Text: SF00471 Text: SF00473 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tax once imposed shall continue to be imposed 1 31 until the county imposed tax is reduced or increased in rate 1 32 or repealed, and then the city imposed tax shall also be 1 33 reduced or increased in rate or repealed in the same amount 1 34 and be effective on the same date. 1 35 (4) The tax shall be imposed on the same basis as provided 2 1 in section 422B.8 and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.1, subsection 5, paragraph a, 2 27 unnumbered paragraph 1, Code 1995, is amended to read as 2 28 follows: 2 29 If a majority of those voting on the question of imposition 2 30 of a local option tax favor imposition of a local option tax, 2 31 the governing body of that county shall impose the tax at the 2 32 rate specified for an unlimited period. However, in the case 2 33 of a local sales and services tax, the county shall not impose 2 34 the tax in any incorporated area or the unincorporated area if 2 35 the majority of those voting on the tax in that area did not 3 1 favor its imposition. For purposes of the local sales and 3 2 services tax, all cities contiguous to each other shall be 3 3 treated as part of one incorporated area and the tax shall be 3 4 imposed in each of those contiguous cities only if the 3 5 majority of those voting on the tax in the total area covered 3 6 by the contiguous cities favored its imposition. The local 3 7 option tax may be repealed or the rate increased or decreased 3 8 or the use thereof changed after an election at which a 3 9 majority of those voting on the question of repeal or rate or 3 10 use change favored the repeal or rate or use change. The 3 11 election at which the question of repeal or rate or use change 3 12 is offered shall be called and held in the same manner and 3 13 under the same conditions as provided in subsections 3 and 4 3 14 for the election on the imposition of the local option tax. 3 15 However, in the case of a local sales and services tax where 3 16 the tax has not been imposed countywide, the question of 3 17 repeal or imposition or rate or use change shall be voted on 3 18 only by the qualified electors of the areas of the county 3 19 where the tax has been imposed or has not been imposed, as 3 20 appropriate. However, the governing body of the incorporated 3 21 area or unincorporated area where the local sales and services 3 22 tax is imposed may, upon its own motion, request the county 3 23 commissioner of elections to hold an election in the 3 24 incorporated or unincorporated area, as appropriate, on the 3 25 question of the change in use of local sales and services tax 3 26 revenues. The election may be held at any time but not sooner 3 27 than sixty days following publication of the ballot 3 28 proposition. If a majority of those voting in the 3 29 incorporated or unincorporated area on the change in use favor 3 30 the change, the governing body of that area shall change the 3 31 use to which the revenues shall be used. The ballot 3 32 proposition shall list the present use of the revenues, the 3 33 proposed use, and the date after which revenues received will 3 34 be used for the new use. 3 35 Sec. 4. Section 422B.1, Code 1995, is amended by adding 4 1 the following new subsection: 4 2 NEW SUBSECTION. 9. Notwithstanding subsection 8 or any 4 3 other contrary provision of this chapter, a local option sales 4 4 and services tax shall not be repealed or reduced in rate if 4 5 obligations are outstanding which are payable as provided in 4 6 section 422B.12, unless funds sufficient to pay the principal, 4 7 interest, and premium, if any, on the outstanding obligations 4 8 at and prior to maturity have been properly set aside and 4 9 pledged for that purpose. 4 10 Sec. 5. Section 422B.10, subsection 1, Code 1995, is 4 11 amended to read as follows: 4 12 1. The director shall credit the local sales and services 4 13 tax receipts and interest and penalties from a county imposed 4 14 tax to the county's account in the local sales and services 4 15 tax fund and from a city imposed tax under section 422B.1, 4 16 subsection 1A, to the city's account in the local sales and 4 17 services tax fund. If the director is unable to determine 4 18 from which county any of the receipts were collected, those 4 19 receipts shall be allocatedamongstamong the possible 4 20 counties based on allocation rules adopted by the director. 4 21 Sec. 6. Section 422B.10, Code 1995, is amended by adding 4 22 the following new subsection: 4 23 NEW SUBSECTION. 