House File 615 - Introduced
HOUSE FILE
BY ELGIN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the imposition of a regional lodging tax for
2 regional promotion and projects.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1999HH 81
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PAG LIN
1 1 Section 1. Section 423A.1, unnumbered paragraph 8, Code
1 2 2005, is amended to read as follows:
1 3 The tax levied shall be in addition to any state sales tax
1 4 imposed under section 423.2 or regional lodging tax imposed
1 5 under section 423F.1. Section 422.25, subsection 4, sections
1 6 422.30, 422.67, and 422.68, section 422.69, subsection 1,
1 7 sections 422.70 to 422.75, section 423.14, subsection 1, and
1 8 sections 423.23, 423.24, 423.25, 423.31, 423.33, 423.35,
1 9 423.37 to 423.42, and 423.47, consistent with the provisions
1 10 of this chapter, apply with respect to the taxes authorized
1 11 under this chapter, in the same manner and with the same
1 12 effect as if the hotel and motel taxes were retail sales taxes
1 13 within the meaning of those statutes. Notwithstanding this
1 14 paragraph, the director shall provide for quarterly filing of
1 15 returns and for other than quarterly filing of returns both as
1 16 prescribed in section 423.31. The director may require all
1 17 persons, as defined in section 423.1, who are engaged in the
1 18 business of deriving any sales price subject to tax under this
1 19 chapter, to register with the department. All taxes collected
1 20 under this chapter by a retailer or any individual are deemed
1 21 to be held in trust for the state of Iowa and the local
1 22 jurisdictions imposing the taxes.
1 23 Sec. 2. NEW SECTION. 423F.1 REGIONAL LODGING TAX.
1 24 1. For purposes of this chapter, "region" means an area
1 25 containing at least two cities, a city and the unincorporated
1 26 area of a county, or the unincorporated areas of two counties
1 27 where each city and unincorporated area of each county in the
1 28 area has imposed the hotel and motel tax pursuant to chapter
1 29 423A.
1 30 2. Cities and counties that have imposed hotel and motel
1 31 taxes pursuant to chapter 423A may establish a region for the
1 32 purpose of the imposition of a regional lodging tax. To
1 33 establish the region the cities and counties that have imposed
1 34 the hotel and motel tax pursuant to chapter 423A and are
1 35 located in the area that will make up the region shall enter
2 1 into chapter 28 agreements with each of the other
2 2 jurisdictions. As part of the agreement, a regional
2 3 administrative board shall be established to administer funds
2 4 generated by the regional lodging tax. Each city and county
2 5 which is part of the agreement is entitled to one member on
2 6 the regional administrative board who shall be appointed by
2 7 the governing body of that city or county. Each member shall
2 8 serve at the pleasure of the governing body that appointed
2 9 that member.
2 10 3. A city or county located in the region may impose by
2 11 ordinance of the city council or by resolution of the board of
2 12 supervisors a regional lodging tax at a rate of one or two
2 13 percent as specified in the chapter 28 agreement. The tax
2 14 shall be imposed upon the sales price from the renting of
2 15 sleeping rooms, apartments, or sleeping quarters in a hotel,
2 16 motel, inn, public lodging house, rooming house, manufactured
2 17 or mobile home which is tangible personal property, or tourist
2 18 court, or in any place where sleeping accommodations are
2 19 furnished to transient guests for rent, whether with or
2 20 without meals; except the sales price from the renting of
2 21 sleeping rooms in dormitories and in memorial unions at all
2 22 universities and colleges located in the state of Iowa and the
2 23 guests of a religious institution if the property is exempt
2 24 under section 427.1, subsection 8, and the purpose of renting
2 25 is to provide a place for a religious retreat or function and
2 26 not a place for transient guests generally. The tax when
2 27 imposed by a city shall apply only within the corporate
2 28 boundaries of that city and when imposed by a county shall
2 29 apply only outside incorporated areas within that county.
2 30 "Renting" and "rent" include any kind of direct or indirect
2 31 charge for such sleeping rooms, apartments, or sleeping
2 32 quarters, or their use. However, the tax does not apply to
2 33 the sales price from the renting of a sleeping room,
2 34 apartment, or sleeping quarters while rented by the same
2 35 person for a period of more than thirty=one consecutive days.
