Text: HF02346                           Text: HF02348
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 2347

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 422B.1, subsections 3 and 5, Code
  1  2 Supplement 1999, 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  1  5 favors imposition and shall then be imposed until repealed as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" 8A or 9, as
  1  7 applicable.  If the tax is a local vehicle tax imposed by a
  1  8 county, it shall apply to all incorporated and unincorporated
  1  9 areas of the county.  If the tax is a local sales and services
  1 10 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, all cities contiguous to each other shall be
  1 15 treated as part of one incorporated area and the tax would be
  1 16 imposed in each of those contiguous cities only if the
  1 17 majority of those voting in the total area covered by the
  1 18 contiguous cities favors its imposition.  For purposes of the
  1 19 local sales and services tax, a city is not contiguous to
  1 20 another city if the only road access between the two cities is
  1 21 through another state.
  1 22    5.  The county commissioner of elections shall submit the
  1 23 question of imposition of a local option tax at a state
  1 24 general election or at a special election held at any time
  1 25 other than the time of a city regular election.  The election
  1 26 shall not be held sooner than sixty days after publication of
  1 27 notice of the ballot proposition.  The ballot proposition
  1 28 shall specify the type and rate of tax and in the case of a
  1 29 vehicle tax the classes that will be exempt and in the case of
  1 30 a local sales and services tax the date it will be imposed.
  1 31 The ballot proposition shall also specify the approximate
  1 32 amount of local option tax revenues that will be used for
  1 33 property tax relief and shall contain a statement as to the
  1 34 specific purpose or purposes use or uses for which the
  1 35 revenues shall otherwise be expended.  If the county board of
  2  1 supervisors decides under subsection 6 to specify or the
  2  2 petition specifies a date on which the local option sales and
  2  3 services tax shall automatically be repealed, the date of the
  2  4 repeal shall also be specified on the ballot.  The rate of the
  2  5 vehicle tax shall be in increments of one dollar per vehicle
  2  6 as set by the petition seeking to impose the tax.  The rate of
  2  7 a local sales and services tax shall not be more than one
  2  8 percent as set by the governing body.  The state commissioner
  2  9 of elections shall establish by rule the form for the ballot
  2 10 proposition which form shall be uniform throughout the state.
  2 11    If a conflict exists between the content of the petition
  2 12 containing the appropriate number of signatures, including
  2 13 revenue allocation and repeal date, and the directions
  2 14 provided to the commissioner of elections by the board of
  2 15 supervisors, the content of the ballot shall be substantially
  2 16 similar to the content of the petition.
  2 17    Sec. 2.  Section 422B.1, subsection 6, paragraph a, Code
  2 18 1999, as amended by 1999 Iowa Acts, chapter 156, section 9, is
  2 19 amended to read as follows:
  2 20    a.  If a majority of those voting on the question of
  2 21 imposition of a local option tax favor favors imposition of a
  2 22 local option tax, the governing body of that county shall
  2 23 impose the tax at the rate specified for an unlimited period
  2 24 unless a date of repeal is specified on the ballot.  The
  2 25 revenues from the local option tax shall be expended in the
  2 26 use and in the manner specified on the most recent ballot
  2 27 receiving approval of the incorporated or unincorporated area,
  2 28 as appropriate.  However, in the case of a local sales and
  2 29 services tax, the county shall not impose the tax in any
  2 30 incorporated area or the unincorporated area if the majority
  2 31 of those voting on the tax in that area did not favor its
  2 32 imposition.  For purposes of the local sales and services tax,
  2 33 all cities contiguous to each other shall be treated as part
  2 34 of one incorporated area and the tax shall be imposed in each
  2 35 of those contiguous cities only if the majority of those
  3  1 voting on the tax in the total area covered by the contiguous
  3  2 cities favored its imposition.  The local option tax may be
  3  3 repealed or the rate increased or decreased or the use thereof
  3  4 changed after an election at which a majority of those voting
  3  5 on the question of repeal or rate or use change favored the
  3  6 repeal or rate or use change.  The date on which the repeal,
  3  7 rate, or use change is to take effect shall not be earlier
  3  8 than ninety days following the election.  The election at
  3  9 which the question of repeal or rate or use change is offered
  3 10 shall be called and held in the same manner and under the same
  3 11 conditions as provided in subsections 4 and 5 for the election
  3 12 on the imposition of the local option tax.  However, in the
  3 13 case of a local sales and services tax where the tax has not
  3 14 been imposed countywide, the question of repeal or imposition
  3 15 or rate or use change shall be voted on only by the registered
  3 16 voters of the areas of the county where the tax has been
  3 17 imposed or has not been imposed, as appropriate.  However, the
  3 18 governing body of the incorporated area or unincorporated area
  3 19 where the local sales and services tax is imposed may, upon
  3 20 its own motion, request the county commissioner of elections
  3 21 to hold an election in the incorporated or unincorporated
  3 22 area, as appropriate, on the question of the change in use of
  3 23 local sales and services tax revenues.  The election may be
  3 24 held at any time but not sooner than sixty days following
  3 25 publication of the ballot proposition.  If a majority of those
  3 26 voting in the incorporated or unincorporated area on the
  3 27 change in use favor the change, the governing body of that
  3 28 area shall change the use to which the revenues shall be used.
