Text: HSB00166                          Text: HSB00168
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 167

Bill Text

PAG LIN
  1  1    Section 1.  Section 422B.1, subsection 3, Code 2003, is
  1  2 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  1  5 favors imposition and shall then be imposed until repealed as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" 9, as applicable.  If
  1  7 the tax is a local vehicle tax imposed by a county, it shall
  1  8 apply to all incorporated and unincorporated areas of the
  1  9 county.  If the tax is a A local sales and services option tax
  1 10 imposed by a county, it shall only apply to those incorporated
  1 11 areas and the unincorporated area of that county in which a
  1 12 majority of those voting in the area on the tax favors its
  1 13 imposition.  For purposes of the local sales and services
  1 14 option 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 option tax, a city is not contiguous
  1 20 to another city if the only road access between the two cities
  1 21 is through another state.
  1 22    Sec. 2.  Section 422B.1, subsection 4, paragraph a, Code
  1 23 2003, is amended by striking the paragraph and inserting in
  1 24 lieu thereof the following:
  1 25    a.  A county board of supervisors shall direct within
  1 26 thirty days the county commissioner of elections to submit the
  1 27 question of imposition of a local option tax to the registered
  1 28 voters of the incorporated and unincorporated areas of the
  1 29 county upon receipt of a petition containing the required
  1 30 number of signatures requesting imposition of a local option
  1 31 tax.  The petition shall be signed by eligible electors of the
  1 32 incorporated or unincorporated areas of the county where the
  1 33 tax is to be imposed equal in number to ten percent of the
  1 34 persons in the incorporated or unincorporated areas of the
  1 35 county where the tax is to be imposed who voted at the last
  2  1 preceding state general election.  If a valid petition for
  2  2 imposition of a local option tax is received no later than
  2  3 thirty days after a motion under paragraph "b" is adopted, the
  2  4 contents of the petition shall be used on the ballot.  If more
  2  5 than one valid petition is received, the earliest received
  2  6 petition shall be used.  The question of imposition of a local
  2  7 option tax shall not be submitted to the registered voters of
  2  8 an incorporated or unincorporated area where the tax has
  2  9 already been imposed unless it is for imposition following the
  2 10 repeal of a local option tax.
  2 11    Sec. 3.  Section 422B.1, subsection 4, paragraph b, Code
  2 12 2003, is amended to read as follows:
  2 13    b.  The question of the imposition of a local sales and
  2 14 services option tax shall be submitted to the registered
  2 15 voters of the incorporated and unincorporated areas of the
  2 16 county upon receipt by the county commissioner of elections of
  2 17 the motion or motions, requesting such submission, adopted by
  2 18 the governing body or bodies of the city or cities located
  2 19 within the county or of the county, for the unincorporated
  2 20 areas of the county, representing at least one half of the
  2 21 population of the county.  A motion may only be adopted by a
  2 22 governing body one time in each six-month period.  Upon
  2 23 adoption of such motion, the governing body of the city or
  2 24 county, for the unincorporated areas, shall submit the motion
  2 25 to the county commissioner of elections and in the case of the
  2 26 governing body of the city shall notify the board of
  2 27 supervisors of the adoption of the motion.  The county
  2 28 commissioner of elections shall keep a file on all the motions
  2 29 received and, upon reaching the population requirements, shall
  2 30 publish notice of the ballot proposition concerning the
  2 31 imposition of the local sales and services option tax.  A
  2 32 motion ceases to be valid at the time of the holding of the
  2 33 regular election for the election of members of the governing
  2 34 body which adopted the motion.  The county commissioner of
  2 35 elections shall eliminate from the file any motion that ceases
  3  1 to be valid.  The manner provided under this paragraph for the
  3  2 submission of the question of imposition of a local sales and
  3  3 services option tax is an alternative to the manner provided
  3  4 in paragraph "a", unless a valid petition is received no later
  3  5 than thirty days after the population requirements of this
  3  6 paragraph have been reached and, in that case, the contents of
  3  7 the petition shall be used on the ballot.