4A. From each city's account, the percent 4 24 of revenues agreed to be distributed to the county in the 4 25 agreement entered into as provided in section 422B.1, 4 26 subsection 1A, paragraph "a", subparagraph (3) and paragraph 4 27 "c", shall be deposited into the appropriate county's account 4 28 to be remitted as provided in subsections 3 and 4. The 4 29 remaining revenues in the city's account shall be remitted to 4 30 the city council. If a county does not have an account, its 4 31 percent of the revenues shall be remitted directly to the 4 32 county board of supervisors. 4 33 Sec. 7. NEW SECTION. 422B.12 ISSUANCE OF BONDS. 4 34 1. For purposes of this section unless the context 4 35 otherwise requires: 5 1 a. "Bond issuer" or "issuer" means a city, a county, or a 5 2 secondary recipient. 5 3 b. "Designated portion" means the portion of the local 5 4 option sales and services tax revenues which is authorized to 5 5 be expended for one or a combination of purposes under an 5 6 adopted public measure. 5 7 c. "Secondary recipient" means a political subdivision of 5 8 the state which is to receive revenues from a local option 5 9 sales and services tax over a period of years pursuant to the 5 10 terms of a chapter 28E agreement with one or more cities or 5 11 counties. 5 12 2. An issuer of public bonds which is a recipient of 5 13 revenues from a local option sales and services tax imposed 5 14 pursuant to this chapter may issue bonds in anticipation of 5 15 the collection of one or more designated portions of the local 5 16 option sales and services tax and may pledge irrevocably an 5 17 amount of the revenue derived from the designated portions for 5 18 each of the years the bonds remain outstanding to the payment 5 19 of the bonds. Bonds may be issued only for one or more of the 5 20 purposes set forth on the ballot proposition concerning the 5 21 imposition of the local option sales and services tax, except 5 22 bonds shall not be issued which are payable from that portion 5 23 of tax revenues designated for property tax relief. The bonds 5 24 may be issued in accordance with the procedures set forth in 5 25 either subsection 3 or 4. 5 26 3. The governing body of an issuer may authorize the 5 27 issuance of bonds which are payable from the designated 5 28 portion of the revenues of the local option sales and services 5 29 tax, and not from property tax, by following the authorization 5 30 procedures set forth for cities in section 384.83. Bonds may 5 31 be issued for the purpose of refunding outstanding and 5 32 previously issued bonds under this subsection without 5 33 otherwise complying with the provisions of this subsection. 5 34 4. To authorize the issuance of bonds payable as provided 5 35 in this subsection, the governing body of an issuer shall 6 1 comply with all of the procedures as follows: 6 2 a. A bond issuer may institute proceedings for the 6 3 issuance of bonds by causing a notice of the proposal to issue 6 4 the bonds, including a statement of the amount and purpose of 6 5 the bonds, together with the maximum rate of interest which 6 6 the bonds are to bear, and the right to petition for an 6 7 election, to be published at least once in a newspaper of 6 8 general circulation within the political subdivision or 6 9 unincorporated area at least ten days prior to the meeting at 6 10 which it is proposed to take action for the issuance of the 6 11 bonds. 6 12 If at any time before the date fixed for taking action for 6 13 the issuance of the bonds, a petition signed by three percent 6 14 of the registered voters of the bond issuer is filed, asking 6 15 that the question of issuing the bonds be submitted to the 6 16 registered voters, the governing body shall either by 6 17 resolution declare the proposal to issue the bonds to have 6 18 been abandoned or shall direct the county commissioner of 6 19 elections to call a special election upon the question of 6 20 issuing the bonds. The proposition of issuing bonds under 6 21 this subsection is not approved unless the vote in favor of 6 22 the proposition is equal to at least sixty percent of the vote 6 23 cast. If a petition is not filed, or if a petition is filed 6 24 and the proposition of issuing the bonds is approved at an 6 25 election, the governing body acting on behalf of the issuer 6 26 may proceed with the authorization and issuance of the bonds. 6 27 Bonds may be issued for the purpose of refunding outstanding 6 28 and previously issued bonds under this subsection without 6 29 otherwise complying with the provisions of this subsection. 