Text: HSB00256 Text: HSB00258 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422B.1, subsection 2, paragraph b, 1 2 subparagraph (3), Code 1999, is amended to read as follows: 1 3 (3) The tax once imposed shall continue to be imposed 1 4 until the county-imposed tax isreduced or increased in rate1 5orrepealed, and then the city-imposed tax shall also be 1 6reduced or increased in rate orrepealedin the same amount1 7 and be effective on the same date. 1 8 Sec. 2. Section 422B.1, subsection 2, paragraph e, Code 1 9 1999, is amended to read as follows: 1 10 e.A city is not authorized to impose a local sales and1 11services tax under this subsection after January 1, 1998.A 1 12 city that has imposed a local sales and services tax under 1 13 this subsectionon or before January 1, 1998,may continue to 1 14 collect the tax until such time as the tax is repealed by the 1 15 city and the fact that that area acquires residents after the 1 16 tax is imposed shall not affect the imposition or collection 1 17 of the tax. 1 18 Sec. 3. Section 422B.1, subsections 5, 6, 8, and 10, Code 1 19 1999, are amended to read as follows: 1 20 5. The county commissioner of elections shall submit the 1 21 question of imposition of a local option tax at a state 1 22 general election or at a special election held at any time 1 23 other than the time of a city regular election. The election 1 24 shall not be held sooner than sixty days after publication of 1 25 notice of the ballot proposition. The ballot proposition 1 26 shall specify the type and rate of tax and in the case of a 1 27 vehicle tax the classes that will be exempt and in the case of 1 28 a local sales and services tax the date it will be imposed. 1 29 The ballot proposition shall also specify the approximate 1 30 amount of local option tax revenues that will be used for 1 31 property tax relief and shall contain a statement as to the 1 32 specific purpose or purposes for which the revenues shall 1 33 otherwise be expended. If the county board of supervisors 1 34 decides under subsection 6 to specify a date on which the 1 35 local option sales and services tax shall automatically be 2 1 repealed, the date of the repeal shall also be specified on 2 2 the ballot. The rate of the vehicle tax shall be in 2 3 increments of one dollar per vehicle as set by the petition 2 4 seeking to impose the tax. The rate of a local sales and 2 5 services tax shallnotbemore thanone percentas set by the2 6governing body. The state commissioner of elections shall 2 7 establish by rule the form for the ballot proposition which 2 8 form shall be uniform throughout the state. 2 9 6. a. If a majority of those voting on the question of 2 10 imposition of a local option tax favor imposition of a local 2 11 option tax, the governing body of that county shall impose the 2 12 tax at the rate specified for an unlimited period. However, 2 13 in the case of a local sales and services tax, the county 2 14 shall not impose the tax in any incorporated area or the 2 15 unincorporated area if the majority of those voting on the tax 2 16 in that area did not favor its imposition. For purposes of 2 17 the local sales and services tax, all cities contiguous to 2 18 each other shall be treated as part of one incorporated area 2 19 and the tax shall be imposed in each of those contiguous 2 20 cities only if the majority of those voting on the tax in the 2 21 total area covered by the contiguous cities favored its 2 22 imposition. The local option tax may be repealed or, in the 2 23 case of a vehicle tax the rate increased or decreased, or the 2 24 use thereof changed after an election at which a majority of 2 25 those voting on the question of repeal or rate or use change 2 26 favored the repeal or rate or use change. The election at 2 27 which the question of repeal or rate or use change is offered 2 28 shall be called and held in the same manner and under the same 2 29 conditions as provided in subsections 4 and 5 for the election 2 30 on the imposition of the local option tax. However, in the 2 31 case of a local sales and services tax where the tax has not 2 32 been imposed countywide, the question of repeal or imposition 2 33or rateor use change shall be voted on only by the registered 2 34 voters of the areas of the county where the tax has been 2 35 imposed or has not been imposed, as appropriate. However, the 3 1 governing body of the incorporated area or unincorporated area 3 2 where the local sales and services tax is imposed may, upon 3 3 its own motion, request the county commissioner of elections 3 4 to hold an election in the incorporated or unincorporated 3 5 area, as appropriate, on the question of the change in use of 3 6 local sales and services tax revenues. The election may be 3 7 held at any time but not sooner than sixty days following 3 8 publication of the ballot proposition. If a majority of those 3 9 voting in the incorporated or unincorporated area on the 3 10 change in use favor the change, the governing body of that 3 11 area shall change the use to which the revenues shall be used. 3 12 The ballot proposition shall list the present use of the 3 13 revenues, the proposed use, and the date after which revenues 3 14 received will be used for the new use. 3 15 When submitting the question of the imposition of a local 3 16 sales and services tax, the county board of supervisors may 3 17 direct that the question contain a provision for the repeal, 3 18 without election, of the local sales and services tax on a 3 19 specific date, which date shall be the end of a calendar 3 20 quarter. 