  3 29 The ballot proposition shall list the present use of the
  3 30 revenues, the proposed use, and the date after which revenues
  3 31 received will be used for the new use.
  3 32    When submitting the question of the imposition of a local
  3 33 sales and services tax, the county board of supervisors may
  3 34 direct that the question contain a provision for the repeal,
  3 35 without election, of the local sales and services tax on a
  4  1 specific date, which date shall be as provided in section
  4  2 422B.9, subsection 1.
  4  3    Sec. 3.  Section 422B.1, Code Supplement 1999, is amended
  4  4 by adding the following new subsection:
  4  5    NEW SUBSECTION.  8A.  A local vehicle tax may be repealed,
  4  6 the rate increased or decreased, or the use changed after an
  4  7 election at which a majority of those voting on the question
  4  8 of the repeal or rate or use change favors the repeal or rate
  4  9 or use change.  The date on which the repeal, rate, or use
  4 10 change is to take effect shall not be earlier than ninety days
  4 11 following the election.  The election shall be called and held
  4 12 in the same manner and under the same conditions as provided
  4 13 in subsections 4 and 5 for the election on the imposition of
  4 14 the local vehicle tax.  If the ballot proposition on the
  4 15 question of imposing the tax specified the date of repeal of
  4 16 the local vehicle tax, a subsequent election on its repeal is
  4 17 not required and the tax is repealed as specified in the
  4 18 ballot proposition.
  4 19    Sec. 4.  Section 422B.1, subsection 9, Code 1999, as
  4 20 amended by 1999 Iowa Acts, chapter 156, section 11, is amended
  4 21 by striking the subsection and inserting in lieu thereof the
  4 22 following:
  4 23    9.  a.  A local sales and services tax is repealed on the
  4 24 date specified on the ballot which imposed the tax.  If the
  4 25 ballot proposition did not specify a date for the repeal, a
  4 26 local sales and services tax shall be repealed as provided in
  4 27 this subsection.  The use of the revenues from a local sales
  4 28 and services tax may be changed as provided in this
  4 29 subsection.
  4 30    b.  The board of supervisors shall repeal the local sales
  4 31 and services tax in the unincorporated areas or in an
  4 32 incorporated area in which the tax has been imposed, thirty
  4 33 days after adoption by the board of supervisors of its own
  4 34 motion for repeal in the unincorporated areas or thirty days
  4 35 after receipt by the board of supervisors of a motion adopted
  5  1 by the governing body of that incorporated area requesting
  5  2 repeal, unless a petition containing the required number of
  5  3 signatures is received by the board of supervisors, within
  5  4 thirty days of the adoption or receipt of the motion for
  5  5 repeal, seeking an election on the approval or disapproval of
  5  6 the repeal of the local sales and services tax.  The petition
  5  7 shall be signed by eligible electors of the unincorporated or
  5  8 incorporated area of the county where the tax is to be
  5  9 repealed equal in number to five percent of the persons in the
  5 10 unincorporated or incorporated area of the county where the
  5 11 tax is to be repealed who voted at the last preceding state
  5 12 general election.  Upon receipt of a petition seeking an
  5 13 election on the question of repeal, the board of supervisors
  5 14 or governing body of the incorporated area shall, within
  5 15 thirty days following receipt of the petition, either rescind
  5 16 its action to repeal or direct the county commissioner of
  5 17 elections to submit the question of approval or disapproval of
  5 18 the repeal of the tax to the registered voters of the area
  5 19 where the tax is to be repealed.  The board of supervisors
  5 20 shall repeal the local sales and services tax effective as
  5 21 provided in section 422B.9, subsection 1, following the
  5 22 expiration of the thirty days allowed for submission of a
  5 23 petition after the board of supervisors adopted the repeal
  5 24 motion or the motion for repeal was received.  If the question
  5 25 of repeal is submitted to the registered voters, the board of
  5 26 supervisors shall repeal the local sales and services tax as
  5 27 provided in section 422B.9, subsection 1, following a
  5 28 favorable election.  For purposes of this subsection,
  5 29 incorporated area includes an incorporated city which is
  5 30 contiguous to another incorporated city.
