Text: HF02225 Text: HF02227 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 15.381 TITLE.
1 2 This part shall be known and may be cited as the "Retail
1 3 Tax Free Zone Program".
1 4 Sec. 2. NEW SECTION. 15.382 DEFINITIONS.
1 5 As used in this part, unless the context otherwise
1 6 requires:
1 7 1. "Central business district" means a concentration of
1 8 contiguous commercial buildings that has historically been the
1 9 economic center of a community.
1 10 2. "Neighborhood commercial district" means a
1 11 concentration of contiguous commercial buildings located
1 12 separate and apart from a central business district within a
1 13 recognized and definable neighborhood of a city that has
1 14 historically been the economic center of the neighborhood.
1 15 Sec. 3. NEW SECTION. 15.383 RETAIL TAX FREE ZONES.
1 16 1. A city may create a retail tax free zone as authorized
1 17 by this part, subject to approval by the department, by
1 18 designating a central business district or a neighborhood
1 19 commercial district for that purpose. A city may establish
1 20 more than one retail tax free zone. However, a city shall
1 21 only designate one central business district as a retail tax
1 22 free zone.
1 23 2. A city may apply to the department for an area to be
1 24 approved as a retail tax free zone at any time prior to July
1 25 1, 2003.
1 26 3. A retail tax free zone designation shall remain in
1 27 effect for ten years following the date of approval.
1 28 Sec. 4. NEW SECTION. 15.384 RETAIL TAX FREE ZONE
1 29 ELIGIBILITY – APPROVAL.
1 30 1. A city may file an application for approval of a retail
1 31 tax free zone to the department. The application shall, at a
1 32 minimum, include the following information:
1 33 a. The location of the proposed retail tax free zone.
1 34 b. Evidence that the proposed retail tax free zone is a
1 35 central business district or a neighborhood commercial
2 1 district.
2 2 c. Evidence that the proposed retail tax free zone meets
2 3 the requirements of subsection 2.
2 4 2. In order to be approved as a retail tax free zone, a
2 5 central business district or neighborhood commercial district
2 6 must have a high vacancy rate in commercial buildings. The
2 7 department may approve, deny, or defer the application.
2 8 Sec. 5. NEW SECTION. 15.385 BUSINESS ELIGIBILITY –
2 9 INCENTIVES.
2 10 1. A business which is located in an approved retail tax
2 11 free zone is an eligible business.
2 12 2. All retail sales and services by an eligible business
2 13 shall be exempt from the taxes imposed by section 422.43
2 14 during the duration of the retail tax free zone approval.
2 15 EXPLANATION
2 16 This bill creates a retail tax free zone program within the
2 17 department of economic development.
2 18 The bill provides that a city may create a retail tax free
2 19 zone, subject to approval by the department, by designating a
2 20 central business district or a neighborhood commercial
2 21 district for that purpose. The bill provides that a city
2 22 shall only designate one central business district as a retail
2 23 tax free zone, but may establish more than one retail tax free
2 24 zone.
2 25 The bill provides that the city shall file an application
2 26 for approval of a retail tax free zone with the department.
2 27 The bill provides that, in order to be a retail tax free zone,
2 28 a central business district or neighborhood commercial
2 29 district must have a high vacancy rate in commercial
2 30 buildings. The department may approve, deny, or defer the
2 31 application.
2 32 The bill provides that all retail sales by a business
2 33 located in an approved retail tax free zone shall be exempt
2 34 from the sales and services tax imposed pursuant to Code
2 35 chapter 422. The bill does exempt retail sales and services
3 1 from local option sales taxes.
3 2 LSB 5591YH 78
3 3 tm/gg/8
Text: HF02225 Text: HF02227 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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