 Therefore, the area of the city located in the county where no 3 24 residents live could not under present law have the tax apply 3 25 in its area. 3 26 The bill contains certain conditions and restrictions on 3 27 the city imposed tax. These include imposing the tax only if 3 28 the county has imposed the tax in the city area where all its 3 29 residents live, agreeing to split the revenues equally with 3 30 the county where no residents of the city live, the rate of 3 31 tax and its effective date must be the same as for the county 3 32 imposed tax, and any rate reduction, increase, or repeal for 3 33 the county must also be done for the city tax. 3 34 The bill provides that a city cannot impose such a city 3 35 local sales and services tax after January 1, 1998, but if one 4 1 is imposed on or before that date, it may continue until such 4 2 time as it is repealed. 4 3 The bill takes effect upon enactment. 4 4 LSB 1050SV 76 4 5 mg/jj/8
Text: SF00469 Text: SF00471 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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