  5 31    c.  The use of the local sales and services tax revenues
  5 32 may be changed as follows:
  5 33    (1)  The governing body of the incorporated area or the
  5 34 board of supervisors for the unincorporated area where the
  5 35 local sales and services tax is imposed may, upon its own
  6  1 motion, request the county commissioner of elections to hold
  6  2 an election in the incorporated or unincorporated area, as
  6  3 applicable, on the question of the change in use of local
  6  4 sales and services tax revenues.  The county commissioner of
  6  5 elections shall submit the question on the approval or
  6  6 disapproval of change of use, as provided in this subsection
  6  7 and subsections 4 and 5 for the election on the imposition of
  6  8 the local sales and services tax, to the registered voters of
  6  9 the incorporated or unincorporated area, as applicable, where
  6 10 the use of local sales and services tax revenues may be
  6 11 changed.
  6 12    (2)  A county board of supervisors shall direct the county
  6 13 commissioner of elections to submit the question of approval
  6 14 or disapproval of the change of use of local sales and
  6 15 services tax revenues to the registered voters of the
  6 16 incorporated or unincorporated areas, as applicable, of the
  6 17 county, within thirty days of the receipt of a petition
  6 18 requesting the change in use of local sales and services tax
  6 19 revenues, signed by eligible electors of the incorporated or
  6 20 unincorporated area of the county where the change in use is
  6 21 to occur equal in number to five percent of the persons in the
  6 22 incorporated or unincorporated area of the county where the
  6 23 change in use is to occur who voted at the last preceding
  6 24 state general election.  The election shall be held as
  6 25 provided in this subsection and subsection 5 for the
  6 26 imposition of a local sales and services tax.
  6 27    (3)  The ballot proposition for a change in use shall list
  6 28 the present use of the revenues, the proposed use, and the
  6 29 date after which revenues received will be used for the new
  6 30 use.  If a majority of those voting in the incorporated or
  6 31 unincorporated area on the change in use favors the change,
  6 32 the governing body of the incorporated or unincorporated area
  6 33 shall change the use of the local sales and services tax on or
  6 34 before the end of the calendar quarter in which the election
  6 35 approving the change in use occurred.
  7  1    Sec. 5.  Section 422B.1, subsection 10, Code Supplement
  7  2 1999, is amended to read as follows:
  7  3    10.  Notwithstanding subsection 9 or any other contrary
  7  4 provision of this chapter, a local option sales and services
  7  5 tax shall not be repealed or reduced in rate if obligations
  7  6 are outstanding which are payable as provided in section
  7  7 422B.12, unless funds sufficient to pay the principal,
  7  8 interest, and premium, if any, on the outstanding obligations
  7  9 at and prior to maturity have been properly set aside and
  7 10 pledged for that purpose.  Notwithstanding subsection 9, or
  7 11 any other contrary provision of this chapter, the question of
  7 12 repeal or change in use of a local sales and services tax
  7 13 shall not be submitted to the registered voters of the
  7 14 unincorporated or incorporated area of the county if
  7 15 obligations are outstanding which are payable by the county or
  7 16 city, as applicable, as provided in section 422B.12, unless
  7 17 funds sufficient to pay the principal, interest, and premium,
  7 18 if any, on the outstanding obligations at and prior to
  7 19 maturity have been properly set aside and pledged for that
  7 20 purpose.  A governing body shall not incur obligations of its
  7 21 allocation under section 422B.10 or section 422B.12 or
  7 22 obligate local sales and services tax revenues in any other
  7 23 manner before the imposition of the local sales and services
  7 24 tax has been approved.
  7 25    Sec. 6.  NEW SECTION.  422B.10A  COUNTY BUDGET ADJUSTMENT
  7 26 CREDIT FUND.
  7 27    1.  a.  Each county that has imposed a local sales and
  7 28 services tax in the unincorporated area of the county shall
  7 29 establish a budget adjustment credit fund.  The county shall
  7 30 deposit into the credit fund from revenues received from the
  7 31 local sales and services tax imposed in the unincorporated
  7 32 area an amount equal to the excess of the estimate calculated
  7 33 in paragraph "b" over the amount calculated in paragraph "c".
  7 34 If the amount calculated in paragraph "c" exceeds the estimate
  7 35 calculated in paragraph "b", no revenues need be deposited
  8  1 into the credit fund.  The county may deposit more than the
  8  2 amount required in this paragraph into the credit fund.
  8  3 Moneys in the credit fund shall only be withdrawn
  8  4 semiannually, one-half in September and one-half in March, to
  8  5 reimburse the county for the credit provided in subsection 2.
  8  6    b.  Calculate the sum of the following:
  8  7    (1)  The estimated amount of revenues to be received in the
  8  8 next fiscal year from the local sales and services tax imposed
  8  9 in the unincorporated area which were designated on the ballot
  8 10 proposition to be used for property tax relief.
  8 11    (2)  The amount of property taxes to be collected in the
  8 12 next fiscal year from the levy certified for rural county
  8 13 services pursuant to section 331.423, subsection 2.
