Amend House File 642 as follows:
   1.  Page 1, before line 1 by inserting: 
   Section 1.  Section 423B.1, subsection 1, Code 2013, is amended to read as follows:
   1.  A
 
city or county may impose by ordinance of the
 
governing body of the city or the board of supervisors local option taxes authorized by this chapter, subject to this section and subject to the exception provided in subsection 2.
   Sec. ___.  Section 423B.1, subsection 2, Code 2013, is amended by striking the subsection.
   Sec. ___.  Section 423B.1, subsection 3, Code 2013, is amended to read as follows:
   3.  A local option tax shall be imposed only after an election at which a majority of those voting on the question favors imposition and shall then be imposed until repealed as provided in subsection 6, paragraph “a”. If the tax is a local vehicle tax imposed by a county, it shall apply to all incorporated and unincorporated areas of the county. If the tax is a local sales and services tax imposed by a county, it shall only apply to those incorporated areas and the unincorporated area of that county in which
 
if a majority of those voting in the
 
unincorporated area on the tax favors its imposition
 
and if the tax is a local sales and services tax imposed by a city it shall only apply to the city if a majority of those voting in the city on the tax favors its imposition. For purposes of the local sales and services tax, all cities contiguous to each other shall be treated as part of one incorporated area and the tax would be imposed in each of those contiguous cities only if the majority of those voting in the total area covered by the contiguous cities favors its imposition. In the case of a local sales and services tax submitted to the registered voters of two or more contiguous counties as provided in subsection 4, paragraph “c”, all cities contiguous to each other shall be treated as part of one incorporated area, even if the corporate boundaries of one or more of the cities include areas of more than one county, and the tax shall be imposed in each of those contiguous cities only if a majority of those voting on the tax in the total area covered by the contiguous cities favored its imposition. For purposes of the local sales and services tax, a city is not contiguous to another city if the only road access between the two cities is through another state.>
   2.  Page 2, after line 8 by inserting: 
   <Sec. ___.  Section 423B.1, subsection 4, paragraph c, Code 2013, is amended by striking the paragraph and inserting in lieu thereof the following:
   c.  A city is considered to be located in a county if over half of the population of the city is located in that county.
   Sec. ___.  Section 423B.1, subsection 5, Code 2013, is amended to read as follows:
   5.  The county commissioner of elections shall submit the question of imposition of a local option tax at an election held on a date specified in section 39.2, subsection 4, paragraph “a”. The election shall not be held sooner than sixty days after publication of notice of the ballot proposition. The ballot proposition shall specify the type and rate of tax and, in the case of a vehicle tax, the classes that will be exempt and, in the case of a local sales and services tax, the date it will be imposed which date shall not be earlier than ninety days following the election. The ballot proposition shall also specify the approximate amount of local option tax revenues that will be used for property tax relief and shall contain a statement as to the specific purpose or purposes for which the revenues shall otherwise be expended. If the county board of supervisors
 
or city council, as applicable, decides under subsection 6 to specify a date on which the local option sales and services tax shall automatically be repealed, the date of the repeal shall also be specified on the ballot. The rate of the vehicle tax shall be in increments of one dollar per vehicle as set by the petition seeking to impose the tax. The rate of a local sales and services tax shall not be more than one percent as set by the governing body. The state commissioner of elections shall establish by rule the form for the ballot proposition which form shall be uniform throughout the state.
   Sec. ___.  Section 423B.1, subsection 6, paragraph a, Code 2013, is amended to read as follows:
   a.
  (1)  If a majority of those voting on the question of imposition of a local option
 