3 21 b. Within ten days of the election at which a majority of 3 22 those voting on the question favors the imposition, repeal, or 3 23 change in the rate of a local option tax, thegoverning body3 24 county auditor shall give written notice by sending a copy of 3 25 the abstract of the ballot from the favorable election to the 3 26 director of revenue and finance or, in the case of a local 3 27 vehicle tax, to the director of the department of 3 28 transportation, of the result of the election. 3 29 8. Local option taxes authorized to be imposed as provided 3 30 in this chapter are a local sales and services tax and a local 3 31 vehicle tax. The rate of the tax shall be in increments of 3 32 one dollar per vehicle for a vehicle tax as set on the 3 33 petition seeking to impose the vehicle tax. The rate of a 3 34 local sales and services tax shallnotbemore thanone 3 35 percentas set by the governing body. 4 1 10. Notwithstanding subsection 9 or any other contrary 4 2 provision of this chapter, a local option sales and services 4 3 tax shall not be repealedor reduced in rateif obligations 4 4 are outstanding which are payable as provided in section 4 5 422B.12, unless funds sufficient to pay the principal, 4 6 interest, and premium, if any, on the outstanding obligations 4 7 at and prior to maturity have been properly set aside and 4 8 pledged for that purpose. 4 9 Sec. 4. Section 422B.8, unnumbered paragraph 1, Code 1999, 4 10 is amended to read as follows: 4 11 A local sales and services tax at the rate ofnot more than4 12 one percent may be imposed by a county on the gross receipts 4 13 taxed by the state under chapter 422, division IV. A local 4 14 sales and services tax shall be imposed on the same basis as 4 15 the state sales and services tax and may not be imposed on the 4 16 sale of any property or on any service not taxed by the state, 4 17 except the tax shall not be imposed on the gross receipts from 4 18 the sale of motor fuel or special fuel as defined in chapter 4 19 452A, on the gross receipts from the rental of rooms, 4 20 apartments, or sleeping quarters which are taxed under chapter 4 21 422A during the period the hotel and motel tax is imposed, on 4 22 the gross receipts from the sale of natural gas or electric 4 23 energy in a city or county where the gross receipts are 4 24 subject to a franchise fee or user fee during the period the 4 25 franchise or user fee is imposed, on the gross receipts from 4 26 the sale of equipment by the state department of 4 27 transportation, and on the gross receipts from the sale of a 4 28 lottery ticket or share in a lottery game conducted pursuant 4 29 to chapter 99E. A local sales and services tax is applicable 4 30 to transactions within those incorporated and unincorporated 4 31 areas of the county where it is imposed and shall be collected 4 32 by all persons required to collect state gross receipts taxes. 4 33 However, a person required to collect state retail sales tax 4 34 under chapter 422, division IV, is not required to collect 4 35 local sales and services tax on transactions delivered within 5 1 the area where the local sales and services tax is imposed 5 2 unless the person has physical presence in that taxing area. 5 3 All cities contiguous to each other shall be treated as part 5 4 of one incorporated area and the tax would be imposed in each 5 5 of those contiguous cities only if the majority of those 5 6 voting in the total area covered by the contiguous cities 5 7 favor its imposition. 5 8 Sec. 5. Section 422B.10, subsection 3, Code 1999, is 5 9 amended by adding the following new paragraph: 5 10 NEW PARAGRAPH. c. If a subsequent certified census exists 5 11 which modifies that most recent certified federal census for a 5 12 participating jurisdiction under paragraphs "a" and "b", the 5 13 computations under paragraphs "a" and "b" shall utilize the 5 14 subsequent certified census in the distribution formula under 5 15 rules established by the director of revenue and finance. 5 16 Sec. 6. Section 422B.11, subsection 1, paragraph a, Code 5 17 1999, is amended to read as follows: 5 18 a. The goods, wares, or merchandise are incorporated into 5 19 an improvement to real estate in fulfillment of a written 5 20 contract fully executed prior to the date of the impositionor5 21increase in rateof a local sales and services tax under this 5 22 chapter. The refund shall not apply to equipment transferred 5 23 in fulfillment of a mixed construction contract. 5 24 Sec. 7. NEW SECTION. 422B.13 ANNEXATION. 5 25 1. An area of a county which is annexed by a city where 5 26 the local sales and services tax is imposed on the effective 5 27 date of the annexation shall have the tax imposed in the 5 28 annexed area without requirement of an election. An area of a 5 29 county which is annexed by a city where the local sales and 5 30 services tax is not imposed on the effective date of the 5 31 annexation shall have the tax repealed if it is imposed in the 5 32 annexed area without requirement of an election. 5 33 2. The results of the annexation of an area of the county 5 34 as provided in subsection 1 shall be reflected in determining 5 35 the distribution of local sales and services tax revenues 6 1 under section 422B.10, beginning with receipts received after 6 2 the end of the calendar quarter in which the effective date of 6 3 the annexation occurred. 