  3  8    Sec. 4.  Section 422B.1, subsection 5, Code 2003, is
  3  9 amended to read as follows:
  3 10    5.  The county commissioner of elections shall submit the
  3 11 question of imposition of a local option tax at a state
  3 12 general election or at a special election held at any time
  3 13 other than the time of a city regular election.  The election
  3 14 shall not be held sooner than sixty days after publication of
  3 15 notice of the ballot proposition.  The ballot proposition
  3 16 shall specify the type and rate of tax and in the case of a
  3 17 vehicle tax the classes that will be exempt and in the case of
  3 18 a local sales and services tax the date it will be imposed
  3 19 which date shall not be earlier than ninety days following the
  3 20 election.  The ballot proposition shall also specify the
  3 21 approximate amount of local option tax revenues that will be
  3 22 used for property tax relief and shall contain a statement as
  3 23 to the specific purpose or purposes for which the revenues
  3 24 shall otherwise be expended.  If the county board of
  3 25 supervisors decides under subsection 6 to specify or the
  3 26 petition specifies a date on which the local option sales and
  3 27 services tax shall automatically be repealed, the date of the
  3 28 repeal shall also be specified on the ballot.  The rate of the
  3 29 vehicle tax shall be in increments of one dollar per vehicle
  3 30 as set by the petition seeking to impose the tax.  The rate of
  3 31 a local sales and services tax shall not be more than one
  3 32 percent as set by the governing body.  If a petition is
  3 33 received, the directions provided to the commissioner of
  3 34 elections by the board of supervisors as to the content of the
  3 35 ballot shall be substantially similar to the content of the
  4  1 petition, including revenue allocation and repeal date.  The
  4  2 state commissioner of elections shall establish by rule the
  4  3 form for the ballot proposition which form shall be uniform
  4  4 throughout the state.
  4  5    Sec. 5.  Section 422B.1, subsection 6, Code 2003, is
  4  6 amended by striking the subsection and inserting in lieu
  4  7 thereof the following:
  4  8    6.  a.  If a majority of those voting on the question of
  4  9 imposition of the local option tax favors imposition of the
  4 10 local option tax, the governing body of that county shall
  4 11 impose the tax at the rate specified for an unlimited period
  4 12 unless a date of repeal is indicated on the ballot.  However,
  4 13 the county shall not impose the tax in any incorporated area
  4 14 or the unincorporated area if the majority of those voting on
  4 15 the tax in that area did not favor its imposition.  The
  4 16 revenues from the local option tax shall be expended in the
  4 17 use and in the manner specified on the most recent ballot
  4 18 receiving majority approval of the incorporated or
  4 19 unincorporated area, as appropriate.
  4 20    b.  Within ten days of the election at which a majority of
  4 21 those voting on the question favors the imposition, repeal, or
  4 22 change in use of a local option tax, the county auditor shall
  4 23 give written notice by sending a copy of the abstract of the
  4 24 votes from the favorable election to the director of revenue
  4 25 and finance.
  4 26    Sec. 6.  Section 422B.1, subsection 7, unnumbered paragraph
  4 27 1, Code 2003, is amended by striking the unnumbered paragraph.
  4 28    Sec. 7.  Section 422B.1, subsection 8, Code 2003, is
  4 29 amended to read as follows:
  4 30    8.  Local The local option taxes tax authorized to be
  4 31 imposed as provided in this chapter are is a local sales and
  4 32 services tax and a local vehicle tax.  The rate of the tax
  4 33 shall be in increments of one dollar per vehicle for a vehicle
  4 34 tax as set on the petition seeking to impose the vehicle tax.
  4 35 The rate of a local sales and services tax shall not be more
  5  1 than one percent as set by the governing body.
  5  2    Sec. 8.  Section 422B.1, subsection 9, Code 2003, is
  5  3 amended by striking the subsection and inserting in lieu
  5  4 thereof the following:
  5  5    9.  a.  A local option tax is repealed on the date
  5  6 specified on the ballot which imposed the tax.  If the ballot
  5  7 proposition did not specify a date for the repeal, a local
  5  8 option tax shall be repealed as provided in this subsection.
  5  9 The use of the revenues from a local option tax may be changed
  5 10 as provided in this subsection.