6 30 b. The provisions of chapter 76 apply to the bonds payable 6 31 as provided in this subsection, except that the mandatory levy 6 32 to be assessed pursuant to section 76.2 shall be at a rate to 6 33 generate an amount which together with the receipts from the 6 34 pledged designated portion of the local option sales and 6 35 services tax is sufficient to pay the interest and principal 7 1 on the bonds. All amounts collected as a result of the levy 7 2 assessed pursuant to section 76.2 and paid out in the first 7 3 instance for bond principal and interest shall be repaid to 7 4 the bond issuer which levied the tax from the first available 7 5 designated portion of local option sales and services tax 7 6 collections received in excess of the requirement for the 7 7 payment of the principal and interest of the bonds and when 7 8 repaid shall be applied in reduction of property taxes. The 7 9 amount of bonds which may be issued under section 76.3 shall 7 10 be the amount which could be retired from the actual 7 11 collections of the designated portions of the local option 7 12 sales and services tax for the last four calendar quarters, as 7 13 certified by the director of revenue and finance. The amount 7 14 of tax revenues pledged jointly by other cities or counties 7 15 may be considered for the purpose of determining the amount of 7 16 bonds which may be issued. If the local option sales and 7 17 services tax has been in effect for less than four calendar 7 18 quarters, the tax collected within the shorter period may be 7 19 adjusted to project the collections of the designated portion 7 20 for the full year for the purpose of determining the amount of 7 21 the bonds which may be issued. The provisions of this section 7 22 constitute separate authorization for the issuance of bonds 7 23 and shall prevail in the event of conflict with any other 7 24 provision of the Code limiting the amount of bonds which may 7 25 be issued or the source of payment of the bonds. Bonds issued 7 26 under this section shall not limit or restrict the authority 7 27 of the bond issuer to issue bonds under other provisions of 7 28 the Code. 7 29 5. A city or county, jointly with one or more other 7 30 political subdivisions as provided in chapter 28E, may pledge 7 31 irrevocably any amount derived from the designated portions of 7 32 the revenues of the local option sales and services tax to the 7 33 support or payment of bonds of an issuer, issued for one or 7 34 more purposes set forth on the ballot proposition concerning 7 35 the imposition of the local option sales and services tax or a 8 1 political subdivision may apply the proceeds of its bonds to 8 2 the support of any such purpose. 8 3 6. Bonds issued pursuant to this section shall not 8 4 constitute an indebtedness within the meaning of any 8 5 constitutional or statutory debt limitation or restriction, 8 6 and shall not be subject to the provisions of any other law or 8 7 charter relating to the authorization, issuance, or sale of 8 8 bonds. Bonds issued pursuant to this section are declared to 8 9 be issued for an essential public and governmental purpose. 8 10 Bonds issued pursuant to this section shall be authorized by 8 11 resolution of the governing body and may be issued in one or 8 12 more series and shall bear the date or dates, be payable on 8 13 demand or mature at the time or times, bear interest at the 8 14 rate or rates not exceeding that permitted by chapter 74A, be 8 15 in the denomination or denominations, be in the form, have the 8 16 rank or priority, be executed in the manner, be payable in the 8 17 medium of payment, at the place or places, be subject to the 8 18 terms of redemption, with or without premium, be secured in 8 19 the manner, and have the other characteristics, as may be 8 20 provided by the resolution authorizing their issuance. The 8 21 bonds may be sold at public or private sale at a price as may 8 22 be determined by the governing body. 8 23 Sec. 8. EFFECTIVE DATE. This Act, being deemed of 8 24 immediate importance, takes effect upon enactment. 8 25 Sec. 9. RETROACTIVE APPLICABILITY DATE. This Act applies 8 26 retroactively to local option sales and services taxes 8 27 approved on or after July 1, 1994. Statutory procedures 8 28 required for local option sales and services tax elections 8 29 held on or after July 1, 1994, and before the effective date 8 30 of this Act shall be deemed to fulfill the notice, 8 31 proceedings, and election requirements contained in section 7 8 32 of this Act. 8 33 SF 472 8 34 mg/cc/26
Text: SF00471 Text: SF00473 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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