vehicle tax favors imposition of a local option
 
the tax, the governing body of that
 
the county shall impose the tax at the rate specified for an unlimited period. However, in the case of a local sales and services tax, the county shall not impose the tax in any incorporated area or the unincorporated area if the majority of those voting on the tax in that area did not favor its imposition. For purposes of the local sales and services tax, all cities contiguous to each other shall be treated as part of one incorporated area and the tax shall be imposed in each of those contiguous cities only if the majority of those voting on the tax in the total area covered by the contiguous cities favored its imposition. In the case of a local sales and services tax submitted to the registered voters of two or more contiguous counties as provided in subsection 4, paragraph “c”, all cities contiguous to each other shall be treated as part of one incorporated area, even if the corporate boundaries of one or more of the cities include areas of more than one county, and the tax shall be imposed in each of those contiguous cities only if a majority of those voting on the tax in the total area covered by the contiguous cities favored its imposition.

If a majority of those voting on the question of imposition of a local option sales and services tax in a city favors imposition of the tax, the governing body of the city shall impose by ordinance the tax at the rate of one percent. If a majority of those voting on the question of imposition of a local option sales and services tax in the unincorporated area of the county favors imposition of the tax, the governing body of the county shall impose by ordinance the tax in the unincorporated area of the county at the rate of one percent.
   (2)  The local option tax may be repealed or the rate of the local vehicle tax increased or decreased or the use thereof
 
of a local option tax changed after an election at which a majority of those voting on the question of repeal or rate or use change favored the repeal or rate or use change. The date on which the repeal, rate, or use change is to take effect shall not be earlier than ninety days following the election. The election at which the question of repeal or rate or use change is offered shall be called and held in the same manner and under the same conditions as provided in subsections 4 and 5 for the election on the imposition of the local option tax. However, in the case of a local sales and services tax where the tax has not been imposed countywide, the question of repeal or imposition or rate or use change shall be voted on only by the registered voters of the areas of the county where the tax has been imposed or has not been imposed, as appropriate. However, the governing body of the incorporated area
 
city or unincorporated area where the local sales and services tax is imposed may, upon its own motion, request the county commissioner of elections to hold an election in the incorporated
 
city or unincorporated area, as appropriate, on the question of the change in use of local sales and services tax revenues. The election may be held at any time but not sooner than sixty days following publication of the ballot proposition. If a majority of those voting in the incorporated
 
city or unincorporated area on the change in use favors the change, the governing body of that
 
city or area shall change the use to which the revenues shall be used. The ballot proposition shall list the present use of the revenues, the proposed use, and the date after which revenues received will be used for the new use.
   (3)  When submitting the question of the imposition of a local sales and services tax, the county board of supervisors or the governing body of the city may direct that the question contain a provision for the repeal, without election, of the local sales and services tax on a specific date, which date shall be as provided in section 423B.6, subsection 1.
   Sec. ___.  Section 423B.1, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  If a proposition for the imposition of a local sales and services tax submitted to the voters of a city or unincorporated area of a county under this section fails to gain approval, the proposition shall not be resubmitted to the voters of that jurisdiction in substantially the same form for a period of three years following the date of the election and may only be resubmitted to the voters on a date specified in section 39.2, subsection 4, paragraph “a”.
   Sec. ___.  Section 423B.1, subsection 7, paragraph b, Code 2013, is amended to read as follows:
   b.  Costs of local option tax elections shall be apportioned among jurisdictions within the county voting on the question at the same election on a pro rata basis in proportion to the number of registered voters in each taxing jurisdiction
 
voting on the question and the total number of registered voters in all of the taxing jurisdictions
 
voting on the question.
   Sec. ___.  Section 423B.1, subsections 8 through 10, Code 2013, are amended to read as follows:
   8.  Local option taxes authorized to be imposed as provided in this chapter are a local sales and services tax and a local vehicle tax. The rate of the tax shall be in increments of one dollar per vehicle for a vehicle tax as set on the petition seeking to impose the vehicle tax. The rate of a local sales and services tax shall not be more than one percent as set by the governing body.
   9.
  a.  In a county that has imposed a local option sales and services tax
 