6 4 Sec. 8. Section 422E.1, subsection 2, Code 1999, is 6 5 amended to read as follows: 6 6 2. Themaximumrate of tax shall be one percent. The tax 6 7 shall be imposed without regard to any other local sales and 6 8 services tax authorized in chapter 422B, and is repealed at 6 9 the expiration of a period of ten yearsofafter imposition or 6 10 a shorter period as provided in the ballot proposition. 6 11 Sec. 9. Section 422E.2, subsections 3 and 4, Code 1999, 6 12 are amended to read as follows: 6 13 3. The county commissioner of elections shall submit the 6 14 question of imposition of a local sales and services tax for 6 15 school infrastructure purposes at a state general election or 6 16 at a special election held at any time other than the time of 6 17 a city regular election. The election shall not be held 6 18 sooner than sixty days after publication of notice of the 6 19 ballot proposition. The ballot proposition shall specify the 6 20 rate of tax, the date the tax will be imposed and repealed, 6 21 and shall contain a statement as to the specific purpose or 6 22 purposes for which the revenues shall be expended. The rate 6 23 of tax shallnotbemore thanone percentas set by the county6 24board of supervisors. The state commissioner of elections 6 25 shall establish by rule the form for the ballot proposition 6 26 which form shall be uniform throughout the state. 6 27 4. a. The tax may be repealedor the rate increased, but6 28not above one percent, or decreasedafter an election at which 6 29 a majority of those voting on the question of repealor rate6 30changefavored the repealor rate change. The election at 6 31 which the question of repealor rate changeis offered shall 6 32 be called and held in the same manner and under the same 6 33 conditions as provided in this section for the election on the 6 34 imposition of the tax. The election may be held at any time 6 35 but not sooner than sixty days following publication of the 7 1 ballot proposition. However, the tax shall not be repealed 7 2 before it has been in effect for one year. 7 3 b. Within ten days of the election at which a majority of 7 4 those voting on the question favors the imposition,or repeal,7 5or change in the rateof the tax, the countyboard of7 6supervisorsauditor shall give written notice by sending a 7 7 copy of the abstract of ballot from the favorable election to 7 8 the director of revenue and finance of the result of the 7 9 election. Election costs shall be apportioned among school 7 10 districts within the county on a pro rata basis in proportion 7 11 to the number of registered voters in each school district and 7 12 the total number of registered voters in all of the school 7 13 districts within the county. 7 14 A local option sales and services tax shall not be repealed 7 15or reduced in rateif obligations are outstanding which are 7 16 payable as provided in section 422E.4, unless funds sufficient 7 17 to pay the principal, interest, and premium, if any, on the 7 18 outstanding obligations at and prior to maturity have been 7 19 properly set aside and pledged for that purpose. 7 20 Sec. 10. Section 422E.3, subsections 1 and 3, Code 1999, 7 21 are amended to read as follows: 7 22 1. If a majority of those voting on the question of 7 23 imposition of a local sales and services tax for school 7 24 infrastructure purposes favors imposition of the tax, the tax 7 25 shall be imposed by the county board of supervisors within the 7 26 county pursuant to section 422E.2, at the ratespecifiedof 7 27 one percent for a ten-year duration on the gross receipts 7 28 taxed by the state under chapter 422, division IV. 7 29 3. The tax is applicable to transactions within the county 7 30 where it is imposed and shall be collected by all persons 7 31 required to collect state gross receipts taxes. However, a 7 32 person required to collect state retail sales tax under 7 33 chapter 422, division IV, is not required to collect local 7 34 sales and services tax on transactions delivered within the 7 35 area where the local sales and services tax is imposed unless 8 1 the person has physical presence in that taxing area. The 8 2 amount of the sale, for purposes of determining the amount of 8 3 the tax, does not include the amount of any state gross 8 4 receipts taxes or other local option sales taxes. A tax 8 5 permit other than the state tax permit required under section 8 6 422.53 shall not be required by local authorities. 8 7 EXPLANATION 8 8 The bill provides for a uniform one percent tax rate for 8 9 both the local option sales and services tax and the local 8 10 option school infrastructure tax. The bill also simplifies 8 11 the notification process to the director of revenue and 8 12 finance of an election regarding imposition or repeal of 8 13 either of these taxes by the county auditor sending a copy of 8 14 the ballot to the director. In addition, this bill amends the 8 15 nexus requirements for both taxes by requiring physical 8 16 presence of a retailer before either tax must be collected by 8 17 the retailer. This bill also amends the statutes governing 8 18 the local option sales and services tax to provide for a 8 19 population-specific distribution formula, a permanent 8 20 provision for imposing this tax when a city is located in 8 21 multiple counties, and a statutory authority for imposition or 8 22 repeal of a tax where there are issues involving annexation. 8 23 LSB 3351HC 78 8 24 mg/gg/8 8 25
Text: HSB00256 Text: HSB00258 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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