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PAG LIN
1 1 Section 1. Section 422B.1, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 9. Notwithstanding subsection 8 or any
1 4 other contrary provision of this chapter, a local option sales
1 5 and services tax shall not be repealed or reduced in rate if
1 6 obligations are outstanding which are payable as provided in
1 7 section 422B.12, unless funds sufficient to pay the principal,
1 8 interest, and premium, if any, on the outstanding obligations
1 9 at and prior to maturity have been properly set aside and
1 10 pledged for that purpose.
1 11 Sec. 2. NEW SECTION. 422B.12 ISSUANCE OF BONDS.
1 12 1. For purposes of this section unless the context
1 13 otherwise requires:
1 14 a. "Bond issuer" or "issuer" means a city, a county, or a
1 15 secondary recipient.
1 16 b. "Designated portion" means the portion of the local
1 17 option sales and services tax revenues which is authorized to
1 18 be expended for one or a combination of purposes under an
1 19 adopted public measure.
1 20 c. "Secondary recipient" means a political subdivision of
1 21 the state which is to receive revenues from a local option
1 22 sales and services tax over a period of years pursuant to the
1 23 terms of a chapter 28E agreement with one or more cities or
1 24 counties.
1 25 2. An issuer of public bonds which is a recipient of
1 26 revenues from a local option sales and services tax imposed
1 27 pursuant to this chapter may issue bonds in anticipation of
1 28 the collection of one or more designated portions of the local
1 29 option sales and services tax and may pledge irrevocably an
1 30 amount of the revenue derived from the designated portions for
1 31 each of the years the bonds remain outstanding to the payment
1 32 of the bonds. Bonds may be issued only for one or more of the
1 33 purposes set forth on the ballot proposition concerning the
1 34 imposition of the local option sales and services tax, except
1 35 bonds shall not be issued payable from that portion of tax
2 1 revenues designated for property tax relief. The bonds may be
2 2 issued in accordance with the procedures set forth in either
2 3 subsection 3 or 4.
2 4 3. The governing body of a city may authorize the issuance
2 5 of bonds which are payable form the designated portion of the
2 6 revenues of the local option sales and services tax by
2 7 following the authorization procedures of section 384.83, the
2 8 governing body of a county may authorize the issuance of bonds
2 9 which are payable from the designated portion of the revenues
2 10 of the local option sales and services tax by following the
2 11 authorization procedures of section 331.464, and the governing
2 12 body of a secondary recipient may authorize the issuance of
2 13 bonds which are payable from the designated portion of the
2 14 revenues of the local option sales and services tax by
2 15 following the authorization procedures set out for the
2 16 issuance of revenue bonds by cities in section 384.83. Bonds
2 17 may be issued for the purpose of refunding outstanding and
2 18 previously issued bonds under this subsection without
2 19 otherwise complying with the provisions of this subsection.
2 20 4. To authorize the issuance of bonds payable as provided
2 21 in this subsection, the governing body of an issuer shall
2 22 comply with all of the procedures as follows:
2 23 a. A bond issuer may institute proceedings for the
2 24 issuance of bonds by causing a notice of the proposal to issue
2 25 the bonds, including a statement of the amount and purpose of
2 26 the bonds, together with the maximum rate of interest which
2 27 the bonds are to bear, and the right to petition for an
2 28 election, to be published at least once in a newspaper of
2 29 general circulation within the political subdivision or
2 30 unincorporated area at least ten days prior to the meeting at
2 31 which it is proposed to take action for the issuance of the
2 32 bonds.
2 33 If at any time before the date fixed for taking action for
2 34 the issuance of the bonds, a petition signed by three percent
2 35 of the qualified electors of the city, secondary recipients,
3 1 or unincorporated area, as appropriate, is filed, asking that
3 2 the question of issuing the bonds be submitted to such
3 3 qualified electors, the governing body shall either by
3 4 resolution declare the proposal to issue the bonds to have
3 5 been abandoned or shall direct the county commissioner of
3 6 elections to call a special election upon the question of
3 7 issuing the bonds. The proposition of issuing bonds under
3 8 this subsection is not approved unless the vote in favor of
3 9 the proposition is equal to a majority of the vote cast. If a
3 10 petition is not filed, or if a petition is filed and the
3 11 proposition of issuing the bonds is approved at an election,
3 12 the governing body acting on behalf of the issuer may proceed
3 13 with the authorization and issuance of the bonds. Bonds may
3 14 be issued for the purpose of refunding outstanding and
3 15 previously issued bonds under this subsection without
3 16 otherwise complying with the provisions of this subsection.