in the unincorporated area of the county, the board of supervisors shall, notwithstanding any contrary provision of this chapter, repeal the local option sales and services tax in the unincorporated areas or in an incorporated city area in which the tax has been imposed
 
area upon adoption of its own motion for repeal in the unincorporated areas or upon receipt of a motion adopted by the governing body of that incorporated city area requesting repeal. The board of supervisors shall repeal the local option sales and services tax effective on the later of the date of the adoption of the repeal motion or the earliest date specified in section 423B.6, subsection 1. For purposes of this subsection, incorporated city area includes an incorporated city which is contiguous to another incorporated city.
   b.  In a city that has imposed a local sales and services tax, the governing body of the city shall, notwithstanding any contrary provision of this chapter, repeal the local sales and services tax in the city upon adoption of its own motion for repeal. The governing body of the city shall repeal the local sales and services tax effective on the later of the date of the adoption of the repeal motion or the earliest date specified in section 423B.6, subsection 1.
   10.  Notwithstanding subsection 9 or any other contrary provision of this chapter, a local option sales and services tax shall not be repealed or reduced in rate if obligations are outstanding which are payable as provided in section 423B.9, unless funds sufficient to pay the principal, interest, and premium, if any, on the outstanding obligations at and prior to maturity have been properly set aside and pledged for that purpose.
   Sec. ___.  Section 423B.5, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   A local sales and services tax at the rate of not more than one percent may be imposed by a
 
city or county on the sales price taxed by the state under chapter 423, subchapter II. A local sales and services tax shall be imposed on the same basis as the state sales and services tax or in the case of the use of natural gas, natural gas service, electricity, or electric service on the same basis as the state use tax and shall not be imposed on the sale of any property or on any service not taxed by the state, except the tax shall not be imposed on the sales price from the sale of motor fuel or special fuel as defined in chapter 452A which is consumed for highway use or in watercraft or aircraft if the fuel tax is paid on the transaction and a refund has not or will not be allowed, on the sales price from the sale of equipment by the state department of transportation, or on the sales price from the sale or use of natural gas, natural gas service, electricity, or electric service in a city or county where the sales price from the sale of natural gas or electric energy is subject to a franchise fee or user fee during the period the franchise or user fee is imposed. A local sales and services tax is applicable to transactions within those incorporated and
 
the city or unincorporated areas
 
area of the county where it is imposed and shall be collected by all persons required to collect state sales taxes. All cities contiguous to each other shall be treated as part of one incorporated area and the tax would be imposed in each of those contiguous cities only if the majority of those voting in the total area covered by the contiguous cities favors its imposition. In the case of a local sales and services tax submitted to the registered voters of two or more contiguous counties as provided in section 423B.1, subsection 4, paragraph “c”, all cities contiguous to each other shall be treated as part of one incorporated area, even if the corporate boundaries of one or more of the cities include areas of more than one county, and the tax shall be imposed in each of those contiguous cities only if a majority of those voting on the tax in the total area covered by the contiguous cities favored its imposition.
   Sec. ___.  Section 423B.5, unnumbered paragraph 4, Code 2013, is amended to read as follows:
   If a local sales and services tax is imposed by a
 
city or county pursuant to this chapter, a local excise tax at the same rate shall be imposed by the
 
city or county on the purchase price of natural gas, natural gas service, electricity, or electric service subject to tax under chapter 423, subchapter III, and not exempted from tax by any provision of chapter 423, subchapter III. The local excise tax is applicable only to the use of natural gas, natural gas service, electricity, or electric service within those incorporated and unincorporated areas of the county where it is imposed and, except as otherwise provided in this chapter, shall be collected and administered in the same manner as the local sales and services tax. For purposes of this chapter, “local sales and services tax” shall also include the local excise tax.
   Sec. ___.  Section 423B.6, subsection 1, paragraphs b and c, Code 2013, are amended to read as follows:
   b.  A local sales and services tax shall be repealed only on June 30 or December 31 but not sooner than ninety days following the favorable election if one is held. However, a local sales and services tax shall not be repealed before the tax has been in effect for one year. At least forty days before the imposition or repeal of the tax, a
 