  5 11    b.  The board of supervisors shall repeal the local option
  5 12 tax in the unincorporated areas or in an incorporated area in
  5 13 which the tax has been imposed, thirty days after adoption by
  5 14 the board of supervisors of its own motion for repeal in the
  5 15 unincorporated areas or thirty days after receipt by the board
  5 16 of supervisors of a motion adopted by the governing body of
  5 17 that incorporated area requesting repeal, unless a petition
  5 18 containing the required number of signatures is received by
  5 19 the board of supervisors, within thirty days of the adoption
  5 20 or receipt of the motion for repeal, seeking an election on
  5 21 the approval or disapproval of the repeal of the local option
  5 22 tax.  The petition shall be signed by eligible electors of the
  5 23 unincorporated or incorporated area of the county where the
  5 24 tax is to be repealed equal in number to ten percent of the
  5 25 persons in the unincorporated or incorporated area of the
  5 26 county where the tax is to be repealed who voted at the last
  5 27 preceding state general election.  Upon receipt of a petition
  5 28 seeking an election on the question of repeal, the board of
  5 29 supervisors or governing body of the incorporated area shall,
  5 30 within thirty days following receipt of the petition, either
  5 31 rescind its action to repeal or direct the county commissioner
  5 32 of elections to submit the question of approval or disapproval
  5 33 of the repeal of the tax to the registered voters of the area
  5 34 where the tax is to be repealed.  The board of supervisors
  5 35 shall repeal the local option tax effective as provided in
  6  1 section 422B.9, subsection 1, following the expiration of the
  6  2 thirty days allowed for submission of a petition after the
  6  3 board of supervisors adopted the repeal motion or the motion
  6  4 for repeal was received.  If the question of repeal is
  6  5 submitted to the registered voters, the board of supervisors
  6  6 shall repeal the local option tax as provided in section
  6  7 422B.9, subsection 1, following a favorable election.  For
  6  8 purposes of this subsection, incorporated area includes any
  6  9 incorporated city which is contiguous to another incorporated
  6 10 city.
  6 11    c.  The use of the local option tax revenues may be changed
  6 12 as follows:
  6 13    (1)  The governing body of the incorporated area or the
  6 14 board of supervisors for the unincorporated area where the
  6 15 local option tax is imposed may, upon its own motion, request
  6 16 the county commissioner of elections to hold an election in
  6 17 the incorporated or unincorporated area, as applicable, on the
  6 18 question of the change in use of local option tax revenues.
  6 19 The county commissioner of elections shall submit the question
  6 20 on the change of use to the registered voters of the
  6 21 incorporated or unincorporated area, as applicable.  The
  6 22 election shall be held as provided in this subsection and
  6 23 subsection 5 for the imposition of a local option tax.
  6 24    (2)  A county board of supervisors shall direct the county
  6 25 commissioner of elections to submit the question of change of
  6 26 use of local option tax revenues to the registered voters of
  6 27 the incorporated or unincorporated areas of the county, as
  6 28 applicable, within thirty days of receipt of a petition
  6 29 requesting the change in use of local option tax revenues,
  6 30 signed by eligible electors of the incorporated or
  6 31 unincorporated area of the county where the change in use is
  6 32 to occur equal in number to ten percent of the persons in the
  6 33 incorporated or unincorporated area of the county where the
  6 34 change in use is to occur who voted at the last preceding
  6 35 state general election.  The election shall be held as
  7  1 provided in this subsection and subsection 5 for the
  7  2 imposition of a local option tax.
  7  3    (3)  If more than one petition or motion meeting the
  7  4 requirements of this subsection for holding an election on the
  7  5 change in use of a local option tax is received or adopted by
  7  6 the board of supervisors, the earliest received petition or
  7  7 earliest adopted motion shall be used.
  7  8    (4)  The ballot proposition for a change in use shall list
  7  9 the present use of the revenues, the proposed use, and the
  7 10 date of the beginning of the fiscal year on and after which
  7 11 revenues received will be used for the new use.  If a majority
  7 12 of those voting in the incorporated or unincorporated area on
  7 13 the change in use favors the change, the governing body of the
  7 14 incorporated or unincorporated area shall change the use of
  7 15 the local option tax beginning with the fiscal year following
  7 16 the fiscal year in which the election approving the change in
  7 17 use occurred.
  7 18    (5)  Notwithstanding subparagraph (4), the governing body
  7 19 of the incorporated or unincorporated area may provide that a
  7 20 change in use of the local option tax shall be effective
  7 21 beginning January 1 following the election and the ballot
  7 22 proposition shall so state.  Notwithstanding subparagraph (4),
  7 23 after an election approving a change in use, the governing
  7 24 body of the incorporated or unincorporated area may, by
  7 25 resolution, provide that the change in use shall be effective
  7 26 beginning January 1 following the election if the governor has
  7 27 declared a state of emergency or disaster covering the
  7 28 incorporated or unincorporated area and the change in use is
  7 29 for a capital project required as a result of the emergency or
  7 30 disaster.