  8 14    c.  Calculate the amount of property taxes that would have
  8 15 been collected in the next fiscal year if the levy certified
  8 16 for rural county services was the maximum levy authorized
  8 17 under section 331.423, subsection 2.
  8 18    2.  Based upon the estimated amount of moneys that will be
  8 19 in the budget adjustment credit fund during the next fiscal
  8 20 year, the board of supervisors shall compute a credit for each
  8 21 parcel located in the unincorporated areas of the county as
  8 22 follows:
  8 23    a.  Compute a credit rate by dividing the estimated amount
  8 24 of moneys that will be in the credit fund during the next
  8 25 fiscal year by the total taxable valuation in the
  8 26 unincorporated areas of the county.
  8 27    b.  Multiply the credit rate computed in paragraph "a" by
  8 28 the taxable valuation of each parcel.  The resulting product
  8 29 is the amount of credit against the rural county services levy
  8 30 that the parcel shall receive for taxes payable in the next
  8 31 fiscal year.
  8 32    3.  Computations to be made under this section shall be
  8 33 completed by May 1 preceding the fiscal year during which a
  8 34 county will receive revenues from the local sales and services
  8 35 tax.
  9  1    Sec. 7.  EFFECTIVE DATE.  This Act, being deemed of
  9  2 immediate importance, takes effect upon enactment.  
  9  3                           EXPLANATION
  9  4    This bill amends Code chapter 422B as it relates to local
  9  5 option taxes.
  9  6    Section 1 of the bill provides that if there is a conflict
  9  7 between a petition for imposition of a local option tax and
  9  8 the directions provided by the board of supervisors to the
  9  9 commissioner of elections, the content of the ballot is to be
  9 10 substantially similar to the content of the petition.
  9 11    Section 2 provides that revenues from a local option tax
  9 12 shall be expended in the manner specified on the most recent
  9 13 ballot that was approved in the incorporated or unincorporated
  9 14 area, as appropriate.  In addition, the section strikes
  9 15 language relating to the manner and procedure for repealing,
  9 16 changing the rate, and changing the use of revenues of a local
  9 17 option tax.  The manner and methods are specified in sections
  9 18 3 and 4.
  9 19    Section 3 restates in a separate subsection the present
  9 20 manner and procedure for repealing, changing the rate, and
  9 21 changing the use of the revenues of a local vehicle tax.
  9 22    Section 4 provides the procedures for the repeal and change
  9 23 in use of a local sales and services tax.  If the ballot
  9 24 proposition which imposed the tax does not specify a repeal
  9 25 date, the board of supervisors shall repeal the tax upon its
  9 26 own motion for the unincorporated areas and upon receipt of a
  9 27 motion from the governing body of an incorporated area
  9 28 requesting the repeal.  However, if a petition is received,
  9 29 within 30 days of the board of supervisors' motion or receipt
  9 30 of a motion from another governing body, seeking an election
  9 31 on the question of repeal, the board of supervisors or the
  9 32 governing body may rescind its motion or direct the county
  9 33 commissioner of elections to hold an election on the question
  9 34 of the repeal of the tax.
  9 35    The change in use of the revenues from the local sales and
 10  1 services tax is to be accomplished by means of an election.
 10  2 The election may be called by the board of supervisors for the
 10  3 unincorporated area or by the governing body of an
 10  4 incorporated area requesting the change in use.  The board of
 10  5 supervisors shall call an election to submit the question of
 10  6 the change in use in the unincorporated area or incorporated
 10  7 area upon receipt of a petition requesting an election be held
 10  8 on the change in use for the area.  The ballot for the change
 10  9 in use shall list the present use, the proposed use, and the
 10 10 date after which the revenues received will be used for the
 10 11 new use.
 10 12    Any election held for the repeal or change in use requires
 10 13 a simple majority in favor to pass.
 10 14    Section 5 provides that the question of the repeal or the
 10 15 change in use of the revenues of the local sales and services
 10 16 tax shall not be submitted at an election if obligations
 10 17 payable from those tax revenues are outstanding unless funds
 10 18 sufficient to pay principal, interest, and premium, if any,
 10 19 have been set aside and pledged for that purpose.
 10 20    Section 6 provides that the board of supervisors grant
 10 21 property tax credits to taxable property in the unincorporated
 10 22 areas if the estimated amount of local sales and services tax
 10 23 revenue to be received which is to be used for property tax
 10 24 relief plus the amount of property taxes to be collected in
 10 25 the unincorporated area from the levy for rural county
 10 26 services exceed the amount of property taxes that could have
 10 27 been collected if the maximum levy for rural county services
 10 28 was imposed.
 10 29    The bill takes effect upon enactment.  
 10 30 LSB 6031HH 78
 10 31 mg/as/5.1
     

Text: HF02346                           Text: HF02348
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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