3 17 b. The provisions of chapter 76 apply to the bonds payable
3 18 as provided in this subsection, except that the mandatory levy
3 19 to be assessed pursuant to section 76.2 shall be at a rate to
3 20 generate an amount which together with the receipts from the
3 21 pledged designated portion of the local option sales and
3 22 services tax is sufficient to pay the interest and principal
3 23 on the bonds. All amounts collected as a result of the levy
3 24 assessed pursuant to section 76.2 and paid out in the first
3 25 instance for bond principal and interest shall be repaid to
3 26 the bond issuer which levied the tax from the first available
3 27 designated portion of local option sales and services tax
3 28 collections received in excess of the requirement for the
3 29 payment of the principal and interest of the bonds and when
3 30 repaid shall be applied in reduction of property taxes. The
3 31 amount of bonds which may be issued under section 76.3 shall
3 32 be the amount which could be retired from the actual
3 33 collections of the designated portions of the local option
3 34 sales and services tax for the last four calendar quarters, as
3 35 certified by the director of revenue and finance. The amount
4 1 of tax revenues pledged jointly by other cities or counties
4 2 may be considered for the purpose of determining the amount of
4 3 bonds which may be used. If the local option sales and
4 4 services tax has been in effect for less than four calendar
4 5 quarters, the tax collected within the shorter period may be
4 6 adjusted to project the collections of the designated portion
4 7 for the full year for the purpose of determining the amount of
4 8 the bonds which may be issued. The provisions of this section
4 9 constitute separate authorization for the issuance of bonds
4 10 and shall prevail in the event of conflict with any other
4 11 provision of the Code limiting the amount of bonds which may
4 12 be issued or the source of payment of the bonds. Bonds issued
4 13 under this section shall not limit or restrict the authority
4 14 of the bond issuer to issue bonds under other provisions of
4 15 the Code.
4 16 5. A city or county, jointly with one or more other
4 17 political subdivisions as provided in chapter 28E, may pledge
4 18 irrevocably any amount derived form the designated portions of
4 19 the revenues of the local option sales and services tax to the
4 20 support or payment of bonds of an issuer, issued for one or
4 21 more purposes set forth on the ballot proposition concerning
4 22 the imposition of the local option sales and services tax or a
4 23 political subdivision may apply the proceeds of its bonds to
4 24 the support of any such purpose.
4 25 6. Bonds issued pursuant to this section shall not
4 26 constitute an indebtedness within the meaning of any
4 27 constitutional or statutory debt limitation or restriction,
4 28 and shall not be subject to the provisions of any other law or
4 29 charter relating to the authorization, issuance, or sale of
4 30 bonds. Bonds issued pursuant to this section are declared to
4 31 be issued for an essential public and governmental purpose.
4 32 Bonds issued pursuant to this section shall be authorized by
4 33 resolution of the governing body and may be issued in one or
4 34 more series and shall bear the date or dates, be payable on
4 35 demand or mature at the time or times, bear interest at the
5 1 rate or rates not exceeding that permitted by chapter 74A, be
5 2 in the denomination or denominations, be in the form, have the
5 3 rank or priority, be executed in the manner, be payable in the
5 4 medium of payment, at the place or places, be subject to the
5 5 terms of redemption, with or without premium, be secured in
5 6 the manner, and have the other characteristics, as may be
5 7 provided by the resolution authorizing their issuance. The
5 8 bonds may be sold at public or private sale at a price as may
5 9 be determined by the governing body.
5 10 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
5 11 immediate importance, takes effect upon enactment.
5 12 EXPLANATION
5 13 The bill amends chapter 422B, the local option tax chapter,
5 14 to allow cities, counties, or other political subdivisions of
5 15 the state to issue bonds in anticipation of the collection of
5 16 the local option sales and services tax. The bill provides
5 17 powers to issue bonds payable from local option sales and
5 18 services tax comparable to current law with respect to hotel
5 19 and motel tax bonds. In order for a political subdivision
5 20 other than a city or county to issue bonds, the political
5 21 subdivision will be required to enter into a chapter 28E
5 22 agreement with a city or county to receive part of the local
5 23 sales and services tax revenues that the city or county
5 24 reserves.
5 25 The political subdivision would either issue revenue bonds
5 26 which are payable solely from the local sales and services tax
5 27 revenues received or issue regular bonds also backed by the
5 28 tax revenues but with a property tax levy also available in
5 29 case the tax revenues are in sufficient. If the political
5 30 subdivision is to issue the regular bonds with the tax levy,
5 31 provisions are provided to allow citizens to vote on the
5 32 imposition of the bonds.
5 33 The bill takes effect upon enactment.
5 34 LSB 2616SC 76
5 35 mg/sc/14
Text: SSB00352 Text: SSB00354 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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