  7 31    Sec. 9.  Section 422B.1, subsection 10, Code 2003, is
  7 32 amended to read as follows:
  7 33    10.  Notwithstanding subsection 9 or any other contrary
  7 34 provision of this chapter, a local option sales and services
  7 35 tax shall not be repealed or reduced in rate its use changed
  8  1 and an election shall not be held on the question of repeal or
  8  2 change in use if obligations are outstanding which are payable
  8  3 as provided in section 422B.12, unless the change in use is
  8  4 proposed for the portion of the local option tax for which
  8  5 obligations payable as provided in section 422B.12 are not
  8  6 outstanding or funds sufficient to pay the principal,
  8  7 interest, and premium, if any, on the outstanding obligations
  8  8 at and prior to maturity have been properly set aside and
  8  9 pledged for that purpose.  A governing body shall not incur
  8 10 obligations of its allocation under section 422B.10 or 422B.12
  8 11 or obligate local option tax revenues in any other manner
  8 12 before the imposition of the local option tax has been
  8 13 approved and shall not incur obligations or obligate revenues
  8 14 after receipt of a petition requesting repeal or change in use
  8 15 of the local option tax until the question on the repeal or
  8 16 change in use has been voted on.
  8 17    Sec. 10.  Sections 422B.2, 422B.3, and 422B.4, Code 2003,
  8 18 are repealed.
  8 19    Sec. 11.  EFFECTIVE DATE.  This Act, being deemed of
  8 20 immediate importance, takes effect upon enactment.  
  8 21                           EXPLANATION
  8 22    This bill makes changes to the local option sales tax
  8 23 chapter.
  8 24    The bill removes redundancies in the law and strikes
  8 25 references to the local vehicle tax which is no longer
  8 26 imposed.  The bill also makes the term "local option tax", in
  8 27 reference to the local option sales tax, uniform throughout
  8 28 the chapter.
  8 29    The bill provides that a petition requesting imposition of
  8 30 a local option tax must be signed by eligible electors of the
  8 31 incorporated or unincorporated area of the county where the
  8 32 tax is to be imposed.  The bill increases the petition
  8 33 signature requirements from 5 percent to 10 percent of those
  8 34 who voted in the last general election in the incorporated or
  8 35 unincorporated area of the county where the tax is to be
  9  1 imposed.  If a valid petition is received within 30 days after
  9  2 the board of supervisors has adopted a motion calling for an
  9  3 election on imposition of the tax, the contents of the
  9  4 petition shall be used on the ballot proposition.  If more
  9  5 than one petition is received, the earliest received petition
  9  6 shall be used.  The bill also provides that a motion by a
  9  7 governing body calling for an election on imposition of a
  9  8 local option tax may only be adopted by a governing body one
  9  9 time in each six-month period.  The bill provides that if a
  9 10 valid petition is filed within 30 days of the submission of
  9 11 motions requesting an election on imposition of a local option
  9 12 tax by governing bodies representing at least one-half of the
  9 13 population of the county, the language of the petition shall
  9 14 be used on the ballot.
  9 15    The bill provides that a local option tax shall be repealed
  9 16 30 days after receipt by the board of supervisors of a motion
  9 17 for repeal adopted by the governing body of the area seeking
  9 18 repeal, unless a petition is filed within 30 days calling for
  9 19 an election on the question of repeal.  The governing body
  9 20 which filed the motion for repeal shall, within 30 days of
  9 21 receipt of the petition, either rescind its motion or call for
  9 22 an election on the question of repeal.  Petition signature
  9 23 requirements are the same as for a petition calling for an
  9 24 election on imposition of a local option tax.
  9 25    The bill provides that when a change in use of local option
  9 26 tax revenues is petitioned for, only eligible electors
  9 27 residing in the area where the change in use is proposed may
  9 28 sign the petition.  The bill provides that the change in use
  9 29 is effective for the fiscal year following the fiscal year
  9 30 when the election on change in use is held.  The bill also
  9 31 provides, however, that the governing body may choose January
  9 32 1 following the election as the effective date of change in
  9 33 use if that date is stated on the ballot proposition approving
  9 34 the change in use.  A governing body may also provide that a
  9 35 change is use is effective January 1 following the election if
 10  1 the governor has declared a state of emergency or disaster in
 10  2 the area and the change in use is for a capital project
 10  3 required as a result of the emergency or disaster.
 10  4    The bill provides that a local option tax shall not be
 10  5 repealed or its use changed if obligations are outstanding
 10  6 which are payable from local option tax revenues unless the
 10  7 change in use is proposed for that portion of the local option
 10  8 tax revenue for which obligations are not outstanding.  The
 10  9 bill provides that a governing body shall not obligate local
 10 10 option tax revenues until the voters have approved imposition
 10 11 of the tax at an election.  The bill also provides that a
 10 12 governing body shall not obligate local option tax revenues
 10 13 after a petition has been received requesting repeal or change
 10 14 in use of the tax.  
 10 15 LSB 1575YC 80
 10 16 sc/cf/24.2
     

Text: HSB00166                          Text: HSB00168
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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