the city or county, as applicable, shall provide notice of the action by certified mail to the director of revenue.
   c.  The imposition of or a rate change for a local sales and services tax shall not be applied to purchases from a printed catalog wherein a purchaser computes the local tax based on rates published in the catalog unless a minimum of one hundred twenty days’ notice of the imposition or rate change has been given to the seller from the catalog and the first day of a calendar quarter has occurred on or after the one hundred twentieth day.
   Sec. ___.  Section 423B.6, subsection 2, paragraph b, Code 2013, is amended to read as follows:
   b.  The ordinance of a
 
governing body of a city or county board of supervisors imposing a local sales and services tax shall adopt by reference the applicable provisions of the appropriate sections of chapter 423. All powers and requirements of the director to administer the state sales tax law and use tax law are applicable to the administration of a local sales and services tax law and the local excise tax, including but not limited to the provisions of section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70 through 422.75, section 423.14, subsection 1 and subsection 2, paragraphs “b” through “e”, and sections 423.15, 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 through 423.42, 423.46, and 423.47. Local officials shall confer with the director of revenue for assistance in drafting the ordinance imposing a local sales and services tax. A certified copy of the ordinance shall be filed with the director as soon as possible after passage.
   Sec. ___.  Section 423B.6, subsection 3, paragraph b, Code 2013, is amended to read as follows:
   b.  All local tax moneys and interest and penalties received or refunded one hundred eighty days or more after the date on which the
 
city or county repeals its local sales and services tax shall be deposited in or withdrawn from the state general fund.
   Sec. ___.  Section 423B.7, subsection 1, paragraph a, Code 2013, is amended to read as follows:
   a.  Except as provided in paragraph “b”, the director shall credit the local sales and services tax receipts and interest and penalties from a county-imposed tax or a city-imposed tax to the county’s account in the local sales and services tax fund and from a city-imposed tax under section 423B.1, subsection 2, to the city’s account in the local sales and services tax fund
 
for the county in which the tax was collected. If the director is unable to determine from which county any of the receipts were collected, those receipts shall be allocated among the possible counties based on allocation rules adopted by the director.
   Sec. ___.  Section 423B.7, subsection 5, Code 2013, is amended by striking the subsection.
   Sec. ___.  Section 423B.8, subsection 1, paragraph a, Code 2013, is amended to read as follows:
   a.  The goods, wares, or merchandise are incorporated into an improvement to real estate in fulfillment of a written contract fully executed prior to the date of the imposition or increase in rate of a local sales and services tax under this chapter. The refund shall not apply to equipment transferred in fulfillment of a mixed construction contract.
   Sec. ___.  Section 423B.10, subsection 1, paragraph b, Code 2013, is amended to read as follows:
   b.  “Eligible city” means a city in which a local sales and services tax imposed by the
 
city or county applies or a city described in section 423B.1, subsection 2, paragraph “a”,
 
Code 2013, and in which an urban renewal area has been designated.
   Sec. ___.  EFFECT OF ACT —— CURRENT LOCAL OPTION TAXES.  This Act shall not affect the imposition and collection of a local option tax imposed, or that will take effect, as the result of a petition received or a motion approved under chapter 423B prior to July 1, 2013.
   Sec. ___.  APPLICABILITY.
   1.  This Act applies to petitions received pursuant to section 423B.1, subsection 4, paragraph “a”, on or after July 1, 2013.
   2.  This Act applies to motions adopted pursuant to section 423B.1, subsection 4, paragraph “b”, on or after July 1, 2013.>
   3.  Title page, by striking lines 1 through 4 and inserting <An Act relating to the approval and imposition of local option taxes and including applicability provisions.>
   4.  By renumbering as necessary.

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WATTS of Dallas