3 1 4. A regional lodging tax shall be imposed on January 1,
3 2 April 1, July 1, or October 1, following the notification of
3 3 the director of revenue. Once imposed, the tax shall remain
3 4 in effect at the rate imposed for a minimum of one year. A
3 5 regional lodging tax shall terminate only on March 31, June
3 6 30, September 30, or December 31. At least sixty days prior
3 7 to the tax being effective or prior to the repeal of the tax,
3 8 the regional administrative board shall provide notice by mail
3 9 of such action to the director of revenue.
3 10 5. The director of revenue shall administer a regional
3 11 lodging tax as nearly as possible in conjunction with the
3 12 administration of the state sales tax law. The director shall
3 13 provide appropriate forms, or provide on the regular state tax
3 14 forms, for reporting regional lodging tax liability. All
3 15 moneys received or refunded one hundred eighty days after the
3 16 date on which a regional lodging tax is repealed shall be
3 17 deposited in or withdrawn from the general fund of the state.
3 18 The director, in consultation with the regional
3 19 administrative board, shall collect and account for a regional
3 20 lodging tax and shall credit all revenues to the regional
3 21 lodging tax fund created in section 423F.2.
3 22 No tax permit other than the state sales tax permit
3 23 required under section 423.36 may be required by local
3 24 authorities.
3 25 6. The tax levied shall be in addition to any state sales
3 26 tax imposed under section 423.2 and the local hotel and motel
3 27 tax imposed under section 423A.1. Section 422.25, subsection
3 28 4, sections 422.30, 422.67, and 422.68, section 422.69,
3 29 subsection 1, sections 422.70 to 422.75, section 423.14,
3 30 subsection 1, and sections 423.23, 423.24, 423.25, 423.31,
3 31 423.33, 423.35, 423.37 to 423.42, and 423.47, consistent with
3 32 the provisions of this chapter, apply with respect to the
3 33 taxes authorized under this chapter, in the same manner and
3 34 with the same effect as if the regional lodging taxes were
3 35 retail sales taxes within the meaning of those statutes.
4 1 Notwithstanding this subsection, the director shall provide
4 2 for quarterly filing of returns and for other than quarterly
4 3 filing of returns both as prescribed in section 423.31. The
4 4 director may require all persons, as defined in section 423.1,
4 5 who are engaged in the business of deriving any sales price
4 6 subject to tax under this chapter, to register with the
4 7 department. All taxes collected under this chapter by a
4 8 retailer or any individual are deemed to be held in trust for
4 9 the state of Iowa and the regional administrative boards of
4 10 the areas in which the taxes are imposed.
4 11 Sec. 3. NEW SECTION. 423F.2 REGIONAL LODGING TAX FUND ==
4 12 USE OF REVENUES.
4 13 1. A regional lodging tax fund is created in the state
4 14 treasury under the control of the department of revenue which
4 15 shall consist of all moneys credited to this fund under
4 16 section 423F.1.
4 17 2. a. All moneys in the regional lodging tax fund shall
4 18 be remitted at least quarterly by the department of revenue,
4 19 pursuant to rules of the director of revenue, to each regional
4 20 administrative board in the amount collected from businesses
4 21 in its region.
4 22 b. Moneys received by the board from this fund shall be
4 23 credited to a special tourism fund of the region.
4 24 3. The special tourism fund shall be administered by the
4 25 regional administrative board.
4 26 4. Moneys in the special tourism fund shall only be used
4 27 to do any of the following:
4 28 a. Assist the region or a city or unincorporated area
4 29 within the region in the development and creation of
4 30 attractions and tourism facilities.
4 31 b. Promote and advertise tourist attractions located in
4 32 the region.
4 33 c. Provide grants or loans to nonprofit organizations that
4 34 promote, advertise, or maintain tourist attractions or
4 35 facilities within the region.
5 1 EXPLANATION
5 2 Present law allows a city or county by resolution or
5 3 ordinance to impose a local hotel and motel tax of up to 7
5 4 percent on the renting of lodging rooms. The city tax applies
5 5 to rooms located in the city and the county tax applies only
5 6 to those rooms located in areas outside the cities. This bill
5 7 allows a region to impose a 1 or 2 percent tax regionwide. To
5 8 do this, each city and county of the region must already
5 9 impose the local hotel and motel tax and enter into Code
5 10 chapter 28 agreements to impose the regionwide tax. The
5 11 moneys from the tax would be administered by a board that may
5 12 only spend the moneys for development and creation of
5 13 attractions and tourism facilities; for promoting and
5 14 advertising tourist attractions; or for providing grants or
5 15 loans to nonprofit organizations that promote, advertise, or
5 16 maintain tourist attractions or facilities.
5 17 LSB 1999HH 81
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